Gold pulls back after hitting another record
Gold has left other investments in the dust this year climbing nearly 27 percent
You can call it the new gold rush. Investors are sending the price of the precious metal to record levels.
The price of gold jumped a fresh intraday high of $1,974.70 an ounce on Tuesday before retreating. Gold is pulling back, down $19.60 to $1911.50
On Monday evening, gold futures contracts showed it touching the $2,000 an ounce mark.
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Investing in gold has long been seen as a flight to safety during turbulent times.
Gold has left other investments in the dust this year climbing nearly 27 percent, topping bond funds and big U.S. stocks.
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It may be an understatement that 2020 is certainly turbulent times. Among the issues keeping some investors up at night include the coronavirus and its death toll and the role it has played in the collapse of the U.S. and global economies. Investors are also looking at the increased tensions between the U.S. and China
The falling dollar and a ballooning deficit are also playing into gold's run.
The Federal Reserve may look at the rise in gold as low interest rates have also contributed. The Fed begins its two-day meeting on monetary policy on Tuesday. The Fed brought rates down and helped create support programs to counter the impact of the coronavirus.
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After topping $1,800 per ounce in 2011, it’s taken nearly a decade for gold to surpass that level.
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There are estimates that it could climb to $3,000 per ounce.
The Associated Press contributed to this article.