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Gold prices reach historical records

By Bahaa Al Deen Al Nawas , AFP - Jul 29,2020 - Last updated at Jul 29,2020

The price of an ounce of gold is forecast to exceed $2,000 as long as global data remains the same, according to the Jordanian Jewellers Association (JT file photo)

 

AMMAN — The price of an ounce of gold is forecast to exceed $2,000 as long as global data remains the same, President of the Jordanian Jewellers Association Osama Imseeh said in remarks to The Jordan Times on Tuesday.

Imseeh expected that prices of gold will undergo corrections, noting that there will be a slight drop in prices in light of profit-taking from investors. 

"Gold is positive, but we can’t exclude corrections and then consolidations," Imseeh said, noting that the price of an ounce will witness corrections based on global data, especially in relation to the tensions between the US and China.

The association president said that the price of an ounce of gold reached around $1,966.80 on Wednesday.

The prices of 24, 21 and 18 karat gold on Tuesday amounted to an average of JD44, JD38.5 and JD33, respectively, according to the most recent report on jordan.gold-price-today.com website. 

Gold briefly chalked up another record on Tuesday before easing later in the day as the dollar clawed back earlier losses, while equity markets struggled to hold on to gains with fears about the coronavirus pandemic mounting, Agence France-Presse (AFP) news agency reported on Tuesday.

The virus uncertainty descending on trading floors, combined with the China-US tensions, sent gold soaring nearly 30 per cent and on Tuesday it hit another record of $1,981.27, smashing the previous day's all-time high, but it later pared the advance to sit lower for the day, according to AFP.

"As COVID-19 continues to ravage the economy, there's probably more stimulatory action to come. As the US dollar weakens, obviously gold will improve, but it's more a matter of the acceleration of US money supply, and that's caused by governments obviously throwing money into the economy," AFP quoted Fat Prophets analyst David Lennox as saying.

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