Gold prices hit record high over virus, economy fears

A Thai shopkeeper adjusts his face mask at a gold shop in Bangkok, Thailand. The price of gold surged more than $30 on Monday to over $1,926 per ounce as investors step up buying of the precious metal often sought in times of uncertainty. (AP Photo/Sakchai Lalit, File)

by: Associated Press and Nexstar Media Wire

Posted: Jul 27, 2020 / 04:03 AM MDT

Updated: Jul 27, 2020 / 04:04 AM MDT

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BEIJING (AP) — The price of gold surged to a record above $1,934 per ounce on Monday as investors moved money into an asset seen as a safe haven amid jitters about U.S.-Chinese tension and the recovery from the coronavirus pandemic.

It added 2% percent after breaking its 2011 record high price on Friday, when it closed at $1,897.50 on the New York Mercantile Exchange.

As of 8:35 GMT on Monday, it was at $1,934.60 per ounce and had traded as high as $1,938 per ounce.

Prices of gold and silver have jumped as rising infection numbers and job losses in the United States and some other economies fuel concern the recovery from the virus and the worst global downturn since the 1930s might be faltering.

Precious metals, along with bonds, often are seen as stores of value when financial markets decline. Forecasters watch their prices as an indicator of how investors see the economic future.