Gold touched record prices as worries over issues such as the coronavirus pandemic as well as U.S.-China tensions weighed on investor sentiment.
Spot gold traded up 1.9% at about $1,938.11 per ounce after earlier trading as high as $1,943.9275 per ounce.
We think these three factors, in combination with limited supply growth as miners continue to restrain capital spending, will drive gold prices higher,” UBS chief investment officer Mark Haefele told clients Monday.
“The negative relationship between long term US real yields and gold futures has held up fairly well over the longer term.
“The fall in US 10 year real yields is primarily being driven by an increase in US 10 year inflation expectations.”