Trouble ahead when gold glitters

Analysts have been predicting huge upside for gold for several months.
Analysts have been predicting huge upside for gold for several months.PHOTO: REUTERS

It is easy to forget now but there was a time early on in the pandemic when the price of gold was in free fall.

But the precious metal has since seen one of the most ferocious rallies ever. At the close of trading in New York on July 24, bullion had spiralled to about US$1,900 an ounce, some 30 per cent higher than the low it hit in March and just 1 per cent off a record high set back in 2011.

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A version of this article appeared in the print edition of The Sunday Times on August 02, 2020, with the headline 'Trouble ahead when gold glitters'. Print Edition | Subscribe