Price of gold clears $2,000, breaking record

Price of gold clears $2,000, breaking record
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The price of gold, a commodity thought of as a safe investment in uncertain times, has surpassed $2,000 an ounce, breaking a record. 

Since the start of the year, the precious metal's value has increased by a third as the coronavirus pandemic has devastated the global economy, leading to near-zero interest rates and anemic bond yields.

The enormous amounts of fiscal and monetary stimulus coming from governments around the world to prop up their economies has raised some questions about the likelihood of future inflation, which makes gold an attractive hedge.

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The spike in gold prices, which many see as a signal of anxiety for the state of the economy, runs somewhat contrary to the recent stock market rebound, which signals optimism about the economic rebound, or at least how large, publicly traded companies will fare through it.

Last week, a Goldman Sachs analysis said the rise of gold had raised questions about the U.S. dollar's status as the world's reserve currency.

"Combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge," the note said.

Controlling the world's reserve currency has been an economic asset to the United States since World War II in matters of trade and debt.