(Bloomberg) — Gold’s record-breaking bull market is facing an existential question after this month’s pharmaceutical breakthroughs: what happens to the rally once Covid-19 vaccines start rolling out?
Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation . And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.
For most of 2020, conditions could hardly have been better for gold, as the deluge of money printing, weaker dollar and global uncertainty spurred demand, driving up prices. Tumbling real U.S. Treasury rates sparked steeper gains in July and August, eventually sending spot gold to a record above […]
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