Gold prices have gained a further 2% on Monday to print the record highs above $1940/oz. A weaker dollar across the board, massive stimulus packages introduced around the globe, and resurging U.S. – China conflict have all helped gold prices to surge.

A surge in the number of new COVID-19 infections around the world is likely to prompt new actions from the central banks and major world powers. A new round of stimulus packages is expected in the fall to help troubled economies survive one of the worst financial crises in the last 100 years.  

According to media reports, the White House and Senate Republicans have reached a preliminary agreement on the next stimulus package.

Meir also added that he expects gold to continue gaining as investors are shifting funds from the dollar to gold and other assets. The dollar index is trading lower for the seventh consecutive day to hit a fresh 2-year low. 

The markets are now anticipating a new set of monetary action from the Federal Reserve that are likely to apply additional pressure on the dollar. 

Gold prices have added an additional 2% on Monday to its impressive bullish run to clear the previous record high set in 2011. The yellow metal price is now trading comfortably above the previous record high at $1921/oz. 

If the buyers can secure a daily, and more importantly, weekly close above this level, the door would be open for a move towards the psychologically-important $2000/oz level. This area also hosts the 127.2% Fibonacci extension of the 2012 – 2015 crash in gold prices. 

Therefore, a new set of monetary and fiscal actions to support embattled economies may facilitate a new round of gold buying. 

Gold prices have continued their impressive bullish run to hit record highs above $1940/oz. The buyers will now want to tag the psychologically-important $2000/oz level.

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