Covid-19 Recession, US-China Grudges Drive Gold Price to All-Time High

Gold soared to an all-time high on Monday in the international market.

The Covid-19 pandemic has turned the economies of countries upside down all over the world. Stock Market indices of major economies saw an unstable fluctuation from the day the Coronavirus was declared a global health crisis.

The economies of the world collapsed by what we now know as the Covid-19 recession. This has led investors to flock to safe havens, i.e. precious metals.

Above all this, worsening diplomatic ties between China and the United States upset investors and further fired up demand for gold.

Gold rose 1.6% to a record high of $1,943 per ounce on Monday. Thus, the price of Gold has even surpassed the level it reached after the September 11 attacks, when the Islamic terrorist group al-Qaeda did a series of four coordinated terrorist attacks against the United States. The attacks had a significant economic impact on the United States and world markets. The Dow Jones Industrial Average fell 684 points, or 7.1%, to 8921, a record-setting one-day point decline.

Analysts say that because of the "mess" that is seen everywhere around the world, the price of gold can reach even higher levels as more and more people want to secure their wealth in this precious metal.

In sync with the international scenario, gold is also trading at a record high level in the Nepalese market. According to the official website of the Federation of Nepal Gold and Silver Dealers' Association (fenegosida), fine gold is being traded at Rs. 97,500 per tola and tejabi gold at Rs. 97,060 per tola.

Meanwhile, silver is being traded at Rs. 1210 per tola in the Nepalese market.