Three related forces are propelling gold toward a record price: economic concerns, lower bond yields, and a weaker U.S. dollar. A boost in buying this year by central banks has added fuel to the rally. The tailwinds look likely to continue.
The price of gold settled at $2,041.30 an ounce on Thursday, the second-highest value in history and about half a percentage point below the August 2020 record of $2,069.40. The yellow metal has gained 13% since late February, before Silicon Valley Bank failed. Gold is up more than 25% since November. Other precious metals have rallied even more lately: The price of silver has surged nearly 30% in a month.