The price of gold rose Thursday, as the Coronvairus' spread pushed investors out of risk assets like stocks, but the metal could still climb higher.
Gold rose 0.15% Thursday and is up 8% year-to-date. It now trades at $1,651 an ounce. Importantly, Goldman Sachs says it can go to $1,800.
The U.S. market on Thursday dipped into correction territory after the World Health Organization said Wednesday that the coronavirus might hit the U.S. But some on Wall Street say that technical indicators, coupled with stock and bond valuations, say stocks can rise sharply from here.
The S&P 500 fell 2.31% Thursday, while the other major U.S. indexes fell sharply as well. The S&P 500 entered correction territory, falling more than 10% from its all-time high, which it hit a week ago.
The WTI oil index fell to a critically lowe $46 a barrel, while the safe 10 year treasury bond now only yields 1.28%, as investors rush for safety.
Here's the argument for still getting into gold at this high price level, as told by Kitco News' Editor-in-Chief Daniela Cambone:
"Gold, right now, is acting as the ultimate safe haven. [The] all-time high for gold being $1,900 -- doesn't seem so high right now. We had stop talking about a recession. Here we are not just talking about a U.S. recession, but really a global recession that should and will probably add more fuel to gold's fire here."
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