Gold Hits Record High Amid Pandemic: Here's Why

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Gold, which has gained nearly 33% so far this year amid the pandemic, surpassed $2,000 per ounce on Wednesday, a record high. Meanwhile, the U.S. dollar extended its slump against a number of its global peers.

The yellow metal is considered by traders, investors, and experts to be a "safe-haven asset," meaning a good option for investments during market turmoil. Experts stress the need to be diversified—market holdings should not solely be in stocks.

“Gold has fascinated humankind for thousands of years,” said Austin Pickle, an investment research analyst for Wells Fargo Investment Institute. “It is impervious to air and water, and nearly every ounce that has ever been mined still sits above ground today.”

Markets are higher on Wednesday, as White House officials vowed to work "around the clock" with Democrats in order to come to a consensus over a second relief package.

In economic news, U.S. private payrolls increased by 167,000 in July after a strong rebound of 2.37 million in June, according to the ADP National Employment Report. Economists expected 1.5 million additions last month.

There are over 18.6 million cases of the virus worldwide, with over 702,000 deaths. The U.S. has 4.7 million cases with over 157,000 deaths. According to the COVID-19 Tracking Project, there were 51,568 new cases reported Tuesday. 695,586 new tests were reported. And 1,176 deaths were reported yesterday. 

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