Gold prices shoot up amid market shock

The Australian dollar gold price has reached a seven-year high in the wake of a crash in crude oil prices.

Tension between oil producing countries Russia and Saudi Arabia has sent investors flocking to the safe haven asset.

Gold peaked at $2548.23 an ounce in the Australian dollar currency yesterday after tracking upward from $2528.96 the previous day, according to data on the ABC Bullion website.

The precious metal has now settled at $2528.80 per ounce (at the time of writing).

Gold prices have shot up to record highs this year on Brexit, coronavirus fears and escalating tensions between United States and Iran, proving the precious metal as a “consistent outperformer during periods of crisis,” according to Baker Steel Capital Managers.

They have also been moving on an upward trajectory following the US-China trade war, returning 19.1 per cent in Australian dollars in 2019, according to ABC Bullion.

“With interest rates at record lows, bond prices at record highs and equity markets uncertain, there is the potential for physical gold and silver to continue to outperform most financial assets in the coming years,” it stated.

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