The lack of a stock market panic or any hint of inflation makes now an odd time for gold prices to soar.
The price of gold surged to an all-time high on Monday. Some experts pointed to the worsening of U. S.-China trade and political tensions. Others cited growing investor concerns that an economic recovery from the coronavirus pandemic might be weakening in the U. S. and elsewhere.
But the jump in gold prices is highly unusual because stock prices have also surged recently after dropping in early March as coronavirus began to spread in the U. S.
Gold is usually seen as a safe haven when stocks are falling or when inflation is rising. Neither of those two things are happening right now.
Nonetheless, gold spiked $40.60 to a record $1,938.10 per ounce in a sign that nervous investors were looking for safe havens to park their money.
When adjusted for inflation, gold prices were actually higher in September 2011. Prices peaked back then before later losing one-third of their value by December 2013. To hit an inflation-adjusted high, gold would have to rise another 10%, or $200, to $2,135.
