Jul 9, 2020 - Economy

The price of gold is surging, but not because of coronavirus

A chart on gold
Data: FactSet; Chart: Axios Visuals

Despite holding in a tight range through most of the second quarter, gold has broken higher since late June and "seems to have recovered its mojo," Ross Norman, CEO of Metals Daily, told MarketWatch.

What's happening: Gold is "neither responding to either the U.S. dollar nor the virus, but the second quarter economic impact," of the massive M2 money supply growth leading to concerns about future inflation, debt and negative real yield on U.S. Treasuries, Norman added. "The precious metal stayed above the $1,800 level and hit its highest in nearly nine years Wednesday," Norman said.

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