Jul 25, 2020 - Economy & Business

Amid global worry, gold hits 9-year high

Swiss gold bars in Paris.

Swiss gold bars in Paris in February. Photo: Joel Saget/AFP via Getty Images

The price of gold surpassed its 2011 peak of $1,891.90 per ounce this week, with bullion hitting $1,902.02 at the close of trading in New York on Friday, Bloomberg reports.

Why it matters: The coronavirus pandemic and increased tensions between the U.S and China are fueling demand for safer assets, according to Bloomberg.

The big picture: Though stocks have recently rallied, some investors remain concerned that state lockdowns and unprecedented federal stimulus packages could further disrupt the economy and spur inflation amid sluggish growth, boosting the value of precious metals.

Go deeper