Multi-asset managers dismiss bubble fears as gold price reaches record high

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Gold is likely to continue its rally despite vaccine hopes boosting market optimism over recent weeks, according to several investment professionals, who said the increasing likelihood of inflation, geopolitical tensions and downward pressure on the dollar could continue to bolster the price of the yellow metal.

This comes hours after gold soared to an all-time high of $1,943.93 an ounce, as regional outbreaks of coronavirus have sparked fears of a second wave, and tensions between the US and China have worsened. The commodity's previous price record was set in 2011 during the throes of the European sovereign debt crisis. Year to date, gold's spot price has risen by more than 27% according to data from FE fundinfo. While gold typically fares well during times of uncertainty or crisis, investment professionals say it is far less usual for stockmarkets and gold to move upwards in tandem - a ...