It is almost self-fulfilling now. Gold appears to be headed for $2,000 an ounce in the not too distant future after setting a new intra-day high of $1980 overnight as dollar weakness and fears over the US economy prompt investors to seek further insurance in the yellow metal.
Travel restrictions are tightening in Europe on fears of a second wave of coronavirus, and investor nerves have been further stoked by a rise in cases in China and no sign that the first wave has even peaked yet in the Americas. Nonetheless, equity indices across Asia and the US still rose overnight as traders looked ahead to a US Federal Reserve meeting today which is expected to confirm a further willingness to support the US economy through what could end up being another period of lockdown in many areas.