Gold surges past US$2,000, stage set for further rally

The surge in gold does pose risks for a correction, with two major technical indicators suggesting the precious metal was already overbought before it broke through $2,000.

GOLD rallied into record territory above $2,000 an ounce as investors assessed increased geopolitical risks and the prospect for further stimulus to combat fallout from the pandemic.

Bullion is up more than 30% this year, with its haven status enhanced by sliding U.S. real yields. gold could extend gains as governments and central banks respond to slowing growth with vast amounts of stimulus.

The metal’s appeal is strengthening as the dollar weakens and a long global recovery looms. goldman Sachs Group Inc. forecasts a rally to $2,300.