The COVID-19 pandemic produced the largest peacetime monetary and fiscal stimulus in history — and gold responded. In August 2020, the price pushed past $2,000 an ounce for the first time, finally eclipsing the nominal record set in 2011.
With real interest rates driven deeply negative and central banks expanding their balance sheets at extraordinary speed, the case for a non-yielding store of value had rarely been stronger. The pandemic record proved to be not a peak but a way-station: within a few years gold would be setting fresh records as central-bank buying surged after 2022.
Key events of 2020
- 2020-03-23
Unlimited QE
The Fed pledges open-ended asset purchases as the pandemic hits; real yields collapse.
- 2020-08-06
Gold tops $2,000
The metal sets a nominal record above $2,000/oz for the first time.