Gold hits $2,000 an ounce for the first time ever

Gold hit $2,000 (£1,530) an ounce for the first time on Tuesday following a record-breaking rally driven by fears over the impact of the coronavirus pandemic on the global economy.

The yellow metal, seen as a safe-haven asset, has been on a steady upwards trajectory over recent months, climbing more than 30pc this year.

The reversal of the positive move in the dollar also assisted the metal on Tuesday, with silver prices also buoyant.

Gold has been one of the world’s best performing mainstream assets this year also thanks to depressed bond yields and interest rates remaining around 0pc in many parts of the world.

Analysts at BofA Global Research forecast that bullion will surge by 50pc over the next 18 months to around $3,000 an ounce and see other precious metals benefiting in the Covid-19 environment.

Edward Moya of OANDA said: "Gold is catching fire again on stimulus bets, some dollar weakness, and as risky assets get a boost on improving economic data and improving virus outlook. Gold is now the favorite safe-haven as Treasury yields continue to slide."

On Tuesday investors remained concerned over whether the US will pass another spending measure to support the world's largest economy. A new stimulus bill could add extra liquidity to markets and weigh on rates, which would support the precious metal further.

Traders are watching for signs of progress as Democrats and Republicans are battling to hammer out a new package before the Senate goes on summer break on Friday.

December gold rose $34.70 to $2,021 an ounce, a rise of 1.7pc while September silver staged its own rally, climbing 6.6pc to end at $26.03.