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Spot gold prices have hit a five-month high, closing at $US1908.85 ($2466.18) per ounce on Wednesday as uncertainty surrounding the United States economy continued.

The price of gold hadn’t ticked over $1900 since January 8 2021, when it closed at around $1911, before dropping below the evasive threshold.

This is the tenth time gold has breached $1900 per ounce since July 2020 – some occasions for just a day – as COVID-19 volatility continued to shake the market.

Before July 2020, however, this had only occurred on two separate days in mid-2011.

In April, World Gold Council senior markets analyst Louise Street said gold will continue to enjoy troughs and peaks like this as economies attempt optimism in the face of COVID-19.

“As countries around the world continue their recoveries, economies have started to cautiously re-open. This led to an encouraging return in consumer confidence in (the March quarter of 2021), as illustrated by the stellar rise in gold jewellery demand,” Street said.

Street predicted these gold prices as multiple factors backed the boom.

“Gold retains its relevance in well-balanced portfolios, especially with a risk of inflation looming. Looking ahead to the rest of the year, we see reasons to be optimistic about the gold market as its main drivers remain well supported,” Street said.

In March, Fitch Solutions predicted any bullish behaviour from gold prices would not last for long.

“Investor sentiment towards gold has also continued to ease significantly in recent months following the rally recorded in (the first half of 2020) and the peak in prices reached in August last year,” the company stated.

“We continue to hold a below-consensus view on gold prices, in 2021 and beyond.”

Western Australia’s Department of Mines, Industry Regulation and Safety (DMIRS) reported record sales for gold in 2020, reaching an all-time high of $17 billion in Western Australia, off the back of last year’s record average $1934 per ounce gold price.