Gold prices hit a record high on Monday and may yet have room to run, according to National Bank Financial Inc. (NBF).
In a research note, NBF reported that gold bullion prices rose by more than US$20 per ounce, reaching US$2,753 per ounce, setting a milestone for the metal.
“This isn’t just a new nominal record but also a historic high in inflation-adjusted terms, surpassing a 45-year-old benchmark,” the report said.
On an inflation-adjusted basis, the previous high was US$2,742 per ounce, which was reached in January 1980, NBF noted.
At that time, inflation was at double-digit levels, and a recession was beginning.
“Looking ahead, we remain optimistic about gold’s trajectory,” NBF said.
“Rising government debt, increasing geopolitical uncertainty, and growing protectionism create the ideal conditions in which the yellow metal typically thrives,” it said.