Why has the gold price hit a record high – and what could it mean for the economy?

Analysis: What could this mass gold buying activity be saying about the expectations about the global economy in the midst of the coronavirus pandemic? Ben Chu investigates

Gold is traditionally seen as a “safe haven” asset, meaning people that tend to buy it when there is economic and financial stress taking place in the wider economy (AFP via Getty Images)

The price of an ounce of gold passed $2,000 this week, the highest traded price ever seen for the precious metal.

The jump in price reflects the fact that many short-term speculators and also long-term investors around the world have been ploughing money into gold on a huge scale.

But why would they be doing so? Is this a wise investment? Or could it be a bubble?