Demand for safe-haven assets like gold and silver has been strong this year after investors were scared off by the volatile stock market. Stimulus measures by central banks have added to the momentum too.
The price of gold has climbed to a nine-year high in anticipation of more steps by governments to revitalise economies after the coronavirus pandemic.
Spot gold reached $1,865.35 per ounce in the early hours of trading on Wednesday, its highest since September 2011, and was down at around $1,854.00 as of 14:05 GMT.
The bullion picked up nearly 0.9 percent during the Wednesday session and has surged by more than 22 percent since the start of the year.
Silver meanwhile climbed 4 percent to $22.19 per ounce, its highest since October 2013.
Precious metals typically grow when investors bet on massive stimulus measures, which result in the devaluation of paper money in circulation. The precious metal is also commonly used as a safe haven during volatility on the stock market.
The European Union on Tuesday agreed a nearly $870-billion recovery plan, while another bipartisan relief bill is being discussed in the United States.
Cailin Birch, global economist at the Economist Intelligence Unit, told Reuters that the demand for safe-haven assets like gold and silver is expected to remain “relatively strong” in 2020, which means that gold is likely to sprint past $1,900 per ounce.