Gold prices soared to a new record high in early trading on Wednesday as a result of weakness in the US dollar amid worries about a delay in economic recovery in the US. At the time of writing, gold is trading at a little above $2,022.

The safe haven appeal of gold remains in the spotlight as the coronavirus pandemic rages on in the US and several other countries, forcing some regions to reimpose lockdown measures. This has markets worried about further delay towards economic recovery around the world, despite recent positive economic data releases worldwide.

Gold has received an additional boost due to bearishness in the US dollar as uncertainty about the coronavirus relief bill drags on. Even though negotiations remain ongoing between Democrats and Republicans, Congress has so far been unable to make a breakthrough in them and approve the bill. A delay in rolling out more fiscal stimulus in the US is likely to delay and possible recovery, supporting the safe haven metal prices for now.

Economists forecast the bullishness in gold prices to continue in the near future amid continued uncertainty about the coronavirus pandemic and its economic impact worldwide. With central banks hinting at a prolonged period of dovishness by holding interest rates low and unveiling more monetary easing, the yellow metal can remain in favor in the coming months as a safe instrument to trade and invest in.