Gold leaps above $1,800 for the first time since 2011 as traders pile into the popular safe haven

Year-to-date inflows for gold-tracking ETFs reached 655.6 tons on Wednesday, according to Bloomberg , overtaking full-year inflows seen in 2009.
Goldman Sachs sees the precious metal leaping even higher. The bank set a 12-month price target of $2,000 for gold on June 19, noting that investment demand will likely continue to grow even as the economy recovers.
Watch gold trade live here .

Gold spot prices broke above $1,800 per ounce on Tuesday afternoon for the first time since 2011, bolstered by record inflows and widespread risk-off attitudes. The precious metal continued trading above that level Wednesday morning.

Safe havens are enjoying their time in the sun as the stock market's run-up slows. Spiking coronavirus case counts have fueled new concerns of a second plunge for risk asset prices. Federal Reserve officials warn the virus' resurgence could freeze an economic recovery , and the Organization for Economic Co-operation and Development recently referred to the pandemic's labor market damage as " far worse " than during the financial crisis.

The wave of gloomy news has pushed investors back to gold at a blinding pace. Year-to-date inflows for exchange-traded funds tracking the metal reached 655.6 tons on Wednesday, Bloomberg reported, surpassing the full-year increase seen in 2009. Gold ETF holdings currently sit at 3,234.6 tons.

The precious metal traded as high as $1,804.80 per ounce on Wednesday, up roughly 19% year-to-date.

Some analysts think gold has plenty of room to run. Goldman Sachs raised its 12-month price target for the popular hedge on June 19 to $2,000 per ounce, expecting gold to reach a record high amid lasting virus damage. With interest rates set to remain close to zero for years to come and the US dollar facing significant pressure, the metal's rally shows no signs of stopping, the bank's analysts said.

"As we have argued in the past, gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates," Goldman said. "Simultaneously we see a material comeback from [emerging-market] consumer demand boosted by easing of lockdowns and a weaker dollar."

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