What’s happening with gold?
In response to the Coronavirus as well as enormous government actions, markets have been see-sawing wildly – in fact in the USA 9 of the 11 biggest moves in the stock market over the past decade have taken place in the last 15 trading days.
Gold has been having a hard time of it, going down to $1,460 in early March.
But the 23rd March, feeding on the recommendation from Goldman Sachs, gold started to experience a resurgence, closing at $1,618 on March 24 following Washington’s $6 trillion Coronavirus relief package release.
And today (April 2nd) gold prices are pushing even higher following the record rise in US jobless claims trading at $1,626 an ounce.
The price of gold has not seen highs of $1,700 since 2012 and analysts and experts are already predicting Gold may reach $1,800 within the next 12 months in response to the Federal Reserve’s latest stimulus package. Trillions of dollars of quantitative easing works in gold’s favour as investors seek safety and rush to buy this safest of safe-haven assets.
You can see the live price of Gold here.
What does it mean for you?
The market may see a “perfect storm for a super price spike” in the coming months as the supply chain for physical gold bullion breaks down as refiners shut down production due to COVID-19. Three of the world’s largest gold refineries, which together process 30% of the total global annual supply, have suspended production to prevent the spread of coronavirus.
Despite all the activities, gold remains “one of the best performing asset classes year to date” according to Juan Carlos Artigas, director of investment research at the World Gold Council.
Gold is a “hedge” against inflation as well as unexpected market events.
Citing historic fiscal and monetary policy moves, analysts said they expect gold to surge to $2,500/ounce for the duration of 2020.