9.3
8.539 reviews
English
EN
Gold looks set to close the second quarter of this year with the biggest price gain since the beginning of 2016. The gold price has risen by 10% in the past three months and is even 17% higher than at the beginning of this year. The precious metal has become a popular safe haven due to increasing economic uncertainty and extremely low interest rates. Central banks and governments have also launched large-scale stimulus programs, causing investors to worry about currency depreciation.
The rise in the gold price in the second quarter was accompanied by increasing tightness in the physical gold market. Investors bought a lot Gold Coins & Bars, resulting in long delivery times. Investors also entered ETFs on a large scale, which Hundreds of tons of gold to their stocks. This trend is expected to continue for the foreseeable future, as the economic outlook is not really improving and interest rates remain low. Central banks are also ready to apply additional stimulus, keeping gold an attractive alternative.
Gold on track for best quarter since early 2016
The Gold price rose to $1,775 per troy ounce this week, reaching its highest level in eight years, while the gold price in euro was already at a record high in mid-May. Gold also came through the stock market crash of March almost unscathed, when stock prices were down 30% for a while. The stress in the financial markets had much less effect on gold. During the depths of the crisis, the price of the precious metal was only a few percent lower than at the beginning of this year.
Several banks expect a further increase in the number of Gold price. Goldman Sachs raised its price target on gold to $2,000 per troy ounce, while Bank of America sees the gold price in dollars rising to record highs this year. To do so, the price must first break through an important technical resistance of $1,800 per troy ounce. Gold reached its all-time high in dollar terms in September 2011, when a troy ounce changed hands for $1,920. That's less than 10% above the price at the time of writing.
Also Read:
Gold has been less volatile than the stock market this year
Investors get back into gold due to corona crisis
This contribution was made from Geotrendlines
