News and Updates

Gold Price Volatility In The Face Of COVID-19

Gold Price Volatility In The Face Of COVID-19

With the COVID-19 pandemic spreading rapidly across the world, a new global recession is all but assured. Deutsche Bank predicts China having two consecutive quarters of 30%+ contraction, while the US is anticipated to have a 12%+ contraction in the second quarter. As recession looms, it stands to reason that gold prices should be rising. Should being the operative word. Instead, we’re faced with a bit of a funky situation. Gold prices are falling. In the last month, gold has fallen nearly 7%. Granted, that is far less significant than the 9000+ point collapse of the Dow Jones in the same timeframe (roughly a third of its value). However, the drop is still surprising. Why is it that gold is falling?

Sunday, March 22, 2020   •   Views: (1496)