The gold price is skyrocketing
Risk-on continues to prevail in financial markets with currencies such as the euro and the Australian dollar finding support among investors despite lingering uncertainty over future economic prospects. Investors are still choosing to see the glass as half full, as global authorities play a high-odds game of stimulating the re-opening of businesses at a time when questions over the future behaviour of the virus continue to linger. A large second wave of the disease could have devastating potential on economies already stretched to the brink.
Ricardo Evangelista – Senior Analyst, ActivTrades
The gold price is skyrocketing. We are in a phase where it doesn’t matter if stock markets are going up or down: investors are buying gold anyway. The recent weakening dollar has been another supportive element, as investors are continuing to bet on further dovish decisions from central banks in order to mitigate the economic impact of the Covid-19 crisis.
Technically the spot price’s climb above $1,790 opened space for further rallies, with bullion jumping above $1,810 after a fifth session in a row in green. Bullion price is now just 6% below its highest ever level in USD, while the price in EUR and other currencies also remains close to record highs.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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