Outlook for Gold Price and Bullion Demand Post-COVID-19 Era
The onset of the coronavirus has changed the outlook of most markets around the world. Investors have taken various approaches to maintain their investments. A bullish momentum has been anticipated in the gold market by experts, considering the effects of COVID-19.
Current gold market trends
Gold has been on a roll. Closing at an all-time high since 2012, the market looks promising for precious metal investors. While this isn’t the typical correlation considering the circumstances, experts suggest that the bond market might have something to do with it.
Gold is like a zero-coupon bond, when adjusted for inflation, treasury’s lower yield makes gold more desirable. Over the past two years, the variance in gold’s value has been on account of the inflation adjusted government bonds.
While speculative interest in this market is lower than usual, the money flowing into this market is continuously increasing.
Expectations for the end of 2020
The bullish momentum of gold in expected to continue right to the end of 2020. Gold can go on to reach more record highs, surpassing $1800, and even $1900. Risk aversion of investors will continue to drive up demand for this “safe-haven” metal. The Central Bank’s strategies to stimulate the economy too is one of the reasons behind gold’s strength.
What we know from SARS
The 2003 SARS epidemic was similar to the coronavirus. Many experts therefore use that as an example when predicting the future. The impact on the market due to SARS was evident, however the price impact was not.
The price of gold increased, however at the time, experts at the time weren’t too sure about the link between the two. Since similar patterns are being noticed during the coronavirus outbreak, there’s more certainty regarding the correlation.
Benefits of investing in bullion during and after COVID-19
Gold has been used for investment purposes for centuries now. Its timeless nature have time again proven its worth to the people. The uncertainty of this pandemic has once again increased the demand for gold in the form of bullions.
Even after the pandemic has ended, investors will be wary investments, making gold the preferred choice. The sentiments of the market aren’t expected to change much once the outbreak has ended since gold has proven itself during trying times.
Looking at the surging gold’s future, it would be a fair assumption that now is an ideal time to invest. If you’re looking for top gold IRA companies, or to invest in gold coins, get in touch with Orion Metal Exchange.
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