Volatile Markets: Gold Investors Shouldn’t Be Losing Focus
The COVID-19 pandemic brought about a recent dip in gold prices and made the market volatile. As a gold investor,you may likely lose focus in these circumstances.
However, we think that with the focus on the right things, you can make some profit in this situation.But before delving into the forecasts of gold rates, let’s recap what went down in the market:
During the first weeks of May 2020, gold prices saw a fall in prices due to the strengthening of the dollar. Amidst the coronavirus pandemic, investors started selling their gold for money as the stock market was swaddled in panic and uncertainty.
As opposed to the measures taken by the US government and the central banks, the impact of the coronavirus on the global economy couldn’t be contained. Analysts saw that as people expected an advancing recession, they flocked to sell their gold assets for “emergency money.”
As is a human tendency, people believe that physical money provides more comfort that liquid and non-liquid assets. Therefore, the dumping of gold in the market leads to a decrease in demand and value.
However, with recent advancements in the development of a vaccine against the novel coronavirus, analysts believe that gold prices will stabilize in the coming months.
Here’s how this shift will work:
Gold price forecast
According to Goldman Sachs, the American multinational investment bank, gold prices will rise to $1700 per ounce in the next three months and will further jump to $1750 per ounce in the following six months.
The rationale behind this prediction is the traditional use of gold as “haven of the last resort.” Historically, gold has outperformed currencies like the Swiss franc and Japanese yen, proving it’s worth a dependable asset.
Experts like Goldman Sachs believe that when the market panic instigated by the coronavirus pandemic subsides, the demand for gold will rise and people will have more buying power to invest in gold bullions and coins.
But that might take a few weeks to happen. Even though you should hold on to your gold,for now, you can also make use of the recent price slump.
A window of opportunity
With the recent dip in gold prices, this is an optimal time for you to invest in some gold coins and bullions.
We understand that you may be facing financial restraints due to the ongoing economic crisis, and buying in bulk may be difficult. But investing in even small amounts of gold can provide you a hedge against the impending inflation.
For more information, call us at 1-800-559-0088!