Gold reported its best closing since 2013, but over 6% is the growth for this week, which even outpaces that of February 2016 and October 2011 – two of the most distinctive weekly performances in recent commodity history.
Gold rose 1% today, closing at $ 1,690. In the combination between the Treasury’s yield cap and the Central bank’s more global relief in the coming days or weeks, there is a reason for gold to go up. A weaker dollar also helps.
Considering that the stock is still selling out, it is estimated that gold will still tend to fall around the next day amid some hedge funds sales and big players in need of liquidity welcome the margin stakes and whatnot.
On the other side, the global bond yields are moving slowly, and real returns are turning negative. This continues to be a compelling argument for the long-term growth of gold. Against the backdrop of coronavirus infection, which is becoming more widespread and threatening a much greater economic downturn and the potential risk of recession – it will also keep bids in gold.