The first half of this article proves my point perfectly regarding the…
Investors will add gold to protect their portfolios, which will create more demand for the commodity. Increasing amounts of monetary accommodation and fiscal deficits should push the price of gold higher as well, analysts say.
The global economy was flashing danger signs long before the pandemic. For one thing, many countries were clamouring to get hold of as much gold as possible. For the past decade, they have been buying new reserves and bringing it home from overseas storage to an extent never seen in modern times.
In a Nutshell: The Federal Reserve instituted a policy of unlimited quantitative easing in March 2020 in response to the COVID-19 pandemic, in effect injecting trillions of dollars into the economy. But some analysts believe the consequences of that action may not be limited to stimulus checks and paycheck protection. According to Stefan Gleason, Director of the Sound Money Defense League, the Fed’s pandemic response is only the most recent manifestation of a long-standing inflationary monetary policy enabled by unbacked fiat currency.
Gold rebounded on Friday as ongoing concerns about the economic fallout of the covid-19 pandemic were compounded by fears of rising political tensions between China and the US.googletag.
Spot gold rose 0.4% to $1,733.55 per ounce by 12:20 pm EST Friday, after falling 1.4% in the previous trading day. Gold futures rose 0.8% to $1,736.20.
On Thursday, the Chinese government announced its intention to impose a national security law that criminalizes political dissent in the city of Hong Kong, which could fuel further protests and escalate the ongoing US-China spat over the source of the coronavirus.
Source: Gold may reach a record by year end, as investor need creates ‘more demand than the market can handle’ – MarketWatch