Sunday, 14th July 2024

Gold prices may leap as Covid-19 cases are rising across world

Fuelled by the concerns over coronavirus impact on the world economy as prices of gold changed at least six times on Wednesday, following an upward and downward trend in many regions across the world.

Sunday, 7th July 2024

Gold prices in 2020 could fall as much as it rose to its highest level after COVID-19 pandemic crisis across the world. Fuelled by the concerns over coronavirus impact on the world economy as prices of gold changed at least six times on Wednesday, following an upward and downward trend in many regions across the world.

According to COT (Commitment of Traders) report, illustrates the point of large speculators and the commercial sideline. The COT’s reports state that on the way down from the 10-year high, the gold prices are expected to witness a fall in the coming months of the year 2020.

The market scenario is looking grim for other frontline asset class such as equity or debt, which gives a hope to the investors that gold prices will rise.

According to data provided by gold.co.uk, the current gold price has gone down at £1,346.78, which was recorded at £1,387.48 on Tuesday. However, the prices of gold have seen a gradual decline afterwards.

One primary reason being attributed to the rise of the gold prices is the lowering on interest rate in the United States. Investors shun low-yielding investments and, therefore, at times when there is a low rate of interest, gold demand increased pushing the price upwards.

"Gold is consolidating gains at the top of its range, but there's so much uncertainty in the world and so much of conflicting information that's also supportive for gold," said Jeffrey Halley, a senior market analyst at OANDA.

However, according to gold experts, a dip in the gold prices are on the cards as the economic situation will not favour in the precious yellow metal after world economy will be rolling again. Commodity experts are of the opinion that gold price in the international markets is expected to hit see a significant dip in coming days.