Coronavirus crisis drives the price of gold to seven-year highs above $1,700 – could the precious metal break the $2,000 barrier?

Mar 11, 2020 | Gold

TDC Note – So far, gold is hitting all the notes that forecast way back in December 2017, Silver on the other hand – since we had no idea the CFTC would hand over 30,000 contract limit to JP Morgan – has not performed at all like we forecast. Had JP Morgan not been gifted this new “limit” to the number of contracts – equal to 150,000,000 ounces of silver – we feel confident silver would be performing as well as gold. Silver will never, ever rise again – looking forward to dumping my position.

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  • Health catastrophe on this scale is unprecedented in a globalised economy 
  • When it might start to subside and the knock-on effects are unclear at present 
  • Market panics and emergency measures like a 0.5% rate cut in the US could be a sign of things to come 
  • Gold price hit its all-time peak of $1,900 in summer 2011 

The gold price has topped $1,700 as investors sought safe havens in response to the coronovirus crisis, which has sparked fears of a global pandemic.

A health catastrophe on this scale is unprecedented in a globalised economy, and it is unclear at present when it might start to subside.

On the financial front, market panics and emergency measures like last week’s 0.5 per cent rate cut in the US could be a sign of things to come, and may drive the gold price above its all-time peak of $1,900 in summer 2011.

The gold price has receded since yesterday to around $1,650, but financial experts say this is because traders are being forced to cash in positions in the precious metal to cover loans and losses in the stock market.

In pounds, the gold price hit a new record above £1,300 late last month, and it is at around £1,280 today.

However, this is still a currency-driven phenomenon – due to sterling weakness since the Brexit referendum – as gold is still well off its peak in US dollars, which it is typically priced in.

By TANYA JEFFERIES FOR THISISMONEY.CO.UK

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