Gold Price on the Rise Despite COVID Hiccups
Over the past 12 months, gold price has been on an upward trend. The impact of COVID-19 on the world’s economies is now accelerating that trend.
Although gold price experienced two recent major drops in price as investors saw the need to sell liquid assets to cover losses, the quick and sharp recoveries shows gold remains a reliable safe haven for investors.
Going forward we see three main reasons why gold price will continue to rise and maintain its upward trend:
- Government massive quantitative easing at previously unseen levels
- Gold mine production reductions and suspensions caused by government measures to stop the spread of COVID-19
- With no certainty of an economic recovery in sight, gold will be, as always, a safe haven that protects investors from the negative effects of interest rate decisions and inflation