Gold has been a trusted safe-haven investment for many years and June 2020 was no exception. Despite a rebounding stock market, the recent surge in coronavirus cases has created uncertainty and nervousness among investors, driving up demand for gold. As a result, gold had its best month since 2016, ending just above $1800 an ounce.
The average price for gold in June 2020 was $ 1,733.23 an ounce. The lowest was $ 1,684.61 an ounce while the highest was $ 1,772.95 an ounce. Average gold price in 2020 was $1,773.73. Let provide an update on gold and looks at potential short to medium term movements in the gold price.
The current situation has given rise to concerns about whether states will have to reimpose restrictions and what that could mean for the economy. This uncertainty has only served to further boost gold’s appeal as a safe-haven investment. There is much potential in gold beyond 1800 it’s because of corona wave and dollar weakness but gold will continue in range of 1680-1765 USD/Oz, and some expert bet gold could reach 2000 in august. The recent surge in U.S. coronavirus cases have boosted the price of gold to its best levels in a month. Gold closed last week around $1740 per ounce and has now pushed up to $1757-$1758. This recent bit of strength could mean a target of $1,800 or higher for the price of gold. The rise in gold price is due to a combination of factors including a weaker US dollar and concerns over the U.S. economy due to the increase in coronavirus cases. The Federal Reserve’s position on low interest rates through 2022 will also keep the US dollar low, which typically leads to a stronger gold price. Additionally, recent easing in stock markets could also be a factor.
Furthermore, the recent increase in geopolitical tensions, particularly between the US and China, has also added to the uncertainty and has led to a further rise in demand for gold. With the US-China trade war continuing to escalate, the threat of a global recession has increased, and gold has once again become a popular choice for investors looking to hedge their portfolios.
It’s worth noting that while the short-term outlook for gold remains positive, the long-term outlook is somewhat more uncertain. With interest rates expected to remain low, it’s likely that demand for gold will continue to be high, but a return to normal economic conditions could potentially lead to a reduction in demand.
In conclusion, while the short-term outlook for gold remains positive, the long-term outlook is somewhat uncertain. The recent surge in demand for gold is driven by the uncertainty and nervousness created by the ongoing coronavirus pandemic and the escalation of geopolitical tensions. However, as the world begins to return to normal, it’s possible that demand for gold may decline. As always, it’s important to be mindful of the long-term outlook when making any investment decisions.