March 2020 saw a significant increase in the price of gold as investors flocked to the safe-haven asset amid the growing uncertainty surrounding the coronavirus pandemic. Surprise rate cut from the FED pushed gold back up, old and silver prices and the VIX are highly correlated in most recessions.
The average price for gold in March 2020 was $ 1,591.07 an ounce. The lowest was $ 1,467.94 an ounce while the highest was $ 1,696.39 an ounce. Average gold price in 2020 was $1,773.73.
chances are higher that it will go lower towards 1400 before rallying to 1500s again, it’s easier for gold to go down than up and demand has actually been a bit lower than last year because of higher prices. Only a massive drop on the stock market would help gold rally again…if the us job unemployment report is great for December again it’s going to go down. The yellow metal, widely regarded as a hedge against inflation and economic uncertainty, saw its price soar to a seven-year high, surpassing $1,700 per ounce. The rise in gold prices was largely driven by investors seeking refuge from the stock market turbulence caused by the spreading virus, which has led to widespread panic and instability globally.
As governments around the world took drastic measures to contain the virus, such as closing borders and implementing lockdowns, the stock market suffered, causing investors to shift their attention to more stable investments. The demand for gold has increased as a result, pushing up the price.
Gold has long been considered a safe haven for investors during times of economic and political turmoil, and the current situation is no exception. Traders’ mindset is a very short-term outlook, as it should be. “Safe Haven” by definition, is typically not very short term. With the virus affecting global economies and causing widespread job losses, many people are turning to gold as a secure and reliable investment.
It’s worth noting that gold prices are highly susceptible to market changes and fluctuations, so it’s crucial for investors to stay informed about the latest developments and keep a close eye on gold prices.
In conclusion, the unprecedented events of March 2020 have had a significant impact on the global economy, causing instability and uncertainty. The rise in gold prices reflects this and highlights the importance of investing in safe-haven assets during times of crisis.