Gold Prices Soar in April 2020, amid COVID-19 Pandemic Chaos.

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The price of gold saw a substantial increase in April 2020, as global financial markets were roiled by the COVID-19 pandemic and its economic impacts. As investors around the world scrambled to find safe havens for their assets, gold emerged as a popular choice.

The average price for gold in April 2020 was $ 1,679.66 an ounce. The lowest was $ 1,576.79 an ounce while the highest was $ 1,730.61 an ounce. Average gold price in 2020 was $1,773.73.

The spread of the virus and the measures taken to contain it, such as lockdowns and travel restrictions, have led to a sharp contraction in economic activity and heightened concerns over the global economic outlook. In this context, many investors are turning to gold as a safe haven asset, where they can park their funds in a time of uncertainty. On the daily chart each new high this year has been accompanied with a lower RSI level – negative divergence. The previous downturn was in early March. Gold almost hit 1750 last week but again the RSI was showing negative divergence. A rising wedge has been forming during the rally since mid-March and it broke yesterday (Friday). Looking at the weekly gold chart – each high has been accompanied with a lower RSI level – and that goes back to July 2019.

the outlook for the gold price in April.

I still believe gold has much further to go, the economies worldwide are in a mess and the second CCP Covid has sadly yet to arrive, so as I predicted gold will reach $1,800 soon then new highs over $2,000 gradually throughout the year. During March, there was plenty of volatility in the gold price due to technical reasons such as a lack of liquidity in the market caused by the coronavirus, leading to a shortage of 100-ounce bars in the futures market. However, this has now settled, and the focus is on whether gold will continue to be attractive to investors amidst economic uncertainty. The speaker will provide an update on the charts and set a trade for April.

The Federal Reserve’s efforts to support the economy, such as cutting interest rates and launching large-scale asset purchases, have also helped to drive up the price of gold. Low interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it a more attractive investment option.

However, the COVID-19 pandemic has also disrupted the supply of gold, as mining operations were impacted and the logistics of transporting and refining gold were challenged. This supply disruption has contributed to the increase in gold prices.

In addition, the demand for physical gold, in the form of coins and bars, has also increased. Many investors are looking to acquire physical gold as a hedge against currency depreciation and a way to protect their wealth. Gold is only used as a store of wealth and some investors would not even consider it. Investors are anticipating stocks will devalue even more, then you can get really top companies on sale that will be very undervalued companies that generate wealth. It’s too expensive to purchase at these prices and in my opinion, it will pull back once the stock markets become more affordable, the smart money has sold off already and is sitting there waiting to go back in again. I hold gold and silver but only a small percentage. The spread prices are too high to buy, there is no gold around to butine to buy was in 2016 when it was around $1200

In conclusion, the COVID-19 pandemic and its economic impacts have created a climate of uncertainty and fear, leading many investors to seek safe haven assets such as gold. The Federal Reserve’s efforts to support the economy have also boosted the price of gold. The demand for physical gold has increased as a hedge against currency depreciation and a way to protect wealth. The supply disruption of gold has also contributed to the increase in gold prices. The outlook for gold prices remains uncertain, but the factors driving the current surge in prices are likely to persist for the foreseeable future.

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