Gold Prices Target $1,900 Post COVID Lockdown
Gold hit its lowest point since April 9 at the end of last week due to reports of new treatments for COVID-19.
The price was back to approaching $1,700 by midday Monday though, hitting $1,692, with futures also climbing to $1,709.
That could just be the beginning of a continued upswing for precious metal investors however, with TD Securities issuing a target of $1,900 an ounce in a mere three months from now.
The reasons for the jump are primarily the anticipation of continued safe-haven demand amid market uncertainty and the continued stimulus efforts of central banks.
There is also the belief among analysts that the market is currently undervaluing gold, especially when taking into account the expected long-term inflation and the overall scale of global quantitative easing.
The precious metal has also been helped by a fading dollar and a freefall of crude oil prices.
These factors indicate that investors’ appetite for risk is dwindling, and has helped overcome the optimism concerning a possible vaccine and the easing of global lockdowns, both of which have had a negative impact on the bullion markets recently.
Long story short, experts expect the price of gold to continue to stay strong as long as the coronavirus is dominating the headlines.
Fears of a global recession will persist along with it, as interest rates approach zero or lower.
All of this is great news for gold, and the bullish signals show no signs of letting up.
More and more savvy investors are turning to gold as a safe haven, and it’s not too late to get in at what is still a relatively low level.
Even if the coronavirus is eradicated in a few months with a vaccine launch, which is now the best-case scenario, many of the world’s top economies are still in serious trouble and becoming more and more susceptible to inflation.
By investing in gold, you’re not only protecting your portfolio from the volatility of the markets, but you’re setting it up for significant future growth as the global economy inevitably rebounds post-pandemic.