The price of gold hit a year high during trading yesterday (Tuesday) thanks to a weakening US dollar. The precious metal ascended to $1788.60 before ending the day at $1755.90 – this strong performance adds further credence to the many price forecasts issued by banks and other institutions which endorse higher prices for gold in the medium to long term as a result of fallout from the economic carnage being wreaked by the coronavirus pandemic.
The gold push to its best performance of the year is also supported by monetary policy, with the Federal Reserve implementing quantitative easing and slashing interest rates to almost zero. The multi-trillion dollar stimulus package has also raised some red flags with many believing the real impact of coronavirus could equate to a recession the likes of which have not been seen since the Great Depression. Buy gold now to be in the strongest position for whatever comes next.