If you were thinking of investing in gold now is the time to buy as experts say that the escalating coronavirus situation could push the precious metal to $1800 in Q2. This is a notable revision to the bank’s previous expectations, where it advised investors to look for $1600 by the six month mark. If you caught our mid-week bulletin last week, you’ll know that gold already surpassed that level, reaching $1,604.30 following a profit caution from Apple, which said that the tech firm was not on course to reach its Q1 earnings target as a result of coronavirus impacts on its supply chain and consumer demand.
Goldman Sachs analyst, Mikhail Sprogis issued a Wednesday briefing outlining the forecast, noting that the spread of the virus, coupled with the uncertainty created by the upcoming US presidential election and monetary policy globally all support a swift uptick in gold prices. He said, “In the event that the virus effect spreads to Q2, we could see gold top $1,800/oz already on a three-month basis. We see such a rally being driven by the continued search for yield, increased demand for portfolio diversification and higher political uncertainty … [Gold is being used as] a strategic allocation to protect a portfolio from geopolitical risks such as the current outbreak, de-dollarization and negative real yields.”
Buy now to benefit.