If you read our mid-week bulletin last week, you’ll have seen that Wall Street was starting to feel a small ray of optimism as across the USA, signals emerged that states were ready to get back to work and start the economic wheels turning once again.
However, we are seeing the beginnings of this trend reversing, with risk appetite said to be waning in the face of growing awareness that the road to economic recovery will be a long one. There is also growing worry that as people do go back to work and shops, offices, and whole nations re-open, a second wave of COVID-19 could devastate communities and the economy.
Some economists are also feeling nervy on policy action, with the Federal Reserve taking the highly unusual step of announcing that it will buy ETFs for the first time ever from this week as part of its efforts to get the economy moving again.
All this adds up to good news for gold, with an expected full force push on gold as the number one safe haven asset – this will push gold prices higher once again so buy now to capitalise.