Stocks and the US dollar have faltered this week again as talks to approve an additional stimulus package stalled but once again, gold has reiterated its attractiveness with support above £1,457 ($1,930) yesterday (Thursday) even as the Dow Jones Industrial Average slumped 0.29% and the S&P 500 posted a 0.20% decline.
Corporate finance firm, SP Angel’s analysts said that gold was well placed to gain further, noting “We hope and estimate the coronavirus pandemic will largely burn itself out in the six months as T-Cell resistance helps to build herd immunity. There is always potential for a second wave of an altered coronavirus to cause further lockdowns which elevates risk which is why we see ongoing support for gold at around US$1,875/oz (£1,415).”
The analyst Carsten Fritsch from the German bank Comerzbank seconded this, saying “As can be seen from the stock markets, prices these days tend to recover from slumps much more quickly than in the past thanks to the massive injections of liquidity by central banks. Gold… should also have recouped [its] losses in the not-too-distant future and begin posting new highs.”
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