The strongly performing US dollar is having a tailwind effect on gold right now – which is great news if you are looking to buy but have been biding your time as the precious metal has been propelled to new heights by the coronavirus disruptions.
The US Dollar Index has been in demand this week and hit a three year high point yesterday (Thursday). This comes on the back of the US Treasury Bond Future’s market’s recovery earlier Wednesday and a series of announcements from the US administration through the week confirming additional financial measures to help to stabilise the market and give some confidence back to investors.
What this all means for gold is that the stimulus has created an excellent opportunity to buy as the demand for dollars is putting temporary pressure on the precious metals. If you haven’t yet seen a window to invest this could be it right here, given that we have seen new record highs set as the coronavirus pandemic has escalated and multiple banks and financial institutions revise up their price predictions for gold through the end of this year and in some cases, as far ahead as 2022. If you read our bulletin on Wednesday for example, you’ll have seen that the Australian bank Westpac has revised its end of year projections up by almost $140 as a result of coronavirus with its experts saying $1600 is likely from next month.
With gold at $1,482.20 yesterday, now is an excellent moment to buy.