There is increasing concern that we may see a resurgence of coronavirus in some parts of the world, potentially paving the way for another blockbuster summer for gold. Australia is currently at a perilous point in its pandemic, with the highly contagious Delta variant now spreading, major new lockdowns imposed and doctors warning that the country simply doesn’t have enough vaccine to win the race against the virus.
Elsewhere in Europe, new curbs on travel are being brought in and cases are increasing in a number of hot spots. While vaccines are proving effective in reducing deaths, some EU countries are yet to vaccinate the majority of their populations. A resurgence driven by new variants means that economic recovery could stall.
As we saw last year, gold was in firm command throughout the summer as economies struggled to fully reopen. If the virus continues on its same trajectory, gold could regain its bullish momentum very quickly.