| Gold prices are 0.7% higher today after falling just 0.3% yesterday as traders sought refuge in safe haven gold as oil prices collapsed lower again.
Oil slumped to nearly $15 a barrel, its lowest since 1999 as the economic fallout from government lockdowns and the shutting down of entire economies impacts risk assets and commodities dependent on economic growth. WTI crude is now down 81% and Brent crude down 71% so far in 2020. Gold price forecasts are being revised higher by banks and gold analysts. Bank of America raised its 18-month gold-price target from $2,000 to $3,000 an ounce — more than 50% above the existing nominal record price – in a report titled “The Fed Can’t Print Gold.” Gold is the ultimate store of value according to BofA. Gold should reach these levels due to a few factors including the unprecedented lockdown and shutdown of most economies of the world, interest rates at zero or below zero, expected double-digit GDP contractions and exploding budget deficits globally. The shortage of small and large gold bullion coins and bars continues and may deepen as prices move higher and we enter the next phase of the crisis – a massive economic crisis. Due to our direct relationships with leading refineries and as Authorised Distributors of government mints, we continue to sell gold bars (1 oz, kilo and 400 oz) and silver bars (1,000 oz) and gold coins including Gold Sovereigns and Britannias (late May delivery) and Gold Nuggets or Kangaroos in volume. Online trading is suspended and you must call our trading trade to order coins and bars for delivery and storage. Our premiums have risen to reflect the rise in wholesale premiums from our mint and refinery partners, but we continue to have some of the most competitive premiums in the world. |
Gold in USD – 3 Days - Click to enlarge |
Full story here Are you the author?
Tags: Daily Market Update,newsletter
