20.03.2020 Gold Daily Analysis

20.03.2020 Gold Daily Analysis

On Thursday, gold was trading lower at $1470 amid uncertainty in the financial market due to the coronavirus pandemic. On Thursday, the USD was going up as the US government announced measures to ease the impact of the coronavirus. The USD and gold have an inverse relationship, meaning when the USD goes up, gold prices go down and inversely when the USD goes down, gold prices go up. A good example of this is how on Thursday the USD was going up and gold prices were going down, and today the USD is going down and gold prices are going up. The USD took a breather as the coronavirus has taken the lives of over 10,000 people globally and infected over 244,000 people, with more new cases reported every day outside of China than in China. Today gold is trading at $1510 (+2.08%). Wayne Gordon, executive director for commodities and foreign exchange at UBS Group said, “When I think about what would I buy in the right here and now, I would be buying gold. Prices will appreciate over three to six months.” Another analyst, Peter Grosskopf, chief executive officer at Sprott Inc. said, “Gold provided what it should during times of crisis, a form of insurance to cash in when liquidity was required, It’s one of the first assets to be cashed in when leverage is reduced, and long-term investors not subject to margin pressures will be rewarded owning gold at this time.”