Gold Dealers Report Big Shortages of Bars and Coins Most in Demand, as People Want to Buy Gold.
Gold is seeking a steady mark for its next move North, as President Trump’s warning of a “very painful” time for the United States from the coronavirus and a fresh selloff on Wall Street sent mixed messages to investors.
Gold futures on New York’s COMEX settled down 5.20, or 0.3%, to 1,591.40.
Spot gold, which tracks live trades in the precious Yellow metal, was up 11.52, or 0.7%, at 1,589.05 by 2:53 PM ET (18:53 GMT).
Notwithstanding Wednesday’s mixed trends, we see gold is is in a Bullish mode, finishing with a 6th-straight Quarterly gainer as both futures and bullion finished up 5% in March.
Gold is the go-to asset in times of social, political or financial trouble.
America’s struggle with Covid-19 coronavirus should boost the Yellow metal as a safe-haven. Yet, any slump in US stocks might intensify the cash crunch experienced by many traders and investors now, prompting them to sell their gold holdings to cover losses in equities..
Gold is also at a crossroads after news earlier this week that Russia’s central bank, one of the biggest buyers of bullion, was stopping its purchase of gold bars, presumably because of weaker finances caused by a crash in prices of Crude Oil, a commodity integral to Moscow’s economy.
Gold prices should rise as the virus spread is intensifying alongside lockdown efforts to mitigate it and prices should be supported as the impending global recession that is upon markets will be deeper and longer.
The path higher for gold will be bumpy as steady central bank selling may occur as governments may move to raise cash.
Have a healthy day, stay home!