The gold price finds itself the perfect environment with first the Federal Reserve unleashing its potentially unlimited stimulus package, followed by the closure of some Swiss gold refineries due to coronavirus. Therefore, it is little surprise that the price is jumping, despite the temporary return of risk on sentiment to markets. Moreover, the huge QE promised by the Fed is lifting up stocks and we are seeing a positive correlation between gold and as a result with them both rallying. Investors are not only betting that coronavirus can now be defeated in a reasonable timeframe, but also that central banks will still be able to stop the economic crisis that would typically follow with their hyper-expansive monetary policies. This splurge of cash is another positive element for bullion, as gold, unlike greenbacks, cannot be printed.
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