Gold’s spot price rebounded on the support level of $1,640, thereby confirming the recent positive mode. The bullion price soared to $1,660 and we are just 1% away from the one-month peak achieved earlier this week. Despite the risk-on approach on stock markets of the last few days, investors are still confident that gold can shine further. This is particularly the case in a scenario where central banks are going to be forced to add a tremendous quantity of liquidity into the monetary system while keeping rates close to zero for a long time, as long as inflation doesn’t start to soar. Moreover, gold is also seen as an insurance in the event of further collapses on stock markets due to coronavirus.
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