​Gold Hit 8-year High, How About Its Future Trend?

WikiFX News (4 July) - Global gold price rose by nearly 17% to 1,779.53 USD/oz in the first half of 2020, a 8-year high since October 8, 2012, compared with an annual increase of 18% last year.

In the first half of 2020, worldwide major central banks and government released intensively unexpected QE policy due to sharply sluggish economy caused by the deterioration of geopolitical situation and rapidly increasing spread of COVID-19 in the world. The huge uncertainties resulting from the pandemic also dealt a heavy blow to the stock market from late February to mid March. US stock index and S&P 500 plummeted by over 35%, both hitting a record low since the fourth quarter of 2016.

Investors sold gold positions in a bullish market without hesitation to make up their margin deficit, which caused a sharp falling in gold price, plunging by US$250 from 1,700 to nearly 1,450. As a whole, worldwide countries took low interest monetary measures, which is considered as a good new for gold.

Danial Hynes, senior commodity strategist of ANZ, said: “In a mid term, gold is favorable to invest, as we estimated that there are indeed more increasing space for gold price.”

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