Gold is trading higher on Monday after investors are experiencing widespread risk aversion. However, certain hopes about vaccines are improving the tone of the market, but gold does not ease.
As a safe haven, but also a safe investment, gold is benefiting from both circumstances in the market, both aversion and risk appetite. Furthermore, expectations of higher inflation in the United States are also pushing the metal to new highs.
Today Monday, the XAU / USD surpassed the 1,800 barrier earlier in the day, and continued its advance until reaching new highs since September 2011 around 1,820. At the moment, the metal is being quoted at 1,819.40, which represents an advance of 0.50 percent.
According to experts such as ActivTrades chief analyst Carlo Alberto De Casa, the market is concerned about the advance of the virus.
“The increase in the number of infections (COVID-19) in countries like the United States, Brazil and India are causing economies to recover more slowly,” said De Casa. “Uncertainty remains high, and that supports gold prices.”
Furthermore, JPMorgan CEO Jamie Dimon also stated that no one knows what is to come in the second half of the year. “We just don’t know,” says Dimon, “and by the way, we’re wasting time trying to guess.”
The environment is unprecedented because it clearly depends on the evolution of the virus. But one thing is clear, the environment is very bad.
article was originally posted on FX Empire’ data-reactid=”56″>This article was originally posted on FX Empire