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Webinar: Is this the right time for gold?

In this webinar, our Chief Market Strategist, John Reade and Chief Investment Strategist at State Street Global Advisors, Michael Arone, discuss the global impact of COVID-19 and whether gold can help manage this unprecedented market volatility.

Topics include:

  • The effect of government policies to control the pandemic on the global economy
  • Impact of liquidations, fight-to-quality and monetary policy on gold
  • Outlook for the remainder of 2020
Krishan Gopaul
Market Intelligence Group
World Gold Council

Potential side-effects of monetary and fiscal medicine

Wishful thinking. That’s how Angel Gurría, secretary general of the Organisation for Economic Co-operation and Development (OECD), responded to any prospect of a swift economic recovery from the coronavirus pandemic. But the scale of the impact on the global economy – as well as our daily lives – has been matched by the scale of the financial response.

John Reade
Chief Market Strategist
World Gold Council

Heavy selling has been seen across all four precious metals this morning. Gold has dropped $50/oz and is now trading around $1477/oz.

The break of the 200 day moving average - at about $1500/oz - seems to have triggered stop-loss selling.

RSI now oversold FWIW. https://t.co/Db5oDuRYaS

Juan Carlos Artigas
Executive Director, Head of Research
World Gold Council

The Fed cuts rates, increasing gold’s allure

The US Federal Reserve (Fed) announced an emergency 50bp rate cut yesterday, bringing the Fed funds rate down to a 1-1.25% range, in response to ongoing concerns about the potential impact of the coronavirus outbreak to the global economy. Treasury bond rates followed suit, with the 10-year note hovering 1% at the time of writing – an all-time historical low

Adam Perlaky
Manager of Investment Research
World Gold Council

Despite last week’s selloff, market shifts could bode well for gold prices

The stock market embraced the weakest one-week performance since the financial crisis last week on the back of growing concerns of the continued spread of the coronavirus across the globe. Despite the risk off-moves, gold was lower by more than 3% last week, which is historically unusual during these types of movements. There are a few potential reasons for the weakness.

Krishan Gopaul
Market Intelligence Group
World Gold Council

ECB review signals little change in short-term

At the end of January, the new head of the European Central Bank (ECB), Christine Lagarde, announced the launch of a year-long strategic review of the bank’s monetary policy strategy. Stemming from this, there has been much discussion recently about the ECB’s existing “below but close to 2%” inflation target, and whether this needs to be made more specific, both in aim and measurement.