A few weeks ago, gold proved that there was once again a safe harbor presence with its rise. However, the last COVID-19 news with his response to the decline. So, what could be the price of gold this week? Kriptokoin.comWe transfer the comments of the experts as…
How can the Variant of the Coronavirus affect the gold market?
According to experts, the fear of a new COVID-19 variant triggers the last sale of panic in risky assets. Although much is still unknown about the new variant outside South Africa, there are fears that global economic activity will be restricted as governments apply new quarantine measures to stop the spread of this new version of CoIVD-19. It brought travel bans to South Africa and six neighboring countries of countries around the world, including Canada.
Economists not only worry about a slowing global economy. At the same time, any new quarantine measures will add more problems to current supply outages. In other words, there is an increasing risk of stagflation than economists. According to Kitco analyst Neils Christensen, gold seems to be well supported in the new environment with unknown COIVD-19 risks, but there is a lot of damage to the precious metal that needs to be repaired after the big sale of Monday and Tuesday.
Christensen, Wisdomtree’s Share Strategy President Jeff Wenigi’s “No matter how much the FED reduces the purchase of assets, they will undoubtedly fall behind the inflation curve, that is, real interest rates will remain low – will be a positive environment for gold,” he pointed out. According to the analyst, we will continue to wait and see how the new COVID-19 threat will progress. However, if there is a possibility that the central banks around the world are at risk, it is emphasized that things may not get better.
