Gold grows breaking its seasonality
Here’s a Thought! 1 July, 2020, by Vladimir Rojankovski, Chief Analyst, Grand Capital
Gold futures briefly hit a $1,800 mark per ounce, marking the precious metal’s first settlement above this threshold since September 2011. Gold also hit an intraday high of $1,804, its highest level since Nov. 8, 2011.
There’s an “explosion” in demand for gold, and investors continue to pile into gold-backed exchange-traded funds, with corresponding holdings at a record. Many factors contribute to this: risk of a more prolonged and more morbid COVID-19 pandemic, escalation of the U.S.-China economic and political tensions, but above all – unprecedented monetary stimuli carried out by world’s largest central banks.
It is the off-peak season for gold now, and the fact that gold grows breaking its seasonality is a very good sign for the bullion indeed.
Gold futures briefly hit a $1,800 mark per ounce, marking the precious metal’s first settlement above this threshold since September 2011. Gold also hit an intraday high of $1,804, its highest level since Nov. 8, 2011.
There’s an “explosion” in demand for gold, and investors continue to pile into gold-backed exchange-traded funds, with corresponding holdings at a record. Many factors contribute to this: risk of a more prolonged and more morbid COVID-19 pandemic, escalation of the U.S.-China economic and political tensions, but above all – unprecedented monetary stimuli carried out by world’s largest central banks.
It is the off-peak season for gold now, and the fact that gold grows breaking its seasonality is a very good sign for the bullion indeed.