Gold is once again moving towards relative peaks pending greater stimulus from central banks to limit the economic damage resulting from the pandemic while most countries extend the blocks to reduce their spread.
The increase in gold is falsified by Futures worldwide, exchanges are reduced compared to the norm, resulting from the impossibility of delivery. If we really wanted to justify the current upside, we could say that the opportunity cost of holding bullion is becoming attractive.
The week appears intriguing due to the upcoming meetings of the central banks for further placing of money on the market.
Investors are looking for a “safe” tangible asset. We have often insisted and illustrated our vision on metal in previous analyzes, through our analysis and intelligence models. What is said around the usual economists and investment banks is that gold tends to benefit from widespread stimulus measures by the central banks themselves because it is widely considered as a hedge against inflation and currency devaluation.
Economists are arguing needlessly about whether the scenario will be deflationary or inflationary, and while governments have long been throwing trillions of dollars into their economies, this does not justify the current hike, with ports closed and the impossibility of physical delivery at maturity.
We think that..
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Commodities strategist, expert in supply chain market, procurement, forex and advisor Stablecoins. www.goldencross.io