COVID-19 has ravaged the world economy and has many experts predicting a bad recession that could take years for the world to recover from. The biggest problem with this pandemic is the sheer difficulty of testing patients who normally stay asymptomatic until 14 days before developing serious symptoms, and by then, the damage is already done.
The coronavirus (or COVID-19) has caused a massive commotion for many countries around the world. It serves as a big threat, as this disease can be passed among animals and humans. Any contact with the respiratory droplets from sneezes and coughs from an infected individual could leave you susceptible to the disease.
The Australian psyche holds a special place for gold. During the early 1850s, the gold rush helped in propelling the country’s economy, grow its population, and stimulate the industries. As the second biggest producer of gold in the world, the country’s gold sector flourished. Its record gold prices and mine production speak for themselves. After all, gold remains the country’s third major commodity export.
The last few months have seen the price of gold rally to $1,600 — a height it has not reached since March 2013. However, the last few weeks have seen the price start to stagnate. Between January 20 and February 4, the price did not manage to cross the $1,600 barrier, bouncing off at around $1,590. As of February 5, it had hit a two-week low of $1,547.
For the longest time, gold has been seen as a safe haven. Investors actively seek gold for security and protection during times of uncertainty. As Market Intelligence Director Alistair Hewitt mentioned in an interview recently, historically, gold enjoys certain perks in times of heightened risk due to flight-to-quality inflows.
Following the killing of Iranian General Quasem Soleimani by a targeted US airstrike on 3 January, gold prices reached a seven-year high of close to $1,600 per troy oz. or $50,798 per kg. The shock of this event drove investors to buy gold, a so-called safe haven asset, allowing them to safeguard their wealth amidst geopolitical uncertainty.