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The Coronavirus Crisis Increased America’s Appetite for Gold

On Friday, gold traded lower. However, the metal is preparing for significant gains this week. The dollar dropped, and the WTI crude operated laterally around $16.60. 

In the US, the Congress and White House approved the extension of the aid plan. The measures were taken against the social and economic impact of the Coronavirus pandemic. 

FinanceBrokerage - Economic News: Coronavirus impact: It'll Take 6 Months for Business to Return to Normal After Pandemic Ends, says CFO survey.

Then UK retail sales and German IFO market sentiment delivered disappointing but not unexpected results.

In the US, the Census Bureau reported a more substantial than expected drop in durable goods orders. Still, once again, the American consumer showed his strength. The University of Michigan showed better than expected results in consumer sentiment.

The precious metal falls from a week of highs

Gold traded lower on Friday after investors closed long positions to take a profitable week later benefits. The XAU/USD moved at 1,725.66, which represented a decrease of 0.34% on the day.

Retail demand for physical gold plummeted last week in top Asian hubs as jewelry shops remained shut due to coronavirus restrictions. Still, some regions saw steady buying from investors hunting for a haven.

Conversely, silver closed with a short, but significant gain of 0.15%. Last week, the metal managed to recover the initial losses.

Globally, gold prices edged lower on Monday as assets firmed. However, expectations for more fiscal stimulus measures limited losses.

Gold and savings accounts saw an increase in this year’s survey

The coronavirus crisis increased Americans’ appetite for gold, real estate, and savings accounts. While left disappointed with stocks, according to the latest study of Gallup.

16% of Americans chose gold, and 17% preferred savings accounts. The survey said that one in six Americans see savings accounts and gold as the best long term investment. 

Compared to last year’s survey, this is a 2% rise for gold. The results point to a shift in the nation’s perspective.

Increased interest in the metal is also apparent through its price increases over the past year. Since April 2019, spot gold is up approximately 35%. 

The survey states that the economic fallout from the Coronavirus could scramble Americans’ preferences. The stock market is at risk, and the real estate market’s future is not clear. The global financial crisis of 2011 caused stock and housing values to plunge. However, gold was perceived as an excellent investment.

Gallup conducted the 2020 annual Economy and Finance survey between April 1 and April 14, polling 1,017 US adults.

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