◆ Gold prices surged to new all time record highs in euros and other digital fiat currencies today due to concerns about the outlook for risk assets and currencies in an era of unprecedented economic and monetary risk.
◆ Gold prices rose to a more than seven-year high in dollars today at $1,726/oz (see chart below) as mounting fears of a steeper global economic downturn due to draconian government lock downs increase and highlight gold bullion’s safe haven qualities.
◆ Gold surged to €1,581/oz (see chart above) as the single currency came under selling pressure as concerns deepen about Italy and other periphery nation’s banks and economies and due to increased risks to the euro and the monetary union.
◆ Gold surged to £1,375 per ounce and is testing gold’s record high in sterling which is £1,381.75/oz as the beleaguered pound also came under selling pressure due to concerns about the UK economy.
◆ Strong safe haven demand for gold continues due to concerns about the outlook for the UK, EU and global economy, the unprecedented monetary response of the ECB, the BoE and the other central banks and growing concerns that digital currencies will be devalued in the coming months and years.
◆ Gold reached year highs in dollars and gold prices are up over 14% in euro terms so far in 2020, building on the 22.7% gains in euros seen in 2019 (see table below).
◆ Strong safe haven demand continues due to concerns about the outlook for the UK, EU and global economy, the unprecedented monetary response of the ECB, the BoE and the other central banks and growing concerns that digital currencies will be devalued in the coming months and years.
◆ Gold is now the top performing asset in 2020 year to date, having risen 16% in dollar terms, 19% in euro terms, 21.7% in pounds and by more in other fiat currencies as the virus tips debt laden economies into financial and economic crises
NEWS and COMMENTARY
Gold Rises as a Safe Haven in Troubled Economic Times
Gold climbs to over 7-year high on coronavirus-led economic worries
Gold climbs to over 7-year high on coronavirus-led economic worries
Six U.S. states to coordinate gradual reopening after coronavirus shutdown
Risk averse investors and gold ‘bugs’ vindicated by coronavirus rally
‘Criminally unjust:’ ‘Big Short’ investor who called subprime mortgage collapse slams coronavirus lockdowns
GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
09-Apr-20 1662.50 1680.65, 1339.48 1348.22 & 1529.00 1538.13
08-Apr-20 1649.05 1647.80, 1328.27 1330.27 & 1517.00 1513.14
07-Apr-20 1652.20 1649.25, 1344.23 1333.75 & 1519.53 1511.21
06-Apr-20 1636.60 1648.30, 1330.72 1341.06 & 1515.49 1526.66
03-Apr-20 1609.75 1613.10, 1310.66 1315.97 & 1490.47 1495.34
02-Apr-20 1588.05 1616.80, 1277.59 1307.02 & 1452.27 1489.72
01-Apr-20 1594.25 1576.55, 1288.95 1270.23 & 1457.94 1442.86
31-Mar-20 1604.65 1608.95, 1299.61 1296.81 & 1461.52 1468.81
30-Mar-20 1624.35 1618.30, 1312.56 1305.97 & 1466.88 1466.02
27-Mar-20 1621.20 1617.30, 1325.33 1316.16 & 1473.18 1469.48
Editors Note: The shortage of gold bullion coins and bars continues and may deepen as prices move higher. It is not just smaller one ounce bullion coins and bars that are difficult to source but also larger gold and silver bars including gold kilo bars (32.15 ozs) worth and 1,000 oz silver bars. Due to our direct relationships with government mints and refineries we continue to source large bars and some gold coins and bars in 1 oz formats.
