The second wave of COVID-19 is here and while it makes gold's potential even better in the long run, it’s likely to mean a sharp decline in the shorter term.
It might be tempting to focus on something else, to look the other way, or to limit testing, but the fact is that COVID-19 is spreading again after a several weeks of respite. There are new highs in the number of new daily cases both globally and in the US.
The second wave is not yet present in Europe, but keep in mind that it could become a severe problem very fast. As the entire world has more and more coronavirus cases, and economies are being reopened, it will be very hard to avoid a second outbreak in the region.
Why is this important from the point of view of investing in and trading gold? Because markets appear to have viewed the March price moves as a one-off that was also triggered by a unique set of circumstances. And the markets are just starting to wake up to the fact that it doesn’t work this way at all.
Google Searches For