Gold seems to have found some stability after the liquidity collapse seen earlier this week and the price is reflecting this, with bullion moving between $1,595 and $1,640 while waiting for new directional signals. Volatility remains high but is lower than the levels seen last week. Markets are likely to price in the huge increase in liquidity which is going to be flooded into circulation by central banks to tackle this crisis and could represent a supportive element for the gold price.
On a separate note, we should also mention that logistical problems with physical deliveries will continue as the virus has interrupted the supply chain and this is something that suppliers will be able to resolve quickly.
