In the last few days, we have seen stocks going up, then declining and later recovering again. Despite all these movements, the price of gold has remained relatively stable. The correction seen on Thursday and Friday morning was followed by a strong recovery to the key level of $1,700. Volatility seems to have disappeared this week with bullion waiting for a fresh stimulus and the spot price continuing to trade either side of the threshold of $1,700.
Technically the trend remains bullish, as investors are still buying gold as insurance in case of a second wave of coronavirus, while central banks are forced to print large quantities of money to mitigate the crisis generated by the pandemic and the consequent lockdown.
