Gold reached new multi year highs today, reaching its highest since December 2012 at $1,702.56 per ounce prior to profit taking in gold futures saw gold fall back to $1,670/oz.
Gold prices rose above the $1,700 per ounce level for the first time in more than seven years, as stock market routs continued due to concerns about the impact of the rapidly spreading coronavirus.
The health crisis and economic crisis being triggered by the pandemic is impacting risk assets and driving investors towards safe haven gold which saw gains of over 6.5% last week and nearly 10% year to date.
Global stocks are crashing with the Nikkei closing down 6%, the Euro Stoxx down 7.8%, the FTSE down 6.5% and S&P futures down another 5%
Already massively overvalued stock markets are in full on crash mode as investors anticipate a severe recession or Depression as the coronavirus becomes the ‘straw that break’s the camel’s back’.
Gold is one of the top performing assets in the last twelve months and so far in 2020 with a gain of 28% in the last 12 months and 10% year to date. Year to date losses in stock markets are between 12.75% on the S&P and losses of 19% on both the Nikkei and the Euro Stoxx 50.
Source: Thomson Reuters
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