Just 3 months ago, no one could have expected such a rally as what we are seeing this year. Gold continues testing multi-year highs due to the spread of the coronavirus and its impact on the global economy, which was threatened by a recession even before the outbreak. Losses for businesses run into the billions, which motivates investors to buy safe assets. A massive reduction in interest rates in key countries also strengthens gold.
The coronavirus has become a determining factor and the situation is getting worse. The probability of a recession in the US economy is growing, and the recession in the EU and China has become a fact. The wave of interest rate cuts around the world that we saw in February is not likely to be the last. At the same time, the coronavirus continues its negative impact on all countries, and will bring catastrophic damage to the world economy, not to mention people's health. Therefore, there is every reason to expect a further increase in the value of gold, especially given that it was more expensive without any epidemics on a global scale 7-8 years ago.
On March 9, the psychological mark of $1,700 was tested. We expect that eventually, the rates will return to this level, and possibly overcome it. Most technical analysis tools also indicate the efficiency of the deals on the trend in the short and medium terms.
