PRESS ROOM
Gold finding support from stimulus measures
Tuesday 14th April '20
On Monday 13th April, gold hit the highest levels since December 2012. After a period of moderate performance, weighed by investors selling gold to raise cash, gold is starting to rally again. The scale of global fiscal and monetary stimulus we are seeing in response to the COVID-19 crisis is far greater than what we have seen in response to any other crisis. That may or may not be inflationary, depending on how quickly the economy absorbs the stimulus. It is very likely to be for the currencies of countries offering the most monetary stimulus. Gold – often seen as a pseudo currency – cannot be debased in the same way as it has limited supply. It certainly responds positively to periods of uncertainty. Gold appears to be rising accordingly.