PRESS ROOM
Sharp recovery in gold prices on US fiscal stimulus
Thursday 26th March '20
The price of gold surged past US$1600/oz on Tuesday 24 March, up from just under US$1500/oz on Monday 23 March, as the US announced a historic $2 trillion fiscal stimulus to boost the economy. Gold has experienced selling pressures this month as investors have turned to the precious metal for liquidity in the wake of large drawdowns in equity markets. The announcement of this significant stimulus from the US has brought some measure of calm to equity markets alleviating some of the selling pressure from gold. This is fuelling gold’s recovery at a time when investors are seeking safe havens to hedge against the uncertainty ahead for the global economy.