PRESS ROOM
Gold remains in favour as coronavirus drives market uncertainty
Wednesday 12th February '20
Gold, often seen as port of call in times of uncertainty, has remained in favour this year. Other commodities like oil and base metals have suffered from fears of demand destruction from lower economic activity from the world’s largest consumer of commodities. While jewellery consumption in China is likely to fall, global gold demand (especially investor markets) are likely to remain very strong in the face of the economic uncertainty that the virus has brought. Speculative positioning in gold futures have remained at an elevated level - above 300k contracts net long - since the beginning of the year and gold held in exchange traded products has hit an all-time high (surpassing the 2012 peak).