Recent Spike in Gold Price Driven by Physical Demand

An emergency stimulus package, the closure of Swiss refineries and a rise in physical demand have all contributed to a recent spike in the gold price, climbing as high as US$1,671.

News that the US Federal Reserve will pump out unlimited amounts of cash to prop up the economy drove up demand for the yellow metal, making gold more appealing as a hedge against inflation.

“There has been a tremendous move into physical metals over the last two weeks, as the economic crisis related to the coronavirus has unfolded,” said Jeffrey Christian of CPM Group.

Should you invest in the gold market? Read our FREE 2020 gold and precious metals outlook reports with market forecasts, exclusive interviews with industry experts, and more!