The gold price got off to an extraordinarily good start to the new year. However, he only recently surrendered part of his original profits, despite the fact that some experts have already declared the 2.0 financial crisis due to the corona virus crash on the world’s stock exchanges and the resulting corporate failures. However, as the Dutch bank ABN Amro found, the gold price rose by a maximum of 10 percent in the last major crises, depending on the performance of the US dollar.
In the wake of the global financial crisis, gold prices fell significantly due to the sharp rise in the dollar, as precious metal expert Georgette Boele wrote in a note. In her current base scenario, this is exactly why she expects a weaker gold price in the coming months.
Gold is often seen as a safe haven in turbulent stock market times. Some analysts claim that an asset is safe if it performs better than other assets in times of market stress. Despite the massive losses on the stock markets, the price of gold has not been able to increase significantly in value in recent days. The situation is quite different for the Japanese yen and the US government bonds (NASDAQ: TLT), which investors headed for as a safe haven. However, the US dollar showed a rather mixed performance.