GFI GOLD will be closed on Friday 29 March

04/06/2020

A slight correction on the gold market

A slight correction on the gold market

At the beginning of 2019, analysts predicted a turbulent year 2020 in terms of gold ... and they were not mistaken! The yellow metal had the wind in its sails, especially fueled by the Covid crisis and its impact on the world economy.

Gold hit a new historic record of 1633eur an ounce on 18/05/20… the figures then suggested an economic crisis as serious as that of 1929. The stock market which lost between 30-40% in mid-March was the main driver of this increase. It discouraged investors who logically took refuge in gold.

Subsequent decisions by governments and central banks in hopes of supporting the economy and limiting the damage this time supported the markets. The ECB decided to launch an emergency purchasing program in the face of the pandemic (Pepp) amounting to 750 billion; amount that it could moreover revise upwards this afternoon.

The portfolio managers, also trying to limit the damage, (logically?) went back to the stock market and, in return, sold their gold in order to take their profits.

This explains the current correction of the ounce of gold which is around 1520 eur today.

Another element which explains the fall of gold in EUR is the fall of the dollar whose price has passed on March 19 from 1.0680 to just over 1.1250 today….

A fall in the dollar coupled with a fall in gold is mathematically damaging to us Europeans.

However, we remain confident in the protective nature of this precious metal….

News See all
Here you will find important information on economic and financial news as well as information that may have an impact on your investments in gold or foreign currencies
The calm before the storm?
2024-02-29

The calm before the storm?

The yellow metal has shown very low volatility over the last four months. It is holding up near all-time highs despite high interest...
Gold in 2023: What's the outlook for 2024?
2024-01-29

Gold in 2023: What's the outlook for 2024?

The yellow metal posted a performance in euros of 9.9% over 2023 despite ECB interest rate levels not seen since 2001.
L'avenir: Gold prices hit record highs
2023-12-07

L'avenir: Gold prices hit record highs

The price of the yellow metal has risen sharply in recent weeks. Among the causes? The war in the Middle East.
We are currently closed from Friday to Monday included.
Download our guide

Download our guide

Do you want to invest in gold?
Do you have some knowledge but want to learn more?

This guide will answer your questions!