Gold price outlook: will the bull market continue?
Mark O’Byrne, research director at Goldcore says we are in a long-term bull market for gold and silver and a bear market for equities as the coronavirus weighs on the global economy.
Gold prices continue to climb higher on Tuesday, with the commodity hitting a seven year high of $1742.60 an ounce in overnight trading. At the same time, silver prices are also trading higher, hitting a three-week high of $15.93 in overnight trading.
Both precious metals have made significant gains this year, with investors flocking to invest in the safe-haven asset amid the Covid-19 pandemic, which has wreaked havoc on global equities.
However, with the global pandemic showing signs of stabilising as confirmed cases begin to decline, the FTSE 100, S&P 500 and Hang Seng Index have started to claw back their losses in April. But with equity markets stabilising what will happen to gold and silver prices?
According to Mark O’Byrne, research director at Goldcore, investors can expect a long-term bull market for gold and silver and a bear market for equities as the coronavirus continues to weigh on the global economy.
When asked if gold prices could push above the $1700 mark on a sustainable basis, O’Byrne said that it is ‘a question of when, rather than if’, with the economic fallout of Covid-19 crisis so severe it has seen governments printing money ‘on scale never seen before in the history of mankind’.
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