Gold increases its liquidity by 2% more thanks to investors
Precious metal continues to be a favorite refuge for the world's hedge funds and central banks
Due to the stock market storm caused by the pandemic, an increase in liquidity of gold exceeding 2% has been evidenced. The reason is that investors have sheltered their money in assets like this Precious metal, which hit the $ 1,700 per ounce level, peaking at eight-year highs.
The impact of the health crisis on world economic growth has caused investors to liquidate certain positions in gold. This nervousness has caused the metal to shoot up 10% so far this year.
The rapid spread of the virus outside of China is causing stock markets to crash worldwide, prompting investors to bet on assets deemed safe such as the dollar, sovereign debt and gold.
Yesterday, the Federal Reserve chose to buy all assets unlimited, an unexpected decision for investors who before these publications began to buy gold, causing a rise of 7.5% in the session.
In conclusion, we will have to be attentive to the movements that the central banks are making, since, if they continue with soft policies, it would provoke a greater commitment to metals, generating an increase in their prices.