The price of Gold is trading at the level of $1805 per ounce. For a short time, the quotes fell to the lowest level in two weeks.
Stock markets in Europe have returned to near-record highs, as investors bet that the ECB will maintain the maximum amount of stimulus while the coronavirus remains a threat to growth. This is the market's confidence in the ability of the ECB and the Fed to withstand any economic danger and, consequently, the absence of the need for an additional shelter in the form of Gold.
According to JPMorgan analysts, the economies of many countries of the world are now in a completely new situation for them due to the sharp growth of monetary and fiscal incentives that put the global financial system on the edge of the abyss. Now all events are unfolding around a massive political and financial response to the coronavirus crisis. In addition to the almost zero interest rate, there is a very high level of debt around the world, both at the corporate and individual level. This is a real problem when inflation gets out of control. If the Fed raises interest rates in the current conditions, the impact on the economy will be very significant. the regulator is forced to move along the edge of the abyss, so that the increase in rates does not lead to a sharp reversal of the economic stability that it was able to create at the present time. JPMorgan believes that the main winners in the current situation will be real assets, such as gold, commodities and real estate, since they are always in steady demand during crises.
The forecast expects an increase in the price of Gold to the levels of 1810, 1815 and 1825 dollars per ounce.