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Gold July 30, 2020 10:00:26 PM

WGC Investment Update Highlights Acceleration of Gold’s Bull Run

Paul Ploumis
ScrapMonster Author
The sharp uptick was mainly driven by sharp depreciation in the value of U.S. dollar.

WGC Investment Update Highlights Acceleration of Gold’s Bull Run

SEATTLE (Scrap Monster): The most recent Investment Update published by the World Gold Council (WGC) suggests that the latest leg of gold’s bull run in 2020 has come significantly fast.

The report noted that gold took approximately four months to rise from US$1,650/oz to US$1,800/oz. However, it has taken only less than four weeks to further climb to levels of US$1,950/oz. Gold has appreciated by 17% during the initial six months of the current year, whereas it has moved up by almost 10% in the month of July alone.

ALSO READ: Pandemic Gold Prices to Record Levels

The sharp uptick was mainly driven by sharp depreciation in the value of U.S. dollar. Since gold prices have moved higher rather sharply during the previous month, the price is likely to witness some consolidation in the near term. Meanwhile, there exist enough support for gold investment, WGC noted.

The dynamic and unprecedented nature of the pandemic is likely to impose structural changes that support gold’s long term performance. Also, the demand for gold products such as jewellery may play a key role in the yellow metal’s sustainable performance going forward. The ongoing weakness in dollar offers all good reasons for investors to add gold to their portfolio. The structural shift to asset allocation, brought about by the Covid-19 pandemic, will boost investment demand for gold.

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