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Gold March 20, 2020 11:30:44 AM

Gold Hit by Unprecedented Economic Market Conditions

Paul Ploumis
ScrapMonster Author
All asset classes experience massive liquidation during the previous week and gold was no exception to this trend, said WGC.

Gold Hit by Unprecedented Economic Market Conditions

SEATTLE (Scrap Monster): The latest Investment Update report published by the World Gold Council (WGC) states that gold, like most other asset classes, seems to be affected by the unprecedented economic and financial market conditions. Massive liquidations across all assets tend to drive volatility in gold prices.

The flows into gold-backed ETFs have remained positive so far this year, although it experienced outflows during the recent weeks. A total of $3.6 billion of inflows were recorded in March this year. The year-to-date inflows into exchange traded funds totalled $11.5 billion until March this year.

ALSO READ: Gold-backed ETF Holdings Hit All-Time High

All asset classes experience massive liquidation during the previous week and gold was no exception to this trend, said WGC. However, gold continues to remain as one of the few assets with positive returns in 2020. As of first week of March this year, gold prices are up by almost 10%, it noted.

Commenting on its near-term outlook on gold, WGC noted that consumer demand for the yellow metal is likely to soften significantly. On the other hand, world central banks are likely to remain net gold buyers. Also, gold prices are expected to experience additional swings, driven by high market volatility.

 

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