2020 is shaping up to be one of the most intriguing leap years in recent memory. We have major political upheaval in Malaysia with Dr Mahathir resigning as Malaysia Prime Minister abruptly. The US Presidential election will have a major influence on the financial market. Coronavirus emerged out of nowhere to wreck havocs in China. In view of these uncertainties, gold price had a good run. But whether this run is sustainable is a big question because the epicentre of the virus is China, the biggest importer of gold in the world.
At the point of writing, there were about 2,700 deaths linked to the virus. The countries significantly affected by the virus outbreak are China, Japan, South Korea and Italy. Against this backdrop, global economic growth for 2020 is widely expected to slow down, fuelling the charge of gold price.
Traditionally viewed as a safe haven, gold price typically surge in times of crises as investors buy gold to preserve wealth. The coronavirus takes place at a time when US stock market hit a record high. Dow Jones hit a record peak of almost 30,000 points on 12 February 2020. However, on 25 and 26 February 2020, Dow Jones plunged about 1,900 points.Read more