Since its appearance in China, the feared COVID19 has exerted a considerable influence on global markets. Whether on the gold price, the oil price or even the stock markets. The effects of this virus have been felt in virtually all sectors. The correlation between the coronavirus and the price of oil is particularly obvious. OPEC reacted to the outbreak and announced additional production cuts.
The uncertainty of coronavirus statistics alone puts pressure on the markets. The coronavirus and the markets are now interconnected at every level.
This is particularly true for the coronavirus and the price of gold. While news of the outbreak are spreading and fear of an epidemic is growing, the price of gold, especially in Euros, is marking one record high after another (not exactly noticed by the media!). And if this trend continues, the price of gold is likely to rise significantly further!
What is the outlook for the oil price, gold price and stock markets? David Jones, chief market strategist at capital.com, analyses the latest price reactions. He gives vailide assessments of how things are likely to go from here!
FMW editors’ note: A new format will soon be launched in which Markus Fugmann and David Jones will discuss the situation on the markets. And this could well have entertainment value, as David has plenty of British humour.