The recent drop in gold prices, triggered by the panic over the coronavirus pandemic, proved to be quite short-lived. Since yesterday, the price of gold has seen a sudden rise, and we are officially witnessing a rise unprecedented in the world. Historically, the price of gold has seen the biggest one-day gain ever. It rose a whopping 5.6% in a single day!
Some are even speculating that gold could climb to $ 1,700 an ounce by the end of the week. And if this continues, gold could very well break through the $2,000 an ounce mark in the second quarter of this year.
Why? One important reason is the lack of physical gold, which is matched by an almost inflationary amount of paper gold. As a result, banks in New York are currently unable to provide physical gold.
So what happens to the price of gold? David Jones, chief market strategist at capital.com, shows the important levels of gold (resistance and support). According to David Jones, the decisive factor is the $1700 mark on the upper side: