Gold investors are jealous of the stock market. As Dax and Dow move up, the gold price loses momentum. But the billions in aid from governments and central banks should support the precious metal, and the prospects remain excellent.
The world’s hotspots, especially the newly flared up trade dispute between China and the United States, have so far not been a catalyst for the gold price. The troy ounce quickly said goodbye to the 7.5-year high that had only been reached a few days ago. Even the unprecedented fiscal and monetary policy measures in unprecedented trillions have not given the gold price any impetus. At the moment, the hope of an economic recovery prevails as corona restrictions are gradually being withdrawn worldwide.
Good for oil and some stocks
This benefits risky investments such as stocks and commodities such as oil. The technology index Nasdaq with its popular FANG shares (Facebook, Apple, Netflix and Google) has even reached a new record high in the meantime. As a result, investors have been reluctant to buy gold, especially in the strong importing countries of China and India. In China, gold imports fell by almost 90 percent in the first four months of the year. The separately reported demand for jewelry decreased by 65 percent.