Gold is on a bull run of note. Its price in the year to date is up more than 16%, near eight-year highs at over $1,770 an ounce. And with the number of Covid-19 infections globally spiking, notably in the US, the precious metal looks set for more gains.
“The… sharp economic contraction and an uncertain outlook have encouraged investment in safe-haven assets. The monetary and fiscal policy response seen around the world, unprecedented in both magnitude and structure, have also benefited gold, fuelling strong inflows of institutional money,” consultancy Metals Focus said in a recent report.
However, this has all been driven by investors and funds, so-called “institutional inflows.” Physical demand has been slammed by the pandemic as economies and the income of consumers contract.