The gold price of $ 1,686 is currently at Friday night’s level, even though we had seen $ 1,672 in the low today. If we look at the course of the past few weeks, then the gold price has not only held up well. Since the start of the stock crash on February 21, gold has even increased the bottom line by $ 66. If you bet on the precious metal, you could get your money through the last few weeks of the crash well. Last week saw all-time highs like the gold price in euros, from which the price is now 47 euros away.
The week of trials for the gold price
There are some tough tests ahead this week that may show whether the gold price remains stable and may continue to rise. It’s also about gold’s reputation as a safe haven in times of uncertainty. Will the stock prices suddenly drop several times over the course of the week, and will the gold price rise as the opposite pole? It would be possible, but of course you only know afterwards! There is some data for this week. And there is a good chance that they will be grotto bad and that the prices will move. One always thinks that the markets have already priced in horror economic data. But is the data coming worse than feared, is there a risk of stock market slumps – and an increase in the gold price?
Tomorrow Tuesday at 11 a.m. the ZEW index will be announced in Germany. At 4:00 p.m., US sales of existing homes will follow in March, and at 10:30 p.m., API data for US crude oil inventories will be released. Then on Wednesday, at 4:30 p.m. German time, the state inventory data for oil in the USA will follow. Thursday at 9:30 a.m., the important purchasing manager indices for April follow for Europe. That could be really bad – Dax down, gold price up? Or as it has happened the last few weeks… Dax down, gold price down or with oh and noises sideways? Then at 2:30 p.m. on Thursday, U.S. first jobless claims will follow. The ifo business climate index, the most important German economic barometer, will come on Friday at 10 a.m. Then finally for this week there will be consumer confidence at the University of Michigan for April at 4 p.m.
Reasons for a good mood are still there
So you can see there are plenty of opportunities for market volatility this week. Falling stock prices and falling oil prices, and at the same time a stable or rising gold price, that would be possible. But of course this is not a safe scenario. Gold can prove this week whether it is really a safe haven right now. Apart from short-term movements (risk on and risk off trades), the reasons why the gold price could basically continue to rise are still the same as last and penultimate weeks, namely more and more central bank money printing and more and more government debt. The recent trigger of the bullish gold price was the Federal Reserve’s $ 2.3 trillion money pumping announcement on April 8.
From then on, the gold price went up $ 86 until last Thursday. Since then, the market has been taking a breather. A further rise for gold is conceivable. But you never forget how the precious metal price reacted to the stock crash in March. The gold price also fell because many professional investors first needed cash and therefore also sold gold. Will the market react this way again this week when the grumpy economic data may pull stock prices down? There is the big unknown. Anyone with an eye on gold should expect the next four days to be volatile!
Gold price in US dollars since mid-February.
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