Even during the pandemic people consider gold as the safest investment during periods of economic and political uncertainty. It has gained consistently amid pandemic because of its safe-haven appeal.
While concerns over the near-term global growth outlook rush investors into the safety of gold.
Gold prices were driven higher using fiscal measures such as cutting rates and quantitative easing. Many policymakers and the Central Banks across the world have come up with several stimulus programs to support the economic slowdown caused by prolonged lockdowns. This has, in turn, led investors to continue investing in gold.
It has been predicted by Global agencies like the International Monetary Fund (IMF) predict that there can be possibilities of a global recession.
As per the IMF, the global economy will shrink by 3 per cent in 2020 due to the negative economic impact of the coronavirus. However, the agency forecasts a slight recovery in 2021.
It is expected that the outbreak of COVID-19 and the health crisis will be much more damaging to the global economy while it caused massive selloffs in all the financial and commodity markets last month.