Commodity Report: Gold Price Forecast: 24 March 2020 [Video]
|Gold extended a surge above $1,600 an ounce on Tuesday after the Federal Reserve took unprecedented measures to protect the U.S. economy from the coronavirus shock, with Goldman Sachs Group Inc. saying bullion’s probably at an inflection point and it is time to buy.
The U.S. central bank on Monday rolled out an extraordinary array of programs and will lend against student loans, credit card loans, and U.S. government backed-loans to small businesses.
Also propping up bullion markets was the closure of three of the world's largest gold refineries in Switzerland due to the outbreak that has squeezed supply of the physical metal.
The gold price posted the biggest one day "dollar" gain ever in history on Monday after the US Federal Reserve promised to pump “unlimited” amounts of money into the financial system, boosting the metal’s status as a store of wealth and an inflation hedge.
Monday was the biggest one-day dollar gain in the history of gold trading, surpassing the October 25, 2011 advance of more than $70 an ounce that took the price above $1,700.
Goldman Sachs also reaffirmed its 12-month target for bullion to advance to $1,800 an ounce; spot gold hasn’t traded at that level since 2011, the year prices hit an all-time high.
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