Gold has been on a generally positive trend for the past few years. However, the onset of the global COVID-19 pandemic has made gold’s relevance as a hedge even more apparent and accelerated its price performance. Gold increased by 17% during the first half of 2020, moving up by an additional 10% in July.
The most recent price move has come fast which, combined with markedly weak consumer demand, may result in higher gold price volatility in the near term. However, we believe the COVID-19 pandemic may bring structural shifts to asset allocation and that that there are strong fundamental reasons supporting gold investment longer term.
