The Strategist

Gold shows maximum price growth since March 2009

03/25/2020 - 10:21

On Tuesday, gold went up by 6%. This is the most significant one-day price increase since 2009. The price increase was the largest in the history of observations.

On March 24, gold went up by 6%. There has been no such a strong increase in prices since March 2009. In monetary terms, the value added $ 93.2 and reached $ 1660.8 after deduction, and there has never been such a noticeable increase since the beginning of observations in November 1984.

The price of gold was affected by the closure of gold mines and the US Federal Reserve System (Fed) to combat the effects of coronavirus, MarketWatch noted. On Monday, the Fed announced an unlimited procurement and mortgage lending program. “This means the systematic destruction of the dollar, which clearly benefits the gold,” writes Ryan Giannotto, director of research at the GraniteShares exchange-traded investment fund. Reuters reports a suspension of production in Switzerland for at least a week, reports Reuters. This was demanded by the country's authorities to counter the spread of coronavirus. These manufacturers account for one-third of the world's annual metal supplies, the agency notes.

Gold is traditionally considered one of the most reliable and less volatile assets. “We have long been saying that gold is the last hope that takes protective measures against currency depreciation when politicians take measures to withstand the shocks we are experiencing now,” the Goldman Sachs analysts commented.