While there’s no doubt that gold has been by the pandemic and surrounding factors, it’s important to remember that COVID-19 isn’t the only thing that makes the precious metal attractive, with one senior market analyst saying that rising global tensions should also act as a reminder of the value of gold as a safe haven.
Invesco’s chief investment strategist, Kristine Hooper expects the flaring tensions between America and China and Russia will be good for gold and push prices higher this year. She said, “We know that gold has also historically been a hedge against geopolitical risk. We could see the current environment create some upward price pressure for gold through the year.”
Hooper also expects that we will see gold gaining on inflation pressures, noting “We’re clearly seeing a lot of fear about inflation. So this is what is going to drive the popularity of gold.”
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