Gold price outlook: will the bull market continue?
Mark O’Byrne, research director at Goldcore says we are in a long-term bull market for gold and silver and a bear market for equities as the coronavirus weighs on the global economy.
Gold prices continue to climb higher on Tuesday, with the commodity hitting a seven year high of $1742.60 an ounce in overnight trading. At the same time, silver prices are also trading higher, hitting a three-week high of $15.93 in overnight trading.
Both precious metals have made significant gains this year, with investors flocking to invest in the safe-haven asset amid the Covid-19 pandemic, which has wreaked havoc on global equities.
However, with the global pandemic showing signs of stabilising as confirmed cases begin to decline, the FTSE 100, S&P 500 and Hang Seng Index have started to claw back their losses in April. But with equity markets stabilising what will happen to gold and silver prices?
According to Mark O’Byrne, research director at Goldcore, investors can expect a long-term bull market for gold and silver and a bear market for equities as the coronavirus continues to weigh on the global economy.
When asked if gold prices could push above the $1700 mark on a sustainable basis, O’Byrne said that it is ‘a question of when, rather than if’, with the economic fallout of Covid-19 crisis so severe it has seen governments printing money ‘on scale never seen before in the history of mankind’.
How to trade commodities
Looking to trade Gold and other commodities? Open a live or demo account with IG and buy (long) or sell (short) the stock using derivatives like CFDs and spread bets in a few easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘Spot Gold’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
