Last month, we analyzed the Great Lockdown. As the first wave of infections has been contained, the governments are easing the restrictions. So, in this edition of the Market Overview, we assess the Great Unlock. First of all, we analyze how the gradual reopening of economies will affect the gold prices. We argue that the Great Unlock will not be as great as it sounds, so the price of gold does not have to go down.
Second, we examine how the second wave of the coronavirus - which is now the biggest threat and in some countries it is already present - could affect gold prices. The issue is not simple, as gold could on one hand gain less than during the first wave as people would be better prepared for the epidemic but on the other hand, it could benefit even more amid extinguished hopes for the quick recovery.
Third, we study the Great Disconnect between the fundamental reality and the global stock market, drawing implications for the gold market. The S&P 500 Index has been rallying since late March, despite the soaring unemployment rate to levels not seen since the Great Depression. Isn't it strange?
Last but not least, we analyze the recent shortages of bullion and high premiums in the retail gold market, investigating what happened and what does it mean for the gold market. In particular, we examine whether the divergence between physical and paper gold resulted from the manipulation and whether it signals the bull market.
We hope that you are healthy and in a good financial position. During the pandemic, the most important job is to survive. But it's not the only task: another is to protect health and capital. We are here to help you in these turbulent times: read our Gold Market Overview and find out what the current crisis implies for the gold market!