Gold prices have rallied to their highest levels in history this week, but its rally won’t last forever.
Business Insider spoke to a number of analysts this week to find out what could derail the precious metal’s record rise.
A Joe Biden presidency, the development of a useable coronavirus vaccine, and a stock market correction could all push gold prices lower, they told us.
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Investors all across the globe have rushed to buy gold pushing the precious metal to its highest level ever, but analysts think the precious metal, which has been regarded as the darling of financial markets in recent weeks, is simply not pricing in a number of bearish scenarios which could cause the gold price to crumble.
Yung Yu-Ma, chief investment strategist at BMO Wealth Management, said: “While a number of factors have converged in support of gold, the picture around year-end may show cracks.”
Gold is trading close to $2,000 per ounce after a diplomatic row between the US and China, the world’s two largest economies, worsened in recent days, pushing investors into safe haven assets.
The US ordered the closure of the Chinese Consulate in Houston and China subsequently ordered the closure of the US Consulate in Chengdu last week.
Relations between US and China were sour as it is in recent months after China enacted security legislation in Hong Kong and the countries engaged in a blame war over who is responsible for the coronavirus outbreak.
Business Insider spoke to a number of analysts to get their view on what could derail the meteoric rally of the precious metal in recent weeks.
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Source:: Business Insider