Hello lovely people of Hive community. Hope you are having a good time in life. Friends, there are few items which really excel in year 2020, at covid-19 pandemics. One of the product is gold which really turned the table despite pandemics. At the start of November the price was above 1900 USD/ounce and now it has dropped below 1800 USD/ounce.
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I am unable to understand the reason of spike in gold price during covid-19 pandemics and decreasing trend now where life is again on track. One of the reason is supply and demand. High demand and low supply easily give any prosuct hive. May be the low demand than production or successful testing of corona virus vaccine is the reason this drop. What is the reason. Do you have any idea?
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I believe we should ignore short-term movements. Yes, positive news on the vaccine is one reason.
However, there is going to be no end to money printing globally. Excess liquidity will manifest itself in the form of inflation in various asset classes.
At some point of time, gold will bounce back. It has a long way to go. Any decline is a good opportunity to accumulate further.
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