It will be very interesting to see what happens to precious metals markets following the coronavirus crisis. At the same time, experts are wondering whether or not a second wave of infections will occur, and if so, what this might do to the price of silver and gold in the process.
A Second Wave of Coronavirus Cases
It is not uncommon to expect another wave of coronavirus cases in the coming months. Albeit the pandemic may appear to be under control at this time, it is too early to draw any real conclusions. The full impact of the virus will become apparent in the coming months, and the financial impact may prove rather catastrophic in many different ways.
Scientists are concerned that, as economies resume normal operations, a second wave of coronavirus cases will materialize very soon. That would be rather likely, especially as more people get in each other’s proximity once again. Resuming normal life despite not having a vaccine to the coronavirus may come at a steep cost, albeit only time will tell if that is effectively the case.
This is already becoming apparent across nations that seemingly thwarted the coronavirus outbreak. South Korea and China deal with a rise in overall infections, even though the pandemic seemed to be on a downtrend in recent weeks.
Even in the US – primarily in Texas – there are more deaths being reported once again. It is very difficult to determine how this pandemic is evolving, and whether a nation’s response to it is sufficient.
Gold and SIlver Begin Moving up
The precious metals markets already show signs of renewed bullish momentum during these uncertain times. Looking at the price of gold, there seems to be a growing demand to push the value higher once again. Similar momentum seems to affect the silver market, which is going through a mini bullrun of its own.
Spot prices are also moving up rather nicely. Gold spot prices rose by roughly 0.3% in the past few hours, indicating that a new move may loom on the horizon. Silver futures, on the other hand, are up as much as $3, in an attempt to reduce the gold-silver ratio even further. It will take a while before this threshold drops below 100 again, but the current progress favors this particular outcome.