Gold price up again as Goldman names it favourite trade
Gold price rose for the second straight Wednesday as investors weigh the economic impact of the covid-19 outbreak and its effect on commodities.
Spot gold rose 0.5% to $1,710.58 an ounce by 1 p.m. EST. Gold futures were up 1.0% to $1,716.00 per ounce on the Comex in New York. Historically, the price of gold has surged during times of crisis, a sentiment that has been echoed by commodity analysts.
Jeff Currie, global head of commodities research at Goldman Sachs, is still bullish on gold as there remains a high level of uncertainty over how the pandemic will ultimately affect the economy.
In an interview with Bloomberg, Currie said gold is the favorite commodity to trade this year, citing the worldwide currency debasement effects and an increase in construction activities as reasons to own “capital goods type commodities.”