Gold Mid-Year Outlook 2020
Gold has been one of the best performing assets so far in 2020, functioning as a hedge and store of value for many investors.
As we look forward, risks for investors remain high: aggressive monetary policies are pushing asset valuations high without a fundamentally stronger economy; coronavirus outbreaks are flaring up in some countries as economies reopen increasing the likelihood of a W-shaped recovery; and while expectations of high inflation are circulating, investors in various parts of the world are worried about potential deflation instead.
For gold, a deceleration of gold consumer demand amidst economic concerns and lockdowns will likely be offset by strong investment demand as both institutional and individual investors look for effective ways to protect the value of their investments and improve the performance of their portfolios.
Author: World Gold Council