While Wall Street has been a bumpy ride for most investors these days, gold prices are wending their way into April at a rather steady clip. As of April 1, gold is holding around $1,590 per ounce. That is not to say there have not been significant swings between trading sessions. But while the stock market shed more than 35% of its volume between mid February and late March and United States unemployment rates are poised to go as higher than 30%, gold seems to be on a much steadier course, ranging between $1,550 to $1,650 during much of the past month.
Many folks wonder why gold hasn’t gone higher with all of the bad news these days. After all, when the stock market tumbles and the world goes haywire, gold often trends way upward. However, this pandemic crisis is unlike many other global tragedies. And many sectors that typically use gold for industrial purposes are slowing down for now. Meanwhile, Russia and China, which are among the world’s biggest buyers of gold, have cut back on acquisitions of the yellow metal for now.
So, while pre-1933 gold coins and American Gold Eagles are as popular as ever among U.S. investors and precious metals speculators, it seems these pieces may remain relatively affordable at least for now. But who knows? With the rapid changes we’ve been seeing lately, gold may become more bullish — especially as the world comes out of its safe hibernation from the deadly pandemic in the weeks and months ahead.
