Gold May See Largest Gains in Q2

Gold may see the largest increase in Q2 among all commodities, according to ING Group from the Netherlands.

ING Commodities Strategy Director Warren Patterson observed that the average gold price is at US$1,700 recently and may even test the record level of US$1,921.17, which was created in 2011, in the next 2-3 months.

Gold price has experienced more volatility in the past one month or so, and given the current level of market uncertainties, practically all central banks are easing monetary policies, which offered strong support for gold on the fundamental level.

Right now, positions of gold-backed ETF reached a record high, while the global wave of stimulus that aims to prop up economy,including unlimited QE of the US, also enhanced golds outlook.

According to the World Gold Council‘s April data, Global official gold reserve totaled 34,789.5 tonnes as of February, 2020. In February, global central banks’ net purchase of gold amounted 36 tonnes, up nearly a third from the previous month, suggesting that central banks are still actively acquiring this asset.