(Kitco News) The gold market is moving fast this year and unless investors pay attention to the price action, especially in the gold equities space, they might end up missing out, said Lion Selection Group executive director Hedley Widdup.
Gold prices are up more than 16% since the start of the year, seeing massive gains on the back of the COVID-19 fears as well as extensive monetary policy stimuli across the globe, Widdup told Kitco News on Tuesday.
“What we’ve seen recently due to the COVID-19 was completely unpredictable and unparalleled in terms of economic history,” Widdup said on the sidelines of the Mines and Money Online Connect. “COVID-19 has spread fear across the global markets, which led to global responses from central banks and governments to provide stimulus in various ways. Both of those things are very good for gold.”
The outlook for interest rates going forward is also low, which is working in gold’s favor.
However, it was not just coronavirus disruptions that have shifted the sentiment in the gold market, said Widdup, highlighting that investors began paying attention to the gold bull market last year when prices finally breached the $1,300 and then the $1,500 levels.