To be frank, gold was gaining consistently week after week and month after month. October 2019 came as Brexit deadlines approached which made the pound to experience drastic drop in its value in the section of currencies but Gold continued to rally up.
November 2019 came as some rumours started to threaten the health of individuals in Wuhan, China but no one was prepared to make sure that it could not land to our countries, states and towns. We as investors foresaw that there was a possibility that the pandemic implications of the Wuhan COVID-19 epidemic could land to our regions.
Gold Optimism.
At the beginning of the pandemic implications at January as COVID-19 landed to overseas boarders in other countries, investors began dumping their investments in stocks and shares to diversify in safe havens instruments like precious metals and bonds. This was a great opportunity for gold to move from consistent slow gains to faster and drastic appreciation in its prices.
In January 2020, gold dawns at 1500 US dollars per ounce and it was not retreating on its moving average price. It was hitting new highs every morning and every hour of the day. As news headlines filled our media platforms like TVs, YouTube videos, News papers and others, investors were buying gold on daily and hourly basis cause to a rise in demand and escalation of its value or price. By February 2020, gold was hitting 1600+ US dollars in value and still continuing to promise to conquer more peaks as days went on and the COVID-19 pandemic swept further into our towns and cities. The fear displayed by the rich for the first time in this health crisis due to the Grimm Reaper virus provided even more higher peaks for Gold.
Months later, Gold volatility has hit its highest peaks until scientists and researchers from various pharmaceutical companies have brought hope in the COVID-19 vaccines race. With various trials of the vaccines underway, the exalted conquerer in financial instruments called Gold (XAU/USD) has began to concede defeat by lossing its value. In the hope of a good and working vaccines being investigated and tried, investors are now dumping Gold hence making it to loss its value.
Gold Optimism has seen it being capable of testing the XAU/USD value of $2070 by the month of August before Russia declared to have made progress in developing the first COVID-19 vaccine.
This made gold to be put in depression upto now when I am writing this submission in November 2020.
Gold Pessimism.
Just as the law of gravity has always made sure that anything thrown up must reach a point where its kinetic energy will become zero then the object will be forced to return to the ground. The same gravity mechanism works for financial markets but with a little twist like fear, pessimism, depression and economic recovery.
Gold is a wonderful and great safe haven for investors during pandemic periods or economic depression due to its intrinsic value that is steady and can guarantee consistent profits in such hard times. But the reverse happens when economic recovery kicks in, the value of Gold will begin to fall as investors are selling or offloading it to diversify in other profitable investment instruments like stocks. By now November 2020, COVID-19 vaccines optimism is driving the value of Gold as a safe haven down as countries are recovering economically from the implications brought up by the pandemic implications. Between August 2020 to November 2020, Gold or XAU/USD has depreciated from the value of $2070 to $1850. This is pessimism at its best way of generating steady losses to those who has bought Gold at its highest peaks like $1900 and $2000. You can either jump from this safe haven before it goes down or wait for a second wave of the COVID-19 pandemic or vaccine failure for it to recover to its previous peaks.
