Gold Price in a Recession: Up or Down?

Trade with zero comissions, no transaction fees and the tightest spreads on our app here:
iOS: https://bit.ly/capitalcom-ios Android: http://bit.ly/capitalcom-android
Web: http://bit.ly/capital-webpage

Where will the gold price go during a recession? Most people seem to think that an economic downturn should coincide with gold price going up. But we provide a detailed look at the gold price in a recession and find out that’s not always the case.

Gold prices are naturally impacted by many factors - manufacturing, GDP growth, real estate prices, inflation, yields etc. Any good gold forecast should keep them in mind. At this moment in time we even have several other factors affecting it - the U.S.-China trade war and Brexit. The combination of all this has increased the chance of a recession to 31.5%

Many investors and traders monitoring the situation feel that a recession should cause a massive influx into gold, the perennial safe-haven asset, thus boosting its price. You can find many a gold price forecast touting numbers like $2000, $3000 and even more.

Nothing is impossible but a gold analysis relying only on one single factor - the emergence of a recession - would be limited. Just like the gold price in 2019 has shown us - it’s always the combination of all factors that governs the trend, not one single event or piece of data.

Hit the like button if you enjoyed our Gold price in a recession: Up or Down video and make sure to subscribe to the capital.com channel for more gold technical analysis, as well continued coverage of the gold price in 2020.

#Gold
#GoldPrice
#Recession


***
Explore trading and start investing with Capital.com.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.