Gold price bounces back after steep sell-off
The price of gold rebounded this afternoon to £1,485 an ounce after its steepest sell-off in seven years.
Spot gold rebounded today after its steepest decline in seven years on Tuesday, with the price rising from a low of £1,438.65 during a turbulent Asian trading session to just shy of £1,486 at the time of writing.
“Gold is bouncing back very strongly. Sentiment has not been damaged and by extension, you could argue that it’s created an opportunity for those who maybe missed the boat on the rally to get in again,” independent analyst Ross Norman said.
Gold’s gains were also helped by the dollar, whose recent uptick was stalled by a deadlock in Washington over a stimulus package.
“The froth has been blown off the top of the gold market, and now fundamental price discovery is going on,” IG Markets analyst Kyle Rodda said.
Bullion has gained 27.2 per cent so far this year, as investors buy it as a hedge amid fears of currency debasement, with central banks flooding the economy with money to ease the damage from the global coronavirus crisis.
“There could be some consolidation in the near term, but the fundamental drivers pushing the metal higher remain intact.” said FXTM analyst Lukman Otunuga.