Gold News

After suffering one of the worst periods of unemployment on record, thousands more workers are expected to lose their jobs in the coming weeks and months, as the global economy enters a deep recession.

After months of lockdown across the world, several companies have come out this week to announce severe job cuts as they adjust to the new landscape for businesses in the months to come.

In further evidence of the global surge in demand for investment gold, Australia’s Perth Mint has reported huge increases in sales numbers for April.

The Perth Mint saw its bullion product sales increase by over 500% in April 2020 versus April 2019.

After suffering from reduced industrial demand, silver prices have risen 9% this week as factories start to resume production.

Silver has enjoyed a small surge in the past 24 hours, gaining 5%, and reaching £13.57 per ounce this afternoon.

Chancellor Rishi Sunak has stated that the UK economy will face a “significant recession” this year, and that it is “very likely” to have already begun.

Figures show that GDP was down by 2% overall for Q1 2020, putting the UK economy on the first stage of a recession.

After slashing interest rates to a record low of 0.1% in March, the continued economic damage of the coronavirus has now made the previously unthinkable a possibility for the UK, after a senior Bank of England official speculated on the possibility of negative interest rates.

After global stock markets have shown some sign of recovery in recent weeks, there has been talk of a potential bounce back for stocks following the most recent crash.

Stock investors have been clinging to every bit of hope, and every positive headline that suggests the economic damage of Covid-19 can be undone.

The Bank of England has today issued a stark warning that the UK economy is facing the sharpest recession since records began, in further evidence of the financial damage caused by Covid-19.

An ‘illustrative scenario’ by the BoE foresaw possibly the biggest UK economic slump in over 300 years.

The gold : silver ratio has surged to record highs in recent weeks, as a slump in industrial demand holds back the alternative investment metal.

The ratio, seen as a key indicator by many investors, hit an all-time high of 126 in March as the coronavirus pandemic spread across the globe, and shutdowns across Europe and America began.

A survey by the Confederation of British Industry makes sombre reading for the UK's economy, predicting severe reductions in output, and a sharp rise in unemployment.

The Eurozone economy reported its worst ever quarterly contraction this week, in the first sign of recession for the major economic powerhouse.

The US saw its GDP fall by an even higher 4.8% during the first quarter, its worst performance since 2008. This puts both the EU and US past the first part of the way to a full recession (two quarters of contraction in a row).

After 18 years of flying, Virgin Australia has entered voluntary administration. In a worrying sign to the aviation industry as a whole, its demise could be one of several airlines to collapse as a result of the coronavirus.

Gold broke the all-time Sterling record today as investors continue to clamour for the safe haven metal, and there could be further gains to come according to many analysts.

The second largest banking institution in the United States, the Bank of America Corporation, speculates the gold price could reach $3,000 per troy ounce in the next 18 months.

US oil prices astonishingly turned negative for the first time in history on Monday (April 20th) as demand continues to drop in light of the coronavirus.

Prices have now rebounded slightly from negative territory to positive. UK Brent crude oil prices were also hit, but remained in positive territory.

The International Monetary Fund has warned that the 'Great Lockdown' will rival the Great Depression of the early 1930s, while the Office for Budget Responsibility have alerted the British public that we could see a record level of economic contraction when second quarter data is released in the summer.

In response, the price of gold hit a seven-year high, with safe haven demand the driving force.

The coronavirus outbreak has seen demand for gold soar as buyers invest in gold bullion, but at the same time, essential working restrictions have impacted mining, refining and distribution.

The Institute for Fiscal Studies has today issued a press release warning of the serious health impacts an economic downturn could have if serious action isn't taken to counteract the problems caused by the current lockdown.

Talks between European nations and their financiers over a coronavirus bailout worth an estimated €540bn (£476bn) fell short yesterday, with ministers promising a return to talks on Thursday.

G20 leaders at a virtual meeting on March 26th committed, “to do whatever it takes and to use all available policy tools to minimise the economic and social damage from the pandemic, restore global growth, maintain market stability and strengthen resilience”.

The price of gold rose steadily on Monday, up approximately 3% from £1,324 to a peak of £1,367 an ounce, as the Pound weakened against major currencies like the Euro in the face of bleak economic forecasts.

Gold's value naturally rose on Monday due to futures demand, with June gold up $48.20 per ounce on the COMEX; a 2.9% rise to reach $1,693.90 per ounce - their highest since December 2012.

Global stock markets have almost inevitably recorded their worst quarter since 1987, as the coronavirus continues to keep Europe and parts of Asia under lockdown and hinder economic activity and societal norms.

At the end of 2019, the Global Economic Conditions Survey (GECS) predicted a steady 3% growth in world trade. Poor Q1 figures plus the unprecedented impact of Covid-19 has dashed any such hopes, and many nations - including the UK, Germany and Japan - are expecting to report they are officially in recession later this month.

Demand for precious metals has soared in recent weeks as lockdowns aim to reduce the spread of coronavirus hit more countries across the globe.

Gold and silver in particular have seen unprecedented demand, leading to stock shortages across the industry as investors clamour for safe haven assets.