Market News
Gold supply fears? Gold price surged

Gold supply fears? Gold price surged

25-03-2020 07:01
On Tuesday (March 24) major changes happened in the gold market. Due to the epidemic issue, gold mines and refineries around the world have reduced their operations, severely affected the physical supply chain, causing the gold market non function. Banks and brokers were not able to get quotes effectively or fairly.

This rare liquidity problem in the gold market has caused abnormal market quotes. Gold dealers, banks, all brokers in the market got interrupted in the gold trading, and spreads in the market have also widened significantly.

It is reported that the spot market supply is extremely tight, and physical products such as gold bars, gold grains, and gold coins have been seriously out of stock in retail market.

The gold market may continue to be crazy. With the Federal Reserve ’s announcement of an unlimited QE policy and the supply chain problem in the gold market, the gold price is likely to be further rushed to break the $ 1700 mark.