SWOT Analysis: Could May Reach $2,500 Due to Fed Stimulus
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- Metalor’s gold refinery in Singapore is running at much-reduced capacity due to a manpower shortage. There is a movement-control order in Malaysia where many workers live. Switzerland’s gold refining hub, the biggest in Europe, halted output. Ludwig Karl, a board member of Swiss Gold Safe, an operator of high security vaults, said “It’s absolutely crazy what’s going on. Right now, if somebody wants to buy gold, I wish them all the best in finding it. Most of the bullion dealers are closed.”
- The All India Gem and Jewellery Domestic Council estimates that total purchases of gold jewelry in India are set to fall 30 percent in 2020. Demand had already been hit for months due to high domestic prices and slow economic growth. But now with the added virus threat and the entire county on lockdown, demand could fall to the lowest since 1995. The lockdown will prevent gold shops from opening and a drop in the rupee is keeping local gold prices elevated, reports Bloomberg.
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