SP Angel: gold prices poised for another leg higher
(Kitco News) - Gold prices appear ready to rise again on potential for second wave of COVID-19 cases, rising gold holdings by exchange-traded funds and currency instability, said commodities brokerage SP Angel. ETF gold holdings now stand at 97.2 million ounces, the firm said. Apotential second wave of coronavirus infections has become a “significant concern” as nations grapple with the economic damage versus the infection rates. “A significant rise in the infection rate and hospitalizations of COVID-19 patients may cause a stricter lockdown for longer,” SP Angel said. Analysts said they expect many companies to have solvency issues, with banks getting hit with increasing levels of bad debt. Meanwhile, longer lockdowns will lead to more quantitative easing, or “money printing,” and interest rates will remain low for longer, analysts continued. SP Angel cited an escalation of a trade war between the U.S. and China as yet another supportive influence for gold.