Why did the price of gold plunge again? The global gold market experienced a "Black Monday", with gold prices plummeting by more than 10%.
The global gold price is like someone stepping on its tail, and it "swishs" down all of a sudden. It fell so fast and so hard that investors' eyes were about to pop out.
The news from the US side was less encouraging, with Q1 GDP data showing a 4.8% contraction, the worst performance since the 2008 financial crisis. At the same time, the unemployment rate in the United States has also soared in a short period of time, all due to the impact of the new crown epidemic.
As the pandemic gradually comes under control, many countries around the world have begun to resume work and production, and the economic situation looks to be improving. Especially in the United States, the epidemic has been better controlled, and many companies have begun to resume work, which has made some optimistic investors start to sell their gold, further exacerbating the decline in gold prices.
Due to the impact of the epidemic, many people's income has been damaged and their cash is tight, which has caused a shortage of funds in the market. In this case, not only gold, but also the prices of other commodities generally fell.
This can be a rare opportunity for those discerning investors. The improvement in market liquidity and the improvement in the international economic situation are positive signs. At the same time, as risk aversion weakens in the market, investors' risk appetite increases, which means that there will be more opportunities in the market.
In this volatile market, many countries are also increasing infrastructure investment, and the market capital will become more abundant. Monetary policy in various countries is also gradually easing, and economic stimulus measures are frequently introduced, which is good news for the market.