Gold remains safe haven of choice

THE world is currently going through an unprecedented period of uncertainty with most nations enforcing various forms of lockdown measures in a bid to contain the spread of Covid-19.

Images of once busy streets to last-minute supermarket scrambles to stock up on necessities have become the new normal. While governments look to contain the virus, central banks have been tasked to guide their economies through these tumultuous times by enacting measures to brace themselves against a potential financial fallout. One prime example of such an exercise is the US Federal Reserve recently announcing that it would be pumping US$2.3 trillion into the US economy.

Amid all the doom and gloom, it is not unexpected that investors and retail traders alike have been looking towards gold, the most traditional of safe-haven instruments to preserve capital.