Indications point to gold weakening

2019 was a sterling year for gold. Amid a muted currency market, it started its ascension from the 1,285.17 level all the way to a peak of 1,554.27 by September 2019, scaling 27,000 pips in a nine-month period, breaking two key psychological levels at US$1,400 and US$1,500 before ranging lower.

The start of 2020 saw it return to the peak level again, continuing its climb and breaking above a new high of US$1,600 in February 2020.

As the outbreak of Covid-19 took a serious turn, and was termed a global pandemic by World Health Organization (WHO), more market participants fixed their gaze on gold, which has served as a safe haven asset in times of uncertainty. Following which, a giant whipsaw occurred in the prices of gold that brought contention about its status as a safe-haven asset.