We are living in perculiar times. The Coronavirus has changed how the global economy works. The price of gold has been going up over the last six months, reaching and breaking some records.

The gold price Australia has been spurred on by the weak Australian dollar. However, this has been the case with most currencies across the globe.

Should you be buying or selling gold? To help you make the decision, let’s look at the reasons the markets have been on the rise and acting weird.

Of course, the leading story is the Coronavirus. It seems that every bad thing we are going through right now is because of this virus.

The biggest trigger in recent weeks has been the multi- trillion stimulus package by the government of American. This has brought on fear of a currency devaluation.

Gold has long been regarded as the best hedge against the debasement of the currency that happens when policy makers take certain action to accommodate economic shocks like the one the world is experiencing right now. This means that more people are likely to turn to gold when there is some threat to the currency. The idea of trillion new US dollars flooding the economy from nowhere has a lot of people extremely worried.

This stimulus package includes a multi-billion-dollar Federal Reserve purchasing a and lending program where the treasury will sell it’s bonds and mortgage-backed to boost the liquidity of the markets and keep the economy going.

By doing so, it may stem the gold selling that has been happening.

The recent decline in the amount of gold that has been caused by people selling gold to get cash. The US Federal Reserve has to add more dollars to tip the economic scales.

The kind of decisions that are being made and how quickly economic interventions at being launched are so quick analysts find themselves having to set more ambitious gold price Australia targets.

Someone could look at all that is happening and decide this might be a good time to buy. On the other hand odd things have been happening that should make you think twice about buying selling at the current price.

Gold mined have been slowing down their productions and refineries have actually been closed because of the fears about the corona virus. This means the supply of gold has gone down. Add that to the impact that the travel restrictions has had on the global gold market and the futures market. Because of these, there were disparities between the New York futures and the London spot prices.

This means there could be a lot of gold in London but not enough in New York which will skew the prices. Disparities like this can freak traders out. This is the reason why the Exchange operator in New York has pushed for changes in the rest to allow the settling of gold futures contracts with “paper gold” held in London rather than the usual physical gold bars.

Once again, this has resulted in a lot of market analysts commenting about the potential shortage of actual physical gold.

Again, this is just something likely to change and market commentators will have other concerns to talk about. With so much uncertainty the best thing to do is to hold on to your gold just a little longer.