The corona damage is not yet manageable. Should I buy gold now? Not necessarily, because what happens if we plunge into a recession or even economic depression as a result of the Corona crisis? In this case, gold owners may have to sell their assets to cover their costs. We have already seen a foretaste on the stock exchange, because not only the share prices but also the gold price fell in the recent stock market crash. It would also be conceivable that the corona damage would be smaller than expected. If the economies recover quickly, then the fears of the stock marketers and gold purchases will be reduced. If you look at the current price development of the stock indices, many stockbrokers currently expect only a small economic dent. In this case, the brokers do not need gold to protect themselves. They will then rely much more on the price increases of the shares.
An unbroken upward trend
From a seasonal perspective, the current season offers no buying impulse. The strongest phase only starts in July. The current gold trend is probably only fear-driven. The acceptance is supported by the gold mining shares. A comparison between the gold price and the gold mines shows that the trend strength in the gold price is more pronounced. Should the fear among market participants normalize again, the short-term buying pressure for gold can no longer be maintained. The trend channel shown indicates the direction for the gold price. It is an increasing regression channel that results from the mathematical calculation of the course. When the upper trend channel line is touched, the price appears to have entered an overheated price situation. The acceptance of the course of the OBV is confirmed. Three rising waves can be seen within the OBV indicator. The second price wave is very steep and indicates strong purchases. The third wave is not that steep anymore and is a little warning.