Coronavirus or Covid-19 is a deadly inflammatory respiratory disease that is now present in more than 170 countries. This started in China and slowly it reaches every nook and corner of the world. Due to Coronavirus, there is partial to complete lockdown in countries. The roads are empty, schools and offices are closed. The world’s trade is at its lowest ebb. Coronavirus has a profound impact on our global economy.
With the outbreak of coronavirus, the global market also affects badly. The increase in the cases of coronavirus in many countries results in shutting down of different business sectors which may affect the entire economy and once again the fear of a market crash (just like the great recession in 2008) surrounds the investors.
Importance of Gold in the global economy
The gold is a precious metal and it is mainly used for trading. When the currency of the united states was established it was artificially linked with the dollar to maintain the monopoly by traders. In the current world, gold has a profound impact on the economy, the price of gold determines the strength of the economy, the greater the value of gold stronger will be the economy of the state. The government can only publish paper currency equivalent to gold. In this way, inflation in the state can be countered.
Whenever there is a risk in trading with the dollar, gold can help us out from that situation. As there is a minimal chance of loss while trading in the gold. As mentioned earlier that gold was used for the purpose of trading. It was one of the sole reasons that in the past the graph of the economy goes upward. One of the abilities of gold is that it holds its value strength as compared to other forms of currency.
Benefits of trading in Gold price
The following are some of the benefits of trading with respect to gold.
- The market demand for gold is much stronger than that of USD
- The investment is growth-oriented.
- It protects the economy from getting volatile.
- Gold is considered as a liquid asset
- It helps to curb inflation from the country.
Effect of Coronavirus on Gold
From the above picture, we can take an idea of the significant growth in the value of gold. Since the outbreak of Coronavirus, the price of gold has been increasing. The value of the last 6 months of the gold is as follows:
- Oct 2019, the value of gold was “1468”.
- Nov 2019, the value of gold was “1510”.
- Dec 2019, the value of gold was “1480”.
- Jan 2020, the value of gold was “1520”.
- Feb 2020, the value of gold was “1580”.
- Mar 2020, the value of gold was “1590”.
Future of the Gold
Humans are unaware of their future, they can only forecast by looking at the past, however, only Allah knows the future of Gold or Coronavirus. The dollar is a piece of toilet paper. So it doesn’t matter whose hegemony is maintained in the world. In front of me, it’s only Allah’s hegemony and all humans are subjected to him only.
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