Home Business Coronavirus Effects The Gold and Dollar Prices.

Coronavirus Effects The Gold and Dollar Prices.

On 31 December 2019, an uncertain virus starts spreading in Wuhan, China. After reporting multiple cases new virus was detected which affects the respiratory system in the human body and called Corona. This virus spreads so quickly all over the world and multiple people died because of no vaccination.

Coronavirus Effect on Gold and Dollar Prices:

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.

Read Also: Coronavirus: Impact on global economy

Gold vs Dollar:

Gold is a precious metal and an old means of exchange. With its intrinsic value, you can trace the importance of gold from history. The price of gold is relatively sensitive to the overall value of the US dollar. What determined the value of the US dollar? it’s a demand and supply concept. When the demand for dollar increases in the market its value increases and when its supply increases it’s value decreases. Because of the level of demand and supply, the value of a currency fluctuates.

The Relationship between Gold and Dollar:

The relationship between gold and dollar is also similar. When the gold increases in value the dollar value falls as compared to other currencies. Understand it with the following example, when the price of a certain object or commodity increases. few people buy it in the result demand decreases. Similarly, when the gold value goes up dollar value decreases as gold becomes cheaper in other currencies. The same thing is happening now with the prices of oil as well, it starts decreasing after COVID-19.

There is also a psychological factor connected with the gold and that is when any uncertain event happened which spread fear among society just like coronavirus the price of gold increases.

Current Situation:

At the start of Feb 2020, the price of gold was increasing with the rate of 0.3% as coronavirus was spreading all over the world but recently a slight decline in the value of gold was seen but in the future, the value of gold is more likely to go up. See the graph below

Is the gold price decrease again or it continues to go up? Will coronavirus effect gold and dollar prices more or it is going towards its end. What comes next, only Allah Almighty Knows.

Subscribe to our YouTube Channel Mushwarah for more updates.

A Freelance Content Writer, Self-Help Blogger and an Individual who is committed to learning, growing and being the best.


Please enter your comment!
Please enter your name here

Must Read

‘Stop Overdosing’: Dr. Altaf Hussain Shah tells his story of Surviving from Covid 19

Doctor Altaf Hussain Shah, a 64+year old orthopedic doctor, who runs a well-known private clinic in Blue-Area Islamabad, shares his experience of mistreatment of...

PayPal and it’s alternatives for Pakistanis

PayPal Alternatives in Pakistan No Doubt, PayPal is the most secure method to get payment in Pakistan. The reason for my trust in PayPal is...

GIK and Huawei launched first undergraduate Degree program in Pakistan

Introduction GIK is one of the famous Pakistani universities for science and technology. It offers one of the best faculty to its students in Pakistan....

How to Start Freelancing in Pakistan

Well, you are a student or a professional and want to earn more money. You might be thinking to earn the money through freelancing....

Current Education Scenario in Pakistan Could Lead to Protests and Sit-in In The Country.

The whole world is fighting against a deadly disease called Coronavirus. The government of Pakistan imposed lockdowns on 23, March 2020 to prevent the...