March Gold News 2020

Demand for precious metals has soared in recent weeks as lockdowns aimed to reduce the spread of coronavirus hit more countries across the globe.

Gold and silver in particular have seen unprecedented demand, leading to stock shortages across the industry as investors clamour for safe haven assets.

The Bank of England today shocked investors and the public alike with news that the UK interest rate would drop to an all-time low of just 0.1% - an unmatched figure since the BoE first started in 1694.

Gold's price shot up yesterday to from £1,240 per ounce to £1,297.77 as the Pound fell to a 35-year low against the US Dollar, with the Bank of England bracing itself for crisis.

The United States Mint has announced a shortage of physical silver following a huge surge in demand for precious metals. The Mint has run out of its trademark silver Eagle bullion coins, as sales increased an incredible 300% in March.

The Bank of England shocked markets this morning with a dramatic emergency cut to the UK’s interest rates.

The cut was announced this morning ahead of today’s dramatic budget, and saw rates dropped from 0.75% to an historic low of 0.25%.

Stock markets are in “meltdown” today, with an oil price war striking another blow to stocks in what is being called “Black Monday” by analysts. Gold was pushed to a seven-year high of $1,702 per ounce this morning on the news.

The US Federal Reserve has shocked markets today with a significant cut to the US interest rate, in a move to protect the US economy from the growing impact of the coronavirus.

The East African nation of Tanzania is beginning to enact a plan proposed in 2017 to finally establish central bank gold reserves. The country, Africa's fourth biggest gold exporter, is looking to take advantage of its natural resources and develop a national reserve to cope with the increasingly volatile global economic climate.

Precious metal prices slipped on Friday as day traders were forced to sell gold, silver, platinum and palladium positions in the face of the worst week for stock markets since the 2008/09 financial crisis.

Given gold’s safe haven status, many people might be confused as to why gold’s price dropped so sharply on Friday. The answer however is simple – margin calls.