The future of gold continues to shine bright as eponymously evidenced in gold futures. Traders continued to reveal their bullish sentiment on gold as futures hit a seven-year high in Monday’s trading session amid the ongoing uncertainty of the coronavirus pandemic.
Investors, however, are getting varied news—early signs that the virus may be peaking or that the worst is yet to come.
“This is going to be the hardest and saddest week of most Americans’ lives, quite frankly,” said U.S. Surgeon General Jerome Adams during a “Fox News Sunday” segment. “This is going to be our Pearl Harbor moment, our 9/11 moment, only it’s not going to be localized.”
However, it’s not all doom and gloom. Other news is focusing on the positive—in New York City, there are signs that the spread of the virus may be lessening and the number of deaths in Spain has fallen.
Either way, it’s all good news for gold.
“This somewhat encouraging news appears to be a goldilocks scenario for gold, as buyers are more confident to step in and purchasing the safe-haven metal, while knowing there are still very tough times ahead, including the specter of problematic inflation farther down the road,” said Jim Wyckoff, senior analyst at Kitco.com.
With the federal government stepping in to help shore up the economy, it might seem like gold gains could be tamped own. However, some market experts predict that the U.S. economy will be tested in the forthcoming months.
“Fiscal and monetary stimulus will provide a nice backdrop for gold, but safe-haven demand will be high due to upcoming financial stress that will persist over the coming months as the U.S. economy enters a very dangerous place,” said Edward Moya, senior market analyst at Oanda, in a market update.
One key level to watch is whether gold can break through the $1,700 per ounce price level.
“The gold price is ready to break past $1,700 as supplies get to hungry markets,” said Peter Spina, president, and chief executive officer at GoldSeek.com.
Investors looking to get gold exposure can look at funds like SPDR Gold Shares (GLD ) and the SPDR Gold MiniShares (GLDM). Precious metals like gold offer investors an alternative to diversify their holdings, and like other commodities, gold will march to the beat of its own drum compared to the broader market.
This article originally appeared on ETFTrends.com.