An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP
An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Coronavirus recovery: gold price spike shows real fear of inflation

  • No doubt the uncertainty surrounding the pandemic is a key driver of gold demand, the precious metal having been a safe-haven asset for millennia
  • However, it is also possible central bank policy responses to the pandemic, while perfectly logical now, will have undesirable consequences in time

An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP
An employee displays gold bars at a Korea Gold Exchange shop in Seoul on July 30. Virus uncertainty and China-US tensions have sent gold prices soaring nearly 30 per cent this year. Photo: AFP
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Neal Kimberley

Neal Kimberley

UK-based Neal Kimberley has been active in the financial markets since 1985. Having worked in sales and trading in the dealing rooms of major banks in London for many years, he moved to ThomsonReuters in 2009 to provide market analysis. He has been contributing to the Post since 2015 and writes about macroeconomics from a market perspective, with a particular emphasis on currencies and interest rates.