Crypto EcoBlog
The compounding economic uncertainty due to the rising COVID-19 cases and the growing tensions between the U.S. and China have caused the gold price to soar higher taking them at their record-high levels of 2011.On Friday, July 24, the S&P 500 (INDEXSP: .INX) closed the week 20 points lower on the rising tension between two global economic giants – U.S. & China. This was the first time that the S&P 500 has closed the week lower than it started, over the last month, meanwhile, the tendencies in gold price changes are quite opposite.Recently, the White House has doubled down on its “tough on China” stand. Earlier this week, the U.S. ordered China to shut down its Houston, Texas consulate on charges of economic espionage and also visa frauds. The Trump administration has accused China of
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The compounding economic uncertainty due to the rising COVID-19 cases and the growing tensions between the U.S. and China have caused the gold price to soar higher taking them at their record-high levels of 2011.
On Friday, July 24, the S&P 500 (INDEXSP: .INX) closed the week 20 points lower on the rising tension between two global economic giants – U.S. & China. This was the first time that the S&P 500 has closed the week lower than it started, over the last month, meanwhile, the tendencies in gold price changes are quite opposite.
Recently, the White House has doubled down on its “tough on China” stand. Earlier this week, the U.S. ordered China to shut down its Houston, Texas consulate on charges of economic espionage and also visa frauds. The Trump administration has accused China of illegal trade practices and intellectual property theft, several times in the past. Besides, the administration has also blamed China for the Coronavirus pandemic spread. As per the U.S., China hid crucial information from the world regarding the outbreak in early November 2019.
In a retaliatory and “necessary” response, China asked the U.S. to close its consulate in Chengdu, China. It looks like the economic war between the two giants is escalating really fast. At the same, there are some geopolitical tensions brewing between the U.S. and China in the South China sea.
On the other hand, the rising concerns of the coronavirus pandemic are far from away. The U.S. is witnessing a daily surge in the cases and remains the most-affected with a total of over 4.2 million cases. While the Federal Reserve has initiated several measures as part of the economic stimulus, the signs of economic recovery look weak. Unemployment in the country has also shot up significantly as major businesses announce layoffs.
Gold Price Rally Breaking New Records amid S&P 500 Fall
With the looming economic uncertainty in the global market, gold prices continue its journey northward. Gold continues to be investors’ best hedge against the compounding economic uncertainty. On Friday, the Gold futures moved higher reaching its all-time high of 2011.
The rising gold prices highlight the fact that investors are still not sure of the economic outcome of this pandemic. The global economy is under severe pressure as lockdown has hurt businesses on a massive scale. The gold price has already jumped more than 20% year-to-date. On the other hand, the S&P 500 is trading at zero gains year-to-date. In fact, it just managed to recover in March 2020 losses last week.
On Friday, the Intel (NASDAQ: INTC) stock crashed 16.24 % in a single day closing at $50.59. This price crash came after Intel announced that it will be delaying its 7-nm chip release to 2022. Some major issues in the manufacturing process have caused Intel to delay the release of its 7-nm chips by almost 12 months. On the other hand, Intel’s rival AMD Inc (NASDAQ: AMD) saw a surge in its stock price on Friday. AMD has already got its 7-nm chips in the market.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.