Thread: Will you invest in Gold

Gold is a safe bet in recession: WGC

The only element of demand for gold likely to be affected by a recession is investment demand, "but that in turn will depend on the 'type' of recession,". Recessions can be bad for commodity prices, as consumer and business confidence falls, demand for goods and services is cut, weighing on demand for raw materials and depressing prices.

Forecasters are bullish on gold in long term but for the short term, this market may have some more work to the downside. Normally, gold and silver are the destination of a 'flight to quality' during nervous markets, but that was not the case last month. The gold and silver markets fell in the final week of the commodity decline. Gold surpassed the $1000 mark briefly, but fell to the deflationary forces by declining $100 before recovering in the last full week of March.