The year 2020 has been very gloomy over the world’s economy due to the ongoing COVID-19 situation that wrapped itself around the globe and has resulted in mass unemployment and bankruptcies filed by several world-renowned companies. Although the entire world’s economy and the trading world has been affected by this pandemic, there has been two commodities that have managed to remain in the spotlight since the pandemic struck.
At the beginning of April 2020, Gold made it to the top by hitting a record high of $2,074 while Crude Oil hit the record lowest in the same month and bouncing back a little showing a lot of volatility for both commodities in the running year. The reason behind Crude Oil facing such a demise with respect to its price is because of the demand crash that was faced due to the ongoing Covid-19 situation.
At the beginning of the year 2020, Crude Oil started off with a price tag of $60 per barrel and then crashed down to $11 per barrel in April and -$40 for a particular day. After the Covid-19 emergency situation liftoff, the price of Crude Oil has gotten back on track and is showing a stable and upward trend. After the demise and rise of demand in the crude oil commodity, it has been speculated that the prices of oil are to increase again but there is also an uncertainty that oil may have to face some challenges due to the Covid-19 problem and would remain there until a vaccine is introduced in 2021.
Once the situation is under control, the market price of oil is to pick up again and hit $65 to $75 in the following years.
As far as Gold is concerned, the entire world’s economy has witnessed that the price and volatility of gold has remained unhindered because of the ongoing Covid-19 and have now started trusting in this asset more than any other commodity.
Based on the current situations and predicted growth of both the commodities, the trading experts and analysts are speculating that the prices of both assets would rise up to $65 for Oil and $5000 for gold.