The COVID 19 virus outbreak is having tremendous impact on the supply chain of the gold market. Many traders in the gold market fear that they would not be able to get enough gold bullion, which has incited a worldwide panic buying of the precious metal.
The demand for this precious metal has suddenly increased when supply cannot be met with demand. Although there are many thousand gold bars available in vaults across the world. It has become increasingly difficult to get it to where it is demanded for.
Due to the COVID 19 virus outbreak, many cities around the world have been on strict lock down in an attempt to control the virus. Countries have banned travel and shut down their borders therefore significantly affecting trading.
On Tuesday, the price of gold increased by $70 per ounce. Analysts have concluded that the spike in the price of gold had to do with the closure of one of Europe’s largest refineries in addition to the strong demand for gold.
The refinery is based in the Swiss canton of Tiano and shares borders with Italy, where the COVID 19 virus has killed thousands of people and is now the ground zero for the COVID 19 virus outbreak in Europe.
