After 18 years of flying, Virgin Australia has entered voluntary administration. In a worrying sign to the aviation industry as a whole, its demise could be one of several airlines to collapse as a result of the coronavirus.
Gold broke the all-time Sterling record today as investors continue to clamour for the safe haven metal, and there could be further gains to come according to many analysts.
The second largest banking institution in the United States, the Bank of America Corporation, speculates the gold price could reach $3,000 per troy ounce in the next 18 months.
US oil prices astonishingly turned negative for the first time in history on Monday (April 20th) as demand continues to drop in light of the coronavirus.
Prices have now rebounded slightly from negative territory to positive. UK Brent crude oil prices were also hit, but remained in positive territory.
The International Monetary Fund has warned that the 'Great Lockdown' will rival the Great Depression of the early 1930s, while the Office for Budget Responsibility have alerted the British public that we could see a record level of economic contraction when second quarter data is released in the summer.
In response, the price of gold hit a seven-year high, with safe haven demand the driving force.
The coronavirus outbreak has seen demand for gold soar as buyers invest in gold bullion, but at the same time, essential working restrictions have impacted mining, refining and distribution.
The Institute for Fiscal Studies has today issued a press release warning of the serious health impacts an economic downturn could have if serious action isn't taken to counteract the problems caused by the current lockdown.
Talks between European nations and their financiers over a coronavirus bailout worth an estimated €540bn (£476bn) fell short yesterday, with ministers promising a return to talks on Thursday.
G20 leaders at a virtual meeting on March 26th committed, “to do whatever it takes and to use all available policy tools to minimise the economic and social damage from the pandemic, restore global growth, maintain market stability and strengthen resilience”.
The price of gold rose steadily on Monday, up approximately 3% from £1,324 to a peak of £1,367 an ounce, as the Pound weakened against major currencies like the Euro in the face of bleak economic forecasts.
Gold's value naturally rose on Monday due to futures demand, with June gold up $48.20 per ounce on the COMEX; a 2.9% rise to reach $1,693.90 per ounce - their highest since December 2012.
Global stock markets have almost inevitably recorded their worst quarter since 1987, as the coronavirus continues to keep Europe and parts of Asia under lockdown and hinder economic activity and societal norms.
At the end of 2019, the Global Economic Conditions Survey (GECS) predicted a steady 3% growth in world trade. Poor Q1 figures plus the unprecedented impact of Covid-19 has dashed any such hopes, and many nations - including the UK, Germany and Japan - are expecting to report they are officially in recession later this month.
