Gold’s implied returns to come down sooner or later, says WGC

The World Gold Council (WGC) has analysed the potential performance of gold across four hypothetical scenarios provided by Oxford Economics in light of Covid-19 and ensuing economic lockdowns slashing global growth forecasts for this year.

The WGC explains that gold’s behaviour can be explained by a broad set of drivers, namely economic expansion, risk and uncertainty, opportunity cost and momentum.