Gold Price Could Skyrocket as Stock Market Crash Looks Imminent

CCN-- "A flurry of green days since Feb. 5 saw the yellow metal rise to almost $1,690 per ounce. This was the highest price since January 2013. Surging gold prices also coincided with a U.S. stock market crash as investors finally opened their eyes to a potential coronavirus pandemic....There are plenty of headwinds that can crash the U.S. stock market. A market crash will likely fuel another gold rally. Despite the Chinese government's best efforts, the world's second-largest economy has come to a dead stop. The 'world's factory' is not operating anymore, and businesses around the globe have started feeling the effects of it....As the world enters a supply shock, 94% of the Fortune 1,000 companies are already witnessing disruptions in their supply chains. The situation will get a lot worse if the measures to contain coronavirus fail. As per Nikkei, over 85% of Chinese small-and-medium-sized firms expect to run out of cash within three months. Worse, a third of these companies expects to run out of money within a month. These businesses employ 80% of China's workforce. So their bankruptcy can cause the entire Chinese financial system to implode. The repercussions of that will be felt across the globe and gold is the safest available option to hedge against it....The economic headwinds will force global central banks to slash interest rates; monetary easing will cause gold price to rally. Lower interest rates will likely not help the stock markets this time. If companies are unable to operate due to coronavirus, printing money and lowering interest rates will have little effect. Amid mounting global uncertainties, more investors appear to be turning to gold at the expense of stocks."