Get ready for $20 oil & gold will rise again, economist predicts

There is no way the global economy can avoid a recession, according to Roberto d’Ambrosio, the CEO of Axiory Global. He told RT that demand will come to a halt because the economy is now in a shutdown.

“All the related industries will be impacted and a lot of companies could really be out of business,” he said. The industries will get hit and shut down, “the global demand will go further down because people will be laid off and there will be no capacity [for] demand for goods.”

According to the economist, the coronavirus has impacted a situation that was “already showing some signs of weakness” ignited by the trade war. He explained that the financial markets have been propped up improperly by the expansive policies of central banks in Europe and especially in the US.

Talking about oil, he said the price will be under pressure because there will be less demand for it – even though China, which is the biggest importer of oil, is starting to recover from the impact of Covid-19. “So, there will be pressure on [the] oil price and I think it could drop even more than what it is now and go towards $23-20 per barrel.”

As for gold, d’Ambrosio said it should start rising again, “even though we don’t know when.”

For more stories on economy & finance visit RT's business section