At a time when many major currencies are prone to extreme volatility and the stock markets are affected by unique global circumstances, traders may find a more dependable and potentially profitable investment in the shape of gold. It isn't one of the more traditionally reliable commodities, but 2019 was a bumper year for the value of gold. After an 18% rise in the price of gold throughout 2019, experts are now anticipating that new highs could be reached in 2020, although the ongoing threat of coronavirus may cause those optimistic predictions to be tempered as the year develops.

The political tensions between the United States and Iran initially sent the value of gold on an upward trajectory, a rise that could be extended by a possible decline in the US dollar and by aggressive purchasing by central banks. The upside of the US dollar in 2020 looks limited, given the ongoing trade dispute with China and the volatility that will be fueled by the presidential election. This has prompted John Roque, technical analyst for Wolfe Research, to suggest that gold may reach a new all-time peak value at some point in 2020, a view that is echoed by other experts from across the world.

The healthy predictions for gold may also encourage investors that usually operate in other markets to explore the commodity as an option. Forex traders may find that they can continue to use their standard service, with trusted trading platforms like IG offering a range of commodity markets to complement the currency pairs they offer in the forex market. This allows investors to customize their trading preferences and switch easily from foreign exchange to gold trading.

Forex traders could be keen to diversify their portfolio in a year when the coronavirus outbreak is sparking extreme unpredictability in currency markets, with many investors looking to gold as a safe haven during difficult times. Gold prices haven't been immune to market uncertainty, with fears over a decreasing demand for commodities driving gold to a 5% intraday fall on February 28 - its biggest daily drop in almost seven years.

Just a month later gold prices had rebounded, in part due to the US Federal Reserve's stimulus package. However, concerns remain about a shortage of physical gold and the disruption to usual transport routes caused by the coronavirus outbreak. Prices may continue to soar if confidence in gold endures, but that rise could be destabilized if investors are forced to sell gold to compensate for asset losses elsewhere. This is uncharted territory for all financial markets, so traders should be ready for anything in 2020.

There are five main ways that investors can go for gold. Traditionally, an aspiring gold investor should choose whichever fits best with their budget and their style of trading, but the challenge for 2020 may be picking the type of investment that will provide the most security as coronavirus unsettles the global economy.

Gold exchange-traded funds

An ETF is security that can be comprised of a range of stocks or commodities, usually formed of a diverse selection of assets that tracks the underlying value of a market. Gold ETFs are linked to the price of gold, with these relatively stable funds giving investors easy access to the commodity.

Gold stocks

With gold on the rise, the companies involved with the production of gold may similarly experience a boon. Mining companies may resist wider market trends, with the likes of Newcrest Mining Ltd potentially generating better economic returns than many businesses on the S&P 500.

Physical gold

If you prefer a more tangible investment, then individual traders have the ability to acquire physical gold. Gold coins are typically the market with the greatest liquidity for traders, although buyers should ensure that they are acquiring the commodity from a trusted source.

Gold options and futures

Gold futures options give investors the ability to purchase gold at a pre-determined price, with that price available to traders for a specified time period. With the price of gold expected to rise, traders may be able to secure an option that enables them to buy gold below its true market value.

Digital gold

Gold is one of the oldest forms of currency, but digital gold brings the investment firmly into the 21st-century trading industry. Blockchain tech powers the market where buyers can purchase a digital representation of physical gold, a convenient method for trading gold without any logistical stress.

Financial markets are always at risk of being affected by external factors, and gold is no different. The harrowing and sustained nature of the coronavirus outbreak will inevitably prompt a revision of predictions made at the start of the year. However, thus far prices have largely kept on their expected upward trajectory, with traders keeping faith in gold as one of the most reliable investment options in 2020.