- Write by:
-
Thursday, September 10, 2020 - 12:31:17 PM
-
995 Visit
-
Print
Mining News Pro - Gold prices have experienced an erratic run in recent weeks, falling from $2776.19 an ounce on August 18 to as low as $2647.95 an ounce on September 8, according to ABC Bullion.
The precious metal has had a record run this year, reaching prices as high as $US2,000 ($2,805) per ounce, the highest prices since 2011.
The ebbs and flows in prices are attributed to lingering economic uncertainties as the COVID-19 pandemic continues, including concerns of delays to vaccine trials.
Prices have since steadied this week to $2681.96 this morning after a 0.5 per cent fall at the beginning of the week, according to Reuters.
“It is a combination of investors quitting to fund margin calls and a stronger dollar,” precious metals trader MKS SA’s vice president, Afshin Nabavi said. “However, we don’t see a drastic fall in gold because fundamentals are still rock solid.”
Foreign Exchange Market (FOREX) believes volatility will continue for the yellow metal as the upcoming United States election looms.
According to FOREX, gold prices surged by nearly 5 per cent when United States President Donald Trump took office in 2016, and within a month of former president Barrack Obama’s inauguration in 2009 gold prices increased by almost 16 per cent.
“Whether President Trump or Joe Biden take office, election years inevitably affect the United States economy and gold,” FOREX stated.
“Gold tends to rally in September of election years before reversing to trade lower through the presidential inauguration in January, primarily due to the fiscal stimulus and uncertainty.”
But while gold has hit a fresh all-time record high this year, some analysts, including Yung Yu-Ma, chief investment strategist at BMO Wealth Management, warned a Biden presidency and coronavirus vaccine could drastically stunt the yellow metal’s rally.
“If an accelerated vaccine timeline comes to fruition the dark cloud over the global economy would begin to lift and the demand for gold’s ‘safe-haven’ quality would likely weaken,” Ma told Business Insider.
FOREX has listed rising interest rates and bond yields as other factors that could derail the bullish run gold has enjoyed in 2020.
Short Link:
https://www.miningnews.ir/En/News/597657
A Russian arbitration court ruled on Monday that four units of Swiss commodities trader Glencore will pay more than 11.4 ...
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
A Native American group has asked all members of a US appeals court on Monday to overturn an earlier ruling that granted ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in ...
Peabody Energy Corp. shares sunk to the lowest in seven months after the biggest US coal miner warned that first-quarter ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
No comments have been posted yet ...