Recovery Concerns Impact Price of Gold
APMEX
6/18/2020 2:43:04 PM
Gold opened the week with a downward slide as the U.S. dollar reached nearly a one-week high, but the drop was curbed by concerns of a second wave of COVID-19 cases in China. Investors seem focused on bearish predictions of reduced consumer demand for precious metals due to economies hindered by the pandemic.
Gold prices settled higher Tuesday, gaining support after Federal Reserve Chairman Jerome Powell said that despite some optimistic U.S. economic data, ambiguity continues to encompass the timing of a recovery. In his Senate Banking Committee testimony, Powell acknowledged that some economic signs have pointed to a stabilization in activity, and others have suggested “a modest rebound,” but “significant uncertainty remains about the timing and strength of the recovery.”
Gold prices ended lower on Wednesday to post a modest loss as the U.S. dollar strengthened. Stocks across the globe mostly advanced, which pointed to a diminishing appetite for bullion. For the week thus far, Gold is off around 0.1%, while Silver has risen 1.7%.
Gold prices dropped on Thursday, finding haven interest in short supply as investors watch moves in the U.S. dollar and global equities, setting prices up for a loss on the week. Platinum also declined by 3.1%, in addition to Palladium dropping by .9%.
Gold prices rose on Friday, as concerns of COVID-19 cases increasing bolstered demand for the yellow Precious Metal. The spot price of Gold rose to $1,744 an ounce early Friday. The price of Gold has grown by nearly 14% so far this year, supported by haven demand amid COVID-19 driven economic hindrances and unprecedented global stimulus measures.
APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
