Gold Continues Record-Breaking Rally
APMEX
8/6/2020 4:28:52 PM
Gold Continues Record Breaking Rally
Gold prices went higher to a new record on Monday, though the degree of climb was lower than many analysts expected thanks to the bounce in U.S. dollar value. The rally went close to the $2,000 per ounce mark but stopped just short of it, finishing at $1972.89 for the day. The Federal Reserve released news that it was going to allow price pressures above the 2% inflation target.
Tuesday’s market saw Gold break the $2,000 per ounce mark finally, finishing at $2,022.66. Ongoing news of the U.S. and China’s trade war pushed investors towards traditional safe havens, and with U.S. treasury bonds seeing downward pressure Gold became the de facto choice. Gold-backed ETF holdings rose to 3,365.6 tons worldwide, surpassing Germany’s total holdings.
Concerns about a second wave of COVID-19 and early unemployment rumblings from the United States pushed Gold higher yet again on Wednesday. Employment targets in the U.S. service industry (which takes up about 70 percent of the economy) in early measurements fell well below expectations.
On Thursday, political uncertainty about further stimulus in the U.S. economy contributed to economic unease. Weekly jobless claims data fell to 1.19 million, the lowest level since the COVID-19 pandemic began, but it did little to quell another day of Gold smashing previous numbers for another record high. News of possible green legislation in Europe and lower supply from South American mines continued to drive Silver higher.
Late on Thursday, U.S. President Donald Trump signed an executive order banning transactions with ByteDance and Tencent, the two Chinese companies that own TikTok and WeChat respectively. The dollar has strengthened as a result, dropping Gold slightly. But fiscal volatility is still high.
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