Gold Dips On the Week

APMEX

8/14/2020 8:17:57 AM

Gold is currently posting a weekly drop after beginning a slide down on Friday last week. Monday's market settled around $2,030 but Precious Metals have taken a dive throughout the week, with Gold settling in the $1,950 range to end the week and Silver retreating to the $26 range.

Monday's dip came with a rise in yields for Treasury bonds and the U.S. dollar, though key support around $2,030 an ounce for Gold came from worries about relations between the U.S. and China and the COVID-19 pandemic. That support withdrew on Tuesday as Russian President Vladimir Putin announced a successful vaccine test. Investors moved to stocks and the dollar and metals fell swiftly. Silver and Gold both reported the largest percentage drops since mid-March.

Both metals tanked again Wednesday as economic data in the U.S. fueled optimism, but Thursday found Gold settling in in the $1,950 range, where it stayed through Friday. U.S. economic data over the week has been a mixed bag. Unemployment applications declined below a million per week, but retail sales data is slow at 2.1% growth month over month.

Stimulus package wrangling is ongoing in the U.S. Congress, with the post office being the latest sticking point in contentious negotiations. Large American cities are seeing massive economic slumps in the middle and lower class and being affected by the economic shortfall more than their rural neighbors. The U.S. and China have continued their trade war, but the two nations are expected to meet Saturday to try to hammer out differences.