Gold Drops for Month of August
APMEX
9/4/2020 8:34:22 AM
Gold Drops in August
Gold and Precious Metals end the week a little lower than the start. Gold touched $1,990 an ounce briefly mid-week, but as of 9 a.m. EST today it dropped to $1,928.99. The price has begun to rebound again. August’s Precious Metals market ended slightly lower on the aggregate than it began the month. Gold in particular has been under some pressure. This week has been one of big swings as the stock markets finally cooled off a bull run they’ve been on since March. Thursday’s drop was caused by a big swing in tech stocks, and that pushed Precious Metals lower briefly though they’re since recovering.
Commodities recovered some value midweek. That includes oil, which has gained some strength as a massive oversupply of oil begins to dwindle based on increased demand.
U.S. Senate Republicans pushed for a new COVID-19 relief plan starting Tuesday, and talks have been ongoing though Democrats and Republicans remain far apart. News that a COVID-19 vaccine may be on the horizon was encouraging for markets. The Congressional Budget Office announced a record $3.3 trillion budget deficit this year. Strong manufacturing numbers took the wind out of Gold for a bit on Wednesday.
China and the U.S. are continuing their trade war. This week saw a class-action lawsuit from WeChat users in an attempt to block U.S. action on the platform. News also came out that the Chinese are going to build their own semiconductor sector to reduce reliance on supply abroad that is being pressured.
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
