Gold Has Worst Week in Six Months
APMEX
9/25/2020 8:32:29 AM
Gold Sees Worst Week in Six Months
Gold was trading at $1,869.11 at 9 a.m. EST today, and Silver has dropped below $23 per ounce. Precious Metals have taken a beating at the hands of the dollar as investors flock to Treasuries and the dollar again and currency speculators take out bullish options bets against the euro and pound. The dollar is seeing more action as a hedge than Precious Metals are right now and many Gold bets are being unwound to cover losses on the stock market.
The U.S. government avoided a shutdown this week as the House narrowly passed a stopgap funding bill. This bill will run out on December 11, and only passed once Democrats and Republicans agreed on farm and low-income aid. The Federal Reserve’s Jerome Powell has been calling for aid for the United States all week but progress on a COVID-19 stimulus package is still slow.
The first U.S. COVID-19 vaccine trial went live this week, and if all goes well it may be on track for emergency authorization in early 2021. U.S. deaths passed 200,000 this week and Europe may be close to a second wave of infections.
TikTok and WeChat continue to be proxies for tensions between the U.S. and China. The White House asked a San Francisco judge to stay an injunction on a WeChat ban, and there are still questions about whether an Oracle acquisition of TikTok will be permitted to go through by both countries. Beijing is considering a blacklist of U.S. tech companies as well.
The stock market has seen some recovery but tech stocks are still moving slower than the rest of the market.
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
