Gold price during September 2020. Can it stay above $2,000?

The price of gold saw a significant rise in September 2020, as investors flocked to the precious metal in response to a range of economic and geopolitical factors. Gold is widely seen as a safe haven asset, and as such, it often rises in times of uncertainty and instability.

One of the key drivers of the recent gold price rise was the ongoing coronavirus pandemic, which has created a great deal of uncertainty and instability around the world. With governments and central banks pumping vast sums of money into their economies in an effort to prop up growth, investors are becoming increasingly concerned about the future value of currencies like the US dollar.

The average price for gold in September 2020 was $ 1,925.24 an ounce. The lowest was $ 1,860.26 an ounce while the highest was $ 1,970.93 an ounce. Average gold price in 2020 was $1,773.73.

The video discusses gold prices in August 2020. The weaker US dollar and ongoing investor fears regarding the coronavirus pandemic have driven investment in gold, causing a record influx of money into gold-backed ETFs in the second quarter of 2020. The speaker suggests that gold prices may have been overheated in August, but has since returned to a more normal market. The Fed’s recent statement about being comfortable with moderately above 2% inflation could lead to a weaker US dollar, causing a spike in gold prices. However, the threat to gold prices going forward is a potential US dollar recovery. The speaker suggests that the US dollar index is important to watch and could put pressure on gold prices if it consolidates around current levels. The immediate resistance for gold is above $2000, and recent support is at $1900. The speaker suggests that the US dollar index is an important factor to consider when looking at gold prices.

Another factor contributing to the recent gold price rise was the US Federal Reserve’s decision to maintain its current low interest rate policy. With interest rates near zero, there are limited investment options that offer a positive return, and many investors have turned to gold as a way to protect their wealth.

In addition to these factors, the ongoing unrest in several countries around the world, including the United States and Hong Kong, has also contributed to the rise in gold prices. As protests and demonstrations continue, investors are seeking safe haven assets to protect their portfolios from potential political and economic risks.

Despite the recent rise in the price of gold, analysts are cautious about the long-term outlook for the metal. While gold has performed well in recent months, it remains a highly volatile asset, and its price can be subject to sudden and significant swings.

Overall, the recent rise in the gold price highlights the ongoing uncertainties and risks in the global economy and the importance of having a diversified investment portfolio. Whether or not the price of gold will continue to rise in the coming months remains to be seen, but for now, it remains an important safe haven asset for many investors.

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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