The price of gold has reached new heights in November 2020, as investors flock to the precious metal in search of safe haven investments amidst the global economic uncertainty brought on by the ongoing COVID-19 pandemic. Gold and Silver were treated as a safe haven a few months ago. But over the last 6 weeks, when $USD has gone up, Gold and Silver have gone down.
The average price for gold in November 2020 was $ 1,872.29 an ounce. The lowest was $ 1,787.38 an ounce while the highest was $ 1,787.38 an ounce. Average gold price in 2020 was $1,773.73.
Gold prices hit all-time highs in August of 2020, however since then the price has been subdued. Despite trying to recover from the September lows, the price has been drifting and the next major move for gold is unclear. With the US election coming up, investors are uncertain and the spread of coronavirus and lockdowns in various countries is causing worry for the global economy. In times of uncertainty, gold is traditionally seen as a safe haven destination. However, the gold market has been choppy and uncertain in recent months, with no clear direction. Analysts are watching to see if this is a buying opportunity or if a big sell-off is on the horizon.
Gold prices have seen a steady increase throughout the year, with prices reaching record highs in August of 2020. However, the recent surge in gold prices in November has been particularly significant, with the price of gold rising over 4% in just one week. Gold is in a bit of a weird spot; demand has fallen off significantly so most of the upwards trend are on the investment side that’s pushing gold prices higher. At the end of the day, commodity trading over long term is rarely a miss especially when it comes to precious metals.
Could gold go up with US Stimulus after elections?
Although I agree that gold will rally once a decision is made by the winning party after the US election, there’s a decent chance of a large sell-off with a Biden victory. The stimulus won’t arrive immediately after the elections. The immediate reaction will be to the result itself. But if your question is directed more towards the coming months and quarters, right now that seems like the most likely scenario. But we do have one unknown in the equation – the exact impact of any 2nd waves of COVID on the US and global economy. If it hits hard, then more stimulus will be needed and that will also impact gold.
The cause of this surge in gold prices is largely due to the increasing concern over the economic impact of the COVID-19 pandemic, as well as the recent election of Joe Biden as the next President of the United States. The uncertainty surrounding the future of the global economy and the political landscape has led many investors to seek out safe haven investments, with gold being a particularly popular choice.
Another factor contributing to the rise in gold prices is the ongoing monetary policy being pursued by central banks around the world. The Federal Reserve and other central banks have implemented a series of measures aimed at supporting the global economy, including low interest rates and massive stimulus packages. This has led to a decline in the value of fiat currencies, making gold even more appealing as a safe haven investment.
Despite the recent surge in gold prices, some experts predict that the trend may not continue for much longer. The eventual rollout of a COVID-19 vaccine and the return of the global economy to some semblance of normality is likely to decrease the demand for gold. Additionally, a potential rise in interest rates could lead to a decline in gold prices.
Overall, the current state of the global economy and the ongoing COVID-19 pandemic make it difficult to predict the future of gold prices. However, one thing is certain: gold remains a valuable and sought-after asset, and will likely continue to play an important role in the portfolios of investors around the world.
In conclusion, the recent surge in gold prices in November 2020 is a testament to the ongoing uncertainty in the global economy and the ongoing COVID-19 pandemic. Despite the challenges, gold remains a valuable and sought-after asset, and will likely continue to play a significant role in the portfolios of investors around the world.