The gold market started off strong in 2020, with prices briefly trading above $1,600 and reaching a six-year high. This bullish trend was fueled by a number of factors, including tensions between the US and Iran, the outbreak of the coronavirus, and a lack of change in interest rates from the Federal Reserve.
The average price for gold in January 2020 was $ 1,556.48 an ounce. The lowest was $ 1,517.24 an ounce while the highest was $ 1,582.03 an ounce. Average gold price in 2020 was $1,773.73.
Gold prices started the year off strong by reaching six-year highs in January 2020 due to US-Iran tensions. This sparked interest in gold as a safe haven among investors. The US-China trade deal signed later in the month has taken away some economic uncertainty but has not had a significant effect on gold prices. Despite this, gold has held its value. Key levels to watch for in the gold market include the $1600 psychological barrier, and the immediate level of support at 1570. Gold remains a popular market among investors and traders are keeping a close eye on its movements throughout the rest of January. The escalation of military actions between the US and Iran in early January caused gold prices to spike up to the $1,612 mark. Although prices later sold off to around $1,535, concerns about the coronavirus in China helped to push gold prices higher once again. The World Health Organization’s declaration of the coronavirus as a public health emergency also contributed to the increase in gold prices.
Investors often turn to safe haven assets like gold during times of worldwide concern, and the volatile end to the stock market in January, sparked by the coronavirus, only further fueled the demand for gold. The Federal Reserve’s decision to keep interest rates low, which is expected to continue throughout 2020, also benefited the precious metal market.
As we head into February, the most immediate level to watch for gold prices is the high hit in early January at $1,612. There are few significant obstacles until the $1,700 mark, with support levels ranging from $1,515 to $1,535. The strong trend in January and increasing demand for safe haven assets suggests that we may see further gains in the gold market in the coming months. in the past when gold made big gains quickly it would often correct. In the long term I expect it to go up, but next week I think it may give away some of the recent gains
Overall, January was a promising start to the year for the gold market, and it remains a popular choice among investors due to its volatility and low cost of trading. Trump may keep markets alive until US election but afterwards could see some big volatility where gold will benefit. So big moves could be late 2020 and peaking in 2021. Whether you are an experienced trader or just starting out, it is always important to stay informed and up-to-date on market trends.