From Steven Cochran of Gainesville Coins:
Welcome to SurvivalBlog’s Precious Metals Month in Review, where we take a look at “the month that was” in precious metals. Each month, we cover gold’s performance, and the factors that affected gold prices.
Gold ended August on a down note, logging the first monthly loss in six months. December gold futures lost 3.7% in August, while spot gold lost 4.4%. Silver parted ways with gold in August, riding its rally by ending the month 18% higher on the COMEX, and 15% higher in the spot market.
What Did Gold Do in September?
Gold went into “consolidation mode” in September. The month started with a meltdown in tech stocks. Gold prices fell as speculators suddenly had to meet large margin calls. Gold futures, which are more liquid than physical gold, lost $44 between September 2nd and 4th. Spot gold lost $38. Both ended the week at $1934. Spot gold spent the next two weeks trending between $1930 and $1955 for the most part.
Supreme Court Justice Ruth Bader Ginsburg died the night of Friday, September 18th. Stocks had ended the week shaky over a new wave of COVID in Europe. Countries across Europe were locking down and going into crisis mode as COVID infections surged.
Everything fell when markets opened Monday. The fight over Ginsburg’s replacement on the Supreme Court so close to the Presidential election wiped out any chance of a new stimulus bill. News Monday that someone had mailed a letter containing ricin powder to President Trump frightened markets more.
If that wasn’t enough, the dollar surged on safe haven demand after China made repeated incursions over the Taiwan Strait, forcing Taiwan to scramble fighter jets nearly 40 times over the weekend.
December gold futures fell $51.50 to $1,910.60 that Monday. It would end the week down $95.80 – the worst week since the March market meltdown. Spot gold fell $36.50 to $1,912.40 on the 21st. It would end the week $87.70 lower.
Gold attempted a run at the $1,900 mark during the last few days of the month, gaining $36 over the first two days of the week.
As of the September market close on the 29th, December gold had lost $75 for the month, and spot gold had fallen $70. Continue reading“September 2020 in Precious Metals, by Stephen Cochran”