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.
Year-End Gold Market
The fourth quarter of 2020 was not kind to precious metals. Losses in both October and November seriously dented annual returns for both gold and silver.
Gold’s December gain of 6.3% was barely enough to erase October and November’s losses. Still, gold posted a gain of more than 24% in 2020, a ten-year high.
Silver traded up 17% in December, enough for a 13% gain in the fourth quarter. Silver gained 48% for the year, which was also the best annual performance for silver since 2010.
What Did Gold Do in January?
The start of 2021 did not follow the usual script for January. Instead, prices fell nearly $100 an ounce over the course of the month. January is usually one of gold’s best months. It has, however, been very good for the physical gold market. More on that later.
Gold had a good start to the year. It powered $50 higher to comfortably regain the $1900 mark on the first day of trading. By the end of the week, though, it has fallen to $1,835 an ounce. It spent most of the rest of the month between $1,840 and $1,860.
Factors Affecting Gold This Month
COVID
A botched government roll-out of COVID vaccines in December didn’t get any better in January. Complicating matters, several new coronavirus strains have been discovered. Some of these new strains are more contagious, spreading more rapidly. The fast-spreading, more contagious UK version is expected to be the dominant strain in the US by March. Luckily, existing vaccines seem to work on it.
Some strains, such as the ones discovered in Los Angeles and South Africa are proving more resistant to existing vaccines, leading drugmakers to work on improving their formulas.
These developments have raised doubts that many nations will see an economic recovery anytime soon. Central banks have strongly urged governments to step up and provide economic assistance to people. This has led to political fights in the halls of government.Continue reading“January 2021 in Precious Metals, by Steven Cochran”
