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.
What Did Gold Do in May?
May was a volatile month for gold. Multi-day rallies were ended by big single-day losses on several occasions. Prices for both gold futures and spot gold started May at $1,700.
June gold futures hit a monthly high of $1756 on May 15, while spot gold hit a high of $1748 on the 20th. The May lows for gold were $1,688.50 on futures, and $1,684.10 for spot, both on May 6th.
Spot silver and silver futures began May at the $15 level. Both spot silver and silver futures hit their monthly highs on May 20th. July silver settled at $18.06 an ounce, while spot silver closed at $17.58 The lows were it on the 4th, with futures settling at $14.77 and spot silver closing at $14.75
Precious metals prices went flying on the last day of trading. Safe haven demand spiked after President Trump announced that the US would be revoking Hong Kong’s special trading status.
Silver futures had their best month in nine years, gaining almost 24% for the month. July silver ended May at $18.50 an ounce, up 53 cents for the day. Gold futures grabbed a gain of $23.40 to end the month back over the $1,750 mark. The $1,751.70 settlement put gold up 3.4% for the month
Factors Affecting Gold This Month
CORONAVIRUS
The coronavirus pandemic was still the #1 factor facing gold and the economy as a whole. Arguments over lockdown restrictions played a part, but updates on vaccine trials had the greatest effect.
Several clinical trials reported encouraging results in May. Previous estimates were looking at at least another year for a vaccine. Stocks took the news as an excuse to rally strongly. Dr. Anthony Fauci said there is a “good chance” of a vaccine by the end of the year.
He also noted that the success in “flattening the curve” makes it safer for states to end lockdown mode. “I don’t want people to think that any of us feel that staying locked down for a prolonged period of time is the way to go.”
CHINESE TAKEOVER OF HONG KONG
China was condemned by nations around the world by taking direct control over Hong Kong. The move allows the Communist government to extradite dissidents and opposition politicians to the mainland for prosecution. On May 27th, US Secretary of State Mike Pompeo declared that Hong Kong was no longer a free democracy, and recommended that its special trading status with the US be revoked. President Trump agreed, and revoked that status on May 29th.
The Chinese government has raged at the move, accusing the US of interference in its domestic affairs. Analysts note that the blowback from this provocation by China could snuff out any economic recovery they may be hoping for.Continue reading“May 2020 in Precious Metals, by Steven Cochran”
