This monthly column is by 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.
What Did Gold Do in April?
Spot gold began the month of April at $1,577 an ounce. Spot silver started the month at $13.93.
Gold put in a strong performance in April, considering that retail gold demand from Asia was non-existent. China, India, and the rest of the Southeast Asian nations remained under lockdown to combat the coronavirus. With nearly 2 billion people confined to their homes, discretionary spending of all kinds dried up.
Gold began the month on the wrong foot, as speculation crushed both gold futures and the spot price on March 31st. Both physical and “paper” gold fell $46 as a gold crisis erupted on the COMEX futures exchange.
That COVID-related physical gold shortage on the COMEX saw the prices of gold futures and physical gold diverge by the largest amount in history. The spread between futures and physical gold hit a mind-boggling $100 at one point in April. This spread is usually around five dollars an ounce.
Thanks to the various central banks signaling “QE to infinity,” gold finished out April with the largest price gain in 10 months, on a percentage basis. Gold futures ended the day 1.1% lower, but up 6.1% for the month.
Silver gained $2 in the first half of the month, but ran out of steam later on. Palladium lost its shine in April. Prices slumped as automakers and other heavy industry were locked down worldwide. Platinum traded in a 10% range between $714 and $794.Continue reading“April 2020 in Precious Metals, by Steven Cochran”