Where will Gold go next?

The COVID-19 pandemic rebounding all over the world (reached a total number of over 22M confirmed cases) and the disastrous explosion in Beirut may be two of the reasons that pushed Gold price at all-time high spike.  Its price climbed at $2,069.29 per ounce on the 6^th of August 2020 compared to the lowest price registered during June of $1,683.86 per ounce.

Chicago Mercantile Exchange Group announced a record in precious metals volumes on August the 11^th followed by a sharp increase of the margin requirements on precious metals the day after.

The hopes for a COVID-19 vaccine, the sudden fall of US real yields and the consequent strengthening of the US dollar, saw Gold price plunging to $1,951.43 per ounce, on the 13^th of August, showing a decrease of around 5,7% in one week and compared to the 6^th of August.  Many experts are asking the same question: where will Gold go next?

Sources

World Health Organization

Lebanon National Agency

Reuters

CME Group

US Department of Treasury

Bloomberg

Image credit

 “Fools Gold, NA, NA, NA_2013-08-19-15.29.57 ZS PMax” by Sam Droege 

Disclaimer

The information contained in this article is only for informational purposes and under no circumstances constitute financial advice.