In a somewhat expected turn of events, the gold price has begun to climb once again. Although there is still a long road ahead, surpassing $1,900 is major. A weakening US Dollar and other events have allowed for this trend to occur.
Gold Price Moves up Again
For over a week now, the price of gold has been subdued somewhat. Dropping below $1,900 an ounce took many investors by surprise. At the same time, the precious metal has gone through an incredibly bullish surge for most of 2020. A correction of sorts was bound to occur, even though the world’s economic system is far from stable today.
Fast forward to today, and the gold price has surpassed $1,900 per ounce again. There is still some unease on the market to contend with, but it seems things may head in the right direction again. This trend is not unique to gold either, as the silver market notes a similar rebound over the past few hours.
Looking at the precious metals futures, the same trend is apparent. Both gold and silver futures have trended higher all day. This applies to the December contracts, which seem to confirm a stable end to the year 2020. It is still too early to draw any real conclusions, though.
Several things have happened or are bound to happen this week. First of all, there is the Tokyo Stock Exchange outage. While it was a hardware error, it looks like amateur hour. Stock trading is already limited to business hours. Dealing with a hardware issue during those hours is absolutely unacceptable.
Making matters more interesting is how the US stimulus package number two is seemingly on the table again. However, there is no real course of action due to political infighting tied to the US elections. Coming to terms with “the enemy” ahead of these elections next month will be nearly impossible.
Later this week, there will be a new economic data point for the US. A new monthly jobless report is expected this Friday, and can trigger some market action. It may not necessarily push the gold price higher, but remains a crucial development to keep an eye on. With over 8% of unemployment forecasted by analysts, things are not looking too great.
There is also a seemingly weakening US Dollar. More specifically, crude oil prices are slipping, and the US Treasury 10y yield remains rather appalling. How this will influence the gold price over the coming days, remains a bit of a guessing game.