August so far has been one of the historical proportions as it relates to the price of Gold. On August 4th Gold made history closing at a record high of $2,022.66 per oz. There was however a subsequent sell-off with Gold retreating slightly below $2,000 on Tuesday, August 11 as investors took the opportunity to cash in on the unprecedented Gold highs.
On August 19th Gold saw a slight pullback as the US dollar seemed to steady on the release of minutes from the Fed meeting about the interest rate outlook. The market saw traders reacting negatively to the news of the Feds discussing the potential use of the yield curve control to conduct monetary policy.
It is important to note that Gold prices are up about 30% just this year. This argues well for Gold as a safe-haven investment of choice that Americans continue to gravitate towards in times of great uncertainty.
As Americans continue to grapple with the damaging effects of Covid-19, election uncertainty, high inflation, rising geopolitical tensions, and devasted economy, gold will continue to generate interest.
Volatility could provide great buying opportunities
The same factors that were there with the record highs earlier this month are still there today, but there might not be a better time to acquire gold than now. The overall expectation is that another massive stimulus package will pass and that interest rates will remain low near zero. So real yields will continue to be depressed or negative and inflation could rise, which historically leads to an even more so bullish Gold Market.
Informed Americans could choose to take advantage of the slight pullback of gold prices to get in at a lower price point as fear and uncertainty lingers. In the midst of this pandemic, the longer it takes to get a vaccine, the longer the economy continues to suffer, the more China-US Tensions escalate and as the election nears, we can expect the uncertainty to remain.
Americans are expected to continue to look for ways to diversify and protect their wealth with Gold, the traditional and self-proven way.
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