As evidenced by the trading data, on Monday morning, the price of gold is rising amid the increasing number of coronavirus cases around the world.
The price of December futures for the main precious metal on the New York Stock Exchange Comex rose by 0.35% (by $6.55), to $1892.75 per troy ounce. December silver futures rose 1.26% to $ 25.08 an ounce.
The aggravating epidemiological situation from day to day continues to worry investors. In the US, for several days in a row, the daily increase in cases has broken through the mark of 100,000, and last Saturday this number reached a record 185,000. Since the beginning of the epidemic in the US, about 11 million cases of COVID-19 infection have been identified. The situation remains no less difficult in a number of European countries.
Analysts note that, despite the planned economic recovery, there are still many unresolved issues that arose in the spring, during the first wave of the pandemic. Experts believe that the main problem is creating new jobs.
Another factor in the price growth for the main precious metal on Monday morning was the weakening of the dollar. This phenomenon traditionally supports the value of gold – the precious metal becomes cheaper for holders of other currencies.
Recall that last week, news about the effective testing of the coronavirus vaccine led to a sharp drop in the price of gold – from $1950 to $1898 per troy ounce. At first, the price of an ounce dropped to $1,854, and then the precious metal gradually became more expensive.
Another reason for the fall was the fact that investors have been selling gold exchange-traded funds for the second week in a row, taking profits. Experts assume that the rate will return to its former indicators next week since the COVID-19 pandemic has reached serious proportions not only in the US but also in Europe and Asia.
In terms of total gold turnover, the Perth Mint exported 38,300 ounces of gold coins and minted bullion in October 2020. This figure was 38.7% less than in the previous month, but 18.1% higher on an annualized basis. The main reason for such a sharp collapse was the tense pre-election situation in America in October.
As for the US Mint, fewer ounce American Eagle gold bullion coins were sold over the past week. That is 9,500 ounces, compared to 25,000 ounces a week earlier. Experts explain this by the fact that American buyers either fixed a profit or are afraid to part with cash amid political instability and an aggravation of the situation with coronavirus infection.
The material has been provided by InstaForex Company – www.instaforex.com
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