Precious Metals Market Updates, December 28th – December 31st

Ongoing Events
Welcome back from the holidays and a happy new year to all!

The final week of 2020 was yet another shorter one due to the new year beginning on a Friday this year. The week began with a weak and volatile start to the precious metals market as a result of last-minute signings of the US Government’s funding bill for nationwide stimulus. The yellow metal did recover as a result of the rebalancing of trades due to the month and especially year coming to an end. Rebalancing trades tend to weaken the stock market, hence why the precious metals market rises consequently. In addition, the US Dollar also became weaker from all the events that took place. As Gold is seen as the ‘safe-haven’ asset, investors and traders rushed back to the Gold market to hedge their positions. Prices in the first few weeks of 2021 will be determined entirely by the news that comes out of the White House with the potential agreement of a stimulus check boost from $600 to $2000 for Americans. With the Biden administration also taking over, we will surely see more optimistic news regarding Gold Prices. The coming weeks are going to be very volatile for Gold, to all traders, be careful and trade with proper risk management. For investors, once these deals are finalized, we could potentially see another bull run. Remember this simple principle, Buy low & Sell high!

Again, Happy New Year to everyone! Wishing you all good health and a growing portfolio!

December 28th to December 31st Market Recap
The week began with a volatile start to the precious metals market which resulted directly from last-minute signings of the funding bill and stimulus measures being put in place for 2021. Early in the week, Gold closed at $1877.32 (USD/Oz).

With a weaker US Dollar and rebalancing of trades, Gold consolidated its losses at the beginning of the week and regained some ground. Midweek, Gold closed at $1894.11 (USD/Oz).

The end of the week was New Years’ so markets were closed. Gold’s final trading day of 2020 was on Thursday, but there was minimal movement in the markets as traders went on holiday breaks resulting in less liquidity in the markets. End of 2020 Gold Closed at $1893.66 (USD/Oz).