Gold is poised to post its strongest weekly gain since 2006, as it continues to rise above record numbers, as demand for safe haven increases. Gold waits for the US stimulus, and the bulls watch for escalating tensions between China and the US. Silver is close to $ 30 an ounce, heading for the largest weekly gain since 1980.
Negotiations continue between the US House of Representatives and Senate, in an effort to reach agreement on a stimulus package. It should be noted that during the month of November we await the US elections.
The Republican Party is divided on the stimulus package, and trust between the two parties fades. Meanwhile, US President Donald Trump says he will intervene to take measures on his part if the division continues.
The price of gold bars increased by more than 35% in 2020, which puts it on the path of achieving an annual value of money in 40 years. The strong rise is attributed to: the health crisis, negative real interest rates, a weak dollar, and geopolitical risks, which increased the demand for safe havens. Bank of America confirmed that gold will reach $ 3,000 an ounce within 18 months, and said that silver may reach $ 35 an ounce in 2021.
“The gold rally is showing signs of weakness,” says Howard Lee, economist of the Oversea-Chinese banking group.
Gold rose strongly, reaching $ 2,072.47 an ounce, and gold prices retreated after stronger-than-expected US market data.
Silver prices recorded their highest levels since 2013, reaching 29.8591, up 22%.
Lee predicts that after the coronavirus threat has passed, gold will not return to $ 1,000 an ounce