August 2020 saw the gold market’s biggest drop for seven years. Owing to the all-time high number of COVID-19 cases in the USA, major businesses had to shut down their operations, and traders were seen to have panic-sold their stocks.

The Trump administration’s delayed response in helping the economy recover from this crisis further demotivated investors who were already anxious because of the reduced interest rates.

However, major events ended the year on a good note. With Joe Biden’s win in the US Presidential Election 2020 and the nationwide distribution of Covid-19 vaccines developed by Pfizer and Moderna, the gold market looks lucrative. Currently, the gold price stands at $1921.000 per ounce. It offers a promising future to the ones who plan on investing in the gold market.

It is expected that as the Covid-19 vaccine distribution around the world gains momentum and millions of people are vaccinated, the economy will gradually start to recover. Business activities will resume, and we will witness more people investing in the gold market. The gold prices are projected to increase over the coming months.

Moreover, after the latest Senate election in Georgia, it looks like Democrats will take over the USA Senate. This will further encourage the investors to invest in the gold market because the Democratic Party’s prime focus remains to be the recovery of the currently shrinking US economy.

As we are nearing January 20th, the day that Joe Biden will be sworn in as the 46th President of the USA, the gold prices are expected to plummet and reach anywhere between $2000 to $2100. The gold will continue to be a ‘safety trade’ and remain relevant as the world gears up to resume economic activity in full throttle after receiving the Covid-19 vaccine.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.