How Gold Stocks Are Moving
When it comes to investing in gold stocks in 2020, things can get confusing. This confusion can lesson once you understand the market and the most recent news. Currently there is a variety of factors that are all impacting gold stocks. This volatile metal can move for so many reasons. For example, when jobless reports are released it will impact the price of gold negatively or positively. The pandemic created a huge bull run for the yellow metal. At the start of 2020, the price of gold was under $1,500 per ounce. Now as of December 6th, the price of gold is above $1,800 per ounce.
At one point in 2020, gold prices were able to reach above $2,000 per ounce. The crushed worldwide economy due to the COVID-19 outbreak is the primary cause of this. Gold mines had to stop or slow operations because of the virus. The cost of the dollar slipped. All of these were contributors to gold prices skyrocketing. Investors who played the volatile market smart during these times were able to make a profit. So where should you start if you want to invest in gold stocks? Should you create a list of gold stocks? Or should you simply just invest blindly into any gold company. Well the correct answer is to do whatever works for your goals and stay up to date with everything going on in the sector.
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Gold Stocks In December 2020
But what about December 2020? Why are gold stocks going up or down during the month of December? Let’s first talk about one of the things that is bringing the price of gold down. Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report) have announced COVID vaccine candidates that are 95% effective. These vaccines have been backed by governments and officials in various places. For example, former United States presidents Obama, Clinton, and Bush pledged to take the vaccine publicly to gain trust from the people. An effective vaccine can result in quicker recovery of the economy, which will hurt the price of precious metals such as gold.
Why Gold Stocks Move In Price
At the same time, we could be far away from worldwide vaccine distribution. Currently vaccine talks are focused on frontline health workers and elderly people. The United Kingdom announced plans to distribute to these groups as soon as this month, December. This news hurt gold and even brought it under $1,800 per ounce. So why has the price of gold gone back up over this $1,800 mark in December, which companies are gold stocks to watch?
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The Future Of Gold Stocks
What is happening now, is the stimulus effect. News broke the President-elect Joe Biden is working on a bi-partisan pandemic financial aid package. This financial aid package is valued at right under $1 trillion dollars. Stimulus is something that negatively effects the price of the dollar, and thus brings the price of precious metals upwards. Things could quickly change for gold stocks when January arrives and Biden is inaugurated. The momentum from this news has brought gold stocks up, despite the recent vaccine news that has happened.
So what is there to think about now? Well, keep your eye on gold stocks for the next month because things are likely to change. Stay in the know with what is happening in the sector if you are an investor. Nothing is guaranteed in this volatile market, so make wise investments. Unemployment rates, stimulus, COVID guidelines, virus vaccines, are all things that impact the price of gold stocks. Those are all things to consider when looking at the news cycle. You’ve seen how companies like Barrick Gold Corporation (GOLD Stock Report) have reached 5 year highs in the stock market in 2020. So there are many companies that could potentially make your list of gold stocks.
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