VIDEO - Gold Breaks US$1,550, Silver Close to US$20
In this August update, INN looks back at how precious metals fared for the month and what industry experts are saying about the sector.
In this video, the Investing News Network (INN) looks at the key events and developments that took place in the precious metals space this past month.
The month of August belonged to gold as it continued its rally from July, breaking through the US$1,500 per ounce level on August 7 for the first time in six years.
While there were a slew of factors pushing the metal forward, increased trade war concerns between the US and China and residual effects of the US Federal Reserve’s interest rate cut at the end of July were in the forefront. These events have led investors to seek out the safe haven nature of gold.
Following the surge, INN spoke with EB Tucker, a director at Metalla Royalty & Streaming (TSXV:MTA,OTCQX:MTAFF), who had been predicting a gold price of US$1,500 since the end of 2018. Tucker was not surprised by the yellow metal’s rally and, at the time, predicted that it would go even higher before pulling back.
Tucker’s price prediction rang true when on August 26, gold surged through a more than six year peak to trade at US$1,550. Following the impressive gains, investors began wondering where the metal could go next. INN spoke with Brien Lundin, editor of Gold Newsletter, who said he believes in gold’s ability to reach US$1,600 before the end of the year.
Toward the end of the month, gold was trading around US$1,540.
August was also a profitable month for silver. The white metal is generally supported by the same factors as gold, and silver began to pick up noticeable steam at the beginning of August when the yellow metal made its first large rally.
The precious metal finally broke the US$17 per ounce level on August 7, but still lagged behind gold in the trading session. Despite this, many market watchers continued to see the potential in silver, believing that it would move more substantially once gold did.
On August 27, this belief came to fruition when the white metal rode gold’s coattails to push past US$18. Both Lundin and Brian Leni, founder of Junior Stock Review, told INN that the main catalyst sending silver to new heights was gold’s recent rally. Toward the end of August, silver was trading around US$18.20.
For palladium’s part, the metal was down again this month and officially lost its spot as the highest trading precious metal. Palladium hit its highest level on August 20, when it closed the day trading at US$1,473 per ounce. Toward the end of the month the precious metal was trading just below US$1,450.
Finally, platinum made gains during the month, climbing over 3 percent and coming close to trading at the US$900 per ounce level. Platinum peaked at US$892 on August 28 and finished the month trading around the same level.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.