Gold has seen a rocky road in the August market. At the beginning of the month, the spot price was at $1,207.20, but at midmonth, it was down to $1,173.70. Although the yellow metal regained as far as $1,202.10 by August 31, there may be hope of an even brighter future for gold. Some precious metals experts are now predicting that gold could push higher in upcoming months, possibly into the $1,400s.
So, what’s changed? First, President Trump seems determined to move toward trade wars globally by imposing tariffs for major players like Canada, China, and Mexico. This could drive prices up for a wide range of products imported to the U.S or made from foreign materials or parts. With these facts in mind, safe haven gold is looking better than ever to many serious investors.
The Fed is set to ratchet up interest rates, which is often considered a negative factor for gold investors. However, that isn’t always the case. In the 1970s, higher interest rates were accompanied by higher gold prices. No one can foresee how gold will be affected this time, but one thing is certain. Gold retains its intrinsic value over time, no matter what the stock market might do.
The dollar was high near the end of August, which would tend to strike fear in the hearts of gold investors. At the same time, though, secondary currency markets are struggling, opening up hope that gold will see gains soon.
Silver has been on a downward path throughout most of August. After an early-month rise from $15.25 to $15.42, silver began to drop. By the 14th, the spot price was down to $14.40. The rest of the month, silver has struggled, only regaining to $14.59 by the morning of the 31st.
The August platinum chart looks similar to the silver chart. Platinum started the month at $830 and rose slightly to $831 days later. Then, the drop began, hitting a brief low of $767 midmonth before bouncing back to $787 by the 17th. While there were no dramatic gains for platinum after that this month, it did regain to $797 before the month’s end.
Of the four precious metals we feature in this report, palladium was the one to gain the most in the latter half of the month. Starting out August at $900, palladium stayed fairly level until the 15th of the month, when it fell rapidly to $842. However, it rebounded nicely. By the 17th, the price was up to $904. It didn’t stop there but kept climbing gradually, reaching $968 by the last day of the month.
Despite all the conflicting views on what U.S. policies and global uncertainties mean for gold, the fact remains that there’s only a limited supply of precious metals available for investors. Demand can quickly rise as the world situation changes. That’s happening now in a very big way. Precious metals experts advise investors to pay careful attention in the upcoming months to get the greatest results from their precious metals portfolios.