2020 has just begun and it is already looking like a bright year for gold. On January 6, gold notched a ninth straight day of gains and surged towards a 7-year high. The factors fueling this rise could easily drive the rally even higher. Learn more in this episode of USMR Market Insights with Coy Wells.
Gold in Dentistry: Did You Know? – Video Transcription
Coy Wells: 00:00
Gold began 2020 with one of its hottest performances in years. On Monday, the spot price of gold soared towards its highest price in seven years. This marked a ninth straight day of gains for the precious metal. This climb really began accelerating its pace last Friday when international tensions flared. This is a historical precedent for gold doing well in January. According to data from Macrotrends, gold prices tend to start rising during the first month of the year. For example, when gold closed at the end of 2011 the price was $1,537.05 an ounce. By January 31st of 2012 the price surged to $1,738 an ounce. Similarly, in 2019 gold began the year at $1,296.50 an ounce and by February the spot price of gold Rose to $1,320.75 an ounce. These consistent boosts have been attributed to the January effect by market analysts, usually in reference to stock.
Coy Wells: 01:01
The January effect refers to a seasonal rally for price of that often occur in January. Recent geopolitical tensions between the U.S. And Iran are also lifting gold prices. Gold is traditionally seen as a safe haven in times of uncertainty like these, it's no wonder that gold is rocketing upward in price. The currently unfolding situation has markets and consumers looking to hedge and gold is clearly their preference of choice right now. The ramifications of these events are pushing gold prices even higher, which means now may be the perfect time to buy before prices go even higher. For more information about how gold could work in your portfolio, please call the number on your screen to receive your free gold information kit. This invaluable resource covers everything you need to know about owning gold and is only available from U.S. Money Reserve. So click on the link below or call the number on your screen right now to get your copy and please give us your thoughts and share this video. If you're watching us from Facebook and would like to see more of our videos, check out our YouTube channel where we have tons of information touching on all different subjects.
Coy Wells: 02:06
I'm U.S. Money Reserves, Coy Wells, and thank you for watching Market Insights.