Gold Price Dropped Drastically- It’s a Big Opportunity for Investors
This Monday (9th November 2020), the market witnessed a sudden decline in the gold price. This sharp fall in gold price has taken investors by surprise. Last week the price for gold per ounce was around £1,493, and the current price is somewhere around £1,432 per ounce. It’s a drop of about 2.17% in comparison to last week.
This is one of the most significant price-falls over the past few months amidst the recent COVID-19 pandemic climate. You can visit RPS Gold to keep an eye on the current price of gold at anytime. While it’s a surprising event for gold dealers, people who are planning to invest in a precious metal can leverage this rare opportunity. In the global market, gold prices collapsed suddenly this week. Traders are watching the progress quite closely. Since the value of gold is continuously changing, monitoring the daily gold rate has turned into a regular part of investors daily practice.
Let’s take a look at some major reasons behind this collapsed gold price.
Covid-19 Vaccine News
The value of precious yellow metal crashed drastically on Monday, 9th November after Pfizer; the US-based pharmaceutical corporation announced the Covid-19 vaccine news. They made a surprising announcement regarding the status of their corona virus vaccine trial. According to the corporation, the early review of their corona virus vaccine trial suggests that the vaccine is 90% effective in preventing Covid-19.
Since late September, the gold price is down by almost 5%. In the US market, before Monday, it traded above $1960, and now it has dropped more than a hundred dollars and stands at around $1847.
US Election Results
The US election result is also playing a prominent role in the gold price ups and downs. According to some experts, the price drop was expected. Since the global economy is recovering from lock-down inflation and is getting under control gradually, the demand for gold has decreased significantly. Additionally, the win of Joe Biden in the US election has impacted the price of gold to some extent and has indicated a market stabilisation.
According to some mining watchers, Biden’s victory will stimulate the price of gold. Market experts expect that under the presidency of Biden, inflation rate might decrease and therefore, the demand for precious metal will decrease, which will naturally decrease the gold prices.
However, some experts believe that Biden’s presidency is a deterrent to gold, especially in the transition phase that might trigger market fluctuations and uncertainty.
Initially gold began to fall at risk of low demand after the release of the Covid-19 vaccine, but the downside has started gaining strength. So before it’s too late, do invest in the gold. If you’re looking an ideal gold dealer in the United Kingdom, do visit rpsgold.co.uk. You can call directly on +44(0) 20 8574 2450 or email [email protected] . RPS Gold, Specialists in a wide range of gold coins, bars and bullions, as well as platinum, silver and palladium.