18th Dec. - Gold prices soared again after falling significantly since August 2020. Prices in August once reached the highest price in history and traded at a maximum of $ 2060.00 per ounce at that time.
However, the increase in the price of gold since the beginning of 2020 finally stopped and the price fell again significantly. The price of gold fell for almost four months and was around $ 1768.00 per ounce at the end of last November. Recorded a drop of over $ 200.00 per ounce in 4 months.
Among the causes of the fall in gold prices are linked to market optimism over the discovery of the Covid-19 vaccine by several companies such as Pfized and BioNTech. Investors and traders see the potential of the market to recover and choose to invest in more risky markets such as stocks and forex as opposed to gold which is seen as too high.
However, since the beginning of last December, prices have risen again. On December 1, the price was around $ 1768.00 per ounce and now entering December 18, the price has risen to the level of $ 1880.00 per ounce. Currently, the Covid-19 vaccination program is underway in several countries.
Investors and traders will definitely take a wait and see first hand the results of this vaccination program whether it successfully addresses the Covid-19 pandemic or other potential problems. If the program is successful and the Covid-19 pandemic is successfully curbed, it is likely that the price of gold will fall again when it reaches its previous highs.
For now, prices are still in momentum to rise. Wait and see how the vaccination program works from time to time.
AHMAD FAIZUDDIN BIN RAZALI
CHIEF ANALYST OF CDG GLOBAL
COVID-19 VACCINATION PROGRAM AND EXPECTED GOLD PRICE MOVEMENT
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