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Week In Review: Gold & silver rebound after the Fed’s inflation announcement [24th to 28th Aug 2020]

gold news week review 24 28 aug 2020

Gold and silver saw strong price rebounds this week following Fed Chair Jerome Powell’s announcement.  The Fed introduced a new policy that would allow inflations running above the 2% mark.  

Although the news created a favourable ground for both metals, gold didn’t respond as most traders expected. The precious metal rallied to a new daily high on Thursday before descending in a matter of hours.

Experts believe this sell-off was caused by the dissatisfaction of traders who had higher expectations from Powell’s announcement. Silver maintained its trend even as the US dollar faced immense pressure against other currencies.

Daily Summary

Monday 24th August 2020

Gold was unable to start the week at the $2000 as it traded at $1929.75 USD ($2609.51 AUD). Silver almost managed $27 but settled at $26.59 USD ($36.11 AUD) at the close of the day.

Tuesday 25th August 2020

There weren’t any signs of an upswing in the prices of either metal. Gold saw a small downturn of $0.79 to $1928.96 USD ($2619.30 AUD). Silver, too, plunged down by 0.41% [$0.11] to $26.48 USD ($35.96 AUD).

Wednesday 26th August 2020

Both metals ascended on Wednesday with gold surging by 1.18% to hit $1951.76 USD ($2650.26 AUD). Silver, on the other hand, leapt up to $27.36 USD ($37.15 AUD) – a 3.32% swell.

Thursday 27th August 2020

The Federal Reserve made public its plan to introduce the new flexible form of average inflation targeting. Both metals took a nosedive once again. The yellow metal fell by 1.16% to trade at $1928.98 USD ($2619.32 AUD), whereas the grey saw a 1.24% decrease to $27.02 USD ($36.69 AUD).

Friday 28th August 2020

The marketplace saw a wild shift on Friday after digesting the news announced by Powell. Both precious metals had an upturn, albeit temporarily, as they slightly went down before the end of the day. Gold recorded a 1.83% upswing as it traded at $1964.30 USD ($2667.28 AUD). Silver saw an almost similar climb of 1.85% to land at $27.51 USD ($37.36 AUD).

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