Gold shot up $30 in the first two trading days of the new year following an aerial drone attack on Iran’s leading military general as he left the Baghdad airport in Iraq. Gold rose while stocks retreated on Friday. For instance, The Dow Industrials rose 330 on Thursday before the drone attack took place overnight Thursday, but the Dow fell 234 points on Friday, while gold rose on both opening days of 2020. There is a good chance this conflict may escalate rapidly, pushing gold’s price significantly higher.
On Monday, January 6, gold opened over $1,575, spiking above $1,580, reaching its highest level since April 2013. Gold was already on a bullish run due to the Federal Reserve’s reversion to Quantitative Easing (QE), which the Fed said they would keep promoting through the middle of 2019. Gold was also on a rise due to the impeachment process and the election year trend, which has been favorable to gold since 2000, but the drone attack supercharged gold’s bull move. Rare gold coins are also becoming harder to find and their prices are rising, some significantly!
Gold Closes 2019 on a Strong Up Move, Marking its Best Year Since 2010
Gold closed 2019 on a rise, above $1,515 per ounce, rising 18.8% for the year, locking in its best annual performance since 2010. The surge above $1,500 came on Christmas Eve as both stocks and gold staged a “Santa Claus Rally” which lasted through the end of the year. According to the Aden Sisters’ Aden Forecast, this means the latest “decline is likely over and gold is now embarking on a new rise. Gold’s next resistance levels are at $1,536 and $1,560. If gold rises above these levels, it’ll be super bullish.”
This is why we always say it’s important to diversify your portfolio with a balance between stocks and precious metals and coins, including rare coins. With the stock market now at or near an all-time high, this would be a very auspicious time to re-balance your portfolio. Gold and rare gold coins have often historically performed very well in (1) Presidential election years, (2) years with impeachment threats, (3) when the stock market is collapsing and (4) during times of global crisis or war. The year 2020 could meet several of those criteria!