Gold News

A double-dip recession is looking increasingly likely for the UK economy in 2021 following the release of the latest GDP figures.

After a historic contraction in Q1 and Q2 of 2020, the UK economy had shown signs of recovery, with six consecutive months of growth. November’s GDP figures have ended that spree, with a fall of 2.6%, and point to a potential double-dip recession in 2021.

The Russian central bank has reported this week that its gold bullion holdings surpassed the value of its US dollar reserves.

According to the Moscow Times, Russia's gold as of June 30th last year was worth $128.5 billion – almost $4 billion more in value than the US dollars the Eurasian state holds in its reserves.

A previously discovered golden ornament has been officially classed as a treasure, and is believed to be one of Britain’s oldest examples of gold metalwork.

The nearly pure gold ornament was originally discovered in 2014 by a group of young volunteer archaeologists and was found in the Kirkhaugh Cairns located in Kirkhaugh, Northumberland.

A gold vein has reportedly been discovered in Turkey, thanks to a fertiliser company operating in the region. The estimated value of such a find could be as high as $6 billion, with up to 99 tonnes (3.5 million ounces) of gold in the vein.

The UK's primary stock exchange, the FTSE 100, reported that 2020 was its worst year since the 2008 financial crisis and the crash that followed.

Sterling has begun 2021 with gains that have pushed it to a 32-month high against the Dollar. GBP has been boosted by a number of factors, and analysts believe there could be further gains to come for the Pound in the weeks ahead.

Sterling climbed as high as $1.36958 last night and has been trading around the $1.366 mark so far today. This puts Sterling at its highest since May 2018 against the Dollar.

2020 was undoubtedly a year of economic uncertainty, and as investors globally turned to traditional safe havens in gold and silver, demand reportedly reached unprecedented levels for many of the world’s largest mints.

As the official mint of America, this pattern has also been repeated at the U.S. Mint, which saw demand for its popular Eagle coins soar to levels not seen in four years.

It has been a relatively volatile first week of trading in 2021 for precious metals, with prices up and occasionally down as markets react to changing outlooks in what will likely be another year of economic upheaval.

As trading opened on Monday, both gold and silver saw impressive gains as markets reacted to the ever-increasing numbers of Covid-19 cases across the US and Europe.

Chancellor Rishi Sunak issued a plea this week for an increase in consumer spending next year as the UK opens back up from months of lockdown limitations on daily life.

Inevitably there has been backlash on social media, with many pointing out that large swathes of the public have been on furlough for the majority of 2020, while others working from home have seen an increase in their utility bills, as well as a general cost of living increase for food and clothing.

Sterling has climbed to a 31-month high today as Brexit optimism continues to boost the UK currency.

The Pound has reached a high of $1.36192 this afternoon against the US Dollar, the highest it has been since May 2018.

Despite a stellar performance in 2020, silver has not broken all time highs in the same way as gold, and is still considered undervalued by many analysts and investors.

With more and more countries setting carbon-neutral goals in the coming years however, the increasing adoption of green energy technologies could provide a further boost to silver prices that will see it close the gap with higher valued metals like gold and platinum.

The UK’s economic recovery was already showing signs of running out of steam prior to November’s national lockdown and will likely face further contraction for the final quarter of the year.

The Office for National Statistics confirmed that October saw GDP growth of just 0.4%.

The Pound fell against the US dollar and the Euro yesterday following concerns aired by negotiators that a deal between the UK and EU over Brexit was once again looking less likely.

It was only last week, December 4th, that the pound registered its best performance against dollar since May 2018. Half of the gains were at the expense of the US dollar, following poor jobs data in the States, and half were also tied in with Brexit deal optimism – optimism that has quickly dissipated.

After a volatile year which saw palladium reach a new record, and subsequently almost halve in value, forecasts for 2021 suggest palladium could see further recovery, and even gains.

A mixture of low supply and increasing demand could push palladium back up towards its all-time high seen in February of this year, and perhaps even surpass it.

After months of deadlock, a decision on Britain’s post-Brexit trade status with the EU is expected to be announced in the next few days.

Talks went on late into the night yesterday as the negotiating teams feel the pressure to resolve the final points of contention between the two sides, and get a deal agreed in time to be ratified by the end of the year when the UK’s transition formally ends.

The Clogau-St David’s Mine in Wales looks set to continue producing Welsh gold following the discovery of an exciting new extension to the main lode.

Alba Mineral Resources PLC who operate the mine near Dolgellau, announced the news that a recent drilling programme found a new branch of the main lode, and returned “significant gold assays” in places.

Chancellor Rishi Sunak has warned that the ‘economic emergency’ facing the UK economy is only just beginning, following a cut down and alarming spending review yesterday.

The warning comes as the Office for Budget Responsibility forecasts the UK economy will contract by 11.3% in 2020 and will take two years to return to pre-pandemic levels.

In what has been a volatile year for platinum, prices could be on the brink of a rally, following reports of a significant supply deficit facing the precious metal in 2020.

In their quarterly platinum report the World Platinum Investment Council’s research shows that platinum supply is over one million ounces below current demand.

It has been a rollercoaster week for gold and silver as Joe Biden secured the final states required to claim victory in the US election.

Prices had been rising in response to the Biden win, before news broke that a Covid-19 vaccine by Pfizer has an estimated 90% effectiveness, with stock markets soaring in a knee-jerk reaction, and putting pressure on precious metals.

The Bank of England has announced a fresh round of money printing in an extension to its Quantitative Easing program.

Having already increased the QE program several times this year, the new influx of cash now brings the total to an eye-watering £895 billion.