December Gold News 2020

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.