Gold had a good week, rallying after every correction. On Monday, August 31, gold rallied as the dollar weakened to its lowest level in two years as U.S. coronavirus cases topped six million. (Investors have often bought gold as a hedge against economic uncertainty, such as times when the coronavirus pandemic has worsened, or when the economy has flattened after beginning to rise.) For the month of August, gold reached its peak on August 6 and then remained above $1,900 in late August, while silver kept rising.
Silver has soared phenomenally, rising from barely $12 in mid-March to $28.24 on August 31. Silver rose 14% in August while gold traded net flat for the month. Stocks also rose during August, but stocks were a “mixed bag,” as a very few glamourous big-name big-cap (worth over $1 trillion each) tech stocks accounted for much of the rise in the NASDAQ and S&P 500 indexes, while the small-stock Russell 2000 index declined in 2020. Last week, the makeup of the 30 Dow Jones Industrials was re-arranged once again, with three new stocks replacing three old stocks, while “gold is always gold” throughout history.