As the last full week of September 2019 moves forward, several types of news headlines are influencing the direction of bullion prices. Perhaps the most notable event of the past 24 hours is the announcement by Speaker of the House Nancy Pelosi that a formal impeachment inquiry has been opened on President Donald Trump regarding alleged breaches of constitutional responsibilities. This does not mean the president will be impeached. However, the very notion that the nation’s commander in chief may soon have charges of high crimes and misdemeanors brought against him is unsettling for many investors, not to mention world markets.
Not long after the impeachment news broke yesterday morning, bullion prices lurched upward, with gold jumping from about $1,515 to $1,535 in a matter of only a few hours. Silver made more modest gains of about 30 cents during that same time, increasing from $18.30 to $18.60 — a relatively small tick upward, yes. But nonetheless, silver is inching closer to the $20 threshold many investors are increasingly anticipating.
Meanwhile, there are several other matters affecting bullion prices, including escalations of tensions between the United States and Iran over the attack on oil fields, ongoing trade squabbles between the US and China, and concerns of a coming recession. In times of trouble, many investors turn to bullion, and it appears that is exactly what is happening now. But how high will these troubles push silver and gold prices?