Silver Price Daily Forecast – Silver Attempts To Get Back Above $24.00 FX Empire
Month: August 2020
Silver Price Forecast – Silver Markets Continue to Grind FX Empire
Silver Price Forecast – Silver Markets Give Back a Bit FX Empire
World Gold Council/Gold Hub/7-30-2020
“Gold broke a new high on 28th July, reaching US$1,940.9/oz on the LBMA Gold Price PM and topping US$1,981.3/oz intra-day. This exceeded the previous record of $1,895.0/oz set by the PM Price on 5th September 2011 and the $1,921.2/oz intra-day high the following day during Asian trading hours. On the heels of this milestone, investors are asking two key questions, which we explore in this report: How does this compare to previous highs? Is the price rally sustainable? Gold’s performance so far in 2020 has been remarkable. As of 28th July, it is up by 27%, significantly outpacing all major assets. This move up has been driven by a combination of: 1) high uncertainty, 2) very low interest rates, and 3) positive price momentum – all of which are supportive of investment demand. But there are reasons to believe that we may still be early in the cycle.”
USAGOLD note: Thorough, well-grounded rationale on where we might be headed in the gold market. Particularly useful for those looking into gold for the first time ……The inflation-adjusted high for gold, by the way, is in the vicinity of $2800 per ounce.
Financial Times/Colby Smith and Robin Wigglesworth/7-28-2020
“’There was a point in time when we were wondering if the bond market would really ever function again,’ says Nick Maroutsos, co-head of global bonds at Janus Henderson, an investment group. ‘If it continued for a couple of weeks, we were thinking we were looking at doomsday.’”
USAGOLD note: A retrospective that tells how close we came to a full bond market meltdown this past March. The issue, it seems, was liquidity and the Fed filled the gaps. “I understand why the Fed did this, but they basically bailed them out,” says [former New York Fed chief Bill] Dudley. “There’s definitely a moral hazard here.” The bond market is the black hole at the center of the fiat money universe – the focal point around which all else rotates. Smith and Wigglesworth offer a deep weekend read ……
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CNBC/Patti Domm/7-27-2020
“The dollar has become the world’s punching bag and it’s likely to stay that way for awhile. … Strategists say the dollar’s slide comes as the U.S. lags most of the world in halting the spread of the coronavirus, and some expect the U.S. economic recovery to lag others, including Europe. The dollar is also reacting to the prospect of mounting U.S. deficits and ultra-low U.S. interest rates well into the future.”
USAGOLD note: Suddenly dollar bears are in abundance …… And they are all wearing masks.
Repost from 7-28-2020
Bloomberg/John Authers
“Why is this happening? This behavior is coming particularly from the group labeled ‘other reportable’ in commitment of traders disclosures, which includes family offices and high-net-worth individuals. Worried about protecting the value of their fortunes, they are opting for the perceived safety of physical gold. This creates a specific problem for swap dealers, which are run by the bullion banks that make a market in gold.”
USAGOLD note: For as long as we can remember, USAGOLD has taken the position that the Achilles heel of the paper gold market is investors opting to take delivery of the metal – deliveries the short side of the market would find difficult to meet simply because of the dearth of availability against the amount of capital committed in the market. Now, according to Authers, that day may be upon us.
Repost from 7-28-2020
- Gold closes at a new all-time record high – now within striking distance of $2000 Kitco NEWS
- Gold hits new record, posts best month since 2016 CNBC
- Gold Sets Fresh Record Heading for Best Month in Four Years Yahoo Finance
- Gold Price Forecast – Gold Markets Continue Upward Grind FX Empire
- Gold Prices Set Fresh Weekly Records as China Discount Deepens, ‘Eager Bulls’ Drive ETF Inflows and Record Comex Deliveries | Gold News BullionVault
- View Full Coverage on Google News
Gold reclaims perch at record, notches best monthly gain in 8 years MarketWatch