Author: Gold News Club

Gold, silver and platinum try to rally  Kitco NEWS

Gold Price Forecast – Gold Markets Bounce from 50 Day EMA  FX Empire

Gold prices end higher as traders take cues from a dollar rally and a global, tech-led stock selloff  MarketWatch

Gold erases early losses as U.S. stock market erodes  Kitco NEWS

Gold rebounds after stock market rout lifts safe-haven demand  CNBC

Since posting new record highs in early August, the gold market has consolidated above $1,900/oz support.

A close below the $1,900 level would carry bearish implications for the near term.

Alternatively, a move back above $2,000/oz would likely be followed through to the upside with a rally to fresh highs. Silver, in turn, could be expected to run to new multi-year highs above $30/oz.

These breakouts will happen eventually. The relentless mega trend of dollar depreciation (i.e., inflation) ensures hard money will gain value versus fiat Federal Reserve notes.

The question is whether a deeper correction occurs first… or the major trend accelerates.

Inflation rates may be set to accelerate as the Fed aims for an “average” of 2%. According to central banker logic, this requires pushing inflation above 2% for an unspecified period.

Holders of low-yielding U.S. dollar-denominated debt instruments should be quite concerned about the prospect of losing purchasing power.

The Chinese government apparently is. The second-largest holder of U.S. Treasuries, worth over $1 trillion, is now gradually selling them.

Chinese economist Xi Junyang announced last week that the country would aim to hold $800 billion in U.S. debt “under normal circumstances.” But, he added, “China might sell all of its U.S. bonds in an extreme case, like a military conflict.”

If major world powers dumped their Treasury holdings and stopped accepting U.S. currency in international trade, the U.S. dollar’s privileged status and value would collapse.

For now, the decline of the dollar appears likely to proceed at a more gradual pace. There will likely even be mini rallies along the way.

Given the spate of bearish developments to hit the U.S. dollar over the past few weeks, it’s possible currency traders have grown too negative toward the buck in the very near term. A counter-trend USD bounce would likely put downward pressure on precious metals prices.

Of course, gold and silver stand to gain against all fiat currencies that trade against the U.S. dollar.

So regardless of whether the dollar rises versus the euro or the yen or the yuan over any given period, it will not become any sounder of a currency – and will certainly not diminish the long-term case for owning physical precious metals.

Last month, the Federal Reserve moved the goalposts when it changed its inflation targeting policy. In the past, the central bank has targeted a 2% inflation rate as measured by CPI. Now it will shift to “average inflation targeting.” In effect, the Fed will allow the CPI to run “moderately” over 2% “for some time” […]

In a podcast early last week, Peter Schiff called the surging stock market “the biggest bubble ever” and talked about some of the absurdities in the market, particularly in the Nasdaq. Then on Thursday, that bubble may have popped. Peter talked about it in his podcast Friday. The day after Peter called the market the […]

Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin. The World Gold […]

The use of gold swaps and derivatives by the BIS has been extensive… By Robert Lambourne via GATA Monday, September 7, 2020 Use of gold swaps by the Bank for […]

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