Kitco News
(Kitco News) – Gold is looking at another volatile week with an attempt at breaching the $1,800 an ounce level, according to analysts.
The post After ‘momentary correction’ gold price is ready to attack $1,800 and higher — analysts appeared first on WorldSilverNews.
Kitco News
(Kitco News) – Gold prices should maintain maintain their recent upward momentum as the COVID-19 pandemic keeps spreading and prompting worries about the economy, according to respondents in the weekly Kitco News gold survey.
The post Wall St., Main St. look for gold prices to keep shining appeared first on WorldSilverNews.
Silver COT Report
Fri, 06/26/2020 – 15:47
With the gold price refusing to be knocked down below the $1,700/oz. level, it finished the weak above $1,750 [spot] and looks to be building a base, readying for its next leg higher. With continued monetary and fiscal malfeasance, showing no signs of abating anytime soon, it Is only a matter of time until new all-time highs in gold are reached. This will bode very well for the mining stocks.
Chris Marchese
Fri, 06/26/2020 – 13:10
KnowledgeLeadersCapital/Bryice Coward/6-24-2020
“These days, gold as an asset class is in an entirely unique position to not only provide upside potential, but also provide a layer of diversification within a portfolio that neither stocks nor risk-free nominal bonds can achieve on their own or even together. Much of this has to do with the rather disadvantageous position of risk-free bonds at the moment that have brought us to the death throes of the 60:40 portfolio. Indeed, with risk-free rates so close to zero (even on the long end), bonds simply don’t have enough convexity (aka capital appreciation potential) left in the tank to act as a sufficient diversifier of equity risk.”
USAGOLD note: There are many avenues to wealth through investments, but few options when it comes to protecting it when the chips are down. This article explores the possibility of a new role for gold in the portfolio – one built on its historic reputation as the ultimate store of value and asset last resort and given impetus by the now endangered 60:40 portfolio structure.
Bloomberg/John Authers/6-22-2020
“It looks as though the time for a renewed dose of dollar weakness is here. If it happens, that will be great news for many. On both a real basis (taking inflation in different countries into account) and in nominal terms, the dollar is roughly where it was 20 years ago. After various switchbacks during the shocks of the first half of this year, it also appears to be in a downward trend.”
USAGOLD note: Over the past several months, gold and the dollar have risen together as the two safe havens most in demand globally. Authers sees a weaker dollar as something the Trump administration wants and the Fed in an election year has taken measures to accommodate. Under such circumstances, gold might be a beneficiary as the historic inverse correlation kicks in – though Authers doesn’t mention gold in this particular column. As you can see in the chart below, gold and the dollar index moved higher in tandem from late 2019. Since the dollar’s mid-March peak, they have moved in opposite directions with the dollar going lower and gold higher.
Sources: ICE Benchmark Administration {IBA} and the St. Louis Federal Reserve [FRED]
