Gold Prices Today – Intraday, This Week, This Month, And Longer Term
Our Latest Gold Price News, Analysis, Commentaries
I recently explained that a rising dollar is bearish for gold (and most commodities). So are rising rates. The chart shows a very strong inverse correlation between the price of gold and the 2-year Treasury yield. As a rule, falling rates are good for gold. The bottom in the two-year yield in late 2011 coincided exactly with a peak in gold (see circles). The rise in short-term rates since then has corresponded with falling gold prices. Rising rates should continue to weigh on the precious metal.
In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week’s strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,229.70 down $39.22 per ounce (-3.09%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, fell 4.21%. The U.S. Trade-Weighted Dollar Index rose 0.57% for the week.
With credit markets in Europe and the US taking a bit of a pause for profit-taking or reassessment, it is notable that currencies have not. The euro finally broke free of what looked like a steady range, though unfortunately to the downside. While that may be celebrated by orthodox economists in Brussels and elsewhere, it should not as such devaluation has led to no place good in the recent past. Curiously, however, the ultimate indicator of such risk, gold, has remained in its rut while these other pieces notoriously shed such contented framing.
Only fools and the ideologically impaired believe that today’s capital markets are free. In free markets, prices are determined by supply and demand. In capital markets, supply and demand considerations are subordinated to capitalism’s increasingly dysfunctional monetary menses, i.e. credit flows, emanating from central banks. Of all markets, today’s gold markets are the least free. Based on history, we know that gold will soon again experience a meteoric rise in spite of government attempts to the contrary.
The US Dollar has rallied significantly since July of this year. Consequently, gold has come under pressure, as the yellow metal has gone from $1,340 an ounce in July to $1,251 today. At least, that is what we read in mainstream media. But here is the key point. Gold has come down in US Dollar terms, but not in Euro terms. So, in other words, Euro gold has held up much better than Dollar gold. This article examines the evidence.
Our Selection of Longer Term Gold Price Charts
We spend quite some time and effort analyzing the gold price, both on the short term and on the long term. The result is a wealth of information and analysis in the form of articles (analysis, market views and commentaries). Below is a selection of the 5 most valuable long term gold price analysis, containing many gold price charts:
Mind that gold is primarily a monetary metal, although it has also characteristics of commodities. So when analyzing the gold price charts, please make sure to also look at the more fundamental aspects of gold. An economic assessment, as well as an in-depth analysis of the monetary environment, are key. By doing so, one could find for instance a huge disconnect in gold being an investable commodity versus gold being a hedge against monetary, particularly after the gold price drop in 2013.