Latest Gold & Silver Price News
My estimation is that various forces will nudge the S&P higher and occasionally levitate it, but deflationary forces will overwhelm both markets and central banks, and global stock markets will continue their downward path. Eventually people and investors will realize that “money” is now debt owed by a government, central bank or corporation that may not be solvent. When confidence in the viability of debt based fiat currencies and confidence in the ability to repay debt diminishes, people will flock to gold investments.
Today, the European Central Bank (ECB) published its monetary policy statement, with the central bank leaving its main refinancing rate at 0.05%, its deposit rate at 0.20%. Euro gold is testing its major support at €1000 /oz. This is a make-or-break level for euro gold, with a high importance for gold in other major currencies. If euro gold will stay above €1000, the market would anticipate more monetary easing in Europe, with a positive impact on the price of gold.
If you have stocks or other financial assets that you are worried could be vulnerable, then hedge your risk. Gold is one of the very best counter-weights to financial assets you can own, because it exhibits low correlation (and often negative correlation) to stocks and bonds. When they tank, gold can surge.
Gold in U.S. dollar closed the trading session 0.5% lower today. Reuters noted today that the gold price was down “as a rebound in stocks and the dollar arrested a four-day rise, with uncertainty over the timing of a looming U.S. rate hike limiting price moves ahead of key U.S. non-farm payrolls data on Friday.”
The most interesting trend on the longer term gold chart is the deceleration of gold’s decline. Although the trend remains down, with a clear formation of lower lows, the decline is slowing. Also note that the lows have occurred in an orderly manner, not comparable to the aggressive declines of April and June of 2013. This indicates selling pressure is fading and that gold is bottoming.
I’m not convinced that crude oil prices will drop much from here or remain low for many more months. Regardless of the “reasons” listed at the beginning of this article, I think higher crude oil prices are much more likely than lower prices in six months or less.
Gold Spot price has rallied minimally following the break to a new low, thus far halted at the declining 200-day MA. Interestingly, one might have expected Gold to rally more forcefully in face of major U.S. index declines last week. Resistance remains above at 1,200 and 1,250 but the trends remain down even at these levels and well under the 2005 uptrend. Weekly and monthly momentum models remain negative and flat. The downside target at 1,000, the support from 2008-2009, remains in place.
Gold’s punk price action this week has turned me mildly skeptical, but I’ll follow the bullish lead of a chat room denizen who saw encouraging signs on Thursday. He posted as follows: “Just to let you guys know, [something happened that] I haven’t seen in a very, very long time: NUGT is up 16%, many of the miners I follow…are up quite a bit, and Gold is not down. This is a telltale sign that Gold…is ready for a launch.”
Does anyone care that silver and gold have been real money and a store of value for 3,000 years, or that all unbacked paper money has eventually been inflated into worthlessness? While the central bankers and politicians distract the populace with Donald Trump stories, they prolong the game … and the wealth transfers.
Gold and silver bullion are free of counterparty risk and provide protection from the ravages of incompetent, untrustworthy financial houses, cynical politicians, and government agencies at all levels. Like the bandit leader in the movie, all they want from you and yours is “Just a little bit more.”
The price of the yellow metal gained more than 4% last week amid a global sell-off of equities and commodities. The upward momentum in gold prices began the previous week when China devalued its currency, the yuan. And, last week the release of the minutes from the Federal Open Market Committee (FOMC) meeting left market watchers unsure about an interest rate rise in the US in September, adding to uncertainty caused by China’s devaluation of the yuan. This in turn, as well as a number of other factors, including falling prices of other commodities, have led investors to turn to gold.
December Gold appears to be consolidating for a push above 1200 in the weeks ahead. Notice that although the futures gave back most of yesterday’s modest rally by day’s end, the intraday high poked slightly above an ‘external’ peak at 1169.00 recorded back in early July. This generated a bullish impulse leg on the daily chart, implying that the pullback from Monday’s high is likely to produce a follow-through rally leg. Were it to equal the rally off mid-August’s 1108.50 low, the futures could trade as high as 1206.00 by month’s end or early September.
Silver prices are currently low compared to global debt, CEO bonuses, government spending, official US national debt, the S&P 500 Index, silver prices in 2011, money in circulation, gold prices, military spending, pension underfunding, and the prices of college tuition and health care. Silver prices will increase substantially in the next five years.