Gold futures end a stone’s throw away from a record

From Marketwatch

Gold futures ended higher for a fifth straight session Thursday, with the most-active contract just short of notching a settlement record, highlighting feverish demand for bullion amid the worst pandemic in over a century.

If gold gets to its 2011 record high, “who is to say it can’t go to $2,000 next?” wrote Fawad Razaqzada, market analyst at ThinkMarkets, in a Thursday research note. “Obviously, no one knows if it will get there, but momentum is certainly bullish, and the fundamental backdrop is still supportive.”

Gold for August delivery GC00, 0.22% on Comex rose $24.90, or 1.3%, to settle at $1,890 an ounce after trading as high as $1,897.70. Prices based on the most-active contracts stopped just short of the record settlement of $1,891.90 from August 2011, according to Dow Jones Market Data. The record intraday level for most-active futures prices stands at $1,923.70 an ounce from Sept. 6, 2011.

The front-month July gold contract GCN20, -0.27%, which trades on much lower volume, settled at $1,889.10 on Thursday, up $25, or 1.3%, for the session. That was a record for the front-month contracts, based on data going back to 1975.

The surge for gold comes against a backdrop of continued uncertainty about the economic landscape for the U.S. and other countries attempting to deal with the fallout from the COVID-19 pandemic.

There are now more than 15.25 million confirmed cases of COVID-19 world-wide and about 624,000 people have died, data aggregated by Johns Hopkins University show.

Gold has flourished in this environment at least partly due to the outsize efforts by central banks and governments to provide funding to lessen the economic effects of the global outbreak, which has benefited buying in gold and silver to a lesser extent.

As the rally for gold intensified Thursday, silver briefly erased its early losses before settling with a modest loss. The September contract SIU20, -0.67% fell 16 cents, or 0.7%, to $22.988 an ounce.

Silver prices had surged by 7.4% on Wednesday to extend a climb to its highest levels since 2014 after a 6.8% rally on Tuesday.

“Silver finally graduated from being poor man’s gold,” George Gero, managing director at RBC Wealth Management, told MarketWatch. Industrial demand for the metal, which “were headwinds, became tail winds in the economic recovery.”

James Hatzigiannis, chief market strategist at Ploutus Capital Advisors, attributed the rally for gold to the combination of a weakening dollar, which is approaching the March lows of this year, “talks from both sides (House and Senate) and the president seriously indicating we are in need of another stimulus bill.”

“This is causing investors to flee into assets that are considered a hedge against inflation,” such as gold and other inflation protected securities, he told MarketWatch. “I believe inflation is certainly building up,” with significant increases in food prices and a very beaten up U.S. dollar.


NEWS and COMMENTARY

Gold nears $1,900/oz on weaker dollar, stimulus hopes

Wall Street closes sharply lower on tech selloff

Romney will oppose Trump’s pick Shelton for Fed board: report

Shares wobble on fear of worsening U.S.-China ties; gold surges

Silver’s had a cracking run – what happens now?


GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

23-Jul-20 1882.35 1878.30, 1480.28 1477.47 & 1624.47 1621.54
22-Jul-20 1851.00 1852.40, 1462.85 1456.91 & 1604.82 1598.44
21-Jul-20 1823.20 1842.55, 1436.86 1449.35 & 1594.21 1608.36
20-Jul-20 1810.30 1815.65, 1437.92 1438.18 & 1580.21 1590.87
17-Jul-20 1802.90 1807.35, 1435.47 1442.45 & 1578.98 1581.07
16-Jul-20 1804.60 1807.70, 1438.09 1436.04 & 1583.72 1581.56
15-Jul-20 1809.30 1804.60, 1436.22 1441.31 & 1582.96 1579.57
14-Jul-20 1798.20 1801.90, 1436.58 1440.62 & 1583.14 1581.71
13-Jul-20 1808.05 1807.50, 1435.23 1432.26 & 1598.32 1591.68
10-Jul-20 1805.75 1803.10, 1433.40 1427.33 & 1599.35 1594.84
09-Jul-20 1812.45 1812.10, 1434.01 1431.74 & 1600.57 1600.08
08-Jul-20 1799.35 1811.10, 1438.40 1438.74 & 1596.38 1598.48
07-Jul-20 1775.50 1789.55, 1423.77 1424.84 & 1576.11 1585.00

 


Access Latest Goldnomics Podcast (Part II) Here



Own gold coins and bars in the safest vaults in Zurich, Switzerland with GoldCore. Learn why Switzerland remains a safe haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here


Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here



Mark O'Byrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE