Gold Investments Market Update – Gold and Stocks Rally for Different Reasons

Gold has given up some of yesterday’s and the last four days’ gains. Profit taking seems the most likely explanation as the dollar remains largely flat but the weakness in oil may be contributing to gold’s weakness. Continuing unprecedented volatility in markets is leading to further safe haven demand.

Golden gains

Gold touched $829 per troy ounce yesterday, its highest level since October 16th. This means that the yellow metal has gained nearly 13% in 3 consecutive days of trading. The stock market gains have stalled the surge somewhat and it is currently trading at $805 but the sentiment remains bullish and an upswing to $845 is certainly possible in the next week. Silver continues its rally out of a down trend and is currently at $10.16. However, if the metal does not break through the November high of $10.80, there may be a quick pull back. Gold remains oversold and continues to offer real value – both fundamentally and intrinsically. Concerns about the long term health of the world’s reserve currency should see gold remain well supported above $780 (recent resistance) especially as we are likely to get confirmation of fastly slowing US economy in GDP numbers today. The titanic struggle between massive deleveraging of speculative players and unleveraged buyers of physical bullion continues. The leveraged speculators won the first round with the unprecedented wholesale liquidation selling in futures markets but unleveraged physical buyers who are unencumbered by debt are showing themselves as very strong hands. As the strong supply and demand fundamentals reassert themselves, physical buyers who shun the casino of the leveraged futures market and remain properly diversified will likely be handsomely rewarded in the coming months. Particularly if the increasing rumours of a default on the COMEX in the coming months come to pass.

A good day to play FTSE

The FTSE 100 index rose 9.8% yesterday, its biggest ever one day gain, buoyed by news that the US government had agreed to bail out troubled leviathan, Citigroup. Other stock markets followed suit, with the S&P 500 up 4.5% and the pan European Eurofirst 300 gaining 8.9%. Citigroup itself surged by a rather immodest 58% as financial stocks rebounded. As ever the sustainability of these gains is questionable.

Mark O'Byrne

Also on news-goldcore-com

Videos

Why Gareth Soloway is “unbelievably bullish” on gold and silver

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Blog posts

Why Gareth Soloway is “unbelievably bullish” on gold and silver

Click below to watch What’s going on with the gold price? Is the silver price set for a further pullback? Technical analysis expert Gareth Soloway of InTheMoneyStocks joins Dave Russell of GoldCore TV for a monthly look at the gold and silver charts. Volatility has returned to the precious metals markets with bot #gold and […]

READ MORE

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Why Gareth Soloway is “unbelievably bullish” on gold and silver

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Blog posts

Why Gareth Soloway is “unbelievably bullish” on gold and silver

Click below to watch What’s going on with the gold price? Is the silver price set for a further pullback? Technical analysis expert Gareth Soloway of InTheMoneyStocks joins Dave Russell of GoldCore TV for a monthly look at the gold and silver charts. Volatility has returned to the precious metals markets with bot #gold and […]

READ MORE

US Federal Reserve Sticks To The Script But For How Long?

Those watching the gold price and price of silver will have noticed the sharp uptick following the Federal Reserve’s announcement, yesterday. This was despite the Fed doing exactly what everyone expected them to do. For now, the Federal Reserve is sticking to its relatively well-telegraphed plan but how long will it be until they need […]

READ MORE

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE