Gold, Silver Jump After Swings Amid Weak Dollar and Economic Woe

(Bloomberg) Spot gold headed for back-to-back gains as investors weighed the outlook for the metal’s record-setting rally after this week’s dramatic price swings. Silver climbed the most in more than five years.

Rising U.S. bond yields helped spark a sharp selloff in gold and silver Tuesday and early Wednesday, followed by a rebound. Both metals have resumed their uptrend as the dollar falls a second straight day. They remain among the best-performing commodities this year, aided by negative real yields and vast stimulus to combat the fallout from the pandemic.

Gold gained as much as 2.6% on Thursday as concerns over the outlook for economic recovery persist and central banks and governments signal further support for their economies. Two senior Federal Reserve officials said Wednesday that the U.S. failure to control the coronavirus pandemic has undermined the nation’s economic recovery, further bolstering support for precious metals as haven assets.

“We’re not out of this crisis yet,” Jeffrey Currie, global head of commodities research at Goldman Sachs Group Inc., said by phone. “Even if a vaccine is rolled out in November it won’t be rolled out until at best the first quarter of next year, which means you still need to provide stimulus to the global economy. More stimulus means more downside risk in real rates. That’s what drives the upside in gold.”

Spot gold rose 2.4% to $1,962.22 an ounce by 1:46 p.m. in New York. On Tuesday, prices dropped 5.7%, the most in seven years, following a rally to an all-time high last week. Futures for December delivery advanced 1.1% to settle at $1,970.40 on the Comex in New York.

Silver for immediate delivery climbed as much as 8.7% to $27.7207 an ounce, the biggest intraday increase since December 2014. The metal rose 2.9% on Wednesday and slumped 15% on Tuesday.

The Bloomberg Dollar Spot Index headed for a second straight decline.

“The dollar index broke down a bit today, but there’s a lot of people that are on the sidelines that are looking to get back in and are chasing back into gold and silver right now,” Phil Streible, chief market strategist at Blue Line Futures in Chicago, said by phone.

“We still hold a positive view on gold, targeting a retest of the level of $2,000 an ounce by the end of this year,” said Giovanni Staunovo, an analyst at UBS Group AG. “The Fed should reiterate its dovish message and U.S. real yields and the broad U.S. dollar will likely fall further.”

The death toll from the virus continued to climb, with India’s total surpassing the U.K.’s, according to the latest data collated by Johns Hopkins University. There were signs of resilience to the economic harm wrought by the pandemic though. Australia added four times as many jobs as forecast in July, withstanding a fresh lockdown in Victoria and concerns about infection spreading.

Read More: Gold Consumers in India Hug Sidelines Ignoring Steep Price Drop

The scope of the drop in gold prices earlier this week may limit the pace of recovery, some analysts said.

“The extent of this selloff was so severe that I think it’s caused jitteriness about longs getting back in so quickly,” Edward Meir, an analyst at ED&F Man Capital Markets in New York, said by phone. “I think the more likely scenario is we will start a consolidation range. So we might bounce around between $1,850 and $2,050 for the next six weeks or so. Things don’t go up forever.”

You can read the full article at Bloomberg.com


NEWS and COMMENTARY

Gold Fever Spurs Dollar Oddity Not Seen Since Erdogan Took Power

Gold prices set for first weekly decline in 10

Gold Price Is Set To Record Its First Weekly Loss Since June, What Now?

A faltering U.S.-China trade deal is now the nations’ strongest link


U.S. hits fiscal cliff with jobs, economic recovery in the balance


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

13-Aug-20 1931.00 1944.25 1476.06 1482.30 1632.47 1640.17
12-Aug-20 1931.70 1931.90 1479.10 1483.70 1642.14 1640.57
11-Aug-20 1996.60 1939.65 1524.40 1479.57 1694.51 1646.76
10-Aug-20 2030.30 2044.50 1552.98 1561.38 1725.35 1734.96
07-Aug-20 2061.50 2031.15 1574.37 1559.52 1743.82 1726.88
06-Aug-20 2049.15 2067.15 1555.30 1569.59 1728.87 1743.43
05-Aug-20 2034.45 2048.15 1553.30 1558.03 1718.09 1722.90
04-Aug-20 1972.25 1977.90 1508.77 1519.62 1671.09 1686.56
03-Aug-20 1972.95 1958.55 1509.50 1504.56 1678.39 1670.45
31-Jul-20 1974.70 1964.90 1505.91 1492.54 1666.84 1661.72
30-Jul-20 1952.20 1957.65 1503.00 1502.10 1662.30 1662.44
29-Jul-20 1954.35 1950.90 1506.80 1502.39 1663.54 1659.24

 


Access Latest Goldnomics Podcast (Part II) Here


Own gold and silver coins and bars in the safest vaults in Zurich, Singapore, London and Dublin with GoldCore.

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



Mark O'Byrne

Also on news-goldcore-com

Videos

Jim Rogers 2022- The Worst Bear Market is Coming

Silver Price Prediction 2022: David Morgan

Gold In 2022- Very Bullish Chart Patterns Developing

Blog posts

Jim Rogers 2022- The Worst Bear Market is Coming

Legendary investor and adventure capitalist Jim Rogers joins Dave Russell of GoldCore TV to discuss the next bear market, China’s decline, and his top investments. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a single episode… Subscribe to our YouTube channel Silver Price Prediction 2022Watch ‘Silver Guru’ […]

READ MORE

European Energy Crisis: 4 Things You MUST Know!

European Energy Crisis: 4 Reasons You MUST Know! European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills. According to Bank of America, European household gas bills are expected to rise to €1,850 in 2022 from €1,200 in 2020 (an ~55% increase). Natural gas prices […]

READ MORE

Silver Price Prediction 2022: David Morgan

This week, ‘The Silver Guru’ David Morgan of The Morgan Report joins Dave Russell to explore what might happen in the silver market in 2022, as well as what makes silver the world’s most undervalued metal. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a […]

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

Jim Rogers 2022- The Worst Bear Market is Coming

Silver Price Prediction 2022: David Morgan

Gold In 2022- Very Bullish Chart Patterns Developing

Blog posts

Jim Rogers 2022- The Worst Bear Market is Coming

Legendary investor and adventure capitalist Jim Rogers joins Dave Russell of GoldCore TV to discuss the next bear market, China’s decline, and his top investments. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a single episode… Subscribe to our YouTube channel Silver Price Prediction 2022Watch ‘Silver Guru’ […]

READ MORE

European Energy Crisis: 4 Things You MUST Know!

European Energy Crisis: 4 Reasons You MUST Know! European households are facing rising prices on many goods and services, but one particular standout is electricity and gas bills. According to Bank of America, European household gas bills are expected to rise to €1,850 in 2022 from €1,200 in 2020 (an ~55% increase). Natural gas prices […]

READ MORE

Silver Price Prediction 2022: David Morgan

This week, ‘The Silver Guru’ David Morgan of The Morgan Report joins Dave Russell to explore what might happen in the silver market in 2022, as well as what makes silver the world’s most undervalued metal. Watch the full episode to learn more. Click the Video Below to Watch Make sure you don’t miss a […]

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