GoldCore Note
Gold and silver have weakened today and have fallen from the 14 month high seen on Friday. Spot gold was down 0.4% at $1,338.30 per ounce in early U.S. trading. It surged to $1,358.04 on Friday, its highest level since April 11th, 2018.
The return of risk appetite as seen in gains for many stock market indices and some gains for the dollar on relatively good U.S. retail sales data may have led to the weakness.
Gold has had four weeks of gains and a correction is to be expected. However, given the Fed looks set to ease monetary policy again, we would expect any correction to be short and shallow.
Expectations for a rate cut and monetary easing at the July meeting remain at 85% according to the CME’s FedWatch tool.
There are increasing signs that many economies internationally are on the verge of recession. This too will support gold and it looks like it is set to break above major resistance between 1,370/oz and 1,400/oz in the coming weeks.
News and Commentary
Gold Prices Subdued on Firmer Dollar; Fed Meeting in Focus
Deutsche Bank to Set Up 50 Billion Euro Bad Bank: Source
Saudi Crown Prince Blames Iran for Tanker Attacks
31% Drop in U.S. Corporate Tax Revenues, Almost Twice the Decline Predicted
Massive Blackout Hits Tens of Millions in South America
Gold Primed for a Bigger Breakout – Charts Show
Silver Prices at 26-year Low in Relation to Gold, Should Investors Buy?
When Silver Breaks Out Above $22-$24 — Will Quickly Surge to +$85/oz
Silver: an Explosive Feel to the Precious Metal Now
The Growing Risk of a 2020 Recession and Crisis – Roubini
LBMA Gold Prices (USD, GBP & EUR – AM/ PM Fix)
14-Jun-19 1352.45 1351.25, 1069.79 1070.33 & 1200.03 1201.80
13-Jun-19 1335.80 1335.90, 1054.21 1052.69 & 1182.85 1184.81
12-Jun-19 1336.65 1332.35, 1049.27 1045.76 & 1179.99 1177.26
11-Jun-19 1322.65 1324.30, 1040.53 1041.30 & 1168.96 1170.42
10-Jun-19 1328.60 1328.60, 1046.94 1048.66 & 1175.41 1175.94
07-Jun-19 1334.30 1340.65, 1049.16 1052.14 & 1184.19 1184.60
06-Jun-19 1336.65 1335.50, 1053.15 1051.17 & 1189.62 1185.92
05-Jun-19 1337.75 1335.05, 1052.01 1049.22 & 1185.38 1184.99
04-Jun-19 1323.60 1324.25, 1045.51 1043.77 & 1177.47 1177.26
03-Jun-19 1313.95 1317.10, 1039.47 1042.35 & 1175.99 1175.38
