GoldCore Precious Metals Update

Gold
Gold continued its impressive move upwards yesterday triggered by a growing aversion to risk and technical buying signals. It breached strong resistance of $977/oz in early European trading yesterday and culminated by touching $999.50/oz in New York overnight. The $1000/oz is still a psychological barrier and anything close to that mark will probably instigate a period of profit taking. With that in mind gold has fallen slightly, currently trading at $989.90/oz. The all time high of $1.032.70/oz, reached in March 2008 was not sustained, but this time the gold market is more mature and despite the predicted profit taking, gold would appear to have the momentum to maintain a solid run above the $1,000/oz level.

Gold saw follow through buying yesterday with technical and momentum traders going long after gold’s technical break out. There is no real clear guidance from the dollar or oil today with both largely flat. Investment demand and asset allocation would seem to be the primary drivers with funds allocating monies to gold in September which is traditionally the strongest month for gold. The not unimportant matter of central banks becoming net buyers of gold in Q2 09, the first time since 1987, may be leading to further buying.

The speed and strength of the recent move up is bullish as it came with no ostensible or clear direct and immediate reason. What is interesting is that gold’s move up is not a function simply of dollar weakness rather we have seen gold move up in all major currencies which may indicate that investors internationally are becoming concerned about the long term threat of inflation.

Silver
Silver is at a 13 month high and is still outperforming gold. It is currently trading at $16/oz. It too, may face a period of profit taking, but as with gold, and perhaps more so, silver seems to have solid and robust momentum.

Silver surged 6% yesterday and is up some 14% in just two weeks. Silver continues to have the best fundamentals of all the precious and base metals and looks set to reach over $20 again in the coming months. Long term the nominal 1980 high of $50/oz remains a real possibility.

Platinum group metals
Platinum is currently trading at $1,257/oz with a good turnover of over 600kg on the Shanghai Gold Exchange yesterday. Palladium is gaining ground to test $300/z and is currently $293/oz. Rhodium is trading at $1,650/oz.

Stephen Flood

Stephen Flood is the CEO of GoldCore. He is a former Wall Street equity trader and FinTech expert. He has been involved in the precious metals markets since 2004 and has appeared as an expert contributor on CNBC, CNN, BBC, RTE & Bloomberg TV and has had articles published in the Irish Times, Irish Independent and The Sunday Business Post.

Also on news-goldcore-com

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

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

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

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

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE