Daily Market Update

GoldCore Update: Gold and Silver Set For Parabolic Move Like 1970s?

Gold
Gold was unchanged yesterday and remained near record nominal highs as equities fell and the dollar staged a moderate rally. Gold appears to be attempting to consolidate at these higher levels and the unchanged close will encourage the bulls and support is now at $1,130/oz. Gold has moved back up to $1,144.70/oz and remains near record nominal highs in euro and sterling – €770/oz and £690/oz.

It is interesting to note that while government mints are working flat out to provide investors with gold and silver bullion coins, the shortages and surging premiums seen in the small coin and bar market of last year are no longer to be seen. Many retail investors are under financial pressure and many have had to sell their liquid precious metal investments (including coins and bars) and some have sold as they are wary that gold is a bubble. What is interesting is that the tightness in the small bar market seen last year appears to be more evident in the large bar market with the futures market close to backwardation (spot price or price of gold and silver for immediate delivery becomes less than price of front futures contracts – for delivery at a later date).

This indicates that demand for larger bars remains immediate and substantial. This makes sense when one considers the increasing high net worth, pension fund, hedge fund, institutional and central bank demand for gold. Paul Walker, CEO of GFMS, said in September that gold was going up because of some "large lumpy transactions in a market with a degree of illiquidity." There have been many cries of wolf in recent years but this does  bear monitoring and could lead to a short squeeze that could propel the precious metals into a parabolic move upwards as happened in the 1970s.

Silver
Silver has also rebounded after a bout of profit taking moving back from below $18/oz to $18.50/oz, €12,43/oz and £11.15/oz.

Platinum Group Metals
Platinum is $1,437/oz, palladium is $366/oz and rhodium is $2450/oz.

Find out First – Register Now For GoldCore’s Exclusive Market Updates

Mark OByrne

Read more...
Category
Archives
Popular

Gold’s Time Is Nigh

Gold and Silver Bullion - News and Commentary Gold little changed amid firm dollar (Reuters.com) Bitcoin Futures Trading Brings Crypto Into Mainstream (Reuters.com) Bitcoin exchange warns customers of system collapse if prices crash (CityAM.com) Investors Told to Brace for Steepest Rate[...]

READ MORE

98,750,067,000,000 Reasons to Be Worried About 2018

Gold and Silver Bullion - News and Commentary Gold inches up from near five-month low ahead of Fed meeting (Reuters.com) Gold slightly higher ahead of Fed meeting (Reuters.com) Asia shares take breather, Brent oil breaks above $65 (Reuters.com) Asia Stocks Mixed[...]

READ MORE

Gold and Silver Bullion – News and Prices

Gold and Silver Bullion - News and Commentary Asian Stocks Fall as Miners Decline; Yen Gains (Bloomberg.com) Gold prices ease despite slightly weaker dollar (Reuters.com) Bitcoin Hits New All-Time High Above $12,250 (GoldSeek.com) Don’t Expect Gold to Go Wild Next Year[...]

READ MORE