Gold futures end a stone’s throw away from a record

From Marketwatch

Gold futures ended higher for a fifth straight session Thursday, with the most-active contract just short of notching a settlement record, highlighting feverish demand for bullion amid the worst pandemic in over a century.

If gold gets to its 2011 record high, “who is to say it can’t go to $2,000 next?” wrote Fawad Razaqzada, market analyst at ThinkMarkets, in a Thursday research note. “Obviously, no one knows if it will get there, but momentum is certainly bullish, and the fundamental backdrop is still supportive.”

Gold for August delivery GC00, 0.22% on Comex rose $24.90, or 1.3%, to settle at $1,890 an ounce after trading as high as $1,897.70. Prices based on the most-active contracts stopped just short of the record settlement of $1,891.90 from August 2011, according to Dow Jones Market Data. The record intraday level for most-active futures prices stands at $1,923.70 an ounce from Sept. 6, 2011.

The front-month July gold contract GCN20, -0.27%, which trades on much lower volume, settled at $1,889.10 on Thursday, up $25, or 1.3%, for the session. That was a record for the front-month contracts, based on data going back to 1975.

The surge for gold comes against a backdrop of continued uncertainty about the economic landscape for the U.S. and other countries attempting to deal with the fallout from the COVID-19 pandemic.

There are now more than 15.25 million confirmed cases of COVID-19 world-wide and about 624,000 people have died, data aggregated by Johns Hopkins University show.

Gold has flourished in this environment at least partly due to the outsize efforts by central banks and governments to provide funding to lessen the economic effects of the global outbreak, which has benefited buying in gold and silver to a lesser extent.

As the rally for gold intensified Thursday, silver briefly erased its early losses before settling with a modest loss. The September contract SIU20, -0.67% fell 16 cents, or 0.7%, to $22.988 an ounce.

Silver prices had surged by 7.4% on Wednesday to extend a climb to its highest levels since 2014 after a 6.8% rally on Tuesday.

“Silver finally graduated from being poor man’s gold,” George Gero, managing director at RBC Wealth Management, told MarketWatch. Industrial demand for the metal, which “were headwinds, became tail winds in the economic recovery.”

James Hatzigiannis, chief market strategist at Ploutus Capital Advisors, attributed the rally for gold to the combination of a weakening dollar, which is approaching the March lows of this year, “talks from both sides (House and Senate) and the president seriously indicating we are in need of another stimulus bill.”

“This is causing investors to flee into assets that are considered a hedge against inflation,” such as gold and other inflation protected securities, he told MarketWatch. “I believe inflation is certainly building up,” with significant increases in food prices and a very beaten up U.S. dollar.


NEWS and COMMENTARY

Gold nears $1,900/oz on weaker dollar, stimulus hopes

Wall Street closes sharply lower on tech selloff

Romney will oppose Trump’s pick Shelton for Fed board: report

Shares wobble on fear of worsening U.S.-China ties; gold surges

Silver’s had a cracking run – what happens now?


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

23-Jul-20 1882.35 1878.30, 1480.28 1477.47 & 1624.47 1621.54
22-Jul-20 1851.00 1852.40, 1462.85 1456.91 & 1604.82 1598.44
21-Jul-20 1823.20 1842.55, 1436.86 1449.35 & 1594.21 1608.36
20-Jul-20 1810.30 1815.65, 1437.92 1438.18 & 1580.21 1590.87
17-Jul-20 1802.90 1807.35, 1435.47 1442.45 & 1578.98 1581.07
16-Jul-20 1804.60 1807.70, 1438.09 1436.04 & 1583.72 1581.56
15-Jul-20 1809.30 1804.60, 1436.22 1441.31 & 1582.96 1579.57
14-Jul-20 1798.20 1801.90, 1436.58 1440.62 & 1583.14 1581.71
13-Jul-20 1808.05 1807.50, 1435.23 1432.26 & 1598.32 1591.68
10-Jul-20 1805.75 1803.10, 1433.40 1427.33 & 1599.35 1594.84
09-Jul-20 1812.45 1812.10, 1434.01 1431.74 & 1600.57 1600.08
08-Jul-20 1799.35 1811.10, 1438.40 1438.74 & 1596.38 1598.48
07-Jul-20 1775.50 1789.55, 1423.77 1424.84 & 1576.11 1585.00

 


Access Latest Goldnomics Podcast (Part II) Here



Own gold coins and bars in the safest vaults in Zurich, Switzerland with GoldCore. Learn why Switzerland remains a safe haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here


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



Mark O'Byrne

Also on news-goldcore-com

Videos

China’s Digital Currency: A Warning to the World

Jerome Powell – The Hawk is back

The Black Friday Stock Market Crash – Gareth Soloway

Blog posts

China’s Digital Currency: A Warning to the World

New York Times bestseller author, investment advisor, and money manager Dr. Stephen Leeb is this week’s guest on GoldCore TV. He discusses the rise of China, the emergence of China’s Digital Currency, the transition from fossil fuels to green energy, and why a new monetary system is on the cards. The interview is in 2 […]

READ MORE

Jerome Powell – The Hawk is back

Ex Federal Reserve Advisor Danielle DiMartino Booth sees the new Jay Powell as the old Jay Powell. The Chair of the Federal Reserve has pivoted back to his hawkish stance. The “retiring” of the phrase “transitory inflation” signals Jerome Powell intends to tackle inflation head-on and speed up their plans to taper their bond purchase […]

READ MORE

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

China’s Digital Currency: A Warning to the World

Jerome Powell – The Hawk is back

The Black Friday Stock Market Crash – Gareth Soloway

Blog posts

China’s Digital Currency: A Warning to the World

New York Times bestseller author, investment advisor, and money manager Dr. Stephen Leeb is this week’s guest on GoldCore TV. He discusses the rise of China, the emergence of China’s Digital Currency, the transition from fossil fuels to green energy, and why a new monetary system is on the cards. The interview is in 2 […]

READ MORE

Jerome Powell – The Hawk is back

Ex Federal Reserve Advisor Danielle DiMartino Booth sees the new Jay Powell as the old Jay Powell. The Chair of the Federal Reserve has pivoted back to his hawkish stance. The “retiring” of the phrase “transitory inflation” signals Jerome Powell intends to tackle inflation head-on and speed up their plans to taper their bond purchase […]

READ MORE

The Black Friday Stock Market Crash – Gareth Soloway

Black Friday 2021 saw the largest stock market sell-off since 1931. Is this the start of a bigger crash, has the trend changed or is this just a one-time blip? We ask Gareth Soloway of InTheMoneyStocks.com what his charts are suggesting and why he is so bullish on gold Watch the Video to Learn More […]

READ MORE

Featured

How High is Too High for Rising Government Bond Yields?

READ MORE

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE