Gold lifted itself from the canvas today settling $5 higher at $1287.00 and up $10.50 from its intra-day bottom at $1276.50. Silver was 4¢ higher at $12.83. Gold has spent most of September tracking to the downside from its $1356 high for the year posted at the beginning of the month.
More proof of professional investors buying the dip surfaced today when Lipper, the fund research firm, reported that precious metals commodity funds took in $977 million over the past week, their highest level of capital investment since July, 2016. Gold ETFs also reflect investors buying on the correction. By contrast, Lipper reported, stock mutual funds and ETFs suffered almost $10 billion in withdrawals.
Quote of the Day
“In an interview with Bloomberg, [World Gold Council’s Randall] Oliphant cited global political risks as impacting supply, yet countered that robust purchases from India and China should keep demand high. This, in his view, should push prices to as high as $1,400 an ounce in the near term and to record highs in the medium term. For context, gold peaked at an intraday high of just over $1,927 an ounce back in September 2011, and I would presume the “medium term” suggests a price target within the next two to five years, although Oliphant didn’t specify.”