Gold tracks south in market skirmish at the $1300 mark

Gold suddenly took a turn south earlier today and ended the day down $8.68 at $1294.92.  Silver similarly turned to the downside losing 16¢ on the day at $17.19. After-hours both metals are moving sideways and lacking conviction. In the absence of any plausible explanation for today’s downside, we will go with the bulls and bears fighting it out in the paper gold arena over the $1300 price level and leave it that for the time being.

Quote of the Day
“In 1999 gold began to rally, and few could figure why. Anticipating proximate causes for major price trends is only speculation. Gold was well into a major upswing before the dot-com bust, 9/11, ultra-low interest rates, the housing bubble and mortgage-backed securities debacle, and the 2008 credit crash. These headlines of course fueled a bull trend that was already well underway. At the end of the day, price makes news and the headlines follow. The obvious lesson is that all markets, including gold, discount future events and that the development of prices in the absence of easily articulated causes must be respected.” – John Hathaway, Tocqueville Capital

The October, 2017 issue of USAGOLD’s News & Views:

“Funds and institutions, so-called professional investors, are pouring large amounts of capital into gold through ETFs, straight-up physical ownership in the form of bullion, and paper ownership in the form of futures and options. In fact, institutional involvement may be unprecedented at this juncture and it is not just the high-profile gold advocates like Ray Dalio, Stanley Druckenmiller and David Einhorn pumping capital into the market, but hundreds of funds and institutions from one end to the globe to the other.”

Why is it important that gold is up all the major currencies?  Why are professional investors globally going for gold??  Is a new bull trend already underway as John Hathaway suggests???

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