Gold continued its downtrend today shedding another $10 at $1284.97. Silver tagged along losing 20¢ on the day at $17.19.
There is some evidence that weakness in the gold market is associated with speculation about who might end taking the reins at the Federal Reserve come February, 2018. Yesterday, reports surfaced that the John Taylor, the Stanford economist and perceived to be a policy hawk, made a favorable impression on the president in an interview for the Fed chair position last week. The precious metals markets turned quickly to the downside following a Bloomberg report on the Taylor interview early yesterday. Any trading on who might be the next Fed chairman, though, is decidedly premature. The president says he will make a decision over the next couple of weeks.
Gold is trading marginally higher in the overnight market.
Quote of the Day
“By 2020–2022 we would see record high gold prices in terms of nominal annual average prices. For the annual average price to be $1,650 or $1,700, that means that you’re going to have gold prices knocking on the door of $2,000.” – Jeffrey Christian, CPM Group, Managing Director
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 Jeffrey Christian suggests???
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