Gold’s mysterious downside drift continues to start the week
(USAGOLD – April 15, 2019) – Gold is starting the week in a continuation of the downtrend that began late last week. It is off $6 at $1284. Silver is down 5¢ at $14.91. With the dollar also down on the day, analysts will be searching for a rationale to explain gold’s push to back below the $1300 mark. The Wall Street Journal reported over the weekend (Pact Hems Beijing Currency Moves) that the United States and China had reached an agreement that would limit China’s ability to manipulate its currency downward for export purposes. One would think that such dollar-negative news would translate as favorable for gold, but the precious metal seems to be trading on technical factors instead. As expressed in our reporting at the end of last week, this latest downside drift remains a mystery searching for an explanation.
Quote of the Day
“So, we were just chatting away there in friendly conversation and then Volcker walks in, you can’t miss him because I think he’s about six-and-a-half feet tall. So, he walks in and I thought, ‘well I have to shake his hand and say hello.’ He didn’t even look at me. He didn’t come to me. He went straight to his staff and he said, ‘what’s the price of gold?’ So, I thought, ‘gold is important to him’ and I still think it’s every bit as important to Fed people now because it is the ultimate measurement of the dollar. They can rig it and monkey around with it and play games, but ultimately, the market will have its say.” – Ron Paul from a Mises Institute Interview with Jeff Deist
Chart of the Day
USAGOLD note: As of Friday, April 12, 2019, the national debt stood at $22,027,837,127,788.04 – $966 billion higher than a year ago, $2.081 trillion higher than when Donald Trump took office January 20, 2017, and nearly double where it was ten years ago. “The health of the country, the prosperity we care about, and the security we care about are just inextricably linked,” says former chairman of the Joint Chiefs of Staff Mike Mullen, “. . .and we keep looking away hoping it will get better, and it gets worse. It’s about the debt levels, and the inability to pay our own bills, and if we don’t get our fiscal house in order, it’s going to dramatically affect our security of our country.”