Gold recovering quickly from $1302 low posted just three days ago, now at $1325
DAILY MARKET REPORT
Gold is pushing higher this morning – up $3.50 at $1325 as we move into the COMEX open. Silver is also higher – up 10¢ at $16.81. The dollar is lower this morning and oil is holding steady above the $71 per barrel mark in response to uncertainties in the Middle East and escalating tensions between Israel and Iran. (See below). Commodities in general continue to move higher. The CRB Index is up almost 23% since last July.
Gold is demonstrating once again how quickly it can recover from its periodic treks near the $1300 level. It was just three days ago that it visited the $1302 level where it found support and began turning to the upside. Today, it pushed over $1325 briefly and is now trading at $1324. Gold has spent 2018 oscillating in a range between $1300 and $1370 with a number of chart technicians predicting that it is coiling to break out of the range.
“Gold has been under pressure from a strengthening U.S. dollar,” says U.S. Global Investors Frank Holmes, “and May has historically delivered lower prices. As I’ve pointed out before, this makes it an ideal entry point in anticipation of a late summer rally before Diwali and the Indian wedding season, during which gifts of gold jewelry are considered auspicious. Demand in China for the remainder of the year also looks promising.” Given the circumstances, we might have a different kind of May in 2018.
Quote of the Day
“We sometimes forget that central banking, as we know it today, is, in fact, largely an invention of the past hundred years or so, even though a few central banks can trace their ancestry back to the early nineteenth century or before. It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with “free banking.” The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.” – Paul Volcker
Chart of the Day