Gold down second day in row, trying to regain footing in early New York trading
(USAGOLD – 6/9/2019) – Gold is off another $5.50 today at $1324 and down $18 from the high-water mark posted on Friday. Silver is level on the day at $14.73. Gold reached the $1320 level in overnight trading but seems to be regaining its footing in early New York trading. Some analysts see the downside of the past two days as a natural and healthy response to the eight straight days of upside that preceded it (and tacked $70 – or nearly 5.5% – onto the price). Others see it as the beginning of a major correction. The next few days should tell us who has it right. “We remain cautiously constructive on gold despite Monday’s decline as we have to suspect that the trend of a lower dollar and depressed global interest rates will continue to stay in place for some time, providing gold prices with some ballast,” INTL FCStone analyst Edward Meir told Reuters in a note.
Quote of the Day
“Gold and silver, like other commodities, have an intrinsic value, which is not arbitrary, but is dependent on their scarcity, the quantity of labour bestowed in procuring them, and the value of the capital employed in the mines which produce them.” — David Ricardo, British political economist (1772-1823)
Chart note: This long-term chart on the annual average price of gold since 1970 dispels the notion that gold is somehow volatile or unpredictable and as a result unreliable as a long-term portfolio safe haven. To the contrary, it shows gold living up to its reputation as a portfolio safe haven during times of rapidly changing economic circumstances.