Gold gives up some of yesterday’s gains, silver pushes higher
(USAGOLD – 7/18/2019) – Gold is giving up some of yesterday’s solid gains this morning – down $7.50 at $1417.50. Silver, though, continues to be the big surprise – up 12¢ in the early going at $16.08. Over the past week, it is up over 6.5%. Gold by contrast is up 1% over the same period. Writing at ETF Daily News, Taylor Dart sees a bright future for gold over the longer term. “Breakouts from multi-year bases typically either correct through time or price,” he says, “and thus far it’s looking like gold might end up correcting through time. This would be the best-case scenario as it would allow the metal to build a new launchpad above its prior multi-year resistance. I would consider any pullbacks down to the $1,370/oz area to be buying opportunities, especially if these dips are coupled with bullish sentiment falling below the 50% bulls level. As long as gold defends the $1,325/oz on a weekly close, I would consider any pullbacks to be buying opportunities. The next real resistance for gold doesn’t come in until $1,560/oz.”
Quote of the Day
“Most serious accidents have multiple causes. A series of mistakes or pieces of bad luck line up to allow disaster. The Torrey Canyon was hampered by an unforgiving schedule, barely adequate charts, unhelpful winds and currents, confusion over the autopilot, and the unexpected appearance of fishing boats in the intended course. But reading Richard Petrow’s contemporary account of the Torrey Canyon disaster, a clear lesson is that Capt Rugiati was too slow to adjust. He had a plan, and saw far too late that the plan was doomed to failure — and with it, his ship.” – Tim Hartford, Financial Times columnist
Chart of the Day
Chart note: This chart shows the oft-referenced flow of gold west-to-east combined with the growth of internal reserves the result of channeling mine production into central bank holdings. The principal players – China, Russia, Turkey and India – are the beating heart of the global market for physical gold bullion. There is no evidence that there will be a major reversal in this structural pattern in global supply and demand anytime soon. Please take note that the four countries combined monthly demand is now running consistently above global production, as shown on the bottom segment of the chart.