Gold and silver drift lower to start the week

(USAGOLD – 10/7/2019) – Gold drifted lower and back below the $1500 level to start the week after a featureless overnight session.  It is trading at $1499 – down $6 on the day. Silver is down 4¢ at $17.52. Though the downside that some technicals analysts expected has not materialized, the metals seem to be in a state of suspended animation in and around the $1500 mark for gold and the $17.50 level for silver. Though much seems to be in the air politically and economically, none of it has been enough to move the precious metals convincingly in one direction or the other.

Commodities analyst Andy Hecht sees the current price quandary as a buying opportunity. “Gold is a currency, and while central banks can print legal tender to their heart’s content, they cannot create more gold,” he writes in his column at “Central banks continue to hold gold, and that is the reason why the yellow metal should continue to appreciate and take silver along for the bullish ride,” he maintains. “I view the recent correction in the gold and silver markets as another buying opportunity. Both markets can be volatile and could fall to even lower levels before turning higher again. However, any further selling would only make the value proposition for both metals more attractive.”

Quote of the Day
“Bull markets can be classified as either secular (long term) or cyclical (bull phases within an overall bear market). Before its $1,400 per ounce breakout in June, gold appeared to be tracking, on a technical basis, similar to its 36-month cyclical bull market from 1993 to 1996. However, its current $1,500 price level hints at a potentially longer, sustained rally—perhaps more similar to the secular gold bull market of 2001 to 2008.” – Joe Foster, Van Eck Securities

Chart of the Day

Bsr chart annual gold returns 2001 to present - strong, consistent showing

Chart note: For those exploring the virtues of gold ownership, today’s Chart of the Day is illustrative. Gold has provided a positive return in 15 of the last 19 years. It is up 14.8% thus far in 2019 (through September 30).

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