Gold gives up much of this week’s gains as recession thinking regains upper hand
(USAGOLD – 1/22/2021) – Gold gave up much of its gains over the past week this morning as commodities in general sold off and recession thinking regained the upper hand in financial markets. The yellow metal is down $31 at $1841. Silver is down 80¢ at $25.21. Matterhorn Asset Management’s Matthew Piepenburg sees opportunity in the precious metals’ market sell-off of the past few weeks.
“Although it’s normal to expect a correction phase within a larger bull market for both silver and gold,” he explains in an article posted at King World News, “the price retracements of late signal a buy opportunity for precious metal investors, not grounds for a bearish panic—unless you’re a gold trader blind to technical buy/sell signals. The broader bull market in gold today is much different than the bull markets of 1971 to 1978, or 2010, which saw very little interest/demand from western buyers. Demand going forward will in fact be driven more by western than eastern buyers, though current investors can’t ignore declining demand from China, Russia or India going forward. That said, the gold-silver dance described above will be very different going forward as both assets rally in synch rather than two steps up, one step back.”
Chart of the Day
Sources: St. Louis Federal Reserve [FRED], ICE Benchmark Administrtation [IBA]
USAGOLD note: Most of our readers know that gold had a very good year in 2020 but few know that it posted its highest average annual price ever – $1770 per ounce.