No DMR this morning. We may post an update later today at the Live Daily Newsletter page.
Gold begins the week on a quiet note
Still bucking summer slowdown, failure to hold above $1900 mark
(USAGOLD – 6/28/2021) – Gold began the week on a quiet note as both the dollar and bond yields were up marginally. The yellow metal is bucking headwinds of late, most notably having to do with its failure to hold ground taken above the $1900 price level and the arrival of the annual summer slowdown. It is down $5 at $1778 in early trading. Silver is down 2¢ at $26.14. Analysts and traders will be on the lookout this week for the effects, if any, of Basel 3 implementation in the Eurozone. The new rules go into effect today in the EU and in the U.S. on Thursday. Launch in London, where the bulk of bullion bank trading occurs, is not scheduled until January 2022.
Gold Newsletter‘s Brien Lundin sees reasons to be optimistic about a resumption of the precious metals bull market in the coming months. “Gold is continuing to trace out a very powerful cup-and-handle pattern,” he says in a note e-mailed Friday, “one that (as I’ve mentioned before) projects to prices in the $2,500 area. If that happens, we’ll be hard-pressed to remember what happened to gold last week……The question that every investor will have to answer for themselves is whether they actually expect the Fed to shut off the flow of monetary adrenaline upon which the financial markets have come to depend…or whether the Biden administration and Democratic-controlled Congress will suddenly discover fiscal prudence. My vote is no for the above…and yes for a continued gold bull market. So again, while the near-term is uncertain, the likelihood of much higher prices for gold and silver over the months and years ahead is very high indeed.”
Chart of the Day
Silver Price
Percent increase or decrease over the prior year
2000-2020
Data source: macrotrends.net • • • Chart by USAGOLD.com • • • Click to enlarge
Chart note: In 2020, silver recorded its best percentage gain in a decade – 46.3% – and posted its third-largest gain over the 20 year period. It has posted gains – sometimes significant – in twelve of the last twenty years. So far in 2021, silver is down about 4%, as of Friday’s close.
