Gold opens weeks lower as caution reigns in financial markets
Wall Street braces for a busy week ahead
(USAGOLD – 7/12/2021) – Gold pushed lower as caution reigned in financial markets. Wall Street has a busy week ahead of it with consumer prices due on Tuesday, producer prices on Wednesday, a flood of Treasury note and bond sales (about $107 billion) early in the week, and Fed Chairman Powell’s Congressional testimony on tap for Wednesday and Thursday. Gold is down $8 at $1802. Silver is down 15¢ at $26. Last week we characterized the summer slowdown as a time when seasoned gold and silver investors like to add to their holdings. Claudio Grass, the Swiss-based precious metals consultant, sees the summer of 2021 as especially opportune.
“Therefore, looking at the bigger picture, the fundamentals and the investment case for precious metals remains solid,” he writes in an advisory posted at GoldEagle. “If anything, the recent developments on the pandemic front and the noticeable uptick in inflation data have further strengthened the outlook for gold and silver. And while summer generally tends to be a quieter time for precious metals, this summer in particular appears to offer a very attractive buying opportunity, one that perhaps might not appear again for quite some time. The current price levels, provide excellent entry points for both gold and silver, as well as a great chance to build up one’s existing positions.”
Chart of the Day
(March 2021 to present)
Chart courtesy of TradingView.com • • • Click to enlarge
Chart note: Gold is up 6.5% from the double bottom logged in March of this year. As mentioned above, Swiss analyst Claudio Grass sees the setback since early June, when it traded at the $1900 level, as creating “a very attractive buying opportunity.”