Gold declines before Fed meeting and advances after
Each gold price consolidation period since 1999 has been a buying opportunity

(USAGOLD – 3/17/2022) – As happens with a fair degree of consistency, the price of gold declined before the Fed’s policy meeting and is now advancing upon its conclusion. It is up $17 this morning at $1947.50. Silver is up 25¢ at $25.44. Long-time commodity analyst Andrew Hecht recently revisited an instructive chapter of gold history to point up its long-term value as a portfolio inclusion for both governments and private investors.

“The last government to doubt gold’s value got burned,” he says in a report posted at Seeking Alpha. “At the turn of this century, the United Kingdom decided to part with one-half of its gold reserves. Ironically, London is the hub of the international gold market, so the UK sent a signal that gold had seen better days. In a series of auctions, the UK sold around 300 metric tons at prices mainly below the $300 per ounce level. Since 2003, gold never traded below $300 per ounce. Since 2010, the price has not ventured below $1,000, and since 2020, the price has remained above $1450 per ounce. … In 1999, gold reached a bottom at $252.50 per ounce. Since then, each price correction and consolidation period has been a buying opportunity in gold. The over two-decade-long bullish trend continues to take gold to higher highs.” A close review of the accompanying chart confirms Hecht’s observations.

Gold price
(2000-present)

Chart courtesy of TradingView.com • • • Click enlarge