Posted on 08/05/2020 6:26:22 AM PDT by Presbyterian Reporter
(Kitco News) Gold prices are sharply higher and hit a record high of $2,048.00, basis October Comex futures, in early U.S. trading Wednesday. Silver prices are also sharply higher and hit a seven-year high of $27.195, basis September Comex futures. October gold futures were last up $35.00 an ounce at $2,043.50. September Comex silver prices were last up $0.987 at $27.03 an ounce.
Gold and silver are continuing on a bullish rampage. Both metals continue to see support from safe-haven demand amid the worrisome rise in Covid-19 infections, geopolitical developments and concerns about problematic price inflation in the coming months. As the U.S. Congress appears to be getting closer to a new round of government stimulus payments to Americans, such would only add to the massive influx of liquidity into the world financial system, which has created the inflation concerns.
(Excerpt) Read more at kitco.com ...
Is this what is called a BUBBLE?
Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at the overnight high of $2,048.00 and then at $2,075.00. First support is seen at the overnight low of $2,015.50 and then at $2,000.00. Wyckoff’s Market Rating: 10.0
September silver futures bulls have the strong overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $24.16. First resistance is seen at the overnight high of $27.195 and then at $27.50. Next support is seen at $26.00 and then at the overnight low of $25.64. Wyckoff’s Market Rating: 9.5.
“””Is this what is called a BUBBLE?”””
Not sure. It could be the beginning of a huge run up in metals prices or it could be ‘flight to safety’ that will end after the November elecction.
It means the almighty American dollar is weakening.
Is this what is called a BUBBLE?
i.e. it’s not that gold is going up. It’s that fiat money is going down.
October gold futures
If things go to crap, what are you actually holding?
As a hedge against catastrophe it is worthless.
So, after 40 years of “buy gold. It’s going through the roof!” it finally moves.
The huge run-up is here. A thousand Trumps could not fix the damage the Federal Reserve has done to the dollar.
Hyperinflation is still a few years off - but it is now guaranteed to come.
LOL.
When I bought most of my gold 20 years ago the price was around 200 dollars.
thanks for the charts.
“””October gold futures
Note, no one is actually holding the gold. You are BETTING on a future price. It is speculation, not hedging.
If things go to crap, what are you actually holding?
As a hedge against catastrophe it is worthless.”””
When those who bought the October gold futures today take delivery of their purchase at the end of October they will hold 100 oz bars of gold.
That is how the futures markets work.
“When I bought most of my gold 20 years ago the price was around 200 dollars.”
If you are referring to troy ounce, then you didn’t buy gold. The lowest gold has been in 50 years is $241, and that was back in 1970. 20 years ago it was around $400.
Wow. I bought my gold at #1200 (actually paid 1800 after the broker fees (the fine print, you know), and sold at $1100. Now it is up over $2000? I should buy some more so I can make those “goldsellers” some more money. And wait until it drops again to sell...buy high and sell low...//sarc//I won’t fall into the gold trap again...
We tend to be Americentric here but should keep a close eye on China.
The twin ongoing China catastrophes of the virus and massive flooding are still in process and the damage is incalculable. Whole cities are shut down, tens of millions of people are effected by the virus containment. Infrastructure and property on a massive scale have been severely flood damaged and outright destroyed.
That is all stuff related. Additionally there are large destruction of crops and even of live stock, especially hogs. I have seen videos of cattle and hogs swept downstream to their doom in the flood.
The damage to the Chinese economy can not be determined and the problems are continuing with increase rather than decrease.
On top of that, there are videos and reports surfacing of conflict internally in the CCP. Xi seems to have the upper hand and is pro CCP and con economic freedoms and the people.
All this mix means uncertainty and uncertainty for the rest of the world means buy gold
Silver has only $23.00/oz. to go before it makes a new all-time high.
Thanks for the article.
Those retired will have to go back to work. Won't be able to pay rent, buy food, etc.
“Hyperinflation is still a few years off - but it is now guaranteed to come.”
It would take a dollar collapse in order for hyperinflation to become a reality.
As long as we are the pre eminant economic juggernaut on the planet the dollar will remain the major recipient of any “flight to safety” on the part of currency traders.
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