Posted on 10/12/2021 7:34:21 AM PDT by Right Wing Vegan
Gold rose on Tuesday as rising inflationary fears weighed on investors’ appetite for risk and a pullback in U.S. Treasury yields added to the appeal of the non-yielding bullion.
Spot gold rose 0.4% to $1,761.41 per ounce by 1159 GMT, while U.S. gold futures were up 0.4% at $1,762.40.
A global energy crunch has threatened the economic outlook and fanned inflation fears, driving some investors toward safe-haven assets.
“There’s more risk aversion in the market and gold is benefiting from that, coupled with concerns about inflation and cooling of the global economy,” Commerzbank analyst Daniel Briesemann said.
If stagflation talks come to the fore increasingly that should help gold clock $1,900 by year end as interest rates should remain relatively low even if the Fed starts tapering, Briesemann added.
Gold is traditionally seen as an inflation hedge. However, reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding gold that pays no interest.
The benchmark U.S. Treasury yields pulled back after touching their highest since early June. The dollar index , on the other hand, was largely steady.
While the talk about stagflation is “little bit positive for gold,” an eventual Fed tapering “is really a threat and the risk is currently more to the down than to the upside”, said Quantitative Commodity Research Analyst Peter Fertig.
“As long as you have the risk of rising opportunity costs and a firmer U.S. dollar, gold is not attractive for longer term holding.”
Focus is on minutes of the Fed’s Sept. 21-22 policy meeting and the consumer price index, both due on Wednesday.
Spot silver rose 0.1% to $22.58 per ounce and platinum was 0.1% higher at $1,008.89.
Palladium was little changed at $2,112.91.
Happy to see...moved money into natural resource funds in the spring as i knew zhao biden was equally as economically illiterate as ayatollah obama and gold, oil would take off.
If you have money in mutual funds position yourself in natural resources for the next few years.
I think we’re entering into a prolonged period of shortages, inflation, labor problems, rising commodity prices, a falling dollar and general economic malaise. The seeds have been sown.
Additionally, there are numerous flashpoints around the world just waiting to trigger some type of conflict and geopolitical instability.
In this kind of environment I like natural resources, commodities, and real estate (REITs). The Fed can’t print them.
These people are on drugs, gold is down considerably. It’s $100 less then it was a month ago. The markets are completely irrational, they are near all time highs when they should be down. The only markets making since are in energy, there are going to be big shortages this winter and it is going to be painful. Stagflation is where we are at, very low growth and high inflation. Monetary policies take time to work, but even then you have to implement them for them to even start to work. The interests rates are near zero, and that only encourages inflation. People being incentivized not to work, regulations that are designed to limit output, mandatory experimental and controversial vaccines and then flooding the economy with free money are the administrations current monetary policies. Even if they changed direction tomorrow, it’s too late to change the trajectory for this winter. Not to mention the permanent damage that is being done to the future. It’s going to be a hard winter, it’s too late to do anything about it now.
This Goldbug was expecting PMs to rise faster than this, but UP is better than DOWN, so I’ll take it. ;)
We are in for another 38 months of, ‘nothing but horrible’ from this stolen administration, so plan accordingly, FRiends. ;)
Inflation up over 50% (for us real world shoppers) gold and silver down from the chomo inauguration. Things are fixed. Just bought my year ends software upgrades so I am tapped out or I would buy a few more kilos of silver.
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Poland has already bought 100 tons of gold. Now they want 100 more. Mexico is buying tons. As are many countries.
https://www.thefirstnews.com/article/poland-wants-to-buy-more-gold-25171
Gold up or down. Silver up or down. I’ll still acquire some “junk” 90% silver a little at a time.
Sounds like a plan
However, for the last 20 years or so, that attitude has been weaponized and now gold is kept down by them to hide the depreciation of the dollar. (Down 97% since '71.) It's the old saying that gold is the economy's thermometer and we'd be way past boiling except for the suppression.
To a lesser extent, the same applies to silver. Both have been looked upon as real money for the last 5,000 years - and the Central Bankers fear that. Fiat currency (like we have) has a 100% failure rate, usually lasting only about 50 years, because it's creation is always abused.
We went to fiat 50 years ago.
Spoke with Brother today in Florida......said his company is having to cut down shipments because they can’t find drivers. They’re also feeling the pinch of the breakdown of getting their necessary products to produce their products.
Reminds me of 2008 when everything was going haywire.
I have a percentage of my investments diversified into physical gold, but it has been a poor performing investment. I keep telling myself dont sweat it, that its the cost of being diversified. But if I had kept that percentage in my managed retirement funds, I would have seen a much better return over the last 10 years.
I was in a well known grocery store today and noticed a general thinning out of products on the shelves. Of course prices were high too.
The economy is showing signs of stress. Trump had everything humming along but the country wasn’t interested in prosperity.
My problem with gold is it doesn’t pay dividends.
I love dividends. Especially qualified dividends that are increased on a yearly basis.
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