Gold Price & Gold Miners Update
Gold Price & Gold Miner Update – June 18, 2020
Gold Price & Gold Miner Update – June 18, 2020
For the year, gold is up $213 or 14% to close at $1,737 per ounce as this article is going to press.
What about the “other” precious metal – gold’s cousin – silver?
For the year, silver is down $0.27 cents or 1.5% to $17.65.
A disappointing performance, no doubt.
Is the pain soon to end for silver investors? Will this be the time that silver finally follows gold and heads higher? Or is more languishing ahead?
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Amidst the S&P 500’s 4.6% sell-off to close the week following the Federal Reserve’s policy decision last Wednesday, which asset was the primary beneficiary? We take a close look.
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Gold has been strong recently on the heels of Coronavirus fears, Federal Reserve stimulus packages, and continued geopolitical tensions, which are now being exacerbated by the George Floyd riots in the United States.
Gold is up by $57 for the month of May to close at $1,731 in the spot market as of Friday afternoon. The metal is higher by $155 for the quarter thus far and $228 for the year 2020, which is not yet half over.
That said, in the markets as in life, nothing moves in a straight line forever. We have reason to believe that following some further gains during the month of June, gold is due for a multi-hundred dollar pullback that could coincide with the next wave of Coronavirus-related debt defaults.
Let us study both the long-term and short-term price action for gold to arrive at the highest-probability trajectory for the remainder of 2020.
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A signal has just appeared in the global financial markets which has only been witnessed one other time in recorded history – and it foretells of immense trouble for the world economy ahead.
What is the signal?
The gold to silver ratio – it has just shattered its former all-time highs.
When is the only other time in history that the gold to silver ratio has broken out to a new all-time high?
At the start of the Great Depression, in 1930.
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While those without any precious metals exposure whatsoever would be wise to establish a core holding as an insurance policy against unprecedented central bank monetary debasement, there are important warning signs appearing within the market which show us that precious metals may be due for a significant retracement of the recent gains. It is possible that the retracement may start following one final surge; however, our highest expectation remains that gold is due to give back at least several hundred dollars of its recent advance within the coming year. Investors should be careful about chasing recent price gains.
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