Records Fall Like Dominos as Precious Metals Keep Marching Higher and Government Spends More, Prints More!
Last week gold hit a new all-time high. This week it roared right through the $2,000 an ounce psychological barrier. Gold gained more than $50 per ounce on the COMEX market on Tuesday, racing to $2037 an ounce finish.
And silver was on fire as well. Last week silver made one of its biggest one-day moves in history. Tuesday gained 7 ½ percent, to finish on the COMEX at $26.25.
With the new all-time high in gold prices last week that had everyone talking, we said the real question is, “What’s next?”
We answered our own question this way: “Higher prices! Much higher!”
Let us sample some observations from others:
“Gold hit $2,000 an ounce for the first time on Tuesday following a record-breaking rally driven by fears over the impact of the coronavirus pandemic on the global economy.
“The yellow metal, seen as a safe-haven asset, has been on a steady upwards trajectory over recent months….
“On Tuesday investors remained concerned over whether the US will pass another spending measure to support the world’s largest economy. A new stimulus bill could add extra liquidity to markets and weigh on rates, which would support the precious metal further.:
“Gold futures powered higher Tuesday, gathering momentum late in the session to finish at a fresh record as government bond yields headed lower and as the U.S. dollar’s recent rebound receded somewhat, allowing the precious metal to make an assault on a record close above the $2,000 threshold.
“The sustained rally in gold has come as governments across the world have flooded their economies with financial aid to combat the COVID-19 pandemic. And investors are betting that the uptrend for the yellow metal continues as the dollar weakens and interest rates remain around 0% in many parts of the world….
“Silver, meanwhile, mounted its own charge higher.”
“Gold Hits $2,000 For the First Time In History As Dollar Extends Declines.
“Gold prices hit an all-time of $2,000 per ounce Tuesday, extending a year-to-date gain that has driven a rally in bullion and prompted the largest inflows into gold ETFs in history…”
“Gold’s rise has largely paralleled an historic decline in the U.S. dollar, which has fallen nearly 10% against a basket of its global peers since mid-March, when the Federal Reserve first said it will buy an unlimited amount of government debt, as well as corporate and municipal bonds, in the biggest expansion of its balance sheet in history, which now stands at more than $7 trillion.”
We’ll finish with a comment from one of out favorite analysts, Michael Shedlock from Mish’s Global Economic Trend Forecast.
Mish says, “There is plenty of fuel for a short squeeze too.”
And that would propel gold much higher.