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Gold price breaches psychological mark above $1,500 as precious metal soars


bostonangler
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Gold prices on Wednesday jumped above an important psychological level at $1,500 amid a round of easy-money policies that helped to stoke fresh appetite for the perceived safety of precious metals.

The 10-year U.S. Treasury note’s TMUBMUSD10Y, -4.73% fall to new lows not seen since 2016 below 1.7%, also helped to drive demand for bullion.

December gold GCZ19, +1.74%  on Comex added $21.70, or 1.5%, at $1,506 an ounce in recent trade, marking the highest level for the precious metal since 2013 based on most-active contracts, according to Dow Jones market data.

“Gold captured the $1,500 an ounce level and the rally seems set to roll on as no one is expecting any immediate progress on the trade front and the proactive easing efforts from central banks globally,” wrote Edward Moya, senior market analyst at Oanda, in a Wednesday research note. “When the Fed capitulates later this month that could be the catalyst to support the drive towards the $1,650 an ounce level.”

Central bank’s in India, New Zealand and Thailand on Wednesday lowered their domestic interest rates to levels that are lower than had been expected, highlighting anxieties centered on the health of the world-wide economy.

 

 

Those policy moves come amid worries that the U.S.-China tariff conflict won’t subside soon. An environment with debt yields also hovering at ultra-low levels, and in many cases negative levels, also has supported buying of the yellow metal, which tends to rise during times of global economic uncertainty.

 

Meanwhile, September silver SIU19, +3.10% surged 50 cents, or nearly 3%, to $16.935 an ounce, after gaining or 0.3% on Tuesday, putting gold’s sister metal on pace to breach its own psychologically important level at $17. That marks silver’s highest level since mid June of 2018, according to FactSet data.

Lower and negative yields for government debt, because precious commodities don’t offer a coupon, have buttressed buying in gold and silver over the past several months, as investors seek places to store capital in a slumping economic backdrop.

For the year, gold has gained 17.7% and silver has climbed 9.3%. By comparison, the Dow Jones Industrial Average DJIA, +1.21% has returned 11.6% year to date, the S&P 500 index SPX, +1.30% has climbed 15%, while the Nasdaq Composite Index COMP, +1.39% has advanced 18%.

Exchange-traded fund, the SPDR Gold Shares GLD, +1.70%  has risen 14.6% in the year to date and the miner-focused VanEck Vectors Gold Miners ETF GDX, +0.24% has gained 36% thus far in 2019.

https://www.marketwatch.com/story/gold-price-breaches-psychological-mark-above-1500-as-precious-metal-soars-2019-08-07?siteid=yhoof2&yptr=yahoo

 

 

Gold Rush???

B/A

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