Gold resumes climb – nears $1500. Silver up 2.9% in overnight trading
Gold resumes climb – nears $1500. Silver up 2.9% in overnight trading by Michael J. Kosares for USA Gold
TDC Note – Don’t forget to visit Ken Schortgen, Jim Willie, London Paul, Producer CJ and yours truly at The Gadfly – one week FREE TRIAL and I can assure you, you will want to stay! Your support of The Gadfly helps to support The Daily Coin – twofer!
Gold resumed its climb to higher ground in overnight trading – up $20 at $1497. Silver is up 48¢ at $16.97 – a strong 2.9% gain. Further weakness in China’s yuan is the main driver to this morning’s upside with an assist going to surprise rate cuts in New Zealand, India and Thailand – all pushed by the escalating trade and currency war between the United States and China. Other central banks, according to Reuters, are on the verge of announcing cuts as well.
As policies to weaken currencies escalate from country to country, demand for gold as a safe-haven and means to longer-term asset preservation follows. There was a time when the gold market in Asia was a quiet backwater following the lead from London and New York. Now, the overnight Asia session often sets the tone for the rest of the market, rest of the day.
Gold’s recent price performance prompts a return to billionaire investor Thomas Kaplan’s memorable Bloomberg interview given in late May. “My time horizon is that I usually measure moves like these in terms of decades,” he said at the time (gold was trading just below $1300 per ounce). “So let’s look at it like this: The first move, the first leg, in gold took it from $250 per ounce to $1900. . .We’ve now been in a correction that has taken gold from $1900 back to where we are today. You could easily see gold fall a couple of hundred dollars before you see it go up a couple of thousand dollars, but each move has been a decade or more which means that when gold embarks upon its next move, I believe that you will see that long wave will take gold relatively quickly to the $3000 to $5000 target that I believe is fundamentally justified based on the facts we have today.”