Gold at low end of seesaw market action this morning
Gold at low end of seesaw market action this morning by Michael J Kosares for USA Gold
Now down $5 on the day at $1512, gold is on the lower end of a seesaw performance that began in overnight trading and carried over to the open in New York. Silver is off 6¢ at $17.18. The markets, in general, seem to be taking a bit of a breather after yesterday’s strong reaction to the rate inversion in two and ten year Treasury debt. Overall, the same four horsemen threats of recession, plummeting yields, currency depreciation, and stock market instability continue to drive interest in gold and silver and bolster global demand.
It wasn’t all that long ago that calls for $1500 gold were greeted with a considerable amount of skepticism. Now with $1500 gold a reality, some analysts are eying the potential for gold reaching another milestone – $2000 per ounce. In a recent CNBC interview, TD Securities’ Daniel Ghali and Bank of America Merrill Lynch’s Michael Widmer both said $2000 gold could materialize the result of unconventional, aggressive easing on the part of central banks. In a Bloomberg interview yesterday, BOAML’s chief technical analyst, Paul Ciana, outdoes them both by forecasting the yellow metal could “go as high as $2300 per ounce” in the years to come based on technical wave structure analysis that had its beginnings in the 1970s.