Gold struggles to gain footing in early US trading
Gold struggles to gain footing in early US trading by Michael J Kosares for USA Gold
Gold struggled to gain footing in early U.S. trading after being up as much as $5 in overnight trading. It is now level on the day at $1475.50. Silver is down 2¢ at $17.03. Generally, speaking the markets are still weighing a trio of unsettled (and unsettling) global issues – Brexit, the trade war between the US and China and Fed rescue operations in the repo market.
Charlie Morris, chief strategist at UK-based Atlantic House Fund Management, sees some fundamentally strong incentives for higher gold prices in the months and years to come – in fact much higher than current price levels. “[A gold] Bull Market,” writes Morris, chief strategist at Atlantic House Fund Management in a highly recommended client advisory, “has three conditions that I came up with more than a decade ago: 1. Easy money, defined as US cash real interest rates below 1.8%. TRUE. 2. The long-term gold trend in non-dollar terms must be positive. TRUE. 3. Gold must be beating the stock market. TRUE!” He goes on to offer his opinion that the current bull market for gold “has legs” and that “a bullish target of $7166 that is logical and plausible” based on a return of inflation. “It’s high time,” he says about inflation – an assessment that serves as a well-timed introduction to this morning’s Chart of the Day.