Gold, silver surge higher to start the year
Gold, silver surge higher to start the year by Michael J Kosares for USA Gold
Gold and silver extended their surprise late-December rallies into the new year this morning. Gold surged another $9 in early trading and is now priced at $1528. Silver is up another 16¢ at $18.05. For 2019, gold posted a 19% gain. Silver was up 17% on the year. (Please see our Chart of the Day below.) Analysts cite a variety of factors contributing to the positive sentiment surrounding precious metals with negative real rates of return, dollar weakness, and uncertainty over trade relationships topping most lists.
Some, too, think that investors are beginning to question if the stock market can continue bumping along all-time highs. “Gold also had a late rally in the year as investors plowed into the yellow metal as a hedge against the overflowing risks on Wall Street where stocks had been hitting one record high after another,” reads a year-end report posted at Investing.com. “Bullion and gold futures have tacked on more than $65 an ounce over the past three weeks to reclaim the bullish $1,500 perch and progress from there, despite the Federal Reserve indicating in early December a halt to rate cuts reintroduced after a four-year hiatus.”