Gold ekes out small gain this morning, up 2.7% on week

Gold ekes out small gain this morning, up 2.7% on week by Michael J Kosares for USA Gold

Gold eked out a small gain this morning as markets continued to digest the economic ill effects of the coronavirus and assess the chances of recovery.  It is up $2 at $1744.  Silver is up 6¢ at $15.41.  On the week, gold is up 2.8% and silver, still restrained by deflationary concerns, stayed level.  ActivTrade’s Carlo Alberto De Casa summed up the gold market’s prevailing mood in comments to Reuters, “In this new world,” he says, “in which both the European Central Bank and the U.S. Federal Reserve continue to unleash new stimulus packages, dramatically increasing the liquidity of cash, combined with a lot of uncertainty, gold will remain in high demand and playing a key role in any investor’s portfolio.”  He goes on to say that there is “a good chance of a new high being recorded for this haven asset.”

The Silver Institute is out with its annual assessment of silver market supply and demand fundamentals this week forecasting that we could see the metal test the $19 per ounce level again before the year concludes. “Global silver demand was pushed higher in 2019,” it says, “with a 12 percent increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the white metal. Favorable structural changes, such as vehicle electrification and a rebound in the key field of photovoltaics, fueled solid industrial demand. Total global silver demand in 2019 grew by 0.4 percent despite an ongoing global trade war affecting many industries.”  Metals Focus, the research firm that compiled the report for the Institute, says that it expects silver to outperform gold later this year – all of which leads us to this morning’s ……

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