Gold down in subdued trading ahead of more Powell testimony

Gold down in subdued trading ahead of more Powell testimony by Michael J Kosares for USA Gold

Gold is down today in subdued trading in advance of Fed chairman Powell’s second day of Congressional testimony and generally quiet conditions in financial markets. It is down $6 at $1722. Silver is up 6¢ at $17.59. Sharps Pixley’s Lawrie Williams offers some practical advice this morning worth passing along – particularly for those still skeptical that the worst of the pandemic crisis is behind us. “Because there is so much uncertainty around the likely length and depth of the economic downturn facing us all,” he says, “it is probably wise to hold cash, rather than equities, or put one’s faith in the traditional safe havens like gold to protect one’s wealth such as it may be.  Indeed cash may not be that safe either as the measures central banks have been taking to prop up domestic economies, could well result in serious inflationary pressures ahead due to the huge growth in money supply – and inflation destroys the inherent value of cash.  Again I repeat the mantra of Michael Lewitt of The Credit Strategistfame: ‘Buy gold and save yourselves.’”

Chart of the Day

line chart showing the gold-silver ratio from 1915 to present with annotationsChart courtesy of F.T. Dao and Gold-Eagle
Click to enlarge

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