(Kitco, Mon. Oct. 21st, 2019)- Gold and silver prices are modestly up in early U.S. trading Monday, while silver prices are solidly higher. An eroding U.S. dollar index that fell to a nine-week low overnight is helping to lift precious metals prices. However, gains in the safe-haven metals are being limited by higher global equity markets to start the trading week. The U.S. stock indexes are trading very close to their yearly and all-time highs. December gold futures were last up $1.70 an ounce at 1,495.80. December Comex silver prices were last up $0.247 at $17.825 an ounce.
Trader and investor attitudes worldwide remain generally upbeat to start the trading week. The U.S.-China trade negotiations appear to be going well, including implementing the “Phase 1” agreement reached between the world’s two largest economies recently.
The Brexit situation continues to languish after a hoped-for weekend deal between the U.K. and the European Union fell through. The British Parliament moved to again delay by three months a vote to seal the Brexit deal. U.K. Prime Minister Boris Johnson is not happy about the situation.
A heavy slate of U.S. corporate earnings reports this week will be the focus of U.S. stock market traders.
Nymex crude oil prices are weaker in early U.S. trading today and trading around $53.50 a barrel.
There is no major U.S. economic data due for release Monday.
Technically, the gold bulls have the overall near-term technical advantage. A six-week-old downtrend line is still in place on the daily bar chart. The recent “collapse in volatility” of prices the past three sessions suggests a bigger price move is on the horizon. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $1,525.00. Bears’ next near-term downside price breakout objective is pushing December futures prices below solid technical support at the October low of $1,465.00. First resistance is seen at $1,500.00 and then at last week’s high of $1,503.00.
Why gold, not bitcoin, is the ultimate play
( Kitco, Mon. Oct. 21st, 2019)- Gold is still the ultimate asset to own during an economic downturn, not bitcoin, and this can be proven by government actions, said Chris Mancini, analyst of Gabelli Gold Funds.
“Gold is the ultimate play…and countries are setting up exchanges, and the Chinese government and the Russian government are buying gold, they’re not buying bitcoin. That’s the ultimate play, that’s the ultimate currency. That’s what governments are going to tie their currencies to, if and when something bad is going to happen from an inflationary perspective,” Mancini told Kitco News on the sidelines of the 121 Mining Investment Conference in New York. “It’s going to be gold, it’s not going to be bitcoin.”
On gold’s rally this year, Mancini attributes the run-up to monetary policies.
“The spike was on news that the Fed is starting to ease now and that we’re going to easier monetary policy and I think that’s what’s driving the gold price higher,” he said.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com