| GOLD PRICES, Wed. Aug. 14th, 2019.
Bid/Ask |
1514.50 / 1515.50 | |
| Low/High | 1496.30 / 1520.80 | |
| Change | +13.60 | +0.91% |
| 30daychg | +100.90 | +7.14% |
| 1yearchg | +320.80 | +26.87% |
(Kitco, Wednesday, Aug.14 , 2019) – Gold prices are moderately higher in early U.S. trading Wednesday. Safe-haven demand continues to be featured for the two precious metals at mid-week, amid heightened concerns about slowing world economic growth. Geopolitics also remains close to the front burner of the marketplace, which is also supporting gold and silver. December gold futures were last up $8.20 an ounce at 1,522.80. September Comex silver prices were last up $0.155 at $17.14 an ounce.
U.S. Treasury and world government bond yields continue to fall, mostly due to worries about world economies stagnating. The three-month Treasury bill and two-year note yields are trading above that of the 10-year note, to produce a partially inverted yield curve. However, the yield on the 30-year bond is still above that of the 10-year note. Still, the falling government bond yields, globally, paint a dim picture for the marketplace. The German bund hit another new record-low yield again Wednesday.
Germany’s gross domestic product contracted by 0.1% in the second quarter from the first quarter and was up a paltry 0.4% year-on-year, it was reported Wednesday. Meantime, the Euro zone GDP growth was 0.2% in the second quarter from the first quarter, and up 1.1%, year-on-year. Those numbers were in line with expectations.
Commentary
We at 401 Gold Consultants believe these events : the China Trade War , the negative global interest rates and the choking off of East/ West financial hub Hong Kong are combining to drive gold as money, not a commodity, for the first time since the 2008 financial crisis.
What this means to our customers is we now have a clear path on gold prices, they are going to rise based on low , or possibly zero to negative interest rates and a loss of confidence in equity markets. The U.S. dollar is only good until the economies of the world attack it which is what is coming next and why the Dow is so volatile in an otherwise slow summer trading environment, wait until fall.
Move to cash, get your gold and silver while the dollar is up and wait until the eye of this storm passes, for it is another financial storm we are headed into.
posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com