Gold Prices on Longest Monthly Wining Streak Since 2010
Gold advanced 0.05% in May, according to the Financial Times of London, finishing the month at $1,268.92 per ounce
That may not sound terribly significant, but put in a broader context, we find gold is on quite the win-streak.
May marked the fifth consecutive monthly advance for the yellow metal. The last time gold went on such an extended run was six-and-a-half-years ago. Year-to-date, gold has advanced a healthy 10.6%.
Safe-haven buying has been one of the primary factors in gold’s surge over the last five months. Pres. Trump’s confusing policy flip-flops, questions about Russian influence in the White House, wars and rumors of war, and global political turmoil have all led investors to seek the historical security offered by gold.
The biggest day for gold last month was May 17 when reports came out asserting US president Donald Trump sought to interfere with a probe into his campaign’s ties with Russia. Many questioned whether this could be Trump’s Watergate. Spot gold rose 2% to $1,261.36 that day, erasing nearly all of the previous losses for the month.
While nothing may ultimately come out of all the accusations and probes, the political circus may make it difficult for the president to push forward with his agenda. One thing is pretty certain, uncertainty will continue in the coming months.
Simple supply and demand has also been a factor. Global demand for the first quarter of the year was up nearly 9%, driven by Asia’s hunger for gold. Meanwhile, mine output in both China and Australia fell.
A weakening dollar also helped push the price of gold up. The dollar index fell 2.1% over the month of May. The index is a gauge of the greenback against six other major currencies.
Some analysts worry if the the Fed’s continues pursuing a path toward interest rate normalization, it could strengthen the dollar and put downward pressure on gold prices. But as we have reported, the Federal Reserve is actually stuck between a rock and a hard place as it tries to choose a path forward.
Of course, nobody can predict the future. The only certainty is uncertainty. But there is no denying gold is currently following an upward trajectory and has been since the beginning of the year. – Peter Schiff
Ultra-Bullish Trends In Gold and Silver
This is naturally today’s extremely important topic, of the ultra-bullish developments in Gold and Silver ongoing 200 week moving average and 5½ year downtrend line wars with the powers that be.
Regarding the former, I must again emphasize that I am not speaking of gold’s and silver’s 200 day moving averages, but 200 weeks – which gold and silver bullishly traded above from 2003 until the Cartel’s vicious “alternative currency destruction” raids of April 2013. Gold recaptured this level last month, which currently stands well below today’s price, at $1,240/oz. Due to otherworldly Cartel attacks; in its fear that the extremely tight physical silver market will explode, silver has not been able to maintain the upside breach of its 200-week moving average it temporarily achieved last month. However, it is still in “shouting distance” of this level, at $17.90/oz; and in the process of such hideous Cartel raids, the silver/gold ratio has become, in my very strong view, more undervalued than at any time in history.
As for the 5½ year downtrend line, going back to the Cartel’s hideous “Sunday Night Paper Silver Massacre” in May 2011 – when silver was on the verge of taking out its nominal high of $50/oz from January 1980; and “Operation PM Annihilation I” in September 2011 – when dollar-priced gold hit an all-time high of $1,920/oz; I believe traders are far more focused on this major technical resistance level than even the 200-week moving average. In gold’s case, this level is just $1,277/oz, barely above current levels; whilst in silver’s case, I was just alerted last night that its 5½ year downtrend line has already been breached, given that it lies at just $16.30/oz.
In other words, amidst the most, gold and silver bullish fundamental environment imaginable – on the political, economic, social, monetary, and supply/demand fronts – even the Cartel’s best efforts to delay the inevitable re-emergence of the only real money the world has ever known are failing in the historically rigged financial markets. These “ultra-bullish developments” will be nearly impossible to reverse in such an environment – yielding a dramatically increased likelihood that the Cartel’s two-decade reign of terror is nearing its inevitable end. And when it does, if you have not already purchased, and safely stored, your physical gold and silver, it may already be too late. – Andrew Hoffman
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