Gold is going to $2,500 so buy the dips
“The gold market is stuck in a channel as it tries to hold its ground around $1,750 an ounce; the spark that could ignite the next phase in the precious metal’s rally could be just around the corner, according to Phillip Streible, chief market strategist at Blue Line Futures.
In an interview with Kitco News, Streible said that momentum in equity markets is providing some competition for gold; however, he added that this enthusiasm could prove to be misplaced.
“The federal reserve is propping up all U.S. equities and the prices of most assets right now. That’s causing this, this fear of missing out in the equities,” he said. “The reality is: on the equity side, earnings are going to continue to fall. A safety value play will come into effect and that’s where gold prices really take off because the fed is completely handcuffed right now.”
There’s a danger in the disconnect between complacent markets and weak fundamentals, analyst warns
“All roads seem pointed in one direction at the moment. The S&P 500 SPX, 0.89% closed up on Tuesday for the third-straight session, extending the rebound from the March lows to nearly 38%. Investors continued to flock to the hard-hit cyclical sectors, including energy, industrials and materials.
Mike Larson, senior analyst at Weiss Ratings, said he has never seen anything like it.
“It’s the biggest disconnect I can remember in the almost-quarter century I’ve been active in the markets,” he said. “I can’t recall a time when we’ve seen a large disconnect between, not just what’s going on in Main Street versus what’s going on in Wall Street, but what’s going on in the underlying fundamentals that would normally impact Wall Street.””
Gold dips as equities rally on economic recovery hopes
“Gold prices extended losses on Wednesday as equities jumped to three-month highs on optimism over global economic recovery, though losses were limited by a weaker U.S. dollar and civil unrest in the United States.
Spot gold fell 0.5% to $1,718.26 an ounce after dropping about 0.7% on Tuesday. U.S. gold futures fell 0.7% to $1,722.70.
“Generally, markets are getting comfortable with the fact that even though the data is bad, things are likely to improve and that is taking the shine off gold,” said Michael Hewson, Chief Market Analyst at CMC Markets UK.”
First U.S. Gold Coin May Fetch $15 Million in Private Sale
“The Brasher Doubloon, the first gold coin struck in the U.S., is being offered privately at a $15 million asking price, according to numismatic adviser Jeff Sherid. His firm, Los Angeles-based PCAG Inc., is marketing the coin on behalf of a collector he would only identify as a former Wall Street executive.
The doubloon is dated 1787 — 11 years after the Declaration of Independence was signed, the same year the Constitution was written and five years before the federal mint opened in Philadelphia. Metalsmith Ephraim Brasher, George Washington’s next-door neighbor on New York’s Cherry Street, privately minted a small batch of the coins and punched this unique version with his hallmark “EB” on the eagle’s breast. The soon-to-be president almost certainly handled it, according to longtime numismatist John Albanese, founder of Certified Acceptance Corp., a coin-grade verification service.”