KITCO/David Lin

Gold, the sleeping giant: $3,000 price level could happen

“Historically, corrections in gold prices have made for sound buying opportunities, and this time is no different, said Andrew Hecht, of the Hecht Commodity Report.

In a recent article, Hecht noted that gold’s pullback below $1,700 last week could mark the start of a new bull rally.

Long-term, prices are headed towards $2,000 an ounce, with $3,000 or higher within the realm of possibility, he said.

“Gold many be sleeping for now, but much higher highs are on the horizon if the price action that followed 2008 is an example,” Hecht said.”

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CNBC/Thomas Franck

US grocery costs jump the most in 46 years, led by rising prices for meat and eggs

food at home prices surge“Prices Americans paid for eggs, meat, cereal and milk shot higher in April as people flocked to grocery stores to stock up on food amid government lockdowns designed to slow the spread of Covid-19.

The Labor Department reported Tuesday that prices U.S. consumers paid for groceries jumped 2.6% in April, the largest one-month pop since February 1974. The spike in supermarket prices was broad-based and impacted items from broccoli and ham to oatmeal and tuna.

The price of the meats, poultry, fish and eggs category rose 4.3%, fruits and vegetables climbed 1.5%, cereals and bakery products advanced 2.9% and dairy goods gained 1.5%.

The grocery numbers stand in stark contrast to the broader trend in U.S. prices, which fell 0.8% in April and clinched their largest one-month decline since 2008 as a swoon in oil and gasoline dragged the headline CPI number lower.”

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Gold prices edge higher as traders track weaker dollar

gold bars“Gold futures were up modestly Tuesday, with support attributed in part to a weaker tone for the U.S. dollar as investors also weigh efforts to reopen economies that were closed in the effort to contain the COVID-19 pandemic.

Gold for June delivery on Comex GC.1, +0.27% GC00, 0.66% rose $9.80, or 0.6%, to $1,707.80 an ounce, while July silver SI00, 0.61% was up 13 cents, or 0.9%, at $15.81 an ounce.

“Gold continues to float around the $1,700 level. The range is closing in gradually but there’s little to suggest we’re on the verge of an explosive breakout,” said Craig Erlam, senior market analyst at Oanda, in a note.

The ICE U.S. Dollar Index DXY, -0.44%, a measure of the currency against a basket of six major rivals, fell 0.3%. A weaker dollar can be a boost for commodities priced in the unit, making them less expensive to users of other currencies.

The dollar, however, has been largely rangebound, Erlam noted. A drop in the dollar below its April lows could give gold a push higher, Erlam said.”

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REUTERS/Brijesh Patel

Gold gains as dollar rally pauses, new virus cases mount

gold bars lined up“Gold prices rose on Tuesday as the dollar slipped from a more than two-week high, amid worries of a resurgence in coronavirus infections in some countries and lingering trade tensions between the United States and China.

Spot gold was up 0.4% at $1,702.96 per ounce by 1212 GMT. U.S. gold futures rose 0.6% to $1,707.90 per ounce.

“We’re seeing a little softness in the dollar this morning which is providing some support for gold,” OANDA analyst Craig Erlam said.

Gold has risen over 12% so far this year as central banks around the world rolled out a wave of stimulus measures to limit economic damage caused by the coronavirus outbreak.

Globally, an estimated $15 trillion worth of stimulus has already been unleashed to cushion the blow from the pandemic, which has infected more than 4.19 million people around the world and killed 285,120.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.”

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