Gold prices jump, rally toward highest close in about seven years

“Gold prices on Monday headed sharply higher, putting the precious metal on track for its highest settlement since 2012.

Bullion has marked mostly rangebound moves from a high of $1,788 to a low of $1,676 an ounce in recent weeks but has been underpinned by higher by worries about the harm to the global economy from the COVID-19 pandemic and the monetary-policy response by central banks to limit the impact of business closures, which were only recently being undone.

“Gold is skyrocketing with the price climbing to its highest in seven years. Dovish comments from the Federal Reserve and concerns about the stock market have lifted bullion,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a daily research note.”

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It’s a runaway; gold, silver and platinum breaking out

marketwatch graph“Every day last week, we wrote about the patterns in the metals. They went from the ugly to strong. Those patterns are playing out this morning once again with gold, silver and platinum breaking out to new recent highs. Therefore, you never argue with price, which dictates everything.

Silver is parabolic and looks headed to $18 in the July futures, possibly higher. Platinum is right there and trying to chase down $900 in the July futures. Gold’s pattern is a little more rational but is tracking $1,800 in the June futures. As you can see, the rallies have been powerful and backed with solid volume.”

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BLOOMBERG/Ranjeetha Pakiam and Elena Mazneva

Gold Jumps to 7-Year High After Fed’s Warning on Stocks, Growth (Video)

unemployment rate graph“Gold extended its rally to a fresh seven-year high after the Federal Reserve warned of potential asset-price declines as an economic recovery could stretch through until the end of next year. Palladium jumped.

Haven demand for bullion is being supported by dismal economic data and fears over new infections, even as investors are encouraged by businesses reopening across major economies.

Gold’s recent breakout raised prospects that it could set an all-time high soon as massive stimulus measures push holdings in bullion-backed exchange-traded funds to a record. The market is also being driven by speculation that U.S. interest rates could go negative and increased tensions with China.

“The recovery is probably set to be more problematic than the optimists think, with gold set to benefit from the enormous boost to money supply that is going to ensue,” said Gavin Wendt, a senior resource analyst at MineLife Pty..””

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Gold price pushes to session highs following 16.4% drop in April retail sales

people walking in shopping area“Gold jumped more than 1% on Monday to its highest since October 2012 after a batch of weak data knocked hopes for a speedy global economic recovery while auto-catalyst palladium surged to a three-week high.

Spot gold was up 1% at $1,758.55 an ounce by 0931 GMT and U.S. gold futures rose 0.8% to $1,770.70.

“The market continues to speculate about negative interest rates in the U.S. and extremely low interest rates and cheap money all over the world,” said Commerzbank analyst Eugen Weinberg. “Also, fears of economic crisis are unfolding given the very weak data in the United States and elsewhere.”

Data published on Friday showed U.S. retail sales and industrial production both plunged in April, with the coronavirus crisis continuing to pummel the U.S. labour market.”

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