Gold prices climb toward 5-week high as doubts grow about coronavirus vaccine
“Gold prices headed higher Wednesday for a second session as investors remain mostly bullish about the prospects for the commodity against the backdrop of economies attempting to reopen from the COVID-19 pandemic.
The precious metal pulled back on Monday after a report from Moderna pointed to progress with an experimental vaccine for the novel strain of coronavirus that has infected nearly five million people globally. However, a report from STAT News on Tuesday raised some doubts about the prospective remedy for the viral outbreak, providing some lift for bullion.
“Speculators do blow things out of proportion the moment they get any news about a Coronavirus vaccine,” wrote Naeem Aslam, chief market analyst at AvaTrade, in a Wednesday research note. “But, when the optimism fades and reality becomes apparent, investors are left with no option but to hedge their bets,” he wrote.”
Peter Schiff: Fed will ‘wipe out’ many investors; gold to return as reserve currency
“The Federal Reserve is going to create an inflationary environment that is like a tax that will hurt society on all levels, according to Peter Schiff, chief executive officer of Euro Pacific Capital.
“I think most people are going to get wiped out by the inflation tax. All of this government is not free. This incredible increase in the size of government is going to cost somebody. Somebody has to pay the bill for all the bailouts and all the stimulus, and if we’re not raising taxes, then how are we doing it?” Schiff told Kitco News.
This “tax” is also going to devalue fiat currencies, and investors should be holding onto physical gold and silver, he continued.
“So what you’ve got to do to mitigate the damage, your share of that inflation tax, is before the dollar collapses, get rid of your dollars and use them to accumulate real money, gold and silver or to buy quality income-producing assets in other countries,” he said.”
Gold gains as bleak economic outlook stokes safe-haven demand
“Gold prices gained on Wednesday as bleak data from major economies reflected the fallout from the coronavirus crisis, while the initial euphoria over a potential Covid-19 vaccine fizzled and gave way to safe-haven demand.
Spot gold was up 0.2% to $1,747.19 per ounce, as of 0256 GMT. U.S. gold futures rose 0.4% to $1,753.30.
In testimony before the U.S. Senate Banking Committee, Federal Reserve Chair Jerome Powell said the Fed was looking at extending access to the credit facilities to additional borrowers, including states with smaller populations.”
The buyers are back; gold, silver and platinum surging
“A lot has happened since Monday’s reversal in the metals; the buyers are back. As we wrote yesterday, Monday’s pullback was really a buying opportunity and not a place to panic. None of the action this week has been surprising. In fact, it has almost been to script.
Gold remains the steadiest of the group and is in a long-sustained uptrend with no real sign of weakening. Gold was under a little pressure early in the month and was in danger of reversing; however, buyers stepped in and have not stopped. Gold is now ready to make a big run through the $1,788 June futures high. New support is about $1,730 in the June futures, and until further notice, pullbacks are a buying opportunity.”