Although both gold and silver traded higher on the day, it was silver that outperformed gold by over 4 to 1. Both precious metals were aided by a falling U.S. dollar which is down by .59%.
Considering that gold closed up .37% or $5.70, it’s gain was less than the dollar’s decline in terms of percentages. This can be interpreted as moderate selling, but with the falling dollar gold’s percentage gain was less than the dollar’s decline.
Silver however gained 2.35%, and 1.76% was directly attributable to buyers bidding the precious white metal higher. Currently silver futures are trading... Read more
Typically, a market with extreme bullish sentiment trades to new highs, but also has period of market consolidation or a shallow correction before returning to a bullish rally. It also will typically trade to a new high.
Gold however is trading to a different drummer in that the rally currently in play is finding resistance at $1561, and has not had any real protracted or deep correction since June of this year when pricing went almost parabolic. There is also a strong probability that gold prices will reach a six-year high. What this means is that the current pricing has actually... Read more
With the last trading day of the month concluding we can look at the overall performance of individual assets in the precious metals complex. What we see is a break from the traditional correlation between gold and silver. While both of these precious metals had a stellar month, silver’s price gain dwarfed that of gold. Gold gained a respectable 6% in trading this month; however, silver was able to gain double digit’s with a monthly price advance of 11%.
Today the Chinese commerce ministry spokesman Goa Feng said that his government would not respond to the latest tariffs imposed by our current administration. Goa Feng said, “Escalation of the trade war won’t benefit China, nor the U.S., nor the world.”
According to Bloomberg News “Gao’s remarks came amid signs China’s economy slowed further in August as weak domestic conditions. The downshifting is evident in a Bloomberg Economics gauge aggregating the earliest available indicators from financial markets and businesses.”
The United States earlier this month announced new tariff rates... Read more