Gold surged above $1800 in trading today, closing above that key resistance level. Traders in New York took the price of gold futures to $1808, which is a net gain of just over $14. This is the highest value that gold has obtained since the net result of the financial crisis of 2008 took gold above $1900 in 2011.

The entire precious metals complex that trades in the futures markets were higher on the day. The winner today was silver, basis the most active May contract, silver closed at $18.62. Silver was up by 1.68% on the day, which is a total of almost $0.31. Platinum was next in line with the most active October contract closing at $841.70, this after factoring in today’s gain of 1.21% ($9.90).

As the Americans and Canadians get ready for a welcomed extended weekend with Canada Day already underway (as of yesterday) and Independence Day on Saturday, market participants and investors continue to show concern in reference to the massive potential economic fallout from the COVID-19 pandemic.

A summer of uncertainty

Last night’s surge in gold pricing took gold future’s August Comex contract to the highest trading level on a weekly chart since September 2011. However, at least on this attempt a close above $1800 was unsustainable as profit takers entered the market taking gold prices dramatically lower by the close of New York.

Today a joint appearance of America’s most powerful economic policymakers testified before the U.S. House of Representatives House Financial Services Committee to discuss their methodology in aiding those effected by the resurgence of new coronavirus cases. Both economic policymakers offered different pictures of the current state of the U.S. economy.

U.S. equities recovered from Friday’s substantial decline. Market participants bid U.S. equities higher on hopes of a quick recovery from the global pandemic which is now in its fourth month. Despite these real concerns of a major uptick in reported cases the Dow Jones Industrial Average gained 580 points in trading today.

Our technical studies have indicated that it’s not if, but when, gold will effectively trade and close above $1800 per ounce. This week gold closed at its highest trading value this year, but more impressively it reached a high not seen for the last 7 ½ years.

The fundamental factors which have taken gold pricing from $1460 in March, to within four dollars of $1800 per ounce this week are still present, and they continue to be highly supportive of gold prices. First and foremost, and at the root of other fundamental issues is the global Covid – 19 pandemic which is now in its fourth month.

Gold futures traded to a new yearly high in London last night, when for a brief moment the most active August contract reached $1796.10. This is the highest value gold has attained since 2012.

Gold futures had solid gains today closing above the highest close in 2020. On April 14 of this year gold hit an apex as it reached the highest intraday high for the year when it traded to $1788, and backed off on the close. On that day not only did gold pricing reach the highest intraday price, it also closed at the highest level this year, closing at $1769 per ounce.