Gold and Silver rebounded today after a harsh Tuesday with gold inching toward $1,280. That bounce back occurred despite the pressure from a strengthening U.S. Dollar and yesterday’s all-time highs in the S&P and Nasdaq, due to strong reported corporate earnings.
ETF Gold redemptions also contributed to yesterday’s dip.
In addition to today’s rebound, the other good news is that the spot price of gold held the level of support throughout yesterday’s pressure, failing to break through the $1,260 level that had been a concern.
Equity investors seem not to care how much money the government is spending or how high the U S debt is increasing. The recent government report claims that Medicare is going to run out of money by the year 2026 and Social Security by 2037. Eventually, there will come a time when these programs will take over all the monies the Government takes in in a year.
At that point who knows where equity prices will be. One thing we can count on is that the price of gold should benefit greatly from such a problem.
Gold’s Global Glow
The World Bank released a commodities report yesterday that included a rosy future glow for gold. They are forecasting that gold will break the $1,300 mark later this year.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), looks likely to follow the lead of Russia and China, whose Central Banks have been stocking up on the yellow metal this year. In 2018, RBI increased its cache by about 42 tons, then in January and February of this year they added even more, bringing the country’s gold reserves to a record high of almost 609 tons, per the International Monetary Fund.
To purchase gold or silver from Boston’s best coin shop, contact Boston Bullion at (781) 710-8419.