Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Surges to Multi-Year High as Silver Explodes Upward
May 18, 2020 - (Gold Market Wire) - Gold prices have surged in Asian and followed through with strength in the European a.m. to reach multi-year highs. We haven't seen prices like this is since October 2012. The power uptrend in Gold is alive and well and prices are moving briskly higher.
It is clear sailing for gold now, but we should always be aware that a back and fill can happen. Indeed a sustainable rally would demand it. Still the gap up is classic in style and indicative of a strong market. Positions could be added to on pullbacks. Chasing doesn't work.
Silver has also come bursting out of the gate this morning with very strong performance.
The "people's metal" took off like the proverbial bullet this morning - out of the Middle East. The sound of Saudi buying is in the air. The gap up takes Silver into a completely new atmosphere, and the challange of $19 could come quicker than most think.
It is going to be an exciting week. Maintain discipline and don't fall to the urge to go "all-in".
The Precious Metals arena has undergone a dramatic shift in the past few sessions. The investment community, as well as the public, is now seriously concerned by the EU's latest move to throw trillions of Euros it does not have at a problem it has no control over. The belief that government is now taking over the entire economy and plans to manage it from the corridors of power have sent chills through all people who believe in the power of the market. The unproductive segment of the western world, government, looks ready to tax and spend itself into oblivion - with scant regard for those who produce and create value. This can only have a negative monetary outcome, and the precious metals market is sensing a debacle in the making. Government has a very poor track record of getting things right in an economy. The post-WWII era of free enterprise looks ready to succumb to socialism, with all that that implies for currency systems going forward.