Gold Bumps Higher In Early New York Trading; U.S. Mint Reports Bullion Coin Sales Running Well Ahead Of Last Year

Posted on April 1, 2019, by Daily Market Report

(USAGOLD–April 1, 2019) – Gold bumped higher in early New York trading after a rocky end to last week that saw the metal decline nearly $20. It is now trading at $1296.50 and up $4.50 on the day. Silver is up 8¢ at $15.22. 

Searching around to find an explanation for last week’s decline we came up empty. As a result, we will chalk it up simply as end-of-the-month/quarter profit taking. If that turns out to be the correct analysis, we might see a recovery over the next few days as traders re-establish their long positions. For those who prefer a racier explanation for the sell-off, we refer you to London gold trader Andrew Maguire’s scenario as posted here.

The U.S. Mint reports sales of American Eagle gold and silver bullion coins running well ahead of last year’s pace at the end of March. Gold Eagle sales are up 33.3% over last year’s first quarter performance while Silver Eagle sales are up 37.9% over the same period.  Month over month, Gold Eagle sales are more than three times higher than sales from March of last year. Silver Eagle sales are down 7% when compared to March of last year. Many analysts consider bullion coin sales a bellwether for interest in the precious metals. This year’s strong uptick indicates increased activity among American investors interested in including gold and silver in their holdings as safe-haven hedges and an underpriced asset class.

Quote of the Day
“Gold is money – a rather rock-steady type of money, at that – and it cannot be debased by central banks’ money printing. Thus it stands in sharp contrast to bank deposits and short-term debt. Gold also does not carry any default or credit risk. It cannot go bankrupt, so to speak. For thousands of years, gold has already served as ‘premium money’. It would be surprising if gold were not to withstand the ‘Sword of Damocles’ (in the form of unbacked paper money) that central banks have hung over the economies.” – Thorsten Polleit, Degussa Market Report

Chart of the Day

Chart note: During the course of this past week we heard much about the inverted yield curve in 3-month and 10-year Treasuries. This is what that event looks like on a chart. Note the inverted yield curves prior to the recessions of 2001 and 2008. Gold, it should be added, began to move higher on both occasions as the Fed loosened monetary policy – something it seems inclined to do again at this point in the economic cycle.

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Categories: Gold, Silver, US Mint / US Mint Sales, Supply / DemandNumber of views: 133

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