Gold Surges $11 In Early Trading, Silver 17¢

Article from USAGold

Posted on April 8, 2019 by Daily Market Report

(USAGOLD–April 8, 2019) – Gold pushed sharply higher in overnight and early U.S. trading transcending once again the psychologically important $1300 mark. It is up $11 at $1302.50.  Silver is up 17¢ at $15.30. In looking around for an explanation for this morning’s price surge, we note three possibilities.  First and foremost is President Trump’s statement late last week that he thought the Fed should lower rates and launch a new quantitative easing program. Second, Reuters reports that Saudi Arabia is threatening to “ditch” the dollar if Congress goes through with its proposed NOPEC legislation. (That measure, if passed, would expose Saudi Arabia and other oil producing countries to anti-trust lawsuits.) Third, China announced over the weekend that it had acquired another 11.2 tonnes of gold last month “adding to optimism,” as Bloomberg put it, “that central banks globally will continue to build holdings.”

Quote of the Day
“A lot of the bank issues in the United States and around the world have been solved. But migrating the problem to the sovereign balance sheets. So, the banks look pretty good, but the Fed has $4 trillion of debt on its balance sheet. And it’s even more, we are not in a European audience. In Europe, they would really know what they meant because all the European banking system is fixed but Europeans are all also buying up all the debt. The budget deficits haven’t contracted, they’ve widened. The banks buy the debt, then walk over to the European Central bank, finance it. . . You wonder is the next crisis going to be a sovereign crisis. And if it is, it will just be a continuation. People will look back and say ‘what we really did, we didn’t fix the outcome of the financial crisis. We left that open and as a result, its really been a thirty-year workout.’” – Lloyd Blankfein, Goldman Sachs

Chart of the Day

Chart note: This long-term gold chart is drawn in log-scale. “Common percent changes,” says Investopedia of log-scale charts, “are represented by an equal spacing between the numbers in the scale. For example, the distance between $10 and $20 is equal to the distance between $20 and $40 because both scenarios represent a 100% increase in price.” On a linear chart, the lesser values are compressed to the point that it diminishes the strength of a price move. The greater values likewise are extended to a degree that they tend to dramatize a price move. The log-scale chart presents data in a more realistic framework for making investment decisions.

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