Traders haven’t but figured it out…
by Peter Schiff of Peter Schiff Podcast
Gold: Six-Yr Excessive In a single day –
In a single day the value of gold rose to a six-year excessive. We nearly received to $1440. I feel the excessive I noticed was possibly $1438 – 39… we had been up about $19 on the excessive level. Then it turned a really unstable session in a single day into the wee hours of the morning. However I feel by the point we received into the New York time zone, gold was nonetheless up about $10-$12-$13 on the day and it was up about that quantity when the U.S. inventory market opened for buying and selling.
Earlier than At present, Gold Shares Up 20% –
Gold shares initially had a small rally, however nothing huge. Then they spent a lot of the day on the draw back. Clearly the gold merchants are nonetheless very cautious. As I’ve been saying, this gold breakout, despite the fact that we did see fairly huge strikes in gold shares, I feel the GDX, not counting at present’s losses, (the GDX was down about 2% at present) however not counting at present, we had been up 20% within the month of June. So, nonetheless, a really huge rise. However actually not practically as huge an increase correctly, contemplating, I feel, the importance of this gold breakout. Besides, in fact, if individuals don’t imagine it. In the event that they’re cautious about it, so that they’re reluctant to bid up the value of gold shares.
Traders Nonetheless Reluctant on Gold and Silver – Why?
The identical factor with silver. Actually, silver by no means had a lot of a rally at present, and it really settled down, I feel eight cents on the day, despite the fact that gold ended up ending up $four – properly off the highs. Nevertheless it didn’t shut adverse. At one level throughout New York buying and selling, the value of gold was adverse on the day, however it managed to bounce again for the shut. Silver, I feel, ended at 15.33. The gold/silver ratio that I spoke about on the final podcast now, I feel is near 93:1. Once more, I feel traders are reluctant to purchase up silver as a result of they’re anticipating the value of gold to roll over.