Gold closes at a new all-time record high - now within striking distance of $2000

[Feng Leng]

https://www.kitco.com/commentaries/...igh-now-within-striking-distance-of-2000.html

Gold has risen ten out of the last eleven trading days. This week alone gold has traded to a new all-time record high on four of the five trading days. Most impressive was the closing price of gold futures today. The most active December 2020 Comex gold futures contract gained $27.20 and settled at a new all-time record high of $1994.00, this accomplishment occurred as gold’s intraday high was the highest ever recorded at $2005.40 per ounce.

As the last trading day of the month comes to a close, traders and market participants witnessed one of the strongest rallies in history with gold gaining approximately 10% this month. Undoubtedly this is one of the best monthly performance’s gold has produced, and now the precious yellow metal is within striking distance of the elusive number; $2000 per ounce.

In fact, today’s dramatic gains occurred in spite of U.S. dollar strength. The U.S. dollar has been in a freefall since the middle of March when the dollar index was trading at 103. The virtual meltdown of the U.S. dollar has devalued the currency by 10% in the last 4 ½ months.

Spot gold gained $18.90 in trading today closing at $1976.10. According to the KGX (Kitco Gold Index) traders and investors bought gold at such a fevered pace today that without dollar strength the net change on the day would have been $28.10 rather than $0.10 shy of $19.00. Dollar strength accounted for a negative gain of $9.20 today.


Goodbye USD! It was nice knowing you

 

[FOOLS_NIGHTMARE]

It will trade around 3000 dollars very soon, gold has been a safe haven during economic fallouts since history. People buy them as hedge against other investments.

 

[PakFactor]

It will trade around 3000 dollars very soon, gold has been a safe haven during economic fallouts since history. People buy them as hedge against other investments.

I'm not surprised when you see the silliness of the stock market for example Apple being worth more than some countries (even Italy). Their is no justification of this and the unlimited printing of dollars will screw it up more.

 

[Skull and Bones]

Still people are not buying Chinese ETFs.

 

[FOOLS_NIGHTMARE]

when you see the silliness of the stock market for example Apple being worth more than some countries (even Italy).

Yeah same goes with Amazon share ,which i sold for 14 dollars more than a decade ago ,now worth more than 3200 dollars.

 

[PakFactor]

Still people are not buying Chinese ETFs.

Last 3 weeks saw more inflow into Chinese and Emerging Market stocks; you just have to look at the data internally. Just seeing the S&P 500 and NASDAQ record highs doesn't give you a good picture and a handful of shares is skewing the indexes.

 

[mmr]

Should have invested on gold....seems 3000 dollar before year end.

 

[mmr]

Yeah same goes with Amazon share ,which i sold for 14 dollars more than a decade ago ,now worth more than 3200 dollars.

Its asset bubble.

Real economy shrinking and usa printing trillions.

Result stock market bubble followed by real estate.

Soon it will bust.

But instead talking about it...ppl worry about tik tok lol.

 

[PakFactor]

Yeah same goes with Amazon share ,which i sold for 14 dollars more than a decade ago ,now worth more than 3200 dollars.

During 2008/2009 Great Recession when Citi Group dropped to .50 cents per share I picked up a few hundred using my dads account. I sometimes kick myself thinking about how I sold it when it went up to $ 1 per share, haha.

 

[Feng Leng]

Should have invested on gold....seems 3000 dollar before year end.

Probably $3000 before the November elections. The US economy is looking at hyperinflation.

 

[PakFactor]

Its asset bubble.

Real economy shrinking and usa printing trillions.

Result stock market bubble followed by real estate.

Soon it will bust.

But instead talking about it...ppl worry about tik tok lol.

The worry will be once they start printing more dollars to fund programs for job loss and other benefits with no real recovery happening. I mostly deal with Small Businesses through my insurance agency (I do commercial only) and the situation isn't looking pretty. The one's that will survive are liquor stores, c-stores and gas stations, and the rest will be forced to close down. Luckily my agency only focused on the 3 I mentioned and nothing else -- I know agents who've lost 60% of income in matter of days and some are closing shop.

 

[mmr]

Probably $3000 before the November elections. The US economy is looking at hyperinflation.

That will screwed up every one. Not just usa.

 

[Feng Leng]

That will screwed up every one. Not just usa.

Sometimes you need to tear down before building up.

 

[Skull and Bones]

Last 3 weeks saw more inflow into Chinese and Emerging Market stocks; you just have to look at the data internally. Just seeing the S&P 500 and NASDAQ record highs doesn't give you a good picture and a handful of shares is skewing the indexes.

I looked into their PE of Chinese large cap indices, and most are trading at below 10.

 

[PakFactor]

I looked into their PE of Chinese large cap indices, and most are trading at below 10.

Their's enough room for companies to grow vs US some where around 23 PE Ratio.
But like I said US Indices are skewed due to few heavy hitters, and you have cheap money flow hitting the market(s). People moving out of bonds into stocks.