Gold Price Hits 5 Year High As Prices Are Moving Fast

Updated on

Gold price hits 5 year high as prices are moving fast. A dovish Fed announcement yesterday that left rates unchanged have put strong winds into the sails of gold as we quickly approach the $1400 level. Make sure you are positioned to take advantage of these opportunities in the gold & silver market. We cover the price movements of the Euro, US Dollar, Platinum, and Palladium.

Gold Price Hits 5 Year High As Prices Are Moving Fast – Golden Rule Radio

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 hedge fund letters, conference, scoops etc


Welcome back to Golden Rule radio your weekly recap of the precious metals markets the news that moves those markets and before we dive into those markets and the news let's pass it over to Eric who has one great comment from last week from a guy who probably should be joining our team here.

That's right Miles. This one comes from Counter Crow who's you know got some great insight in the stuff that we talk about each week. He always has some some good input for us. But after Terry's comments last week about platinum not really moving based on geopolitical events Counter Crow stated this marvel at the beast which is rhodium up 250 dollars in a day is this not a record. This argument that industrial metals aren't relevant in geopolitics is void. In fact in a time of a hot or cold war industrial metals derived from only two countries become extremely valuable more valuable than monetary metals.

First of all let me start by saying that he is right. Geopolitics can absolutely move industrial metals especially when you're limited in your mining source. So we talked about platinum coming out of South Africa and Russia almost predominantly or almost exclusively. So when you have. Sanctions and and you want retaliation coming from one of those countries certainly one of the things it could do is limit the exporting of platinum for example and it would absolutely because of geopolitical pressures caused a spike in the price of platinum. What I'm talking about is it's not going to respond like gold does as a monetary metal so we see gold oftentimes respond to geopolitics because of trade concerns because of economic concerns and those all are stimulated oftentimes by geopolitical tensions pressures and backroom dealings. So I apologize for that coming across the wrong way. The Rhodium topic is separate altogether there. I personally believe yes you can still see some restrictions on export and that sort of thing but more importantly that's probably more speculation in a particular market with a rare metal.

Let's move on to some of the fundamentals that are taking place this week we've got a lot to cover in a short amount of time. I want to Helena go back to Terry again we're going to kind of blast true today because also last week when we were talking about the European Central Bank's decision you know Terry you had mentioned that at least the U.S. has room to go down on interest rates right. We didn't. Obviously we saw that today the Fed released a statement we're recording on Wednesday. But let let's talk about what Draghi did. And the the European Central Bank's decision earlier this week.

Well he hasn't done anything yet. All he's done is try to move the markets with you know the words the power the influence that he yields just like any central banker does or any highly ranking political officer does. We've seen it from President Trump in the last couple of days as well. We've seen it from Jerome Powell today. He didn't do anything other than say look we can do something. So what I meant by not being able to have any room to lower interest rates any further if you have an economic crisis let's say yet Draghi comes out last week and says Yeah we can lower interest rates further we can get into more negative territory and we can continue to quantitative ease. Well that's great. But you've been quantitative easing and you still need more. Right. You've been at zero to negative quarter point on lending rate and you need to cut rates further. How much further can you go. At least we have before we get to zero. We've got to two and a quarter points to play with is what I was talking about really disappointing to see Draghi do this and it didn't go unnoticed obviously by President Trump. He really fired back.

That's right. And Miles you know as we've seen these these leaders these political figures they're their words can have a lot of you know impact on the markets and what did you see from the euro after these comments from Draghi. Well the euro's actually up.

Which obviously we would consider to some extent surprising. I think there's some charting reasons why that could take place. I mean the euro's just been a sawtooth pattern going down for a year now and we're down eleven and a half percent since January 18 were down three and a half percent already this year. So from a charting perspective you could argue anytime you have that type of volatility or you're going to have some bounces on news especially when you have some RSI divergence on the x y the euro index. So to come out and not say much of anything you know to come out and say we're keeping options on the table following this type of pretty consistent downward pattern in the euro it doesn't surprise me to see a pop up short term over the last week or two. I think the trend is still down. I think the euro continues to fall I think the dollar is still the stronger currency the euro. European markets certainly second that and some of the European credit issues are much more dramatic to the European markets than are credit issues here domestically have yet to become.

Yeah you know the euro's really not that volatile we're up.

Leave a Comment