Gold And Silver On Pace To Hit $1,600 And $18 Per Ounce This Year

	WGC - Gold Demand Trends Q2 2019
	Central bank buying and healthy ETF inflows were the driving forces behind gold demand . . . . WGC (Read More)
	Gold Hits All Time High In British Pounds
	Gold is GBP hit an all time high, joining now less 72 other currencies . . . . Ross Norman (Read More)
	Gold’s Rally Fizzles As Fed Cuts Rates Without Promise of More Easing
	Gold prices fell on Wednesday after a four-day rally but still settled . . . . Barani Krishnan (Read More)
	The World’s Largest Gold Buyer Is Now Russia
	For several years now, Russia’s central bank has been on a gold-buying . . . . Alex Kimani(Read More)
	Money Managers Pile Into Bullish Silver Positions
	Fund managers sharply increased their bullish positioning in silver futures, while largely maintaining . . . . Allen Sykora (Read More)
	Why The Coming Silver Rally Might Be The Greatest
	In the last one hundred years there have been some great silver rallies. Some have been greater than others . . . . Hubert Moolman (Read More)

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Last Wednesday, the Federal Reserve lowered the Fed Funds rate by a ¼ point and announced they will end quantitative tightening in a couple months. Gold, Silver and equity traders had hoped for a ½ point drop initially and were disappointed, causing the markets to decline. In early morning Asian trading, Gold tested the $1,400 support level and held. Gold has now closed above $1,400 per ounce for the past month, building an excellent base between $1,400 and $1,450 per ounce. The next move is to breakout above $1,450 per ounce toward $1,500, which we could see this week. The World Gold Council released central bank purchases for the first six months of 2019, and it’s no surprise that purchases were at a record high rate. Gold closed last Friday at $1,444 per ounce, up $26 for the week.

Last Thursday, the Senate passed HR 3877 with a 2/3 vote. This budget legislation abolishes the debt ceiling for two years and increases spending by 320 billion this year. I believe this extraordinary spending bill caused interest rates to drop (10-Year Treasury reached 1.84%) and helped Gold rally back above the $1,440 per ounce level in late Thursday trading. What is truly amazing is that last Friday’s Gold rally to $1,448 per ounce was in the face of a soaring U.S. Dollar Index trading at a 2-year high, over 98.40.

Today: Increasing trade tensions between the U.S. and China are intensifying with the Chinese Yuan dropping to 7-to-Dollar, which has caused Gold/Silver to rally. Gold reached a new 2019 high of $1,470 per ounce as global equity markets and U.S. Dollar Index sell off.

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On Tuesday, July 23rd, 2019, President Trump and Speaker Nancy Pelosi reached an agreement to abolish the debt ceiling for two years. This legislation passed the house on July 24th and passed the Senate on July 31st and will be signed by the President this week. It will increase the 2011 Budget Control Act caps by $320 billion. The committee for a Responsible Federal Budget estimates passage of this deal will add $4.1 trillion to the national debt. This deal allows Trump to give $16 Billion to aid farmers affected by the Chinese trade tariffs. Plus, it gives him funds to build the wall and increase military funding as well as Aid-to-Vets programs. Pelosi eliminated planned cuts in entitlement budgets and gets a serious bump in spending for domestic programs, including Medicare, Medicaid and Social Security, while providing funds for current environmental issues.

This will lead to run-away spending, higher inflation and an explosion in precious metal and rare coin prices. I’m now raising my 2019 year-end precious metal prediction to Gold at $1,600 per ounce and $18 for Silver. Also, based on the rarity, I’m looking for a 10-25% increase in investment quality rare coins.

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After breaking above the key $16 resistance level on August 18th, to my amazement, Silver, with only one break below, has shown excellent consolidation. Many bearish professional traders, who have shorted Silver numerous times and made money, have now gone bullish to neutral. This is a great sign for Silver in the short and long term. After closing on Friday at $16.22, down $0.12 for the week, I believe Silver should move back above $16.50 by the end of this week.

Today: Silver briefly moved back above $16.50 per ounce in early trading, as physical Silver demand picks up. The Silver price is being helped by lowering interest rates, as the 10-year U.S. Treasury drops to a record low of 1.77%.

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