Gold back on the bullish tracking, moving over $1,800

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	Reserve Bank of India Buys Record Gold This Year
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	The company spent $50.7 million this month on gold, part of an unusual investment strategy . . . . Lizette Chapman
	Silver: Buy It While It's On Sale
	We firmly believe that Silver presents one of the best opportunities . . . . Phillip Streible
	Consumers And Central Banks Counterbalance Softer ETF Inflows To Produce Stable Q2 Gold Demand
	Modest increases expected in central bank buying and in gold supply . . . . World Gold Council

After reaching a yearly low of $1,675 per ounce on August 9th, Gold closed trading last week in a $6 range from the high of $1,786, to a low of $1,780. Gold tried to break the $1,800 resistance level last Tuesday, but could only reach $1,794 per ounce. Gold closed last Friday at $1,781, up $6 per ounce on good trading volume.

Last week, strength in the U.S. Dollar moved up over 1% and put pressure on the Gold price all week. U.S. interest rates remained low and optimism of further Federal Reserve actions is starting to grow in financial markets.

As many of you know, I monitor the world’s commodity markets daily and have relationships with many professional traders and floor brokers from Europe to Asia. Many traders/brokers are now neutral to mildly positive about the short-term outlook for Gold and Silver prices. A number of them feel a break below $1,750 would cause a test of the $1,700 level again. But, they also feel a strong move back above $1,800 could put Gold back on a bullish short-term and long-term track.

Today: This morning Gold moved up sharply, moving over the key $1,800 resistance level. A sell-off in the U.S. Dollar from multi-month highs was the key element in this rally. Another factor was that the financial markets are anticipating an extension of Federal and State stimulus programs due to the spread of the delta variant. Gold reached a high of $1,807 before seeing light profit-taking by traders.

Last week, while Gold was up $6 per ounce, Silver was down $0.65 per ounce to $23.10, bringing the Gold-to-Silver ratio to a remarkable 77-to 1. The key $23 level was tested a number of times last week and held. Why? Future inflation concerns have been beaten back, as we see an increase in our nation's COVID-19 cases and deaths. While new COVID lockdowns are possible, especially in sun belt states, that would only delay future inflation.

Another lockdown by the federal government or states, as a move to protect the public from COVID-19, would slow down our economic growth but would not result in inflation going away. It would increase financial stimulus and cause the Federal Reserve to ease credit and lower interest rates, which we are seeing now. The bottom line is inflation will be worse than currently anticipated, and the Silver price will react to that when it becomes clearer.

Today: Silver held above the key $23 level, and when Gold started its rally, Silver moved higher.
Silver reached a high of $23.77 per ounce before seeing some light selling.