Gold Reaches A New 5-Year High on Iranian-US War Concerns
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Last Friday, Gold reached $1,556, the highest level since 2013. This rally was sparked by the U.S. killing the head of Iran’s Quds Force, Major-General Qassem Soleimani, in Iraq earlier that morning. The world’s financial markets reacted to this escalation of hostilities with Iran. Both oil and precious metals have moved sharply higher in the world’s commodity markets.
Gold closed December 31, 2019 at $1,519.50 per ounce, up $241 or 18.87% for the year.
This was the most Gold has increased in a single year since 2010. Gold appears on the same pricing track as 2010, when Gold was able to reach $1,920 per ounce by September 6, 2011. The fundamentals for Gold moving higher in 2020 are in place. World debt and physical demand is increasing at an unbelievable pace. Geopolitical problems have never been worse. The current explosiveness, recent history, and global demand are so strong right now for precious metal prices. I wouldn’t be surprised if we saw Gold reach $1,600 this month.
Today:
Over the weekend Trump made serious threats against Iranian and Iraqi governments. The Iranians have clearly stated that they will attack American military bases. The combination of these two facts has driven up the Gold price in Asian trading as high as $1,584 per ounce. Anymore Middle East escalating could result in a break of the $1,590 resistance level, followed by a move to $1,603 and $1,632 per ounce.
Silver continues to move higher, closing at $18.07 last Friday, up $0.23 for the week. Last Friday, Silver reached a high of $18.25 per ounce before seeing a serious profit-taking and outright selling in both physical and equity markets. Continued strength in the Gold price should help support Silver on its way to the next resistance level of $18.30 per ounce. The Silver-to-Gold ratio increased last week, hitting 85.53-to-1 per ounce.
Today: Silver followed Gold higher on the same Trump, Iranian, and Iraqi news. In Asian trading this morning Silver quickly rallied $0.42 per ounce, reaching a high of $18.49, before seeing a profit-taking or short-selling.
January 7, 2019: Silver was $15.42, I predicted it would reach $17 in 2019. Silver closed 2019 at $17.83.
January 7, 2019: Gold was $1,285, I predicted it would reach $1,480 in 2019.
August 2019: Gold surpassed $1,480. I felt Gold could reach $1,600 by Year-end. Gold reached a high of $1,555 a month later on September 4, 2019.
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