GOLD & SILVER DROP ON HIGHER INTEREST RATE SCARE

CLICK HERE FOR NEW Morgan Silver Dollars

CLICK HERE FOR NEW Peace Silver Dollars

CLICK HERE FOR NEW $20 Gold Saint Gaudens

	UBS Backs De-dollarization Trend Lifts Gold Target To $5,400 An Ounce
	UBS is treating dollar weakness as a structural theme rather than a short-term wobble, which points to sustained flows into Gold, commodities and selected currencies rather than a quick reversal... Eamonn Sheridan
	BofA Survey Says Gold Is Undervalued As Bullish Speculative Interest Picks Up
	For the third consecutive week, speculative investors increased their bullish bets on Gold, in part due to growing uncertainty surrounding the sustainability of U.S. government debt, reigniting the debasement trade... Neils Christensen
	Fidelity Fund Doubles Gold Holdings On Uncertainty Over Federal Reverse Announcement
	A portfolio manager at Fidelity International Ltd. has doubled his fund’s Gold holdings over the past three weeks, citing increasing uncertainty over U.S. Federal Reserve policy as a catalyst... Yihui Xie
	China Gold Buying Far Exceeds Official PBOC Reports, Goldman Sachs Data Shows
	China Gold buying has surged well beyond what official figures indicate, according to new estimates from Goldman Sachs... Brenda Mary
	Gold Pushes Past $4,650 As U.S. Debt And Fiscal Concerns Fuel Safe-Haven Demand
	Gold extended its rally on Monday, climbing beyond $4,650 an ounce as concerns surrounding U.S. government finances and Treasury efforts to influence longer-term borrowing costs continued to encourage demand for bullion... Fiona Craig

Gold was trading above $4,600 per ounce for most of last week until Friday. On Friday, the Gold price sold off during U.S. trading after the Federal Reserve chairman Warsh said that inflation was a bigger concern than a slowing labor market. With inflation over the Fed’s 2% target, the markets are concerned that at the September meeting, the Fed will raise interest rates. The stock markets initially sold off on this news, but rallied back by the close. The U.S. Dollar moved higher on the possibility of higher interest rates. In September, we will have one more jobs and CPI inflation report before the Fed meets on September 16, which will affect any Fed decision.

Gold was trading above $4,600 on Friday as trading rolled from London into the U.S. market. After Warsh spoke, Gold started moving south, dropping below both the $4,600 level and the key $4,500 support level. Gold bottomed out at $4,444 per ounce with sizeable bargain buying with record trading volume, and closed Friday at $4,456 per ounce, down $176 for the week.

I believe this sell-off was overdone and the Chinese and Indian markets will move higher by this weekend. After a brief adjustment, the Gold price will move back above $4,500 in September.

Key Economic data to watch this week:

• August 31st, Monday:
• September 1st, Tuesday: August Manufacturing PMI
• September 2nd, Wednesday: July Factory Orders
• September 3rd, Thursday: July Trade Balance, Weekly Jobless Claims
• September 4th, Friday: August Unemployment Rate

Today: Gold reached a low of $4,395 in India before seeing sizeable demand, driving the price up to $4,470 per ounce when trading in London. After trading opened in the U.S., Gold moved lower and briefly broke below the key $4,400 level. However, a sizeable demand quickly pushed the price back up, past $4,430 per ounce.

Silver reached a 3-month high in early Friday trading of $71.23 before falling with Gold on Chairman Warsh’s statement. Silver dropped all the way to $66 per ounce on record trading volume and closed at $66.40 per ounce, down $2.71 for the week.
Like Gold, I think the current Silver demand in China, India, and London will drive the price higher by the end of this week.

Today: Silver also bottomed out during Indian trading, reaching a low of $65.51 per ounce. Demand picked up in late trading and the price moved past $67 per ounce in London. After U.S. trading, Silver reached the daily low of $65.51 before strong demand took the price to $66.50 per ounce.

REMEMBER MY DAILY BLOG

If you want to get the update on what’s happening in the Gold, Silver, and rare coin markets any weekday, our company offers a daily blog Monday through Friday at www.stupplerblog.com

Barry Stuppler has been a professional numismatist for over 60 years and is considered one the nation’s foremost experts in rare coins and precious metals. Mr. Stuppler is a past President of the American Numismatic Association (ANA) and Professional Numismatists Guild (PNG). He is currently chairman of the Federal and California State Gold & Silver Political Action Committees, and president of the
Anti-Counterfeiting Educational Foundation. Barry Stuppler, the original founder of MintStateGold.com, is proud to say he has helped over 25,000 rare coin and precious metal investors and collectors to build their collections and holdings. For more information about Barry click here.

All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of Stuppler & Company’s knowledge at this time. Stuppler & Company disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions.

Stuppler & Company, Inc. 5855 Topanga Canyon Blvd. Suite 410, Woodland Hills, CA 91367
888-454-0444 - [email protected].