Gold & Silver Still On The Defensive Setting New Lows

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	Inflation Exceeds 9%, But It’s Still Not Enough For Gold
	The inflation rate accelerated again. It implies a more hawkish Fed and is bad for Gold in the short-run, but good in the long-term. . . . Arkadiusz Sieroń
	Gold Price Turns Positive Above $1730 Potential Reversal
	Gold Price bounced sharply during the last hours and turned positive for the day. . . . Matias Salord
	June U.S. CPI High Again
	The U. S. June Consumer Price Index (CPI) figure has been released and once again it has come in showing the inflation level to be higher than the market had anticipated at 9.1% year-on-year. . . . Lawrie Williams
	Gold Price Sells Off As U.S. CPI Runs Very Hot
	Gold prices are solidly down and hit an 11-month low in early U.S. trading at mid-week, following a U.S. inflation report that ran the hottest in 40 years . . . . Jim Wyckoff
	Does Gold’s Value Increase During Recessions?
	Gold has been traditionally considered a safe-haven asset, with many investors turning to the yellow metal during recessions and times of turmoil. . . . Govind Bhutada
	Goldman Sachs Raises Gold Target Yet Again To $2500/Oz
	Goldman Sachs has recently raised its year-end 2022, Gold price target to $2500/oz, signaling a strong 2022 after Gold prices ended 2021 down approximately 4% . . . . Hedge Think
	Gold Price Weaker After Upbeat U.S. Jobs Data
	Gold and silver prices are modestly lower in early U.S. price action Friday, in the wake of a key U.S. economic report that was deemed positive . . . . Jim Wyckoff

Over the past 3 months, the price of Gold has gone from $1,974 to $1,704 per ounce, a 13.6% decline. During that same period, many other financial investments and commodities have fallen substantially more. The Nasdaq dropped 21%, Bitcoin 53%, Copper 32%, and Silver is down 27%. With most markets in a downward trend as the U.S. Currency strengthens, it’s not surprising that gold is finding it hard to move higher.

Over the past few months, I have been asked by a number of clients why the U.S Dollar has been so strong. Last week, I received a 3 a.m. phone call from an old-time client who currently lives in Paris. He asked me to find a $4 Stella Gold coin in Proof-65 or higher for him. I put it on my master wantlist in the morning. During that call, I asked why he hasn’t purchased any Gold bullion coins during the past few months. He replied “It’s too expensive”, since I haven’t heard that from any of my U.S. clients, I needed to think about it. He continued to say the Euro has lost over 15% of its value versus the Dollar this year. So if you are buying Gold with Euros, Gold is expensive, but why? Many European countries have an inflation rate above 10% and shortages of energy and food products are nearing rationing. So, many financial markets believe that the U.S. economy will recover from the coming recession quicker than Europe, therefore a stronger currency.

With inflation at a 20 to 30 year high around the globe, it’s difficult for me to wrap my head around the fact that Gold closed at $1,707 per ounce last Friday. I have been active in the Gold market since the 1960s. I have seen how Gold reacted to the high inflation of the late 1970s, reaching a new high of $850 in January 1980. I watched Gold reach an all-time high of $2,071 in August of 2020 when the pandemic was leading to massive government spending. I truly believe the decline we have seen over the past 3 months is just temporary and Gold will be much higher by year-end.

Today: Traders are still focused on what the Federal Reserve will do next week, in regard to rising the Fed Funds interest rate. Many financial analysts predicted a 1% increase, but now traders think that increase will be lower. Gold traded higher in overseas trading, reaching a high of $1,725 before seeing serious selling.

Last Friday, Silver reached $18.09 per ounce, a 2-year low, during active early European trading. Silver closed Friday at $18.60 in the U.S. market as bargain buyers stepped up. During the last three months, the price of Silver has dropped 27%, from $24.80 to $18.09 per ounce. I remember that Silver reached a recent high of $30.35 on Feb. 1st 2021. The current Silver-To-Gold ratio is at 91.6-to-1. Anything over 60-to-1, the price of Silver is undervalued.

Today: The Silver price was more bullish than Gold this morning, reaching a high of $19.10 on excellent volume in European afternoon trading. Physical demand is strong, but supplies are limited of many of the popular investment quality coins.