You’ll find the price of gold moving higher again.
It’s only been two weeks since the big crash. But that hasn’t stopped the yellow metal from staging a comeback. For the first time in five weeks, gold ended trading Friday night with a weekly gain under its belt.
After a furious two-day drop that saw gold prices dive from more than $1,550 to the low $1,300s, gold has recovered to the $1,470s. Not a bad move for nine short trading days.
So that’s it? Gold has clawed back about half of what it lost during the two-day drop. It’s back. We can just forget about it and go back to our normal lives, right?
The drama is just beginning. You’ve already witnessed the unprecedented two-day drop. Now, you can add a snapback rally to the mix. I already told you to expect volatility in the coming weeks as buyers and sellers struggle to find balance after the drop. Now, things are getting interesting.
Big money is lining up to bet on lower prices — all while small investors embark on a massive buying spree.
‘Hedge funds accumulated their second-biggest bet against gold on record just as prices rallied the most in 15 months on surging demand for coins and jewelry and Goldman Sachs Group Inc. ended a recommendation to sell,’ proclaims Bloomberg.
Even with the overseas jewellery demand and a rush to buy coins closer to home, the precious metals market will have a difficult time overcoming the mainstream investor ditching his underperforming gold trading vehicles. ETFs have already flooded the market with more than $16 billion in bullion. If another round of selling takes hold, watch out…
Speculators will continue to push gold prices lower in the coming months. Hang on – it’s going to be a rough ride.
for Markets and Money
From the Archives…
Gold Demand: The Great Disconnect Between Paper and Bullion
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The Cracks in Solidarity at the Recent G20 Gabfest
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How Central Planners are Committed to Ruining the Economy
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- Why the gold ‘bear’ is set to bite again: What goes down, must go…down. As Jason explains, the gold crunch that kicked off in 2011 may not be over after all. In fact, gold’s plunge may be about to ramp up again. Find out why the precious metal could fall well below US$1,000 in the months ahead.
- The uncut truth on gold: Despite what you might hear, the supply and demand story for gold remains gloomy. But not for much longer. As you’ll see, one specific signals points to a potential bump in demand for the precious metal.
- Patience the key to big gold gains in 2017: Gold and gold stocks will eventually bounce back. But not right now. Jason reveals when you should jump back into gold, and why patience could pay off big time in the next few years.
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