Gold Price Leaps To $1750
The gold price rallied again on Thursday as investors seek a store of value after the Fed said its pumping another $2.3 trillion in the US economy to stave off depression.
On the Comex market in New York, gold for delivery in June, the most active contract, jumped to the highest since November 2012 at $1,754.50 an ounce in afternoon trade, up just over $70 an ounce, or 4.2% compared to Wednesdays close.
Fed Chairman Jerome Powell said that the bank was committed to use its powers forcefully, pro-actively, and aggressively until the US economy is solidly on the road to recovery.
Powells comments in a prepared speech delivered virtually followed data showing jobless claims in the US surging by more than six million for the second week in a row, prompting fears that unemployment could reach more than 15%.
Last month, Goldman Sachs said inationary concerns triggered by the central bank policy response to the pandemic could send gold to $1,800 an ounce as the currency of last resort.
We believe physical inflationary concerns with the dollar starting near an all-time high will for once dominate financial asset inflation that was a feature of the past decade.
Its safe-haven buying. People are scared
Peter Thomas, a senior vice president at Chicago broker Zaner Group
Gold Prices The Highs And Lows Since 1971
Gold hit a new peak of $1,282.75 an ounce today, boosted by demand from investors looking for a safe haven amid continuing uncertainty over the outlook for the world economy.
Here are some key dates in gold’s trading history since the early 1970s:
US president Richard Nixon takes the dollar off the gold standard, which had been in place with minor modifications since the Bretton Woods Agreement of 1944 and fixed the conversion rate for one Troy ounce of gold at $35.
The US devalues the dollar to $38 an ounce of gold.
Gold hits a record high of $850 an ounce, as investors pile into bullion prompted by high inflation due to strong oil prices, the Soviet intervention in Afghanistan and the impact of the Iranian revolution.
Gold falls to a low of $251.70 on worries about central banks reducing their gold reserves and mining companies selling gold in forward markets to protect against falling prices.
Gold reaches a two-year high at $338 following an agreement to limit gold sales by 15 European central banks.
Gold soars on safe-haven buying in the run-up to war with Iraq.
January 2004 gold breaks $400, reaching levels last traded in 1988. Investors increasingly buy gold as risk insurance for portfolios.
Spot gold breaches $500 for the first time since December 1987, when it hit $502.97.
14 June 2006 Gold plummets to $543 from its 26-year peak after investors and speculators sell out of commodity positions.
2 January 2008 Spot gold breaks above $850.
Gold Price History Via Gold Mining Nation Leaders
Up next is a historical gold price chart that covers the entire history of US dollar gold prices from the year 1776 to 2019.
For the majority of non-war US history, the price of gold was steady at $20.67 per oz USD.
The first significant ramp in the US dollar gold price followed right after the end of the US Civil War. Primarily driven by the issuance of fully fiat Greenback currency bills, the then record US dollar gold price hit as high as $160 oz USD in the year 1869.
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Highest Price For Gold: Investor Takeaway
While we have the answer to the question, What was the highest price for gold? it remains to be seen if the yellow metal can reach as high as US$5,000, US$8,000 or even US$10,000 per ounce. Even so, many market participants believe gold is a must have in any investment profile, and there is little doubt investors will continue to see gold price action making headlines this year and beyond.
This is an updated version of an article first published by the Investing News Network in 2020.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Gold Price Today August 1: On The Multi
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Gold price in India edged higher on Wednesday. On the Multi-Commodity Exchange , October gold contracts jumped Rs 47,378 for 10 grams at 0905 hours on August 18. This was the highest price gold has touched in a week. Following the yellow metal, Silver also rose on Wednesday. The precious metals future jumped 0.35 per cent to Rs 63,447 on August.
In the international market, gold prices remained flat on Wednesday. Spot gold was flat at $1,785.66 per ounce by 0103 GMT. US gold futures were flat at $1,787.20. The dollar hit a nine-month high against the euro on Wednesday. Higher dollar means the safe-haven asset will become expensive for other currencies. Silver rose 0.1% to $23.65 per ounce. The high dollar price and jump in Covid-19 cases driven by the Delta variant kept the yellow metal price flat in early trading on Wednesday. All eyes are now on the minutes from Feds July meeting for any guidance on taper plans.
International spot and futures gold & silver prices have started flat this Wednesday morning in Asian trade ahead of the release of FOMC meeting minutes tonight. Technically, LBMA Gold is trading near 21-Daily Moving Average which is placed at $1789 levels above which will continue its uptrend up to $1802-$1821 levels. Support is at $1783-$$1771 levels. LBMA Silver above $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels,” said Sriram Iyer Senior Research Analyst at Reliance Securities.
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Gold Price Prediction Trends & 5
Jeff Clark, Senior Analyst, GoldSilver.com
Most price forecasts arent worth more than an umbrella in a hurricane. There are so many factors, so many ever-changing variables, that even the experts usually miss the mark.
Further, some forecasters base their predictions on one issue. Interest rates will rise so gold will fall. Thats not even an accurate statement, let alone a sensible prediction .
But there is value in considering predictions. It can solidify why one has invested, offer factors that may have been overlooked, or even cause one to revise their expectations.
So while we take predictions with a grain of salt, lets look at what might be ahead for gold price in 2021 and the next 5 years. Well first summarize what many analysts are predicting, and then look at the factors that are likely to have the biggest impact on gold. Ill conclude with the probable prices I see based on those factors, as well as some long-term projections.
This will be fun, so lets jump in!
Highest Price For Gold: Beware Gold Price Manipulation
As a final note on the price of gold and buying gold bullion, its important for investors to be aware that manipulation of gold bullion prices is a hot topic in the industry.
In 2011, the last time the price of gold broke a record high, the price of gold dropped swiftly in just a few short years. This price decline after three years of impressive gains led many in the gold sector to cry foul and point to price manipulation. Early in 2015, 10 banks were hit in a US probe on precious metals manipulation. Evidence provided by Deutsche Bank showed smoking gun proof that UBS Group , HSBC Holdings , the Bank of Nova Scotia and other firms were involved in rigging gold and silver rates in the market from 2007 to 2013.
Not long after, the long-running London gold fix was replaced by the LBMA gold price in a bid to increase gold price transparency. The twice-a-day process, operated by the ICE Benchmark Administration, still involves a variety of banks collaborating to set the gold price, but the system is now electronic.
Still, the issue of price manipulation has by no means been solved, as a 2020 fine on JPMorgan shows. More recently, chat logs were released in a spoofing trial for two former precious metals traders from the Bank of Americas Merrill Lynch unit. The logs show one of the traders bragging about how easy it is to manipulate the price of gold.
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Highest Price For Gold: Historical Gold Price Action
Gold hit US$2,067.15, the highest price for gold at the time of this writing, on August 7, 2020.
To break through that barrier and reach that record high, the yellow metal added more than US$500, or 32 percent, to its value in the first eight months of 2020.
Despite this recent run up, the gold price has seen its share of both peaks and troughs over the last decade. Rising as high as US$1,920 per ounce in late 2011, the price of gold took a deep dive half way through 2013, dropping to about US$1,220. The gold price then remained between US$1,100 and US$1,300 from 2014 to early 2019 but in the second half of that year, a softer US dollar, rising geopolitical issues and a slowdown in economic growth pushed gold above US$1,500.
Gold price chart via Kitco.
Compared to 2020, golds price performance in 2021 has been a letdown for many market watchers who were hoping to see further gains. Golds failure to do so has surprised investors and commentators alike.
When will gold once again return to its upward trajectory? Only time will tell, but veteran investor Rick Rule, who recently retired from Sprott , views such downturns in the gold market as an opportunity, not a cause for concern, as conditions are ripe for the gold price to push higher.
Gold Prices Reach Highest Level Since 2011 And Near Record As Investors Flood Safe Havens
- Gold futures swung higher on Thursday and neared a record close as investors continued to hedge against a worse-than-expected recession.
- Contracts for the precious metal leaped as high as $1,897.70 per ounce, overtaking their all-time closing high of $1,891.90 from August 2011.
- The asset’s intraday high is just a 1.4% climb away from breaching the previous intraday record of $1,923.70, also set in 2011.
- Gold has rallied sharply through the summer as investors bet on near-zero rates, growing economic risks, and inflation to boost the metal’s value against the dollar.
- Watch gold trade live here.
Gold is on track to close at a record high on Thursday as investors continue to pick safe-haven assets to ride out the coronavirus pandemic.
Futures for the precious metal traded as high as $1,897.70 per ounce through the session, passing their record close of $1,891.90 set in August 2011. Gold contracts’ intraday record, also set about nine years ago, sits at $1,923.70 per ounce, just a 1.4% climb from Thursday’s peak.
The popular hedge bet has rallied through the year as investors wary of a longer-than-expected recession flee from stocks and bonds. Gold prices typically turn higher during an economic downturn, as the metal’s scarcity and historic allure lead it to appreciate over the dollar.
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Studying The Gold Rate Trend In India
Studying the gold rate trend in India could offer an insight into future fluctuations and investment plans can be made accordingly. The gold rate depends on a number of factors like the stability of the central bank, the supply and demand of gold in the market, quantitative easing, government reserves, the health of the jewellery industry and overall yearly production to name a few.
Gold prices in 2018 saw some significant fluctuations due to ongoing geopolitical tensions in the United States, which impacted the U.S. dollar rate and influenced global bullion demand. Local demand for the yellow metal was influenced by the fluctuating rupee rate, which continued to play second fiddle to the dollar. The ongoing Brexit crisis caused fluctuations across the Eurozone, which led to a surge in bullion demand towards the end of the year. The U.S government shutdown also served to pressure the U.S. dollar, though gold rates did not see much impact at the time.
What Does This Mean
The dollar has lost 96% of its real value, where the equivalent purchasing power of $1.00 in 1940 is just $0.04 in 2020.
This is a major decrease, and it will only continue to fall as the increasing money supply gives rise to inflation which is being jump-started by the response to the Covid-19 crisis so far, even without a second wave. And, the Rand has depreciated by roughly 40% to the dollar over the last 10-years so as a South African holding Rands you can now understand why you feel so poor relative to the Americans and Europeans.
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What Drives The Price Of Gold
Today, gold is sought after, not just for investment purposes and to make jewelry, but it is also used in the manufacturing of certain electronic and medical devices. Gold was over $1,700 per ounce, and while down more than $300 from September 2020, still up considerably from levels under $100 seen 50 years ago. What factors drive the price of this precious metal higher over time?
What Is A Troy Ounce Of Gold
A troy ounce of Gold is equal to 31.10 grams. Its a unit of measure first used in the Middle Ages, originating in Troyes, France. You may notice that this is slightly heavier than the 28.35 grams weve come to expect from the standard ounce . Troy weight units are primarily used in the Precious Metals industry.
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Beware Silver Price Manipulation
As a final note on the price of silver and buying silver bullion, its important for investors to be aware that manipulation of bullion prices is a major issue in the space.
For instance, in 2015, 10 banks were hit in a US probe on precious metals manipulation. Evidence provided by Deutsche Bank showed smoking gun proof that UBS Group , HSBC Holdings , the Bank of Nova Scotia and other firms were involved in rigging silver rates in the market from 2007 to 2013.
JPMorgan Chase has been long at the center of silver manipulation claims as well. For years the company has been in and out of court for the accusations. In a recent case, the bank settled a lawsuit over alleged precious metals spoofing for an undisclosed amount. It agreed to pay US$920 million to resolve federal agency probes regarding manipulation of multiple markets, including precious metals.
In 2014, the London Silver Market Fixing stopped administering the London silver fix, which had been used for over a century to fix the price of silver. It was replaced by the LBMA Silver Price, which is run by ICE Benchmark Administration, in a bid to increase market transparency.
Furthermore, market watchers like Ed Steer have said that the days of silver manipulation are numbered, and that the market will see a significant shift when the time finally comes.
Worldwide Jewelry And Industrial Demand
In 2019, jewelry accounted for approximately half of the gold demand, which totaled more than 4,400 tonnes, according to the World Gold Council. India, China, and the United States are large consumers of gold for jewelry in terms of volume. Another 7.5% of demand is attributed to technology and industrial uses for gold, where it is used in the manufacturing of medical devices like stents and precision electronics like GPS units.
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Gold Price Prediction Chart
Ive compiled gold price predictions from a number of banks and precious metals analysts.
The table below shows the gold price prediction from various consultancies and independent analysts. Not all gave a forecast for both time periods, but Ive listed what theyve stated publicly. Heres what they think is ahead for gold.
You can see that most analysts predict gold will exceed $2,000 per ounce in 2021. Two project it will average in the $1,900-range. And of those I found, all are very bullish long-term .
A couple interesting points to highlight from these analysts
CPM Groups projection is lower than most, but if gold averages $1,922 in 2021, it would represent an 8.2% increase over 2020 and a record annual average. They also state that we expect prices to rise sharply at some point in the future, to new records significantly higher than $2,000. Such an increase would be expected to be caused by investors buying increased volumes of gold in a future economic and political crisis the period 2023 2025 is perhaps the most likely time period to expect such.
Meanwhile, well note that analyst Ross Norman has won first place in the LBMA gold price survey nine times. He predicts gold will rise 20% this year.
Last, the average 2021 gold price forecasts from these analysts is $2,228.
So what is my 2021 gold price prediction? To answer that question we have to look at the various factors that are likely to have the biggest impact on the price, both positive and negative.