Sunday, May 1, 2016

Gold ends April up 4 percent, and at 15 month high

When gold began to move in early January, many thought it was simply a knee-jerk reaction from equity sellers moving into the metal as a safe haven because bond yields offered almost infinitesimal returns.  However, with gold not only withstanding the paper onslaughts by the cartel in both February and March, its recovery and explosion upward in April has proven that gold is now in the next leg of a Bull Market.

Gold closed on April 29 at $1293 per ounce, which means that it rose by 4% over the course of the month, and ended on the last trading day at a 15 month high.

Gold and silver futures rallied Friday, posting the highest settlements since January 2015, as a slump in the greenback to its lowest level in about 11 months lured investors into dollar-denominated commodities. 
June gold GCM6, +2.25%  jumped $24.10, or 1.9%, to settle at $1,290.50 an ounce, marking a fifth straight day of gains. The settlement was the best since late Jan. 2015. Prices ended roughly 4.4% higher for the month, based on the most-active contracts, and were up over 5% on the week. - Marketwatch
Heading into May, the most important thing to watch is the U.S. dollar, which closed on Friday just barely over 93 on the index.  And if it begins to slide next week when the markets re-open, then chances are very good it will collapse into the 80's very quickly, and the gold price will skyrocket towards $1400 with little resistance.


Post a Comment