On a daily basis, gold held the $1280 to $1310 level then jumped higher today by $22.70 to $1344 for no apparent reason.
Regardless, the move was long overdue due to increasing deficits and other related issues including absurd proposals to waste $100 trillion on New Green Deals. Since the latter is years away, at least, I doubt that’s the reason.
Regardless, there does not need to be a reason for today. Fundamentally gold is way undervalued. Today it rose.
Gold Weekly Chart
Gold is approaching resistance at $1377, $1362, $1369 and at $1393 as show in the monthly chart. I do not expect this resistance to hold, but it may take a while to bust through for purely technical reasons.
Gold Monthly Chart
There is multi-year resistance, dating to mid-2013, at $1393. Technically speaking, if gold can break through that resistance, there is little further resistance all the way to $1798.
I expect the action to play out that way.
Mike “Mish” Shedlock
buygold hammersee
Gold is and has been money at the times it mattered most for most of recorded history. Holding a little is a good idea. Studying the fall of the roman empire is very enlightening for those of you that doubt this. If its such an archaic relic why does every central bank maintain vast reserves with China and Russia adding to them yearly?
Not sure I like the fact that the Fed is the largest holder, not exactly smart money.
Wrt Gold, the Fed may have 5%. Wrt fiat, they hold arbitrarily close to 100%
“omg, there simply is NO fundamental value for gold. If you disagree I’d love to see the analysis.”
OK : Gold is money, nothing else. It has been for centuries and fiat dictate cannot change that fact – The Fed is the largest holder
omg, there simply is NO fundamental value for gold. If you disagree I’d love to see the analysis.
Its value is what “the market” says it is.
If you are someone who believes that gold is an almost useless “yellow rock”, then you are on a particular side of “the market”.
If you are someone who believes that “Gold is money, all else is credit”, then you are on a particular – though opposite – side of “the market”.
You are free to take your pick.
That’s pretty much exactly the point. I didn’t ask what it’s current value is, I’m wondering what the “fundamental value” is, and how that can be used to make the claim that it’s “undervalued”.
It’s “fundamental value” is that it is, far and away, the thing best suited for a specific, and widely demanded function in any society wanting to engage in trade and/or inter temporal scheduling of economic activity. There are other things that can be pressed into service, but they are far inferior. At least for now, wrt crypto currencies.
Kind of like how Plutonium is valuable, since it makes bigger firecrackers than all alternatives. Other stuff can go bang as well, but Plutonium ones go banger.
I think shamrock means it can’t be printed like paper claims can and that upsets him. I am sure the folks in Zimbabwe and Venezuela would like to differ on what intrinsic value means.
Nothing has ‘fundamental’ value, but only value to a person, in relation to other things that person might want instead. ha, fundamental value lol
That chart is a textbook example of a “Cup-and-Handle” formation. Once the handle has formed (and it looks like it has), it is a VERY bullish pattern..