Hope you are enjoying your Thursday—we have plenty of precious metals news for you today: one article looks at the country of India—a culture that highly values gold is having its relationship tested with the glittering rock. In another article we look at the factors that put the brakes on the gold rally…and in the stock market category, we found a bullish case for ETFs even now with the price cool down.

Let’s dig in…

International
India’s Passion for Gold Cools Down – Upcoming Festival Will Test the Relationship

The people of India have been one of the world’s biggest buyers of gold for a long time…however, a combination of soaring prices and the pandemic’s slam on the global economy has put a strain on this love affair between the glittering metal and Indian citizens. Stock market investor Darshan Sheth is both concerned yet relieved about the gold price surge to a new record high. As a potential investor, his concern is due to gold potentially becoming less affordable to more people. On the other hand he feels relief after dodging the bullet of the economic crash—his daughter was married right before the coronavirus swept across the world. Sheth had bought the required gold ornaments months before the wedding. Since he made his purchases last year, the price has surged more than 50%, hitting an all-time high above $2,000 in US dollars. As an investor in stocks, which surged…

Latest News
Gold Takes a Nosedive into a Pool of Vaccine Hopes and Rising Treasury Yields

The yellow metal declined more than 5% to $1,927.39 per ounce, which was its worst single-day rout in seven years and a far cry from Friday’s record intraday high of $2,089.20. By Wednesday morning, spot gold prices had fallen even further. Analysts blame the tumble on rising U.S. real yields on optimism surrounding the virus, among other factors. The dollar has also been strengthening. However, the Commonwealth Bank of Australia’s Vivek Dhar says do not write off gold just yet. Dhar said, “Gold prices and US 10 year real yields have held a strong negative relationship over time. That’s largely because when U.S. yields rise, gold looks less attractive since gold earns no income.”

Stock Market
VanEck Back on Bullish Case for Gold ETFs

Despite a sharp decline in the price of gold on Tuesday, the ETF issuer VanEck remains bullish, seeing $3000ozt as a reasonable price target for the metal in the current bull market run. VanEck began their bullish attitude on gold in the middle of 2019, highlighting sustained central bank uncertainty, the surge in negative-yielding debt, and gold’s recent breakthrough of a strong technical six-year mark at the time. A lot has occurred since then, and the firm’s latest assessment finds a number of key reasons to reassert a bullish view toward gold as it moves past it’s previous all-time high. “Since 1968, when gold was $35 per ounce, the drivers of gold bull markets have fallen into two categories: inflationary and deflationary,” said Joe Foster, Portfolio Manager for VanEck’s Gold Funds. “We don’t see inflation… READ MORE

Latest News
Silver Takes Biggest Dive Since Lehman Bankruptcy

Retail day traders were starting to flood into precious metals, and Robinhood’s retail army making SLV one of their most popular positions just last Friday…investors were reminded vividly just how fickle retail moods can be, with silver hitting a near-decade high of $30 only a few days ago—now the grey metal is down as much as $4.

International
U.K. Recession Fears Fuel a Gold Bounce Back

Gold bounced back above $1900 per ounce on Wednesday as tepid UK data brought fears of a continuing economic slump for Great Britain amidst coronavirus uncertainties and helped bullion erase initial losses fueled by a resurgent dollar. Spot gold jumped 1.6% to $1,942.45 per ounce by 0816 GMT, rebounding from a 2.5% drop in early Asian trade. U.S. gold futures rose 0.2% to… READ MORE

Latest News
Precious Metals Rally Disrupted by Rising Treasury Yields

Investors watched gold prices close slightly higher after a wild trading session on Wednesday, continuing a volatile period for the market as climbing yields on U.S. government bonds sapped investors’ desire for the yellow metal. Futures contracts for delivering gold in December, which reached a record high just last week, ended the day up 0.1% at $1,949 a troy ounce in sporadic trading. Prices moved in a wide range… READ MORE

Thanks,
Gold Silver Central