Gold Breaks $1,300 to Hit Seven-Month High
Gold Breaks $1,300
Gold broke through $1,300 an ounce on Friday, roaring up $22.70 on the day, and closing in New York at a seven-month high of $1302.50.
That’s the second time in this new year that gold has punched through $1,300. At the beginning of the month it tested that level but didn’t hold.
This time it held.
We see that as a highly significant technical event. It appears the new bull is finding its legs. We advise our clients to take any pauses along the way as a good thing, a chance to get in before the price powers through to a new and higher trading range.
Gold’s strong move on Friday was confirmed by silver as well.
Silver rose 3 percent on Friday, up $0.45 per ounce to close at $15.75.
That is more than a confirmation. It was a ringing endorsement.
Technically speaking, gold’s bullish outlook is also confirmed by a look at the charts. This week gold’s closely watched 50-day moving average broke above its 200-day moving average. This “crossover” is a widely regarded bullish indicator.
It is not just the price action that is bullish. It is not just the technical picture that is bullish.
The economic and monetary fundamentals are unreservedly bullish as well.
Since we have described fundamentals in detail in our blog posts and alerts, we will simply point to three things we feel it is essential our clients know:
- Key geopolitical players like China and Russia are aggressively adding gold to their reserves. See our comments HERE and HERE.
- Gold is at or near all-time highs in many of the world’s currencies. More HERE.
- The stock market remains highly precarious. Review our call of the market top and other comments HERE, HERE, and HERE.
If you would like to know more about recent market action and the reasons that precious metals are an imperative for protecting yourself and your family, call your RME Gold broker. If you do not have one, simply call our office and you will be connected to one of our knowledgeable gold and silver professionals.
We urge you to do so right away.
