Thursday, October 29, 2020

Tag: Market Report: China tightens control over bullion

Market Report: China tightens control over bullion

by Alasdair Macleod, GoldMoney:

Gold and silver continued to strengthen this week, both seeing new closing highs for the year. Gold rose by $12 from last Friday’s close to trade at $1510 in early morning European trade and silver by 15 cents to $17.11.

For the last seven trading sessions, the pattern appears to be another running correction with each dip finding buyers at rising prices. The one exception was extreme volatility on Tuesday, when gold traded as high as $1535 then as low as $1480 before bouncing back to close at $1501. The cause was Trump’s announcement he would postpone tariffs on Chinese consumer goods as a Christmas gift to US shoppers. Immediately, this was seized upon as a climb-down. Rather, it shows confusion in the White House. Someone probably warned him that tariffs will drive up the rate of price inflation, making it difficult for the Fed to reduce interest rates.