Gold scores another record high as dollar weakens and Fed member speaks
History was made once again today with gold surging to its highest closing price in history. As of 5:50 PM EDT, gold futures are up over 2%, a net gain of $51.70 fixing a troy ounce at $2546.20. This marks the fourth occasion in which gold challenged and successfully closed at a higher high than the previous record high close **.
The first occurrence of a new historical closing price occurred on Friday, April 19 when gold closed at $2478. The second occurrence came in at a whopping $2501 on Monday, May 20. Gold futures would inch a tad higher, reaching $2521 on July 16. Today, December gold futures closed at $2546.20 making a new historical record close.
Gold has traded to multiple new record highs over the years, as noted in an article by MarketWatch. There has never been a point in time in which, so many new record prices occurred in such a short period.
According to MarketWatch, “Prices for gold on Friday tallied their 28th all-time settlement high for the year so far, with the precious metal finding support as market volatility this month attracted buyers to the “safety” of gold.”
Gold’s historical climb to multiple new records closes has been aided by a new but very strong parameter. There is an influx of new gold buyers, as well as increased purchases by central banks. Combined, they represent a significant number of new entities actively and aggressively purchasing gold.
According to Peter Spina, founder and president of investor websites, “Gold has shown strong buying on pullbacks, which do not develop into larger consolidation phases. This just tells me that the gold market is well supported by the new gold buyers.”
Speaking to MarketWatch he said that Western gold buyers have joined the gold buyers, and it is this fact that is cushioning selloffs. The bottom line is that the appetite for gold has become massive and global.
Spina also said that there remain many market risks and gold buyers recognize the many and various instabilities around the world – geopolitically to financial, and economic risks. Which is why Gold is benefiting as a store of safety.
He framed the recent historical move in gold by saying, there are “historic times” in the gold market and “very few are noticing. Gold price remains in “stealth mode, which is quite telling about how much more gold prices can run from here” as the Federal Reserve is set to start cutting interest rates in the meetings ahead.”
**Prices were adjusted for contract change in this continuous contract now representing December gold
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