The Spot Price of Gold Could be Heading Much Higher

Cassie Bastien

6/7/2017 4:16:43 PM

Daily Gold & Silver Market Report – 06/07/2017

The price of Gold hit its highest since the night of the U.S. presidential election in November and many investors say there is more to come. Rich Ross, technical analyst with Evercore ISI, said Tuesday on CNBC's "Power Lunch" that Gold prices experienced “a textbook breakout from a symmetrical triangle or wedge,” which Ross added could be quite bullish. CNBC reporter Alex Rosenberg said, “The pattern's predictive potential is further bolstered by the fact that the lower low came in December, which is also where Gold found a bottom two years ago.” That's some “nice bullish symmetry,” Ross said, “So in the short term, I like Gold to move higher.” Dropping long-term bond yields and a declining U.S. dollar is essentially driving Precious Metal prices. Matt Maley, equity strategist with Miller Tabak, also sees constructive signs on the Gold charts, saying, “We've got a lot more room to run here. I think $1,375 [per ounce] is a good target here.”

Precious Metals Rally Intensifies

The U.S. dollar plummeted to eight-month lows last Thursday, providing a strong catalyst for Precious Metals, specifically Silver. Financial market analyst Sam Bourgi with EconomicCalendar said, “Gold’s premium over Silver has declined over the past four weeks, reflecting the latter’s out-sized percentage gains.” By Monday's close, an ounce of Gold was worth 72.91 ounces of Silver. Bourgi says, “That represents a decline of 3.5 percent over the past 30 days. Still, both metals are hovering at six-week highs.” Furthermore, Bourgi noted, “The Reserve Bank of Australia held its trend-setting interest rate at 1.5 percent on Tuesday, as officials kept monetary policy highly accommodative in support of economic growth.” The only remaining news events set for this week are the European Central Bank delivering its latest policy verdict and the congressional testimony from former FBI Director James Comey, both set for Thursday.

• The dollar index fell 0.2 percent to 96.61 (EconomicCalendar.com).

At 5:16 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,289.50 Down $8.00
• Silver, $17.68 Down $0.14
• Platinum, $948.30 Down $17.50
• Palladium, $835.50 Down $20.90

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