GoldSilver Blog

A lot of readers liked our article on how much cash could flood the gold market once institutional investors start buying. Now it’s time to look at silver. And as most readers know, the silver market is much smaller than gold, meaning it could be easily overwhelmed—much more than gold—if these investors begin to take interest.

Federal Reserve Chairman Jerome Powell announces the Fed's interest rate decision at the end of the Federal Open Market Committee's two-day meeting. The Fed is widely expected to lower its benchmark overnight lending rate by a quarter point.

Gold bounces off trend line support at $1493 overnight, climbs to finish at $1502 ahead of the FOMC / Powell tomorrow...

Gold rallies on safe haven buying after attack on Saudi oil processing facility. Overnight – gold climbs to $1512 after attack knocks out 50% of Saudi oil production...

Gold advanced overnight, climbing in a range of $1496 - $1509. The move was fueled by a pullback in the US dollar (DX from 98.40 – 97.99), which was pressured from strength in the yen (108.26 – 107.90)...

Gold advanced last night, but retained its choppy tone – trading either side of unchanged in a range of $1489 - $1506.

Gold staged a modest rebound last night, trading higher in a range of $1486 - $1495, with its price action remaining nervous and choppy.

Gold continued to soften last night, trading lower in a range of $1487 - $1500, still retaining its nervous and choppy tone of a market near multi-year highs...

Gold rebounded overnight after dropping $54 over the last three sessions. Retained its nervous and choppy tone in a range of $1504 - $1514.

Gold continued to soften overnight, trading in a range of $1503 - $1520. Took out its $1506 low from yesterday, but dip buying ahead of $1500 limited the downside to $1503.

Gold traded lower last night, retreating from its 6-year high made yesterday in a range of $1538 - $1553. It was pressured by news that China’s Vice Premier He spoke with Lighthizer and Mnuchin from the US last night, that they agreed to meet next month...

I once asked my institutional investor friend, who used to work at Goldman Sachs and has been a gold owner for many years, what would make him buy more bullion. Without hesitation he said, “When the price breaks out.”Well, as is clear to the world, gold has broken out of its long-term trading range.My friend is not alone in this sentiment of waiting to buy an investment until it’s rising. Institutional advisors, brokers and managers sit on the sidelines until a dormant asset class comes alive and establishes an uptrend—then they jump in.

Gold softened overnight, trading in a range of $1534 - $1550. Ticked up to its $1550 high early during Asian time where resistance at the $1549 - $1550 triple top (8/26, 8/29, and 9/3 highs) capped the advance.

Silver decisively pierced through $19 this morning. Gold is up, too, by 1.2%, but silver has risen 3.4% as we write. With silver’s outperformance, the gold/silver ratio has now fallen to 81. Since the gold/silver ratio peaked at 93 in June, the silver price has jumped 30%. We’ve shown many times that once the ratio begins to reverse it has quite a ways to fall. It hit 31 in 2011, and 17 in 1980. As many of our readers know, Mike Maloney is convinced we’ll see a repeat of the 1980 low. That implies MUCH higher silver prices.

Gold retreated back to its $1522 low (trendline holds again) during European time, trading against a rebound in the DX to 98.61 (fresh 4-week high). The dollar was lifted by a weakness in the euro ($1.1060 -$1.1032)...

Gold remained nervous and choppy overnight, trading in a range of $1533.80 - $1550.40...

One of the articles that elicited a lot of reader feedback was our report on the ratios for gold and silver to real estate. That was over a year ago, and with gold and silver prices rising, it’s time for an update. Real estate prices are high too, and got another boost when the Fed lowered rates. So do the ratios remain elevated? And where do they stand compared to the last big bull market in precious metals?

Gold continued to come off, but found support at prior resistance at $1535. However, as we’ve seen time and again, bargain hunting buying emerged to lift the market back to $1537-38.

Gold firmed moderately last night, trading in a range of $1526.60 - $1535. The advance was capped at $1535, where resistance from the 8/13 high held. Gold was fueled by a pullback in global bond yields...

The silver price has punched through $18, the first time in nearly two years. Gold is at 6-year highs, but silver has outrun it in August, currently up 10.1% so far this month, vs. an 8.1% rise for gold. It's clear that silver has now joined the party. The gold/silver ratio is down to 85. But that’s still historically high, meaning silver is still a bargain compared to gold. As we move forward, we fully expect to see silver outperform gold.