Top Stories This Week: Gold Hits Lowest Price Since Mid-2020, Previewing PDAC

TL;DR

The gold price has fallen below $1700 per ounce due to a stronger US dollar, better US treasury yields, profit-taking, and enthusiasm for Bitcoin.

Transcript

welcome back to our weekly update i'm charlotte macleod with the investing news network and this is your quick look at the stories we've been covering that you need to hear about the gold price continued to sink this week falling below the 1700 per ounce mark for the first time in 2021. once again the precious metals decline has been blamed on fact... Read More

Key Insights

• 💪 The gold price has fallen below $1700 per ounce due to various factors, including a stronger US dollar, better US treasury yields, profit-taking, and enthusiasm for Bitcoin.
• 🏅 Inflation concerns are not providing support for the gold price, despite gold being traditionally viewed as a hedge against inflation.
• 🏅 Peter Grandich believes that the correction in the gold price is coming close to an end, expecting it to be a four or five inning game with a downside risk of about $100 and an upside reward of $500 to $1000.
• 🧑‍🏭 Other factors impacting the gold price include profit-taking and the increasing popularity of Bitcoin.

Questions & Answers

Q: What factors have contributed to the decline in the gold price?

The decline in the gold price can be attributed to a stronger US dollar, better US treasury yields, profit-taking, and the enthusiasm for Bitcoin.

Q: Why is inflation not supporting the gold price?

Inflation is not supporting the gold price because if market watchers anticipate inflation, bond yields rise, causing bond prices to fall. This scenario is damaging for gold prices.

Q: How long is the expected correction in the gold price?

According to Peter Grandich of Peter Grandich and Company, the correction in the gold price has gone on longer than expected, but he believes it is nearing its end.

Q: What are the downside and upside risks for the gold price?

Peter Grandich suggests that the gold price has a downside risk of about $100 and an upside reward of $500 to $1000.

Summary & Key Takeaways

• The gold price has declined below $1700 per ounce, attributed to a stronger US dollar and better US treasury yields.

• Inflation concerns have not been providing support for gold, despite it being seen as a hedge against inflation.

• Other factors impacting the gold price include profit-taking and the popularity of Bitcoin.