Gold finally broke through and held above the $1,300 resistance level this week.
There are a number of factors in place that could help sustain a gold bull run, but the biggest driver right now is fear.
And the fear isn’t unjustified. It’s a scary world out there.
As an article in the Economic Times put it, ‘the surge in the price of gold appears to be more than a ‘technical’ move. Instead, it smacks of fear in the markets.’
A weak dollar has certainly been a factor in the rising price of gold. But as the ET report points out, gold has resisted rallying even though the greenback has been weakening all year. And as Peter Schiff noted in his most recent Gold Videocast, gold is not just rising in dollar terms.
Gold now is not only rising in terms of dollars, but it’s finally rising in terms of everything. Gold is now going up in yen terms. It’s going up in Swiss frank terms, even though those currencies are rising as well. This is a key factor. And I think now that we have cleared out that resistance – there are a lot of people who thought there was no upside in gold. Well, they’re about to find out just how much upside there was.’
This post was published at Schiffgold on AUGUST 30, 2017.