On Thursday, gold broke through its 50, 100 and 200 day moving averages, breaching the $1,800 mark and skirting there for the next 24 hours until closing last night for the weekend, having fallen just below the mark to close at $1797. Opening the week at about $1755, that's a healthy $42 gain for the week. Traders consider it a bullish sign when gold breaks all of its moving averages.
The chart below from kitco.com shows gold's performance over the last 3 days. We can see it actually started climbing on November 30th. FED Chair Jerome Powell made comments suggesting that while more rate hikes were coming, they would be at a less aggressive pace. This in turn affected confidence in the dollar, pushing the USD down to close at 104.5, its lowest level since June 28,2022.
You know what they say about silver. It tends to outperform gold when gold is on the rise and this week, silver did not disappoint! After 3 days of steady gains, silver rose by about $1.80 per ounce. At one point, the percentage gain was 8.66%. Not bad at all for my favorite metal.
After coming within mere cents of falling below $16,000, Bitcoin recovered nicely and even breached $17,000 and at time of writing, is at $16,980. Is this a sign we'll see more correlation between gold, silver and Bitcoin? Rates are rising, just like the late 70s and early 80s. What happened then? Real estate tumbled in value as lending rates passed 20%. Those that were smart enough to have gold and silver in their possession saw the value of their holdings go to record highs. I remember reading somewhere that in some places, you could buy a house for 500 ounces of silver when silver hit $50 in January, 1980. At today's prices, 500 ounces would amount to about $19,000.
I'd love to buy a house for $19,000.
And WTI crude is just 2 cents shy of $80 per barrel. Enjoy the ongoing break at the pumps!
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