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 Replies: 21 / Views: 3,382 |
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Pillar of the Community
United States
722 Posts |
Today is Sunday Aug 8th. Gold trading just opened up and it's already down $58 after being down big on Friday. Can someone tell me what's driving this movement? I can never figure it out.
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Valued Member
United States
465 Posts |
I was just wondering the same. Perhaps the USD is strengthening?
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Pillar of the Community
 United States
8938 Posts |
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Valued Member
United States
465 Posts |
I does sound funny but with COVID-19 making the rounds investing flows to safe havens. Wait that sounds funny too!
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Bedrock of the Community
United States
10284 Posts |
Hey if it drops enough . . . maybe I'll buy some?  |
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Pillar of the Community
United States
8938 Posts |
Real answer is the Jobs Report. People (finally) deciding to go back to work means that gold goes down. However, there are currently (IIRC) 9 million open jobs and most are struggling to fill positions. Namely restaurants and small business are dealing with a staffing crisis.
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Pillar of the Community
United States
1373 Posts |
My guess is that the price is going down because gold isn't worth as much as people thought.  |
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Bedrock of the Community
Australia
21788 Posts |
I want to buy some bullion, but I am currently prevented by CV-19 from making a physical face to face purchase at the bullion dealer.
For that reason I an contributing to the demand for bullion drying up. I am one of perhaps many thousands of people around the World that are delaying a decision to buy.
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Bedrock of the Community
United States
19171 Posts |
Why the drop? Well, gold has a pretty high specific gravity...
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Pillar of the Community
United States
5191 Posts |
Perhaps the market expects things to go back to "normal" sooner than everyone else.
Dollar strength also impacts the price of gold. However, the dollar is not up because it is so fantastic, but because China is falling apart (they just went into another lockdown and are rapidly becoming an investment unfriendly nation) and Europe is not doing much better. The US is simply the least ugliest sister of the three.
Edited by NumisEd
08/08/2021 9:46 pm
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Pillar of the Community
United States
7276 Posts |
People/companies/investors generally put money into gold during times of economic uncertainty which 2020 to 2021 have been uncertain times with lock downs, covid, unemployed and massive government subsidies. The major players decided it might be a good time to hold some Precious metals. As the US comes out of covid and our economy comes back the investors decided to get out of gold, coupled with a great jobs report and you have investors dumping gold (mostly paper, vast majority of investors hold paper not physical gold). This results in a short term drop in value, now if this keeps on happening you can get into a cycle of price is dropping, I'm selling which causes the price to drop more until gold hits a floor which can take years to recover.
The good thing about gold and other PMs is that the physical asset and the paper asset aren't necessary in sync, we saw this when silver tanked and you couldn't buy it at the low price same may occur with gold.
While I doubt our day to day hold purchase affect the market, the big investment firms (like JP Morgan), are the ones that generally control the value, if they get out of gold and go to US Bonds as they might expect the interest rates to go up, we may eventually have a large drop in value. As to whether this is going to happen, I have no idea.
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Pillar of the Community
Australia
1333 Posts |
Jobs Report however that quite false data all you need to do is look at outside it will be revised so who cares. basically bonds fell rallied dollar, as gold usually trades inverted to the dollar it goes down like a balloon.
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Pillar of the Community
 Canada
5394 Posts |
The sky is not falling , there is the Jobs report
Cheap money is going to be around for a bit
and gold pays neither interest nor dividends .
That is the one reason no portfolio should ever
Have more than 5 per cent PM position.
I dumped 50 ounces at 2300 CAD a few years
back and put it all in reasonably conservative
dividend paying stocks .way ahead !
Gold and silver as investments really suck !
Edited by Pacificoin
08/08/2021 11:26 pm
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Pillar of the Community
Australia
1333 Posts |
oh wait I see what mean on the OTC markets, well someone lost some major coin. NOTE he's saying TODAY at the open of the Asian trading session, no I haven't seen any news at the moment but I would be darn interested as that seem at be too much even for wallstreeters MM.
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Pillar of the Community
United States
4333 Posts |
$4 billion dollar paper dump.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United States
4333 Posts |
Quote:
Gold and silver as investments really suck Of course they do, because they're not. They're insurance in case paper assets fail. When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Replies: 21 / Views: 3,382 |
Posted 08/08/2021 7:42 pm
