(Update 10:26 a.m. Eureka time)
Comex gold $1,229.4 per troy ounce
Comex silver $17.520 per troy ounce
Comex copper $2.5075 per pound
What a week it was for gold! My input to this morning's Weekly Kitco Gold Survey:
From my bayou perch in Franklin, Louisiana, I believe a key driver for gold is the ascension of copper price. Even before the volatility of the November election, gold began a normalization with both the red metal and oil as their gold ratios broke higher-low trend lines (see graph below).
Gold ratios descending towards historical norms (e.g., stabilizing gold price, rising copper price) signals that gold is checking back in the commodity hotel after a two-year run with the currency crowd. We have witnessed record and unsustainable gold ratios since the strong dollar era began in late-October 2014. As developed nations slowly replace aggressive monetary policies with fiscal stimulus, commodity prices should rise. This is further aided by increasing inflation expectations.
Gold will likely stabilize in a range of $1,240 to $1,320 per ounce in the next 6 months (even though gold has dipped below that range this morning).
My vote is up. Target gold price for next week is $1,240 per ounce; silver price, $17.48 per ounce
Chart to Watch
Here's a new chart to watch. Click on the image for a larger size:
in the strong dollar era