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(Kitco News) - $1375…

That was the magic number that allowed gold to break through and touch $1,400 for the first time since September 2013. 

Some, including bitcoin enthusiasts, ask why gold followers get so excited with these rallies (the metal rallied 4%) which may pale in comparison to the 300% returns of the digital coin. But for precious metal followers who have been waiting patiently and longingly for some momentum and some excitement, this week was a BIG deal.

Gold prices surged to a six-year high on Friday with technicals looking solid. So why wouldn’t folks be happy?

“Long-suffering gold bulls are finally being rewarded as the safe-haven metal has broken out well above the five-year overhead resistance at $1375. The move has caught many investors off guard while on vacation, as market summers have long been bullion’s weakest time of the year seasonally with the June/July time period simply devoid of the big recurring demand spikes seen during most of the rest of the year,” David Erfle summed up in his weekly Kitco column.  

Moreover, gold fever is spreading, a record number of respondents took part in our Wall Street vs. Main Street survey with the majority of respondents looking for the safe haven to continue its rise next week.

Earlier this week, the Federal Reserve opened the door for a possible rate cut in the future, sending the yield on the benchmark 10-year Treasury note below 2% — a key psychological level — for the first time since November 2016.

“I think the dollar is going lower because the Fed is probably going to cut and that sends gold and oil higher,” Mad Money’s Jim Cramer chimed in on the gold rush from the floor of NYSE.

Billionaire Paul Tudor Jones of Tudor Investment said that once $1,400 an ounce is breached, the next level is $1,700. When I asked Phil Streible of RJO Futures his thoughts on this, he said that is “definitely possible.”

“It’s factored in at 100% that [the Fed] will cut next meeting. If you look at the last time we had this aggressive hike cycle followed by rate cuts, they had higher levels to go down from,” he said. “We should continue to see that breakthrough $1,400 and I anticipate that a lot of the short sellers will end up giving up at that level.”

Any way you slice it, this week was a lot of fun for the Kitco News team. In turn, you have a lot of great content to fill your weekend with – a long weekend for our friends in Quebec.

Also, must watch coverage from Neils Christensen who wrapped up the Inside ETFs conference in Montreal – you will not want to miss his interview with Brian Belski, chief investment strategist for BMO who has a different take on the gold debate, saying that investors shouldn’t be overly invested.  

And if you are a fan of Rich Dad, Poor Dad’s Robert Kiyosaki, we have him too. Find out how what his strategy is right now.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.