Gold is Over $ 1,700

Gold is Over $ 1,700

Gold and silver show a tremendous upward trend that cannot be ignored. There are also a number of basic tailwinds that will help bring higher prices. The Federal Reserve lowered rates to zero and released a large QE-infinite asset purchase program. Central banks around the world have done the same. Washington then passed his third financial bill, a historic measure of $ 2.2 trillion. The global economic contraction, currencies around the world all depreciated at the same time, and the US Treasury reached record low levels. This made the current deflationary environment only a short-term windbreak of gold. On March 9, markets digested Saudi Arabia's crude oil price war declaration, I joined the "Fast Money" table of CNBC. We were entering a deflationary environment due to the virus outbreak and the rapid decline in crude oil. The following week, gold fell to $ 1,453. Returning to 2008, during the major financial crisis, gold lost 34% from its peak before the bottom and silver lost 60%. It all ended in October 2008, when the Federal Reserve launched QE1 and Washington shortly after TARP. The resulting rallies were out of date. At their summit in 2011, gold almost tripled and silver was collected by almost 500%. But something happened this week: we hope that President Donald Trump can hold a ceasefire between Saudi Arabia and Russia. Crude oil brought long-term strength to both silver and gold. Metals experienced strong buying waves early Thursday and followed in part due to the impact of crude oil on inflation expectations.