Gold Breaks Out!
Over the past 24 hours, gold has broken above $1,350 and now stands at $1,380. This has been an upside move that was years in the making. Since 2014, gold has spent most of that time trading between $1,200 and $1,350 so the break out certainly has my attention.
The question yet to be answered is, will the breakout hold? My thought here is it probably will. My reasoning is based on what has happened in the world wide interest rate markets over the last several months. Worldwide, rates have crashed again. Real interest rates have been a good indicator of metals prices for many reasons. I won't go into all of those now but when real interest rates are low, gold tends to shine.
Silver too is trading higher today. Silver is still a ways from a break out but is cheap to acquire at these levels. If you've been waiting to make a silver purchase, call me and let's talk about it. The best way to reach me is at 830-626-8620.
Craig Hill, CFP®