On the heels of gold futures surging toward $2,700 level, powerful forces are causing the price of gold to hit new record highs.
September 25 (King World News) – Gerald Celente: As we had forecast on 2 January, this year would be “A Golden Year for Gold.”
On 20 September, gold surpassed $2,600 for the first time after the U.S. Federal Reserve reduced its interest rates by 50 basis points two days earlier. With gold prices having soared some 30 percent this year, it is the biggest annual jump since 2010.
And what did 2010 look like? It was the depths of the Great Recession.
Yes, the world was in deep recession and rather than gambling in equity markets, which sink when economies go down, true investment money went into the world’s #1 safe-haven asset…GOLD!
As Trends Journal subscribers well know, we had forecast that this would be the year of lower interest rates, and, as we had also forecast, the lower U.S. interest rates fall, the deeper the dollar will fall. And the deeper the dollar falls, the higher gold prices will rise.
When interest rates are falling, so do returns on many kinds of investments. Those investors then often shift to other assets, including those that pay no dividends or interest… which is gold. And with the Fed expected to take at least one more slice off its rates before this year ends, the dollar will fall deeper and gold prices will rise higher.
And also important to note, as interest rates fall, inflation will also rise. And the higher inflation rises, the higher gold prices rise.
Also, gold is a favored safe-haven asset to store value in times of geopolitical turbulence, which, as we have long detailed includes the Ukraine and the Israel War… which has significantly ramped up following Israel’s pager attack on Hezbollah and Lebanese bombing campaign.
Then of course is the dismal economic data of the precarious economies in China and European economies.
In addition, the dollar has weakened, making other currencies more valuable, meaning they can buy more gold, which is dollar-based.
Missing the gold potential, but reported in the mainstream business media which blacklists The Trends Journal, Reuters quoted (who it identified as a “commodity strategist”) Daniel Ghali at TD Securities, who said, “Clearly, there’s still some buying activity associated with the Fed’s decision to begin their easing cycle with a big cut.” He also said “the source of this buying activity remains off our radar,” and that Exchange-traded funds focused on gold are seeing little new money flow in and a buyers’ strike in Asia has slowed the market there.”
INDIA’S GOLD IMPORTS SET RECORD IN AUGUST
Last month, India imported $10.06 billion worth of gold, the government reported, which implies a volume of about 131 metric tons. A metric ton is equivalent to about 2,200 pounds.
The dollar amount set a record. A volume of 131 metric tons would be the country’s sixth largest monthly purchase ever, consulting firm Metals Focus said.
India’s government cut import tariffs on gold by 9 percentage points in July. Before that, gold demand in India fell to a four-year low in this year’s first half, the World Gold Council reported.
“The impact of the duty cut was unprecedented, incredible,” Philip Newman, Metals Focus managing director, told the Financial Times. “It brought consumers in.”
MK Jewels, a store in an upmarket Mumbai suburb, expects sales to shoot up as much as 40 percent during the festival and wedding season that runs from September into February.
Gold’s record price will not deter customers, MK director Ram Raimalani told the FT. “Indians are happy when prices go high because they already own so much gold,” he said. “It’s an investment.”
About a third of global demand for gold jewelry in 2023 came from India.
“In parts of Asia, gold is readily convertible into currency,” making it a popular form of savings, strategist Paul Wong at Sprott Asset Management told the FT.
India’s central bank also has been snapping up bullion, stockpiling another 42 metric tons this year through July.
China’s economic mess has cut sales of gold jewelry but energized the sale of gold bars and coins, which leaped 62 percent in this year’s second quarter, year on year.
Not So Good News
Business activity in Germany and France—the EU’s two biggest economies, and Germany the world’s third largest—saw its business activity and service industries respectively sink this month.
S&P Global’s flash Purchasing Managers’ Index for Germany sank from 47.4 from 53.1 to its deepest level in seven months. Numbers below 50 show contraction. France’s service activity index slumped to 48.3 from 55… which equals contraction.
TREND FORECAST:
As we detail in this and previous Trends Journals, the list of socioeconomic, geopolitical and personal misery continues to degenerate. From all fronts, the world is on the brink of crisis of which will be the most devastating in written history.
Thus, the more these conditions decelerate, the demand for the world’s #1 safe-haven asset, gold, accelerates.
The Israel war has greatly escalated. This is the CNN headline as we go to press: Israeli strikes kill hundreds and spark exodus from southern Lebanon. IDF says it killed senior Hezbollah commander in Beirut.
This is today’s front page Haaretz headline: Israel at War Day 354 | Israel Kills Top Hezbollah Commander in Beirut; IDF: Over 300 Rockets Fired From Lebanon.
We have greatly detailed that as the Israel War escalates—and when Iran and Israel go to war—it will, if not stopped, be the beginning of the end of life on earth. Israel, which has between 200 to 400 nuclear warheads—has made clear if they are going to lose they will initiate the Samson Option… which means nuclear annihilation. So, all the gold in the world will be worthless.
And as for WWIII, today it was reported that the Russian city of Belgorod and several villages were bombed by Ukraine. Thus, the war continues to escalate and when the long-range missiles are sent to Kyiv by the EU and U.S. to strike deeper into Russia, Moscow will strongly retaliate… saying, as we report in this Trends Journal, that they will go “tactical” nuclear.
As trend forecasters we say, “Opportunity misses those who view the world through the eyes of their profession.” Therefore, we are reporting essential current events forming future trends.
Indeed, with gold prices spiking, the geopolitical consequences pushing up its price are absent in the business media reports. Therefore, those in the geopolitical “know,” know that beyond the economic factors driving up gold prices, there are mega-geopolitical current events forming future trends that are increasing the global demand for the world’s #1 safe-haven asset.
One Of The Most Important Interviews Of 2024
To listen to one of Michael Oliver’s most important interviews of 2024 where he issues a major crash warning for the US stock market and discusses what will happen with gold and the rest of global markets CLICK HERE OR ON THE IMAGE BELOW.
Another Record High For Gold!
To listen to James Turk discuss the wild trading in the gold and silver markets as well as what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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