Gold logged third session climb in a row. For a short time, gold rose above $1,260 per ounce as optimism over the global economic prospects took a hit. Gold showed some good price strength early Wednesday and “even evoked hopes of a possible short-covering rally, but much like earlier this year we saw a momentum fade,” said Ross Norman, chief executive officer at Sharps Pixley. “The physical gold market in Europe remains pretty lackluster—but then show me a market other than platinum group metals where there is any significant activity.”
In a webcasted presentation called “Penny For Your Thoughts”, Gundalch noted the 96 percent reduction in the U.S. dollar’s purchasing power since the Federal Reserve Bank was established a century ago, likening the end of the gold standard to the silver debasement of the Roman denarius from 64 to 270 AD. During the question and answer period, Gundlach said he thought gold could move to $1,500 this year.
The last time gold was at $1,500 was in April, 2013. Gold traded at $1,260 per ounce on Wednesday.