Gerald Celentetold ITM Trading’sDaniela Cambonethis week that gold prices should be spiking because of the Iran War, but the precious metal has been subdued since the start of the war. (As of 1:49 p.m. Thursday in New York, gold was selling for $4,700.80 an ounce,downover $96.70 in the last 30 days.)
Cambone asked Celente what he believes is the best hedge against the depreciation of the USD, and he said gold and silver.
“Gold prices should be spiking now with this war going on,” Celente said. “It’s the No. 1 safe-haven asset.”
He said countries like Russia and Turkey have had to sell gold because their debt levels are increasing, and their currencies are losing value, and they have to cover their losses.
Central banks were on a gold-buying spree for much of the past three years, a major factor in driving their price to a peak above $5,500 in January. Their sudden reversal has been an equally important factor in driving prices down by as much as 17 percent since then, analysts say.
“Central banks’ sales are the dominant driver of the thousand-dollar price fall over the past few weeks,” analyst Nicky Shiels at gold processor MKS Pamp told theFinancial Times.“The market has always assumed that central banks have been the backstop, but the recent data flows and official statements are refuting that.”
TREND FORECAST:We maintain our trend forecast that Israel will continue to pressure the United States to keep the Iran War going. A primary reason for no true ceasefire is that among the key demands from Iran is that Israel withdraw from Lebanon, which we forecast not only will they not retreat, but will escalate the war against Lebanon and continue to steal more land.
Source: Trends in the News
