Gold Prices: Are They ‘Under Pressure’ in Short Term?

President William McKinley being held up on a gold coin in an animation about prosperity

Photo Source: United States Library of Congress’s Prints and Photographs division

Increasing stock prices are putting pressure on gold prices, as confidence in the US economy continues.  So far earnings reports have been mostly positive, with some analysts quoting earnings gains of 11% on average. 

Such figures are hard to validate during earnings season as sometimes hundreds of companies report daily, so they’re best thought of as relative gauges and not absolutes.  Friday’s US jobs report was followed by “positive” noises from the Fed, which helped depress gold prices some more.

Related: Gold News: Are We Nearing a Crash? DETAILS

It all adds up to gold prices remaining under some pressure in the short term, unless a major geopolitical event sets off concerns. Such as North Korea…  There is some interesting, blessedly brief, reading out there today on the landscape for gold. Reuters published a nice little article this morning summarizing things for gold, silver and palladium (because, why not?). 

And The Global Times reports Chinese gold reserves are likely to top 4,000 tonnes soon — as the Chinese continue to play the long game of accumulation.  Your Gold Enthusiast believes the rest of the world should be paying way more attention to this, as those who play a long game early tend to do very well over time.

Related: Is Gold At a “Make or Break” Level? DETAILS

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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2 Comments

    • Hi William, Of course you are right. Your friendly Gold Enthusiast is a bit more moderated in his approach than the run-of-the-mill gold pushers. That could be because he only makes money when he’s right! People selling you things can get mixed up in their motivations, though good straight-talking friends help keep that under control. Thanks for reading! – The Gold Enthusiast