Gold Up Ahead Of Helicopter Money Announcement

Gold had soared throughout the day at one point it was up over $17 but ended the day with ½ the gain at 1342.86 as traders look ahead to the Bank of Japan rate and stimulus decision due in just a few hours.  Silver soared 270 points and closed near the top of the day at 20.265. Platinum out performed gold adding over 1% to trade at 1141.55 with a gain of 13.35 for the day. Kitco reported that for most of the year platinum has been a laggard with the global growth concerns weighing on the metal’s industrial demand, but sentiment is shifting as retail investors are jump into the market. Ahead of Fridays BoJ decision gold is up just about $5 at 1346.05 bit unable to touch its high on Thursday.

The U.S. Mint is reporting unprecedented demand for its limited one-ounce American Eagle Platinum bullion coins as its inventory has been almost completely depleted after releasing the coin only two days ago.

According to the mint’s daily sales data, 18,400 coins have been sold after being made available to authorized purchases July 26. This is the first time the mint has offered a platinum bullion coin since 2014 when it sold 16,900 one-ounce coins, which was the first time the coin was produced since 2008.

Precious metals rose after the Federal Reserve stopped short at this week’s policy meeting of indicating that a further increase in US interest rates is on the cards for later this year. Uncertainty over the path of interest rates has held gold in check since it rallied to more than two-year highs in the wake of Britain’s shock vote last month to leave the EU. Relief that the Fed was not more explicit about rates pulled it back to a two-week peak on Thursday.

Among other precious metals, palladium rose to its highest since mid-October at $708 an ounce, and was later at $700.22, down 0.2%. The auto catalyst metal has soared 18% so far in July, its best monthly performance in almost eight-and-a-half years, as it catches up on gains made by other precious metals. Traders and investors worldwide were still digesting Wednesday afternoon’s statement from the U.S. Federal Reserve’s Open Market Committee (FOMC). There was no change in U.S. monetary policy announced. However, the statement was deemed a bit dovish and seemed to reduce the likelihood of an interest rate increase occurring in September.

With the FOMC meeting out of the way, attention turns to the Bank of Japan meeting that began Thursday and ends Friday. It is expected the BOJ will announce some sort of a new monetary policy stimulus package. This risk now appears to be a package that will disappoint Asian markets—due to high expectations for such an aggressive monetary stimulus package already in the marketplace.

Silver market bulls have the firm overall near-term technical advantage and have regained upside momentum. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $21.225 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20.585 and then at $20.7.

For investors who missed gold’s climb to a two-year high in early July, it’s not too late to jump in, according to Agnico Eagle Mines Ltd. Chief Executive Officer Sean Boyd. The Toronto-based company’s gross margin of 52 per cent last quarter is the biggest among major producers, according to data compiled by Bloomberg. It’s also the only big gold miner to expand the margin over the past five years, the data show.

Gold has climbed 26 per cent this year, with demand for the metal as a store of value rising on global economic-growth concerns and speculation that the Federal Reserve will be slow to raise rates. Purchases of gold as a haven asset have also increased as more than $9 trillion in government debt in developed markets offers yields below zero. Low rates are a boon to non-interest-bearing precious metals.