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The US Mint says it has reduced gold and silver coin supplies to purchasers - Bloomberg
Bloomberg has reported that the US Mint says it has reduced gold and silver coin supplies to purchasers.
Gold is printing fresh highs of $1,967 up 1% and silver $25.6462, up 3.9%.
The global pandemic’s relentless onslaught on economic activity and bullion supply chains had forced the US Mint’s bullion coin production facility in West Point to close back in April.
Jumps in precious metals suggest buyers are seeking the physical metals.
All the stars are aligning for higher precious metals and analysts at ABN Amro argue, offering several reasons for this:
- Firstly, since the start of July the US dollar has declined.
- Secondly, central bank policy is a strong driver behind higher gold prices.
- Thirdly, in a number of countries there are negative rates (official and/or government bond rates).
- Fourthly, the US may not have negative official rates or government bond yields, but nominal rates corrected for inflation expectations (real rates) are in negative territory.
- Fifthly, governments have embarked on large-scale fiscal stimulus to support the economy.
- Finally, the technical outlook is positive.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
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