by Alasdair MacLeod
This week, gold and silver rallied on Monday and Tuesday before drifting lower subsequently and ending up little changed on the week. In morning trade in Europe today, gold traded at $1835, down $3 from last Friday’s close, while on the same timescale silver lost 30 cents at $23.86. Volumes on Comex were low.
It is as if markets are waiting for something which might not happen, hence the reference to Samuel Becket’s play in our headline. While the covid situation continues to deteriorate, we await a second US stimulus package, and perhaps, for the year-end to pass. The chattering classes talk about inflation watchers selling their gold ETFs for cryptocurrencies. But there is no evidence that that activity goes beyond a few trend-chasing speculators. And even then, bitcoin has fallen from $19375 last Friday to $17752 this morning — hardly a sensible switch.
The fact of the matter is gold is up only 21% in dollars, and in euros and sterling, even less as our next chart shows.