“Riskless Money” Bounces Back Above $1,500

Gold rebounded back above $1,500 per ounce Tuesday morning while silver recaptured the $34.00 per ounce level.  Precious metals traded higher across the board as platinum and palladium rose 1.5% and 1.6% to $$1,697 and $736 per ounce, respectively.

The current correction in gold may have more room to move lower according to the ScotiaMocatta Precious Metals research team: “This is the third consecutive down day from last week’s high of 1558. The break below 1512 and 1504 has Gold in a negative light. Next down side supports are seen at 1472 and 1463 from lows in May.”

On the other hand, Richard Russell, long-time editor of Dow Theory Letters, in a recent note to subscribers, reiterated his bullish long-term outlook on the price of gold:

“Gold will not go bankrupt. Gold will always have a market. All fiat money becomes worthless over time. Gold is real tangible money, and it will be around when the last issue of fiat money is struggling to survive. Gold has a five thousand year history of representing wealth. No fiat money has ever lasted as long as a hundred years.”

“So in managing risk, there is not a lot of risk to manage when you own gold. Or let me put it this way — as far as money is concerned, the nearest thing to riskless money is gold.”