Gold Futures: +$2000 & A New All Time High

Gold Spot Price

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Gold Futures

MONTHOPTIONSCHARTSLASTCHANGEPRIOR SETTLEOPENHIGHLOWVOLUMEHI / LOW LIMITUPDATED
AUG 2020AUG 2020Show Price Chart1970.0+4.01966.01971.01974.01968.8115No Limit / 0.123:19:04 CT
03 Aug 2020
SEP 2020SEP 2020Show Price Chart1971.4+1.91969.51976.61977.11971.4242No Limit / 0.123:23:29 CT
03 Aug 2020
OCT 2020OCT 2020Show Price Chart1977.8+3.11974.71981.71983.11977.1466No Limit / 0.123:20:27 CT
03 Aug 2020
DEC 2020DEC 2020Show Price Chart1988.8+2.51986.31993.51995.01988.219,512No Limit / 0.123:24:49 CT
03 Aug 2020
FEB 2021FEB 2021Show Price Chart1999.6+3.51996.12003.32004.51999.665No Limit / 0.123:02:00 CT
03 Aug 2020
APR 2021APR 2021Show Price Chart2011.2+6.22005.02008.12012.32007.9165No Limit / 0.122:22:11 CT
03 Aug 2020
JUN 2021JUN 2021Show Price Chart2019.0+6.82012.22019.32019.72018.262No Limit / 0.122:17:30 CT
03 Aug 2020
AUG 2021AUG 2021Show Price Chart2024.1+6.42017.72024.62025.02024.146No Limit / 0.122:19:30 CT
03 Aug 2020
OCT 2021OCT 2021Show Price Chart2028.9+6.82022.12027.92028.92027.911No Limit / 0.122:20:14 CT
03 Aug 2020
DEC 2021DEC 2021Show Price Chart2033.3+7.02026.32032.52033.32032.513No Limit / 0.121:46:37 CT
03 Aug 2020
Legend:OptionsPrice ChartAbout This Report

Disclosure. The author does own Gold related products.

Disclaimer

Gold (XAUUSD)

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Gold, USD vs The World

The XAUUSD chart (right) shows Gold priced in US Dollars continuing to show strength over the last 18 months of what seems like never ending global crisis situations.

Gold as seen in most non USD markets has made new all time highs (ATH’s). Canada is used as the comparative example because it is a G7 country and has a history of stable governments and resource development. The fact Gold is running away from the old ATH shows that every nation, even America, that risk happens fast.

Possible Cup & Handle

There is a case to made for a Cup & Handle (C&H) formation on the XAUCAD chart, and if so the measured move has recently reached its general target area. The Coronavirus wave is starting to wane in Canada and that could be a reason to cause a pull back from the C&H measured move high.

If the above were to happen that would result in some consolidation of the XAUUSD chart. That would create perfect conditions for the handle to form on the chart.

Unseen risk factors and/or more Coronavirus complications could create a more volatile upswing. However, for the time being there we want to only focus on the chart that is before us. The chart tells a detailed story and the unseen levels of debt & restructuring being piled on nations certainly can be the trigger for Gold priced in USD to make new ATH’s.

Disclaimer

Congress to Debate Gold and Silver Income Tax Exemption

 The battle to end taxation of constitutional money has reached the federal level as U.S. Representative Alex Mooney (R-WV) today re-introduced sound money legislation to remove all federal income taxation from gold and silver coins and bullion.

The Monetary Metals Tax Neutrality Act (H.R. 1089) backed by the Sound Money Defense League and free-market activists – would clarify that the sale or exchange of precious metals bullion and coins are not to be included in capital gains, losses, or any other type of federal income calculation.

“My view, which is backed up by language in the U.S. Constitution, is that gold and silver coins are money and are legal tender,” Rep. Mooney said.

“If they’re indeed U.S. money, it seems there should be no taxes on them at all. So, why are we taxing these coins as collectibles?”

Acting unilaterally, Internal Revenue Service bureaucrats have placed gold and silver in the same “collectibles” category as artwork, Beanie Babies, and baseball cards – a classification that subjects the monetary metals to a discriminatorily high long-term capital gains tax rate of 28%.

Sound money activists have long pointed out it is inappropriate to apply any federal income tax, regardless of the rate, against the only kind of money named in the U.S. Constitution. And the IRS has never defended how its position squares up with current law.

Furthermore, the U.S. Mint continuously mints coins of gold, silver, platinum, and palladium and gives each of these coins a legal tender value denominated in U.S. dollars. This formal status as U.S. money further underscores the peculiarity of the IRS’s tax treatment.

A tax neutral measure, the Monetary Metals Tax Neutrality Act states that “no gain or loss shall be recognized on the sale or exchange of (1) gold, silver, platinum, or palladium coins minted and issued by the Secretary at any time or (2), refined gold or silver bullion, coins, bars, rounds, or ingots which are valued primarily based on their metal content and not their form.”

Under current IRS policy, a taxpayer who sells his precious metals may end up with a capital “gain” in terms of Federal Reserve Notes and must pay federal income taxes on this “gain.”

But the capital “gain” is not necessarily a real gain. It is often a nominal gain that simply results from the inflation created by the Federal Reserve and the attendant decline in the Federal Reserve Note dollar’s purchasing power.

Under Rep. Mooney’s bill, precious metals gains and losses would not be included in any calculations of a taxpayer’s federal taxable income.

“Inflation is a regressive tax that especially harms wage earners, savers, and retirees on a fixed income,” said Jp Cortez, policy director at the Sound Money Defense League. “We are encouraged to see legislation targeting the evils of the Federal Reserve System.”

“The IRS does not let taxpayers deduct the staggering capital losses they suffer when holding Federal Reserve Notes over time,” said Stefan Gleason, president of Money Metals Exchange, a precious metals dealer recently named “Best in the USA” by a global industry ratings group.

“So it’s grossly unfair for the IRS to assess a capital gains tax when citizens hold gold and silver to protect them from the Fed’s policy of currency devaluation.”

Source

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