Safe-haven buying boosts gold, silver prices sharply higher

10.4.22 - A Recipe for Systemic Implosion

Gold last traded at $1,725 an ounce. Silver at $21.03 an ounce.

News Summary: Precious metal prices extended gains Tuesday on safe haven buying and a weaker dollar. U.S. stocks rose as investors looked for bargains and dismissed global recession warnings.

 KITCO--"Gold and silver prices are posting strong gains in midday U.S. trading Monday. Silver is out-performing and scored a six-week high, while gold notched a three-week high and poked above the key $1,700 level.

The two precious metals are catching a solid safe-haven bid as the global stock and financial markets remain jittery, as media outlets are focusing on a desperate Russian president that may resort to using nuclear weapons in his war with Ukraine, and amid bullish outside markets that see higher crude oil prices and a weaker U.S. dollar index on this day....

The marketplace is uneasy to start the month of October, which history shows can be rocky for the stock and financial markets. There are reports and rumors swirling that investment bank Credit Suisse may be in serious financial trouble....

Broker SP Angel this morning said in an email dispatch: 'A global tightening of liquidity by central banks is hitting the credit sector, with signs of a credit crunch beginning to surface. A syndicate of banks including Barclays and Bank of America cancelled a $3.9 billion debt offering last week amid a lack of demand...Outflows in U.S. investment grade bonds hit their third largest outflow on record last week, following six weeks of withdrawals totaling $22.3 billion. Credit default swaps across major European banks have soared in September, with Credit Suisse's CEO noting the bank was facing a 'critical moment.' ....

If a major global investment bank may be on the verge of collapsing and the dictator of the nation with the most nuclear warheads in the world has his back against the wall, while at the same time major global economies are battling inflation and teetering on recession, it appears increasing numbers of the public are now opting to possess gold and silver. It will be important for the gold and silver bulls to show follow-through price strength this week, which would then begin to suggest sustained price uptrends could develop in both metals."