**Gold new ATH Month Close. $2720 Next?

Today saw gold establish another new all-time daily and monthly close high.

Today saw gold establish another new all-time daily close high. It also happened to close out the month of July at a new all-time high.

While this months all-time high close is the fourth in a row, it is the first candle since March to really exhibit strength going into the last days of the month.

Gold strength was so pronounced that even Silver went along for the ride. Copper, which had been a drag on silver these past few weeks, gave up the ghost on the short-side and outperformed both gold and silver however.

Against the backdrop of the federal reserve not even hinting that they would be cutting rates in either July or September, this may seem a little bit strange. But it is not.

For the last six months people have been telling you that gold has rallied in anticipation of the Fed cutting. That simply is not true. Today is proof of that.

Gold has been rallying because the Brics Nations are buying it. Gold has been rallying because western central banks have also been quietly buying it in response to the brics monetary challenges.

Macro-discretionary funds have been buying it because they sense the new big players underneath the market.

The old paradigms consisting of, “gold moves the opposite of the dollar, gold moves the opposite of yields” do not apply in a world in the grips of new monetary paradigms.

They will apply again someday. But not now.

For the last six months, it has been noted here that this market seemed “capped”, or “kept in line” consistent with an orderly rally that was not allowed to get too far ahead of itself. That has dissuaded many people from speculating long, including American speculators. And why would they considering that stocks make a new high almost every day?!

We wonder what they will do if stocks run into a stone wall and turn south. That’s when they’ll buy gold and silver most likely.

On the month, Gold finished up approximately 5%. Silver finished down approximately 0.30%, gold miners finished up anywhere between seven and 13%. Silver miners finished up approximately 11 to 13%.

We just had a nice conversation with Jordan at the Daily Gold on some of these topics and will share it with you when that recording is available.

For now, let’s just say that what had been “capping” gold, or keeping a lid on it, or to use Michael Oliver’s phrasing keeping gold in a “tight fist” has begun to weaken its grip on the market.

We will not be surprised if $2720 were the next target on the upside based on our conversation with Jordan and his technical levels today.