Gold prices declined Friday (7/5), sending prices lower for the week. Gold closed around $1,400 per ounce (see the following chart). The stronger-than-expected U.S. employment report for June dulled expectations for interest-rate cuts, which adversely affected gold. recently wrote about the nature of this current bullish run in gold prices: “The bullion market is stirring from a multiyear slumber and looks set to enter a sustained rally, experts say. Double-digit increases within the next 18 months may be only the start of the price surge.

“‘[W]e believe there is a very good chance that this marks the beginning of a new gold bull market,’ says gold market veteran Joe Foster, portfolio manager for the VanEck International Investors Gold Fund (INIVX). Foster says the run is ‘likely to last several years.’ …

“Part of the impetus to buy gold now is the growth of negative yielding government debt in some countries such as Germany. It is no small problem; the total volume of such securities hit a record $12.5 trillion this year.

“Negative yields mean that investors are guaranteed to get back less money than they put in, and that is a game changer for the gold market.”

Rick Andrews is president of Avant Capital Management