x
Silver Price News: Silver Drifts Back Below $32.00 An Ounce
Silver prices eased lower on Friday, showing a modest pull-back, having rallied to a 12-year high on Thursday.
Prices drifted to as low as $31.41 an ounce on Friday, compared with Thursday’s high of $32.75 — the highest price for silver since December 2012.
US figures released Friday showed that the US PCE price index rose by less than market expectations in August, supporting calls for further interest rate cuts in the coming months. US personal income and spending figures were also below expectations, compounding the effect of the price index numbers.
The latest figures appeared to give silver a boost, given that they support further cuts to interest rates, helping prices rise to $32.28 an ounce on Friday afternoon. However, the gains were short-lived and prices fell back later in the session, following in the wake of gold prices which came back off on Friday from the previous day’s record high. Read More
Gold Price News: Gold Pulls Back from All-Time High
Gold prices eased back on Friday, having set a fresh all-time high the previous day.
The price had looked reasonably well-supported at around $2,660 to $2,670 an ounce for most of the day Friday, although the market softened later in the session to fall as low as $2,644 an ounce. That compared with Thursday’s all-time high of $2,686 an ounce.
Gold’s modest pull-back on Friday may have been a natural response to Thursday’s advance into new territory, and may reflect a degree of profit-taking going into the weekend.
US PCE price index figures were released Friday, showing that the value in August rose by less than the market had expected. The PCE numbers are the US Fed’s preferred way to measure underlying inflation. In addition, US personal income and personal spending for August came in weaker than expected. Taken together, the latest figures add weight to the prospects of further interest rate cuts by the US Fed.
Data from interest rate traders suggests the markets have begun to favour another 50-basis point cut at the Fed’s next meeting on November 7, albeit with only a slim majority, compared with a roughly 50-50 split only a few days ago on whether the next cut would by 25 or 50 basis points, according to the CME FedWatch tool: CME FedWatch – CME Group. Read More
Gold prices shine bright: Will the momentum continue
Gold traders are in full celebration mode as the shining metal is well on track to record gains for another month. September has been a fantastic month for traders due to the unexpected rate cut by the Fed. However, the question for gold traders is: what lies ahead as we approach a month known for its significant volatility?
This year, gold prices have been rising sharply. To put things into perspective, the price of the shining metal is up over 28% year-to-date (YTD), and on a year-over-year scale, the price is up over 45%. These jaw-dropping gains are not just eye candy; in fact, the price of the shining metal has made serious gains this month, rising over 4.94%—despite peaking above 5.5% just a few days ago. The three-month performance of the shining metal sits at a robust 13.28%.
One major reason for the significant price increase in the shining metal is the monetary policy of the US Federal Reserve. Traders had been anticipating a rate cut at the beginning of this year, with many expecting a modest 25 basis point reduction. However, the fact that the Fed announced a jumbo interest rate cut this month took market players by storm. Read More
China’s gold market could finish flat in 2024, silver’s outperformance is drawing attention and demand – Heraeus
High gold prices have the potential to dampen demand during China’s holiday week, and the country’s bullion market now faces the possibility of zero growth for 2024, while silver’s outperformance is drawing attention from investors, according to precious metals analysts at Heraeus.
In their latest precious metals report, Heraeus warned that sky-high gold prices could dampen demand during China’s ‘Golden Week.’
“With the Chinese National Day (Golden Week) Holiday this week, consumer demand for gold would usually see some strength as the population celebrates,” they wrote. “However, weak imports in the preceding months suggest that internal demand is lacking. Imports of non-monetary gold to mainland China have fallen sharply as the year has progressed, mirroring the appreciation in the gold price. January saw imports of 233 tonnes, with an average gold price of CNY14,597, but by August imports had dropped to 21 tonnes; meanwhile, the Chinese gold price had risen to average CNY17,656 (source: China Customs).” Read More
Gold, silver back off on profit taking, chart consolidation
Gold and silver prices are modestly down in midday U.S. trading Monday. Some profit taking from the shorter-term futures traders is featured, along with some backing and filling on the charts, on this last trading day of the month and of the quarter. Still, safe-haven demand amid geopolitical worries is keeping a floor under the two precious metals markets. December gold was last down $9.30 at $2,658.80 and December silver was down $0.331 at $31.49.
Focus of the marketplace remains on the escalating Israel-Hezbollah military conflict, with Israel over the weekend killing Hezbollah’s top leader. Israel the past week has taken out many of the group’s top commanders. So far, Iran is staying out of direct conflict with Israel. However, this situation is very fluid and is keeping safe-haven bids in gold and silver, and will likely get worse before it gets better.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,687.70 and then at the contract high of $2,708.70. First support is seen at $2,650.00 and then at $2,635.00. Wyckoff's Market Rating: 9.0.
Image Source: Kitco News
December silver futures bulls have the firm overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at the overnight high of $32.15. Next support is seen at the overnight low of $31.205 and then at $31.00. Wyckoff's Market Rating: 7.0. Read More
Image Source: Kitco News
Gold maintains its purchasing power as it hits record highs against global currencies
Gold continues to dominate the global currency market, hitting record highs across the board; however, the precious metal also continues to demonstrate its value in the real world.
Last week, the European-based investment firm Incrementum AG published its annual iPhone/gold ratio, which underscores how gold continues to maintain its value.
The firm noted that for the third year in a row, the cost of an iPhone priced in gold bullion has dropped. According to the unique ratio, the iPhone 16 Pro with 1 TB of memory costs 0.60 ounces of gold, which is 23% less than last year’s 0.78 ounces of gold for the iPhone 15 Pro.
"Compared to 2022, the price of an iPhone measured in gold fell by almost a third, and compared to 2018, this year’s iPhone is almost 50% cheaper. 2018 was the only year a gold investor had to spend more than 1 ounce of gold for a brand-new iPhone," the analysts said.
Priced in U.S. dollars, the cost of the latest iPhone has remained unchanged for the last three years.
"But stable prices are definitely different from falling prices," the report noted. "As in 2021, 2022, and 2023, the price of the Pro model with the largest available storage (1 TB) is USD 1,499. Compared to the very first iPhone, which was launched in 2007 for USD 599, the price has increased by 150%. This corresponds to an annual iPhone inflation rate of 5.5%. Gold investors, on the other hand, benefit from the fact that the price of gold has risen by almost 290% during the iPhone era." Read More
Gold prices remain down but largely ignore optimistic comments from Fed's Powell
The gold market remains under pressure but is not experiencing any steep selling as Federal Reserve Chair Jerome Powell signals a moderate pace in the Federal Reserve’s easing cycle.
Powell struck a relatively positive tone, noting that “the economy is in solid shape.” He provided little forward guidance on monetary policy.
“Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting. As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks,” Powell said in his prepared remarks.
These are the first comments Powell has made since the U.S. central bank cut rates by 50 basis points. Powell was speaking at the National Association for Business Economics Annual Meeting in Nashville, Tenn.
“Our decision to reduce our policy rate by 50 basis points reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent,” he said. Read More
Bitcoin, stocks, gold, and alts decline as Q3 ends with a whimper
Markets finished the last day of the third quarter on a down note, with stocks, cryptos, and precious metals all recording losses on Monday.
In the absence of significant data releases, market watchers were focused on Fed chair Jerome Powell’s comments at the National Association for Business Economics this afternoon. This was Powell’s first live event since the central bank’s monetary policy meeting two weeks ago, and while he didn’t say anything surprising, markets declined while he spoke, with gold and Bitcoin hitting session lows.
As of Monday afternoon, the CME FedWatch Tool shows the likelihood of a 25 bps cut stands at 65%, with the odds of another 50 bps cut at 35%. Read More
Live From The Vault - Episode: 192
Monetary Destruction Feat. Daniel Lacalle
In this week’s episode of Live from the Vault, Andrew Maguire welcomes back Daniel Lacalle, renowned author and professor of economics, for an in-depth discussion on the shifts that have occurred since Daniel last appeared on LFTV.
The conversation opens with Daniel’s insight on “monetary destruction” and the possibility of negative interest rates, followed by a deep dive into critical behind-the-scenes topics such as de-dollarisation and strategies for safeguarding wealth in uncertain times.
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
Featured Image - Source: Unsplash
