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Silver Price News: Silver Ticks Higher As US Inflation Slows
Silver prices nudged higher on Friday, taking modest support from data showing that US inflation slowed in May.
Prices were trading at $29.14 an ounce by Friday afternoon, having briefly dropped as low as $28.86 an ounce in early trading. That compared with around $29.00 an ounce in late trades on Thursday, leaving silver prices moderately higher day-on-day.
Gold prices followed a similar trading pattern on Friday, albeit closing flat day-on-day, providing little direction for silver.
Data released on Friday afternoon showed that the US core PCE price index – the US Fed’s preferred measure of inflation – increased by a marginal 0.1% in May compared with April. While the figure was in line with market expectations, it did highlight that inflation is slowing down, as it was the smallest monthly increase since November 2023. Read More
Gold Price News: Gold Ends Flat on Friday, Eyes On US Data
Gold prices ended little changed on Friday after US inflation figures came out in line with market expectations.
Prices did manage a modest intraday gain, rising to $2,340 an ounce in the mid-afternoon, European time, but trading at this level could not be sustained and prices slipped back to $2,327 an ounce later in the session, almost unchanged day-on-day.
The keenly-watched US core PCE price index, the US Fed’s preferred measure of inflation, nudged higher by 0.1% in May from April’s level, according to data released Friday. The slight uptick was in line with market expectations, providing little impetus for gold prices on Friday.
Gold’s bounce off the $2,300 an ounce mark on Thursday last week was a bullish signal in itself, as this is a level that was previously tested in early May and again in the second week of June. This suggests buyers are willing to step into the market at levels below $2,300. Other things being equal, this may help to solidify support further at this level. Read More
Wall Street will sit on the sidelines next week, Main Street divided on gold’s price prospects
Slow and steady continued to be the name of the game in the gold market this week, as the yellow metal once again traded in a narrow channel between $2,300 and $2,340 per ounce.
After opening the week at $2321.87, spot gold spent Sunday night through early Tuesday morning flirting with the high 2,330s, but the bulls’ advances were rebuffed, and after holding in the $2,320 area for the rest of the day, the bears finally took control during the overnight session. North American markets then woke up to slap spot gold down to its weekly low of $2,295.23 by 9:30 am EDT on Wednesday morning.
The spot price then saw multiple tests of the psychologically important $2,300 level before finally breaking back to the upside during Thursday's overnight trading, when it once again tested $2,330.
Friday morning brought a spike to the weekly high of $2,339.78 per ounce just before the U.S. market open, after which it pulled back and chopped sideways in the mid-2320s for the remainder of the North American session.
The latest Kitco News Weekly Gold Survey shows most industry experts planning to sit on the sidelines next week, while retail sentiment is divided on gold’s near-term prospects. Read More
Gold price falling as U.S. ISM PMI drops to 48.5
The gold market has not been able to attract any sustainable momentum even as the U.S. manufacturing sector falls deeper into contraction territory.
Monday, the Institute for Supply Management (ISM) said its Manufacturing Purchasing Managers Index dropped to 48.5%, compared to May’s reading of 48.7%. The data was weaker than expected, as consensus forecasts looked for an increase of 49.2%.
“U.S. manufacturing activity continued in contraction at the close of the second quarter. Demand was weak again, output declined, and inputs stayed accommodative,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee.
The gold market has seen solid selling pressure since the data was released and is currently trading near session lows. August gold futures last traded at $2,331.30 an ounce, down 0.30% on the day. Read More
BCA sees gold’s consolidation as the calm before the storm
Gold prices remain caught below $2,350 an ounce, consolidating in a narrow range; however, one research firm expects that this summer lull is just the calm before the storm.
In a recent commentary, commodity analysts at BCA Research reiterated their long-term bullish outlook for the precious metal. The Montreal-based research firm has been bullish on gold since November 2022.
Prices have room to move lower in the near term as bullish momentum wanes; however, Roukaya Ibrahim, Market Strategist at BCA and lead author of the latest commentary, said that she sees limited downside. So far, gold has managed to hold critical support at around $2,300 an ounce.
“Increased [emerging market] central bank appetite for gold is a structural phenomenon. It will remain a source of support, putting a floor beneath prices,” Ibrahim wrote.
While the gold market is seeing diverse demand from central banks worldwide, BCA continues to pay attention to China. Although the country didn’t purchase any gold in May, Ibrahim said that the People’s Bank of China will continue to build its gold reserves. Read More
BIS: Unsustainable debt, supply chain issues threaten bigger crisis than GFC
The global financial system is facing its biggest challenge since the Great Financial Crisis (GFC), as inflation weighs heavily on global consumers and central banks continue to print money at a feverish pace.
While recent data in the U.S. has given some cause for hope that things are improving and inflation may soon be brought to heel, according to the Bank of International Settlements, moving forward, “monetary policy may well face an environment no less challenging than the one that has prevailed in the past decades,” with two factors that are “especially worrisome: fiscal trajectories and deep-seated adverse supply-side forces.”
That was the key takeaway provided in the “Challenges Ahead” section of the BIS Annual Economic Report 2024, released on Monday.
“As argued in detail in last year's Annual Economic Report (AER), longer-term government debt trajectories pose the biggest threat to macroeconomic and financial stability,” the BIS said. “Even if interest rates return to levels below growth rates, absent consolidation, ratios of debt to gross domestic product (GDP) will continue to climb in the long term from their current historical peaks.” Read More
Central banks buy only 10 tonnes of gold in May; but China is not done yet
Central bank demand has been a critical pillar of support this year as prices pushed to record highs above $2,450 an ounce. Although central banks continue to buy gold, the pace slowed in May.
According to the latest numbers from the World Gold Council, central banks bought a net 10 tonnes of gold in May, a drop of 56% from April. The WGC noted that net buying is well below the 12-month average of 42 tonnes.
The drop in purchases does not come as a significant surprise to some analysts, as the market is missing one key player. In early June, China spooked the gold market after data from the country’s central bank showed that it didn’t buy any gold in May, ending an 18-month shopping spree.
Although China didn’t buy gold in May, analysts have said that they don’t expect it to have ended its purchase program. Analysts note that even after 18 months of buying, China’s gold reserves only equate to 4.9% of its total foreign reserves. Read More
Rising U.S. Treasury yields squelch gold, silver bulls
Gold futures prices are slightly down and silver futures prices near steady in midday U.S. trading Monday. Rising U.S. Treasury yields are limiting buying interest in the precious metals on this first trading day of the third quarter. August gold was last down $1.40 at $2,338.20. July silver was up $0.06 at $29.62.
The U.S. Independence Day holiday-shortened work week still sees key U.S. data out, including the JOLTS report on Tuesday, FOMC minutes on Wednesday, and the monthly jobs report on Friday. U.S. markets are closed on Thursday, July 4. Fed Chairman Jerome Powell speaks at a European Central Bank forum in Portugal, along with ECB President Lagarde, on Wednesday.
Technically, August gold bulls have a slight overall near-term technical advantage. However, prices are in a six-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at $2,350.00 and then at $2,360.00. First support is seen at the overnight low of $2,328.20 and then at $2,315.00. Wyckoff's Market Rating: 5.5.
Image Source: Kitco News
September silver futures bulls have a slight overall near-term technical advantage but have faded. Prices are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.225. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at $30.00 and then at $30.50. Next support is seen at the overnight low of $29.25 and then at $29.00. Wyckoff's Market Rating: 5.5. Read More
Image Source: Kitco News
Gold Investors Eye Key Economic Indicators Amid Holiday-Shortened Week
As markets prepare for a truncated trading week due to the Independence Day holiday in the United States, gold investors are keenly focused on several crucial economic events that could influence the precious metal's price trajectory in the near term.
With Canadian markets closed for Canada Day and U.S. markets set for early closure on Wednesday followed by a full day off on Thursday, attention is concentrated on three pivotal occurrences: Federal Reserve Chairman Jerome Powell's comments at an international conference on Tuesday, the release of last month's FOMC meeting minutes on Wednesday, and the U.S. nonfarm jobs report on Friday.
These events follow today's release of the Institute for Supply Management's June PMI data, which revealed a decline to 45.5, marking the third consecutive month of contraction in U.S. manufacturing. This report suggests a potential cooling of inflation, aligning with last week's PCE report that indicated a continued diminishment of inflationary pressures and a trajectory closer to the Fed's 2% target. Read More
Live From The Vault - Episode: 179
Covert Chinese Gold Buyers Reappear
In this week’s episode of Live from the Vault, Andrew Maguire tackles the audience’s burning questions, assessing the possibility of a gold price correction and sharing insider information on the resumption of Chinese gold buying.
The precious metals expert analyses factors influencing the gold and silver markets, offering a short-term outlook, and provides an update on the upcoming BRICS gold-backed currency set to launch in Q4.
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.
