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Gold Price News: Gold In No-Man’s Land As US Data Meets Expectations
Gold prices were range bound on Tuesday, showing little convincing movement in either direction. Prices moved in a range of $2,320 to $2,337 an ounce on Tuesday, little changed from Monday’s range of $2,320 to $2,338.
Figures released on Tuesday showed that annual Euro Area inflation came in at 2.5% in June, in line with market expectations. The figures underline the ECB’s decision to cut interest rates by 25 basis points in June for the first time in eight years, and following several rate hikes that began in July 2021, which have helped to control rising inflation.
Meanwhile, the US JOLTs job openings figures also released Tuesday showed that the number of job openings in America rose by 221,000 to 8.14 million in May, slightly ahead of market expectations of 7.91 million.
Gold prices have been struggling to gain new ground since setting highs of over $2,450 an ounce on May 20, with short-term peaks coming in at successively lower levels since then. Nevertheless, gold has certainly shown no appetite for a major sell-off, with prices meeting strong buying interest at around $2,300 an ounce three times over the last two months. Read More
Silver Price News: Silver Gains for Fourth Day, Topping $29.80
Silver prices rose for a fourth day on Tuesday, moving above $29.80 an ounce for the first time since June 21st. Prices rose as high as $29.86 an ounce on Tuesday, before easing back to $29.53 an ounce later in the day. That compared with around $29.46 an ounce in late deals on Monday, giving a day-on-day gain of about 0.25%.
US job openings in May rose to 8.14 million, slightly above forecasts of 7.91 million, according to figures released on Tuesday. While the stronger jobs numbers provide the central bank with more leeway to maintain high interest rates, the markets appear to be factoring in one rate cut later this year and four more in 2025.
Silver’s strength over the last few days comes within the context of a downward-sloping price channel that started in late May. Recent robust support at below $29.00 suggests these near-term losses could be slowing. A sustained breakout above $30.00 an ounce would break this bearish trend, while further easing toward $28.00 an ounce would further reinforce it. Read More
Gold at session highs after ADP says 150K jobs were created in June
The gold market is trading near session highs on Wednesday morning as job creation among private employers slowed for the third straight month, according to private sector payrolls processor ADP.
On Wednesday, ADP announced that 150,000 jobs were created in June. The report was below expectations, as consensus forecasts called for job gains of 170,000. May’s figure was also revised upward to 157,000 from the initial reading of 152,000.
“Job growth has been solid, but not broad-based,” said Nela Richardson, chief economist, ADP. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month.”
The gold market is trading near session highs after the latest employment data. Spot gold last traded at $2,348.89 per ounce, up 0.83% on the day. Read More
Gold prices holding near session highs as US weekly jobless claims rises to 238k, in line with expectations
The gold market is holding solid gains above a critical resistance level as the U.S. labor market continues to struggle as the number of American workers applying for first-time unemployment benefits holds at an elevated level.
Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 238,000 for the week ended June 29, the Labor Department said on Thursday. Jobless claims rose in line with economist expectations.
The latest employment data is providing further momentum for the gold market. August gold futures last traded at $2,363.50 an ounce, up 1.29% on the day. Read More
US economic data brings shine back for the gold price
As the short trading week progresses, gold traders are trying their best to make sense of the most important piece of economic data that impacts the shining metal's main denominator—the price of the dollar index. The Fed's monetary policy largely determines the greenback's price, and the release of the Fed's minutes later in the day could help clarify the Fed's next monetary policy amid a murky labour market picture.
The US labour market continues to confuse gold traders:
Today, the shinning metal’s price has been trading to the upside, especially before the economic numbers were released. Read More
Solid price gains for gold, silver, as Powell leans easier
Gold and silver prices are sharply higher in early U.S. trading Wednesday, on the heels of dovish remarks from Federal Reserve Chairman Jerome Powell and amid a very busy U.S. data day. August gold was last up $25.90 at $2,359.30. July silver was up $1.232 at $30.585.
Many markets were assuaged, including the precious metals and the U.S. stock market, after Federal Reserve Chairman Jerome Powell leaned easier on U.S. monetary policy in a speech at a European Central Bank confab in Portugal Tuesday. Said Angus Campbell of Trade Nation in an email dispatch today: “Powell delivered a fairly dovish speech, with the headline being that the U.S. central bank has made progress on reducing inflation. But he went on to say that he needs to see more evidence that inflation is on a sustainable path back towards the 2% target before he will be happy to loosen monetary policy. Despite this, the market continues to assign a high probability for two 25-basis- point rate cuts before year-end.” Reads a Wall Street Journal headline today: “Powell puts rate cuts back into view.”
Technically, August gold bulls have the overall near-term technical advantage. 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 $2,375.00 and then at $2,382.60. First support is seen at $2,350.00 and then at the overnight low of $2,335.70. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
September silver futures bulls have the overall near-term technical advantage and have regained upside momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. 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 $31.00 and then at $31.225. Next support is seen at $30.50 and then at $30.00. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Gold prices test fresh session highs as ISM Services PMI drops to 48.8
The gold market has pushed to a fresh session high as activity in the U.S. service sector contracted sharply.
On Wednesday, the Institute for Supply Management (ISM) said its Services Purchasing Managers Index dropped to 48.8% in June, compared to May’s reading of 53.8%. The data was significantly weaker than expected, as consensus forecasts looked for a much smaller drop to 52.6.
The gold market has seen a solid bid through the early start of the North American session, and the disappointing economic data is adding to the bullish momentum. August gold futures last traded at $2.372.80 an ounce, up 1.68% on the day.
The U.S. service sector is seeing its weakest activity since the economy was shuttered during the COVID-19 pandemic.
“In June, the Services PMI® registered 48.8 percent, 5 percentage points lower than May’s figure of 53.8 percent. The reading in June was a reversal compared to May and the second in contraction territory in the last three months,” said Steve Miller,Chair of the ISM Services Business Survey Committee. Read More
FOMC minutes show a Fed united around price stability but divided over potential rate path
The minutes from the June 11–12 Federal Open Market Committee (FOMC) meeting showed that while members shared very similar views about the prospects for growth in the U.S. economy and the degree to which inflation had improved, they also showed diverging views about whether the economic situation would warrant rate cuts to support weakening employment or rate hikes to rein in stubborn inflation.
In the staff summary of economic conditions, FOMC members were told that financial conditions had “eased modestly” over the intermeeting period due mainly to higher equity prices. “Taking a somewhat longer perspective, the manager noted that financial conditions had changed little since March but eased notably since the fall,” the minutes read. Read More
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.
