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Silver Price News: Silver Posts Steady Gains Through Week
Silver prices made modest gains on Friday to close out a slightly bullish week for the metal overall, as the market remains supported by falling interest rates and safe-haven demand.
Prices briefly spiked as high as $33.06 an ounce on Friday, although this level did not represent repeatable trade, and prices fell back to around $32.27 an ounce later in the session. That compared with around $32.08 an ounce in late trades on Thursday.
Silver posted gains of around 2% across the week as a whole.
The brief spike above $33.00 an ounce on Friday perhaps suggests silver is gunning for higher ground, and the overall strength last week follows silver’s 12-year high of $32.75 an ounce on September 26.
Silver’s role as a precious metal means it is benefiting from the start of an interest rate-cutting cycle in the major economies, as well as through its safe haven status during times of geopolitical tensions. Read More
Gold Price News: Gold Ends Slightly Lower on Friday
Gold prices saw a volatile day on Friday, with prices ending the day marginally lower, capping a slightly bearish week for the precious metal overall.
Prices fell as low as $2,633 an ounce by early Friday afternoon before bouncing back to trade at around $2,654 an ounce later in the session, little changed from around $2,656 an ounce in late trades on Thursday.
The US non-farm payrolls figures for September came out on Friday at 254,000 — way above market expectations of 140,000, while the unemployment rate for September came in at 4.1%, slightly below expectations of 4.2%. Taken together, the jobs figures suggested a stronger than expected labour market in the US, which in turn would indicate less pressure on the US Fed to cut interest rates in the near-term.
The US Fed’s 50-basis point interest rate cut on September 18 and heightened geopolitical risk due to conflict in the Middle East have served to support gold prices in recent days, so any doubts over further interest rate cuts could weigh on the precious metal’s price. Read More
Bitcoin and crypto rally as Fed rate cut expectations shift, stocks and gold slip
Bitcoin (BTC) and the broader crypto market trended higher in early trading on Monday, while stocks and gold were negative, as traders reassessed their expectations for a rate cut in November. The CME FedWatch Tool currently shows the likelihood of a 25 bps rate cut at the next Federal Open Market Committee (FOMC) meeting at 84%.
According to David Morrison, Senior Market Analyst at Trade Nation, the pullbacks come as investors are “responding to an uptick in bond yields with the 10-year Treasury Note creeping back above 4.0% for the first time since early August.”
“At the end of last week, the majors enjoyed a rollercoaster session following the release of a stronger-than-expected Non-Farm Payroll report, along with a small, but countertrend downtick in the Unemployment Rate,” he noted. “This led to a sharp re-evaluation in the market’s forecasts for future Fed rate cuts.”
The re-evaluation has been so sharp that expectations that the Fed will hold rates steady at the next FOMC meeting have now risen to 16%. Read More
India gold imports hit 42-month high in August, silver coin sales down in 2024 despite price gains – Heraeus
India’s gold imports shot to their highest level since early 2021, while silver coin sales from major mints are well off the pace of 2023 this year despite the gray metal’s strong price performance, according to precious metals analysts at Heraeus.
In their latest precious metals update, the analysts said that India’s gold imports have hit a three-and-a-half-year high in preparation for strong seasonal demand.
“Strength in consumer demand and industry restocking ahead of Diwali and the rest of the festive season in Q4 saw India’s gold imports surge to a more than three-year high of 125 tonnes in August,” they wrote. “This marks an increase of 58% year-on-year and 212% month-on-month. Imports were supported by cuts in import tariffs on precious metals in July."
"Consumers who were delaying purchases of jewellery and bullion owing to the rising gold price in H1’24 likely took the lowering of tariffs as an opportunity to spend," they added. "The local price of gold in India averaged a discount of $8.2/oz during August, though following a big swing from discount to premium in late July, the market appears to be more normalised, with steady demand above the pre-tariff reduction levels (source: World Gold Council). Any correction in the gold price is likely to lead to restocking by retailers, which will keep import volumes elevated.” Read More
Gold near steady, silver down amid pensive marketplace
Gold prices are near steady and silver prices lower in midday U.S. trading Monday. The Middle East geopolitical situation is keeping a safe-haven-bid-floor under the gold and silver markets. Traders remain nervous as tension continues to be elevated to start the trading week. December gold was last down $2.20 at $2,665.60 and December silver was down $0.454 at $31.94.
There is keener risk aversion in the general marketplace. There are reports that an earthquake Saturday in Iran could have been an underground nuclear test explosion. The earthquake in Iran registering 4.5 on the Richter scale looks like underground firing of a nuclear device, said broker SP Angel in an email dispatch. The epicenter was close to Aradan City and only at a depth of 10 kilometers according to the U.S. Geological Survey, said SP Angel. This comes as Israel continues its offensive in Lebanon and has vowed to retaliate against Iran’s missile attack. There is concern Israel may target Iran’s crude oil infrastructure, which is pushing oil prices higher.
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 $2,679.20 and then at Friday’s high of $2,690.60. First support is seen at the overnight low of $2,657.30 and then at $2,650.00. Wyckoff's Market Rating: 8.5.
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 the overnight high of $32.595 and then at $33.00. Next support is seen at the overnight low of $31.654 and then at this week’s low of $31.155. Wyckoff's Market Rating: 7.5. Read More
Image Source: Kitco News
BRICS eyes petroyuan for oil settlements as de-dollarization trend accelerates
The world appears to be increasingly moving towards a multipolar future, as Western sanctions on Russia have hastened the de-dollarization trend. According to one think tank, the world order could soon see a major shake-up as BRICS countries consider using the ‘petroyuan’ for oil settlements.
“Unlike the BRICS summit in Johannesburg in 2023, which was waved off by Western observers as no real threat to the dollar, October’s summit in Kazan, Russia, is set to be ground-breaking for two reasons,” wrote Herbert Poenisch, Senior Fellow at Zhejiang University and a former Senior Economist at the Bank for International Settlements.
The first reason cited by Poenisch is the expansion of BRICS members since the last summit.
“BRICS – comprising Brazil, Russia, India, China and South Africa – has been expanded by five important new members: Saudi Arabia, United Arab Emirates, Iran, Egypt and Ethiopia,” he noted. “Saudi Arabia, the world’s main supplier of petrol, has also joined Project mBridge, the Bank for International Settlements’ (BIS) digital currency arrangement. The country has made comments about considering alternatives to the present dollar-based oil payments system and being open to using the petroyuan for oil settlements.” Read More
Gold price to drop as the market is running out of buyers - DeCarley Trading’s Carley Garner
The gold market may have room to move higher in the near term; however, the precious metal is running out of buyers, which means risks to the downside are growing, according to one market strategist.
Carley Garner, co-founder of the brokerage firm DeCarley Trading, has been bullish on gold for a while; however, she added that with prices now above $2,600 an ounce, it's time to look at the other side of the trade.
“I see gold coming up against some significant resistance levels, and it's difficult to justify being bullish at these prices,” she said in an interview with Kitco News.
These comments come as gold prices consolidate above $2,650 an ounce. December gold futures last traded at $2,667.90 an ounce, roughly unchanged on the day.
Gold prices have experienced an unprecedented rally this year, hitting consecutive record highs in recent weeks as markets prepared for the Federal Reserve’s new easing cycle. Read More
Russia looks beyond gold as it plans to build a precious metals reserve in the next three years
Since 2021, central banks have bought an unprecedented amount of gold, significantly contributing to this year's rally to consecutive all-time highs. The question now is whether one central bank can have the same effect on other precious metals.
According to news reports published last week, the Russian government is considering spending 51 billion rubles ($535.5 million) over the next three years to replenish its precious metals reserves.
The reports stem from a line item in the government’s Draft Federal Budget, published on Sept 30. While gold has been an important asset in foreign reserves, the proposal indicates that the Russian government is looking to expand its holdings to include silver and platinum group metals.
The draft budget did not include details regarding a potential purchasing program; however, some analysts suggest that silver’s inclusion in foreign reserves could generate new investor interest, reestablishing it as an official monetary metal. Read More
China’s central bank purchases no gold for fifth straight month in September
The People’s Bank of China (PBoC) chose not to add any gold to its reserves in September, bringing the streak of inactivity to five months in a row, according to official data published Monday.
China's gold holdings remained at 72.8 million troy ounces, or 2063.84 metric tonnes, at the end of last month. However, the value of its gold reserves rose to $191.47 billion as of Sept. 30, up from $182.98 billion at the end of August, because of the yellow metal’s appreciation.
The PBoC had purchased gold every month for 18 consecutive months until they first refrained in May.
WisdomTree commodity strategist Nitesh Shah told Reuters that he believed the central bank would like to hold more gold but is waiting for “a more attractive entry point.”
"However, with global interest rates falling and geopolitical tensions rising, it looks like they may have to wait for some time for a price dip,” he added. “Given our forecast of prices rising to over $3,000/oz in the coming year, the central bank may want to consider building positions earlier.” Read More
Gold Market Consolidates Amidst Shifting Economic Landscape
The gold market has recently entered a phase of consolidation, exhibiting a slight downward bias. This comes after an impressive rally that saw gold futures surge by approximately $300 since late July, climbing from just under $2400 per ounce to record-breaking highs. The absence of a significant correction during this period underscores the prevailing bullish sentiment in the gold market.
Gold's historic ascent to multiple record highs was largely fueled by signs of cooling inflation, which appeared to be moving towards the Federal Reserve's 2% target. This development led market participants to become overly optimistic about the timing of potential rate cuts by the Fed. As inflation began to tick down, anticipation for the Fed's monetary policy recalibration grew, effectively driving gold prices up by $300 from late March to late September.
Despite the Federal Reserve's initial reluctance to implement rate cuts, the bullish market sentiment continued to support gold prices, resulting in sustained gains without significant corrections. The Fed finally began its recalibration on September 18, implementing a substantial 50-basis point rate cut. This move triggered a final surge in gold prices, with December gold climbing from $2585 to an all-time record high of $2708 on September 26. Read More
Live From The Vault - Episode: 193
BRICS Dump Dollars for Gold
In this week’s episode of Live from the Vault, Andrew Maguire delivers a chart-driven analysis of the gold and silver price action for the first week of this year’s fourth quarter, before answering pressing community questions.
The London precious metals expert then turns his attention to the remainder of the year 2024, highlighting Indian and Chinese central bank buying, and providing an overview of the latest BRICS activity.
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
