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Silver Price News: Silver Holds Steady After Monday’s Slight Losses
Silver prices were steady on Tuesday, with the market standing pat after briefly testing the downside at below $30.60 an ounce.
Prices moved in a range of $30.54 to $31.22 an ounce on Tuesday, compared with around $30.82 an ounce in late trades on Monday.
The market was more subdued this week after powering up to a high of $31.70 an ounce on July 5. The recent strength has snapped a short-term bearish trend observed since late May. And on the longer-term charts, a bullish trend that began from late February’s lows of around $22.50 an ounce is still firmly in place, and only a convincing drop below $29.00 would be seen to break that trend. Read More
Gold Price News: Gold Consolidates After Slipping Lower on Monday
Gold prices were little changed overall on Tuesday, showing little convincing movement as the market consolidated after a drop on Monday.
Gold traded at around $2,358 an ounce by late afternoon on Tuesday, having set an intra-day range of $2,350 to $2,372 an ounce. That compared with $2,360 an ounce in late trades on Monday.
US Fed chair Jerome Powell on Tuesday gave few clues about the timing of upcoming interest rate cuts in testimony before a congressional banking committee, with only two scheduled Fed meetings before the November 5 presidential election. Powell told lawmakers that the US economy is no longer overheated, according to news reports.
Recent data point to market expectations that the US Fed is most likely to begin cutting rates in September, although policymakers have stressed that any decisions will be based on economic data.
The pullback in gold prices so far this week comes in the context of a six-week high of just over $2,390 an ounce seen on July 5. Read More
Stop worrying about the pennies as gold and silver consolidate, focus on the bigger trend, says analyst David Brady
Gold continues to trade in a wide range, stuck between resistance at $2,400 and support at $2,300 an ounce. While risks remain to the downside as the Federal Reserve’s aggressive monetary policy keeps investors away, one market analyst continues to look at the broader landscape.
In an interview with Kitco News in mid-June, David Brady, an independent analyst and the author of The FIPEST Report on Substack, said that lower gold and silver prices through the summer will create strategic buying opportunities for what he expects will be a much longer bull run.
Looking at the technical price action, Brady said he sees gold prices bottoming between $2,280 and $2,250 an ounce. He added that in the broader landscape, this consolidation period is a short-term shallow correction in a broader uptrend.
However, instead of trying to catch the bottom, Brady said that investors should find a price level they are comfortable with and ride out the current volatility. Read More
Citi sees record central bank demand pushing gold prices to $2,600 this year, $3,000 in 2025
Central bank gold demand has slowed in recent months after record purchases at the start of the year; however, some analysts remain optimistic that this pillar of the market will be stronger than ever in 2024.
Despite gold’s current consolidation phase, in a report published Wednesday, commodity analysts at Citi said solid gold demand in the second half of the year could drive prices as high as $2,600 an ounce, with investors playing catch-up with the broader marketplace.
Along with renewed investor interest, the analysts said they expect central bank demand to hit another record this year. According to their modelling, the analysts expect central banks to buy around 1,100 tons this year, a 5.8% year-on-year increase, with the possibility of exceeding 1,250 tons in a bullish scenario.
Citi’s outlook comes after foreign reserve data from the People’s Bank of China showed it didn’t add to its gold reserves for a second straight month. Read More
Gold solidly up on easier Powell, friendly outside markets
Gold prices are posting good gains and silver modest gains in midday U.S. trading Wednesday. Federal Reserve Chairman Jerome Powell’s comments to the U.S. House of Representatives today have not contained any monetarypolicy-hawkish surprises. That’s friendly for the metals markets, as is a weaker U.S. dollar index and higher crude oil prices on this day. August gold was last up $19.20 at $2,387.10. September silver was up $0.159 at $31.215.
Powell told a Senate committee Tuesday the U.S. jobs market has “cooled considerably,” which further fueled speculation the Fed will cut interest rates later this year. Markets are expecting the first-rate cut to come in September. Traders and investors are now awaiting the June U.S. consumer price index on Thursday and the June producer price index on Friday. Both reports are expected to show continued tame U.S. inflation numbers. U.S. stock indexes are higher at midday and at record highs for the S&P 500 and Nasdaq.
Technically, August gold bulls have the firm 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 today’s high of $2,393.40 and then at $2,400.00. First support is seen at the overnight low of $2,369.70 and then at this week’s low of $2,356.00. Wyckoff's Market Rating: 7.0.
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September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.05. 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 last week’s high of $31.79 and then at $32.00. Next support is seen at this week’s low of $30.71 and then at $30.45. Wyckoff's Market Rating: 7.0. Read More
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Stocks and gold higher, cryptos mixed as rate cut hopes boost investor confidence
The prospect of the Federal Reserve cutting interest rates as soon as September buoyed asset prices on Wednesday following two days of dovish testimony from Fed Chair Powell, who testified before the Senate and House.
“Federal Reserve Chair Jerome Powell expressed concerns on Tuesday [and Wednesday] about the risks of maintaining high interest rates for an extended period, which could hinder economic growth,” said analysts at Secure Digital Markets. “The market anticipates the Fed will start reducing rates in September, with a subsequent quarter-point cut likely by year-end. However, FOMC members in their June meeting projected only one rate cut for the remainder of the year.”
Optimism for the first interest rate cut in 2024 has helped elevate stocks to a series of new record highs amid mounting signs that the U.S. economy is slowing. Following Wednesday’s price action, the S&P and Nasdaq have both seen seven straight days of gains and hit new all-time highs in intraday trading. Read More
Gold Futures Rise as Powell Remains Cautious on Rate Cut Timing
Image Source: Kitco News
Federal Reserve Chairman Jerome Powell's recent testimony provided little insight into the timing of potential interest rate cuts, leading to a modest gain in gold futures. Powell's remarks, spanning two days of testimony, emphasized the Fed's data-dependent approach and the need for more evidence of sustained inflation reduction before initiating rate cuts.
Powell expressed optimism about the U.S. economy achieving a "soft landing," where inflation targets are met without significantly increasing unemployment. This scenario, once deemed improbable when inflation peaked at a 40-year high in 2022, now appears more feasible. However, Powell remained cautious, stating he was not yet prepared to confirm inflation's sustainable downward trajectory to the Fed's 2% target.
The Chairman's testimony highlighted the Fed's commitment to making decisions based on incoming economic data. While acknowledging inflation's decline from recent highs, Powell emphasized the need for further progress before considering rate cuts. He refrained from providing specifics on the timing or number of potential rate reductions this year. Read More
Petrodollar deal expiry could be 'catastrophic': If you take 'petro' from the 'dollar,' the USD will be backed by 'nothing' – Andy Schectman
Saudi Arabia reportedly let the 50-year petro-dollar agreement expire on June 9th, opting to sell oil in multiple currencies instead of exclusively using the U.S. dollar. Andy Schectman, President and Owner of Miles Franklin Precious Metals, warns that if the "petro" is taken from the "dollar," the U.S. currency will be backed by "nothing," which could trigger "catastrophic" consequences.
Although there has been no official confirmation from Saudi Arabia, that it’s moving away from the so-called Petrodollar, this marks a significant change in global economic dynamics and could have far-reaching implications for the U.S. dollar’s dominance in international trade, Schectman told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
"There are way more dollars outside the U.S. than inside because of stockpiling of the greenback to buy oil for 50 years," Schectman said. "As those dollars come home and are sold back to the issuer - because no one wants to hold them anymore as they are no longer a necessity to buy oil - inflation rates would go higher and higher. As those currency units are added to the currency base, it would raise interest rates." 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.
