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Gold Price News: Gold Finishes Week Above $2,400 An Ounce
Gold prices were little changed on Friday, albeit with some intraday volatility, rounding the week off at a level close to their recent highs. Prices made steady losses overnight and into the morning session in Europe on Friday, drifting as low as $2,392 an ounce at one point before rebounding into the afternoon session to trade at $2,417 an ounce by Friday afternoon. That compared with around $2,413 an ounce in late trades on Thursday.
The latest action means gold prices have managed to hold onto the hefty gains seen on Thursday, which were triggered by weaker than expected US inflation figures for June, which helped to cement expectations that the US Fed will go ahead with interest rate cuts in September.
US core producer prices rose by 0.4% in June, according to figures released Friday, slightly above the market’s expected 0.2%. While the figure was notionally bearish for gold prices, the market appeared to react to the Michigan consumer sentiment figures for July, which fell for a fourth straight month and gave the lowest reading since November 2023. The figures highlight that consumers are still concerned about the economic outlook, and helped to underpin the growing acceptance that rate cuts are imminent in the autumn. Read More
Silver Price News: Silver Retreats From Six-Week High
Silver prices fell by about 1.9% on Friday, giving up the previous day’s gains. Prices fell as low as $30.43 an ounce on Friday, before stabilising at around $30.85 an ounce later in the afternoon. That compared with around $31.40 an ounce in late trades on Thursday, when prices hit a six-week-high.
The price action shows that silver gave up Thursday’s gains, which came as US inflation figures for June came in lower than market expectations, reinforcing hopes that the US Fed will start to cut rates in September.
Silver’s price action leaves the grey metal down by about 1.3% across the week as a whole.
Nevertheless, July has been a bullish month for silver so far, with the market showing signs of breaking out of a downward-sloping trend channel that emerged from late May until the end of June. Read More
Gold prices holding steady as New York Fed's Empire State Survey drops to -6.6
The gold market is holding on to solid gains above $2,400 an ounce; however, prices are not seeing much reaction to weak-than-expected activity in the New York Region’s manufacturing sector, according to the latest data from the New York Federal Reserve.
Monday, the regional central bank said its Empire State Manufacturing Survey, dropped to 6.6, down from June’s reading of 6.0. According to consensus estimates, economists were looking for a slightly better reading at -5.5.
“Manufacturing conditions remained somewhat sluggish in New York State in July, though orders held steady and shipments edged slightly higher. Employment continued to contract, and capital spending plans were weak. However, firms remained fairly optimistic that conditions would improve in the months ahead,” said Richard Deitz, Economic Research Advisor at the New York Fed, in the report. Read More
Gold gets a lift from U.S. UK ETF demand, silver price could suffer from new solar tech – Heraeus
Gold is beginning to see increased interest from U.S. and UK investors, while silver prices face downside risks from less metal-intensive solar technologies, according to precious metals analysts at Heraeus.
In their latest precious metals report, Heraeus noted gold’s strong move following Thursday’s CPI print for June, which showed a 3.0% year-over-year rate in headline inflation, the lowest reading since June 2023.
“The news also injected more confidence for the market to see a rate cut delivered by the Fed soon,” they wrote. “The gold price rose by over $30/oz from the news on Thursday as the dollar weakened, a sign that rate cuts delivered this year could hit the dollar hard and open up possibilities above $2,400/oz for gold.”
They also pointed out that the yellow metal saw strong ETF inflows of around 1.1 million ounces over the past two weeks, with funds in the UK and U.S. accounting for most of the gains. Read More
Analysts look at gold’s all-time highs as fed rate cuts drive new momentum
Growing expectations that the Federal Reserve will begin its easing cycle in September are creating a strong tailwind for gold. Many analysts see last month’s record highs as a minor obstacle in the current uptrend.
Analysts note that the precious metal saw its first important test as it held critical support at $2,400 an ounce on Friday. Some have said that this is an important line in the sand as its months-long consolidation is challenged.
“As long as [gold] holds above 2401.4-2405.6 (double support), it looks extremely constructive to me,” said Julia Cordova, Founder of Cordovatrades.com. “A move below 2385.9 would put it back in consolidation, so all eyes will be there if it’s touched.”
After a slow start early Monday, gold is starting to see some follow-through buying from Friday’s session. August gold futures last traded at $2,439 an ounce, up 0.75% on the day and less than 1% away from its all-time highs. Read More
US banks signal economic trouble: declining deposits, loan risks hit profits
While inflation is starting to fall, months of high prices have harmed a key sector of the economy: American banks.
Large banking institutions – including Citi, JPMorgan Chase, and Wells Fargo – released their earnings reports on Friday, and they included several indications that consumers continue to struggle amid sticky inflation and rising debt, as reported by The New York Times.
The news from JPMorgan and Wells Fargo was good for borrowers but bad for the banks, as they reported a decline in overall deposits, prompting them to raise the average interest rates on checking and savings accounts to entice patrons to move more funds into their accounts.
High interest rates have made borrowing money less attractive, cutting into a major revenue source for banks and offsetting any increase in profits offered by higher interest rates on loans. Read More
Gold will gain from increased volatility and risk after Trump shooting; Trump victory could weaken USD and boost bullion prices – Analysts
Safe-haven assets like gold will likely benefit from the increase in market volatility and perceived risk in the wake of the Saturday afternoon assassination attempt on presidential candidate Donald Trump, while the increased odds of a Trump victory in November could weaken the dollar and boost the yellow metal, according to numerous market participants.
“Undoubtedly, there’ll be some protectionist or haven flows in the Asia early morning,” Nick Twidale, chief market analyst at ATFX Global Markets, told Bloomberg. “I’d suspect gold could test all-time highs, we will see the yen getting bought and the dollar, and flows into Treasuries too.”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, also believes gold will be among the assets to benefit from a near-term flight to quality. Read More
Bullish charts boost gold as Powell talks
Gold prices are solidly higher and hit a seven-week high in midday U.S. trading Monday. Silver prices are near steady. Overall, bullish technical charts that have become even friendlier lately are prompting more speculators to the long side of the yellow metal. Silver is also bullish, but that market took a pause today. August gold was last up $16.70 at $2,437.50. September silver was down $0.017 at $31.145.
The marketplace appears to have quickly digested Saturday’s failed assassination attempt on former U.S. President Donald Trump. It’s likely the marketplace breathed a sigh of relief after the former president escaped serious injury. It also appears the Saturday incident may, at least temporarily, cool down the recently higher tensions between political opponents across the country. That notion may be giving the marketplace at least a bit of solace early this week, and may be partly responsible for the rallies in the U.S. stock indexes today.
Technically, August gold bulls have the solid overall near-term technical advantage. A fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the May contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at today’s high of $2,442.40 and then at $2,450.00. First support is seen at today’s low of $2,406.10 and then at $2,400.00. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
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 today’s high of $31.32 and then at $31.50. Next support is seen at last Friday’s low of $30.62 and then at $30.45. Wyckoff's Market Rating: 7.0. Read More
Image Source: Kitco News
Chairman Powell signals potential rate cuts amid cooling inflation
Federal Reserve Chairman Jerome Powell has indicated that the central bank is moving closer to cutting interest rates, citing increased confidence in the cooling of inflation. This announcement comes after three consecutive months of decreasing price pressures, marking a significant shift in the Fed's stance on monetary policy.
Speaking at the Economic Club of Washington, Powell stated, "Our test for quite some time has been that we wanted to have greater confidence that inflation was moving sustainably down towards our 2% target. And what increases that confidence in that, is more good inflation data. And lately, here we have been getting some of that."
The Federal Reserve, tasked with controlling inflation and supporting maximum employment, has been primarily focused on taming inflation by raising interest rates to a 23-year high of 5.25% to 5.50%. However, Powell's recent comments suggest that they are ready to pivot from maintaining its benchmark interest rates to beginning a cycle of rate cuts. Read More
Cryptos, stocks, and gold see gains as markets respond positively to increased odds of Trump presidency
Financial markets saw a positive start to the week as the attempted assassination of former President and current Republican Presidential nominee Donald Trump dominated headlines, overshadowing the return of earnings season, which included reports that Goldman Sachs recorded a profit surge of 150% amid investment banking strength.
“The likelihood of Donald Trump regaining the presidency reached a record high on Saturday, according to data from Polymarket, following an incident at a Pennsylvania rally,” said analysts at Secure Digital Markets. “Traders on the platform now assign a 70% probability to his success in the upcoming November election.”
“While the incident involving Trump, the Republican presidential candidate, has the potential to heighten political tensions in the U.S., investors speculated it could boost Trump's and the Republican Party's standing in the polls ahead of the November election,” they said. “Additionally, investors are focusing on the upcoming second-quarter earnings reports, which could serve as a new catalyst for a market that has reached record highs this year.” Read More
Indian gold demand to remain solid this year and support rally to $2,500: ANZ
China’s insatiable appetite for gold has garnered considerable attention this year; however, one bank is warning investors to pay attention to another important market that could continue to support prices through the second half of the year.
In a note published Sunday, Soni Kumari, Commodity Strategist, and Daniel Hynes, Senior Commodity Strategist at Australian bank ANZ, said they expect to see solid demand in India this year, even as prices remain elevated. Traditionally, India—the world’s second-largest gold-consuming nation, just behind China—is fairly sensitive to the price of gold, meaning that demand tends to drop off as prices rise.
However, ANZ noted that this has not been the case in the first half of 2024. Read More
Live From The Vault - Episode: 181
China’s Covert Golden War Chest
In this week’s episode of Live from the Vault, Andrew Maguire addresses the community’s burning questions, offering unmatched insights into the short-term market movements and the hidden forces shaping the precious metals landscape.
The renowned London whistleblower guides listeners through China’s covert manoeuvres influencing the price of gold, concluding with a forecast of silver’s potential for a significant rally into Q3.
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.
