x
Gold Price News: Gold Hits New All-Time High As Bullish Themes Combine
Gold prices pushed further to a fresh all-time high on Tuesday, taking support from bets on upcoming interest rates, safe-haven demand and a weaker US dollar.
Prices climbed as high as $2,532 an ounce intraday Tuesday, compared with $2,504 an ounce in late trades on Monday.
The fresh highs came as the markets continued to view looser monetary policy from the US Fed soon, with up to 100 basis points of interest rate cuts expected before the end of the year.
A degree of support for gold as a safe-haven continues as tensions in the Middle East continued to simmer following last weekend’s Israeli air strike in southern Lebanon which killed 10 people. Israel and militant group Hezbollah have exchanged fire across the border almost daily since the October 7 Hamas attack against Israel. For gold, what matters is the risk of the hostilities spiralling into a wider conflict, which could disrupt energy and trade flows. Read More
Silver Price News: Silver Prices Hit One-Month High As Gold Shines
Silver prices put in a solid performance on Tuesday, taking a lead from gold prices, which reached a fresh all-time high.
Silver briefly touched the $30.00 an ounce mark on Tuesday – a one-month high – and showed a gain of around 50 cents compared with late deals on Monday. Nevertheless, the intra-day gains failed to hold, and prices finished up at around $29.50 an ounce, little changed from the previous day.
Expectations of imminent interest rate cuts by the US Fed have helped support silver and gold, as lower interest rates reduce the opportunity cost of holding non-yield-bearing assets.
The first of several rate cuts is expected in September, and this view appears to have solidified after Fed officials warned in recent days over risks to the US economy, suggesting lower rates will be needed soon to cut borrowing costs and stimulate growth.
Silver has also benefited from safe-haven demand amid continued tensions in the Middle East and the conflict in Ukraine.
A weaker dollar in the first half of August has also helped support dollar-denominated silver prices. Read More
Gold Shatters Records as Investors Brace for Economic Turbulence
Precious metals prices are on the move again, with gold hitting a new peak of $2,564 during Tuesday’s trading sessions. As of now, gold is being traded at $2,527 per ounce, while silver has climbed more than 6% this week, currently standing at $29.68 per ounce. Market trends show that the prices of precious metals are being heavily swayed by factors such as geopolitical tensions, inflation concerns, and the actions of central banks. Read More
Fed’s FOMC Minutes: Gold traders should be ready for a low probability event
Gold traders are sitting on a tight rope today, thinking about what could happen to US monetary policy and how much information the Fed chairman will release. It is very much a given that the later part of the day is going to be highly volatile, and if things don't match expectations, we could see some real fireworks today.
The FOMC Minutes: Investors and traders will closely monitor the FOMC Minutes, set for release at 7 p.m. UK time. Most traders have now very much priced in the possibility of a rate cut of 25 basis points, as inflation has shown that things are improving. However, according to the latest US CPI y/y reading, which came in at 2.9%, inflation is still well above the target of 2%. So, the Fed can always use this as an excuse to wait a bit longer and hold fire until they have full control over things. Read More
Ditching the dollar: Russia and China conduct 90% of trade using national currencies
While most analysts agree that the talk of imminent de-dollarization has been overblown in news headlines, they also can’t deny that a fundamental shift in how countries around the world transact is underway that is slowly seeing the standing of the U.S. dollar diminished on the global stage.
The BRICS bloc is often highlighted as the greatest threat to USD supremacy, especially following recent developments with the BRICS Bridge—an independent, standalone mutual payment system connecting members. Recent efforts by two of the group's largest members show that there are indeed plans underway to ditch the dollar.
According to a report from Izvestia, 90% of the trade settlements that occur between Russia and China are now done using their national currencies, showing they’ve almost entirely pushed out the role of the USD in cross-border transactions.
“It is important that we have switched to settlements in national currencies,” said Anton Siluanov, head of the Russian Ministry of Finance. “More than 90% of settlements are made in rubles and yuan.” Read More
Gold pauses, still near all-time record high, ahead of Fed news
Gold and silver prices are a bit lower in midday U.S. trading Wednesday. December Comex gold futures Tuesday hit a record high of $2,570.40. The precious metals markets are on hold ahead of key Federal Reserve news that lie just ahead. December gold was last down $5.40 at $2,545.20. September silver was down $0.014 at $29.505.
Traders are awaiting this afternoon’s release of the minutes from last week’s Federal Open Market Committee (FOMC) monetary policy meeting. They will be looking for fresh clues on the size of the likely interest rate cut coming in September.
The marketplace is also awaiting the annual Jackson Hole Federal Reserve symposium that begins later this week. Past years have seen central bank officials make markets-moving pronouncements at the confab. Fed Chairman Powell is slated to speak at the symposium on Friday and may give some guidance on the size of an expected U.S. interest rate cut in September.
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 $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,450.00. First resistance is seen at the overnight high of $2,558.00 and then at the contract high of $2,570.40. First support is seen at the overnight low of $2,528.20 and then at this week’s low of $2,523.70. Wyckoff's Market Rating: 8.5.
Image Source: Kitco News
September silver futures bulls have the overall near-term technical advantage and have momentum on their side now. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at this week’s high of $30.035 and then at $30.50. Next support is seen at today’s low of $29.23 and then at $29.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Gold price supported at $2500 an ounce as U.S. dollar drops 2% this month
The gold market’s push to a new record high above $2,500 an ounce remains well-supported as the U.S. dollar continues to lose significant ground, according to some analysts.
As gold continues its unprecedented run, the U.S. dollar has dropped to its lowest level since the start of the year, testing critical support at 101 points. The U.S. dollar index, which measures the greenback against a broad basket of global currencies, has fallen more than 2% since the start of the month.
Since July, as markets started aggressively pricing in rate cuts in the second half of the year, the greenback has lost about 4% of its value.
Some analysts expect that this is just the beginning of the U.S. dollar’s slide as the Federal Reserve looks to start cutting interest rates at its monetary policy meeting next month. According to the CME FedWatch Tool, markets have fully priced in a 25-basis point cut and see a 32% chance of a 50-basis point move.
Shivaan Tandon, market economist at Capital Economics, said that this is the start of broader weakness in the U.S. dollar. The British research firm sees the U.S. dollar index falling to 98 points by the end of 2025. Read More
Taiwan says its gold hoard supports the New Taiwan dollar amid de-dollarization trend
As presidential hopefuls in the U.S. pontificate about Bitcoin (BTC) and gold as strategic reserve assets while the BRICS bloc mulls the creation of a gold-backed currency, Taiwan is putting its metal where its mouth is as the country’s central bank said their gold holdings could support the value of the New Taiwan dollar (TWD).
According to a report from the Taipei Times, Taiwan currently holds 422 tonnes of gold in reserve at the Central Bank of the Republic of China (Taiwan), which the central bank uses to support the value of the national currency. Read More
Gold prices maintain historic highs as Fed shifts toward easing monetary policy
The gold market has been on a remarkable run, with prices soaring to unprecedented levels in recent days. On Tuesday, gold futures for the most actively traded December contract closed at a record high of $2,552.10 per ounce, up $9.50 from the previous session. Despite a slight pullback of $1.90 on Wednesday, gold is holding firmly above the key $2,520 support level, suggesting the metal has found a stable footing at these lofty heights.
Image Source: Kitco News
This historic rally in gold prices has been fueled by growing optimism that the Federal Reserve is poised to embark on a new cycle of interest rate cuts. The release of the minutes from the Fed's July 30-31 policy meeting revealed that a "vast majority" of policymakers believe it would likely be appropriate to ease monetary policy at their next gathering in September. This impending dovish shift by the central bank has put significant downward pressure on the US dollar, which has declined by nearly 5% since the end of June. Read More
Gold prices catch a modest bid as Fed minutes signal a rate cut in September
The gold market is holding near its session highs and is seeing limited bullish momentum as the minutes from the Federal Reserve’s July monetary policy meeting provided some guidance for investors.
While the Federal Reserve left interest rates unchanged last month, the minutes showed that there was some support for a rate cut.
“All participants supported maintaining the target range for the federal funds rate at 5-1/4 to 5-1/2 percent, although several observed that the recent progress on inflation and increases in the unemployment rate had provided a plausible case for reducing the target range 25 basis points at this meeting or that they could have supported such a decision,” the minutes said.
However, in the broader view, economists have said that the minutes continue to lay the ground work for the central bank to cut interest rates next month. Read More
Sovereign debt crisis looms: Dollar debasing, printing frenzy & asset bubbles – the only escape route for the U.S.? Jack Mallers
The U.S. economy is stuck in a debt trap and the only way out is through ‘printing’ more money, further debasing the U.S. dollar and accumulating more debt, according to Jack Mallers, Founder and CEO of Strike, who sees a massive flood of liquidity coming before the year-end.
"We're living in a fiscally dominant time … and what we're seeing right now is liquidity dry up in the dollar," Mallers told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "You'll see it from the U.S. Treasury before this year's over in a major way … They cannot fix this problem, they can only print through this problem."
For Mallers' insights on how much dollar liquidity the U.S. is likely to see before the year-end and its impact on assets - Watch the video
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
