x
Image Source: Unsplash
Gold Price News: Gold Falls For Third Day As US Dollar Strengthens
Gold prices fell sharply on Friday, adding to two previous days of losses, after the US dollar strengthened, putting precious metals prices under pressure.
Prices fell as low as $2,395 an ounce on Friday, down from a high of $2,475 an ounce on Thursday. The latest losses come in the context of a fresh all-time high of $2,484 an ounce seen on Wednesday, which came as the markets reacted to softer than expected inflation in June and a strengthening of expectations that the US Fed will start to cut interest rates in September.
The US dollar strengthened against other major currencies on Thursday and Friday after data showed that manufacturing in the US mid-Atlantic region increased more than expected in July after a surge in new orders.
A stronger US dollar makes dollar-denominated gold more expensive for buyers in other currencies, weakening demand and contributing to gold price weakness.
Gold’s fall through the second half of the week means the yellow metal has re-visited the price levels of $2,400 an ounce seen in the previous week ending July 12. Read More
Silver Price News: Silver Falls Below $29.00 An Ounce
Silver prices fell for a third consecutive day on Friday, rounding off the week in a decidedly bearish direction.
Prices fell as low as $28.90 an ounce by Friday afternoon, nearly a three-week low. Both gold and silver prices came under downward pressure from a strengthening of the US dollar on Thursday and Friday.
Silver’s three-day price drop has focussed attention on the $29.00 an ounce level, which proved an important support area in June after prices had fallen from over $32.00 in late May.
Despite silver’s weakness last week, the long-term outlook remains supportive, not just due to several years of structural supply deficit, but also due to the energy transition theme which is set to drive consumption of the metal in advanced computer and AI systems, electric vehicles, solar panels, batteries and electrical circuits, among others. Read More
What does Trump’s presidency mean for gold prices?
Gold prices have started the week on the back foot, as traders are very much picking up from where they left off last week. In addition to this, gold traders are also closely watching the US political landscape after President Joe Biden dropped out of the presidential race on Sunday. He has endorsed Vice President Kamal Harris as the Democratic nominee. Gold traders have been broadly expecting this news from the White House, given Joe Biden's health conditions and his poor performance in June. Most gold traders are looking for former President Donald Trump to come back to the office, and this is where things will get more exciting for the dollar index and for gold. Read More
Hedge funds push gold prices to all-time highs, which is triggering some long liquidation
After months of relatively quiet activity, hedge funds have jumped back into the gold market. However, analysts warn that speculative positioning could trigger further liquidation, as prices were unable to hold fresh record gains last week.
The CFTC's disaggregated Commitments of Traders report for the week ending July 14 showed money managers increased their speculative gross long positions in Comex gold futures by 34,520 contracts to 216,502. At the same time, short positions increased by 7,455 contracts to 20,510.
Gold’s net length jumped to 184,532 contracts, its highest level since March 2020. The precious metal saw its biggest speculative jump since March when prices broke above $2,150 and eventually surged to $2,448 an ounce.
In the last few months, gold prices have been consolidating. Analysts noted that speculative interest remained fairly stable at elevated levels. They have also pointed out that gold has remained well-supported in its consolidation phase due to robust safe-haven demand stemming from geopolitical uncertainty and central bank purchases. Read More
Gold tests support below $2,400 per ounce as Biden exit prompts traders to reprice risk
While Sunday’s announcement from U.S. President Joe Biden that he would not seek reelection in November did not shock political insiders or market participants, it has forced a repricing of risk across financial markets, impacting gold prices on Monday.
In the medium term, many analysts see the President’s withdrawal as a positive for the precious metal, as the departure of the ‘known known’ Biden creates further instability in an already tumultuous race for the White House, which should support gold’s safe haven status.
“The precious metal’s appeal strengthened as investors sought a hedge against an uncertain political and market outlook,” wrote analyst James Hyerczyk at FX Empire in a market update. “President Joe Biden’s decision to abandon his reelection bid has cleared the way for another Democrat to challenge Donald Trump. This political shift has contributed to a weaker dollar, making gold more attractive to buyers holding other currencies.” Read More
Gold Futures Hover Below $2400 as Markets Await Key Economic Data
Gold futures experienced a modest decline on Monday, with the August contract settling just below the significant $2400 per ounce mark. As of 5:15 PM ET, August futures were fixed at $2394.70, down $4.40 from the previous close. The precious metal opened at $2403.70 and reached an intraday high of $2414.14 before retreating.
Image Source: Kitco News
Market participants are processing the unexpected announcement by President Biden to withdraw from the presidential race. The initial reaction was subdued, with gold briefly touching its daily high before drifting lower to $2385.20 and subsequently recovering slightly.
Jeffrey Christian, managing partner of CPM Group, noted, "We're seeing a quiet market today for gold as they're waiting to see what exactly the change in the democratic party's candidacy means for the election and for the country and the world overall."
Rhona O'Connell, a StoneX analyst, commented on the potential long-term implications, suggesting that a Trump presidency could be more favourable for gold due to inflationary pressures and geopolitical tensions. However, she emphasized that it's premature to take strategic positions at this stage. Read More
Live From The Vault - Episode: 182
Gold becoming legal tender Feat. Rob Kientz
In this week’s episode of Live from the Vault, Andrew Maguire and Rob Kientz of Gold Silver Pros discuss the changing world order, shifting market sentiments worldwide, and the transformative potential of sound money in fostering economic stability.
The precious metals experts delve into the principles of the Citizens for Sound Money movement, critically examine global Central Bank Digital Currency (CBDC) projects and issue a powerful call to action for today’s youth.
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.
