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Gold Price News: Gold Falls As US Data Points to Economic Strength
Gold prices slumped on Friday, as US economic data suggested policymakers may need to keep interest rates at current levels for a longer period.
Prices fell as low as $2,319 an ounce on Friday, compared with around $2,360 an ounce in late trades on Thursday.
The sharp drop, which erased the previous day’s gains, came after US manufacturing PMI figures were released on Friday showing that activity in the sector had increased to a three-month high in June. In addition, US services PMI data for June showed the strongest expansion since April 2022.
The latest indicators point to a stronger-than-expected US economy, indicating greater leeway for the US Fed to keep interest rates at current high levels before starting a much-anticipated rate-cutting cycle. Read More
Silver Price News: Silver Falls Back Below $30.00 An Ounce
Silver prices fell on Friday, reversing the previous day’s solid gains, and moving in line with a downward reversal in gold prices on the day.
Silver prices fell as low as $29.51 an ounce on Friday, compared with around $30.78 an ounce in late trades on Thursday.
Prices came under pressure as gold reacted to US manufacturing and services figures for June, which posted stronger readings than the market had expected. The latest macro data supported a ‘higher-for-longer’ scenario for US interest rates, which would act as a headwind for precious metals prices.
Data from interest rate traders currently points to a roughly 66% chance of a US rate cut in September and a 78% chance of a first cut happening in November, according to the CME FedWatch Tool. Read More
Wall Street reaches perfect equilibrium of indecision on gold prices, Main Street maintains optimistic outlook
The gold market saw one of its least dramatic weeks of the year this week, but as has been the case of late, it saved some drama for market participants for the end.
Spot gold kicked off the week trading at $2,332.64, and after sliding to a daily low of $2,311.50 around noon EDT on Monday, it did very little other than set the weekly low of $2,307.38 early Tuesday morning.
So steady and narrow was the sideways churn that by the middle of the day Wednesday, which also marked the Juneteenth holiday in the United States, gold had traded in only about a $20 range and found itself flat on the week. Read More
NY Fed warns of risk to major U.S. banks, 'something amiss in the banking system,' says Soloway
There is something "amiss" in the U.S. banking sector, says Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, warning that big institutional players are "unloading" the stocks of big banks.
"I'm hearing a lot of chatter about the big banks unloading bad debt right now, trying to get ahead of some sort of crisis looming," Soloway tells Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "Because interest rates are so high, the amount of losses in mortgage-backed securities potentially rival what we saw in 2008 and 2009. In addition, the commercial real estate market is in tatters. And these are all things that banks are holding on their balance sheets."
Soloway points to the SPDR S&P Regional Banking ETF (KRE), noting the formation of a bear flag pattern since the banking crisis lows of April last year. Watch the video for Soloway's breakdown.
Fed rate cuts and friction in the bond market could drive gold prices to $3,000 in the next 12 to 18 months - Bank of America
The gold market may be treading water now, but it is expected to ride a wave significantly higher as the Federal Reserve cuts interest rates later this year and rising debt further fuels economic uncertainty, according to Bank of America.
In a report published Monday, Michael Widmer, commodity strategist at the bank, said that he sees the potential for gold prices to hit $3,000 an ounce in the next 12 to 18 months. However, he added that the market needs to see a pickup in investment demand, which is unlikely to happen until the Federal Reserve gives a clear signal that it is ready to cut interest rates.
“If non-commercial demand picks up from current levels on the back of the Fed rate cut, the yellow metal could push higher again. Beyond inflows into physically-backed ETFs, a pickup in LBMA clearing volumes would be an encouraging signal,” Widmer said in the report. “A gold price average of $2,500/oz this year could be justified if investment demand increased by around 20%. Yet, non-commercial purchases were up by only around 3% YoY in 1Q24, enough to justify an average gold price of just $2,200/oz YTD.” Read More
Gold will be sensitive to PCE inflation, but that won’t stop its long-term uptrend - TD Securities
The gold market is caught in a holding pattern as it awaits the latest inflation data with Friday’s Personal Consumption Expenditures (PCE) Index.
In a report published last week, commodity analysts at TD Securities wrote that the gold market is vulnerable to the timing of the Federal Reserve’s interest rate cuts. The analysts see near-term risks to the downside if inflation comes in hotter than expected.
“The yellow metal could plunge an additional $100+ if the progress made on inflation stalls or if U.S. economic data continues to surprise to the upside, prompting the Fed to signal a more hawkish stance,” Bart Melek, Head of Commodity Strategy at TD Securities, wrote in the report.
However, any weakness in the gold market is expected to be short-lived, as the Canadian bank sees gold prices ultimately going higher by year-end. Read More
Gold rises on weaker dollar as investors eye multiple economic reports, including PCE
Image Source: Kitco News
Gold futures saw modest gains on Monday, primarily driven by a weakening dollar. As of 4:15 PM ET, the most active August gold contract settled at $2,345.90, up $11.20 or 0.48%. The dollar index declined by 0.35% to 105.491, contributing significantly to gold's upward movement.
Investors are bracing for a busy final week of the month, with several crucial economic reports on the horizon. The Conference Board's June Consumer Confidence report, due Tuesday, is expected to show a slight decline to 100, down two points from the previous month.
Thursday will bring a flurry of economic data. The Commerce Department is set to release its third and final revision of the first-quarter GDP, projected to remain steady at 1.3%. Additionally, advance readings for May's goods trade balance and wholesale inventories will be published. Analysts anticipate a 0.1% decline in durable goods orders. Read More
Gold price, Bitcoin price: The next new all-time high targets & these are 'not stopping points' – Katie Stockton
Investors need to gear up for more choppy and volatile trading during the year's second half, says Katie Stockton, Founder and Managing Partner of Fairlead Strategies, pointing to the key signs to watch.
The critical indicator behind Stockton's forecast is the sign of widespread exhaustion in the equity markets, especially in the Nasdaq 100.
"There are those signs of upside exhaustion that we've got our eyes on," Stockton tells Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "It doesn't mean you go and reduce exposure broadly necessarily, but we've been recommending that our clients consider short-term market hedges from a top-down perspective to manage risk throughout a pullback."
For insights into where Stockton is seeing widespread exhaustion in the marketplace, watch the video
Live From The Vault - Episode: 178
How ESG could break markets and push silver prices up! Feat. Alasdair Macleod
In this week’s episode of Live from the Vault, Andrew Maguire welcomes back Alasdair Macleod, stockbroker and Head of Research for Goldmoney, to share his expert insight on the gold market and the West’s collective obsession with Russia.
Alasdair, famous for stating that “gold is money and all else is credit” provides a thorough examination of the mainstream media’s narrow view on Chinese and Indian precious metals demand, then delves deep into Bitcoin and silver.
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.
