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Gold Price News: Gold Hits New Highs on Rate Cuts, Conflict Risk
Gold prices pushed higher again on Tuesday, setting a new all-time high as the markets awaited fresh signals following last week’s US interest rate cut, and taking support from safe-haven flows amid increased tensions in the Middle East.
Prices again pushed into new territory, rising as high as $2,664 an ounce on Tuesday, compared with around $2,627 an ounce in late trades on Monday.
Gold prices continued to look buoyant after the US Fed slashed interest rates by 50 basis points last week — the first cut in more than four years — raising the appeal of non-yielding assets. The US dollar also fell back on Tuesday, giving up the previous day’s gains, adding to the bullish picture for gold.
Geopolitics have also come to fore once again, after Israel said it hit 1,600 Hezbollah targets with air strikes in Lebanon on Monday, while the Lebanese paramilitary group fired more than 200 rockets into northern Israel. The latest increase in hostilities is serious and materially raises the risk of a wider conflict – a situation which boosts investment flows into safe havens like gold. Read More
Silver Price News: Silver Hits Four-Month High As Gold Marches Higher
Silver prices jumped by more than a dollar on Tuesday, rising to their highest since late May, as bullish sentiment over lower interest rates combined with safe haven demand for precious metals.
Prices rallied as high as $32.31 an ounce on Tuesday, the highest price for silver since May 28. That compared with around $30.77 an ounce in late trades on Monday.
Sentiment remains bullish for both gold and silver following the US Fed’s 50-basis-point cut to interest rates on September 18th, and the outlook is also positive as the markets mull the prospect of further cuts in the coming months. Gold hit a new all-time high on Tuesday, pulling silver prices higher.
Heightened tensions between Israel and Lebanese militant group Hezbollah this week have amped up the risk of a deeper conflict in the region, pushing investment flows away from riskier assets toward safe havens such as gold and silver. Read More
Gold prices within striking distance of $2,700 as U.S. new home sales fall 4.7% in August
The U.S. housing market is showing signs of stabilization, as the number of new homes sold last month fell less than expected. However, the better-than-expected data is having little impact on gold, which continues to trade within striking distance of $2,700 an ounce.
New home sales dropped 4.7% last month to a seasonally adjusted annual rate of 716,000 homes, below July’s upwardly revised rate of 751,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, announced on Wednesday.
New home sales are up 9.8% from August 2023, the report stated.
Although sales declined, the report was better than expected, as economists had anticipated a sharper drop to 699,000.
The gold market is largely ignoring the latest economic data, as prices continue to hold near record highs. December gold futures last traded at $2,689.80 an ounce, up 0.48% on the day. Read More
National push for Sound Money gains ground as states reconsider precious metals policies - Jp Cortez
Nebraska’s legislative battle over sound money policies made headlines recently, as grassroots pressure forced lawmakers to withdraw a proposed sales tax on precious metals, highlighting the ongoing fight for gold and silver’s role as sound money.
In a recent interview with Jeremy Szafron, Anchor at Kitco News, Jp Cortez, Executive Director of the Sound Money Defense League, shared insights into this victory and the broader movement to reinstate precious metals as legal tender across the United States.
Cortez explained that Nebraska’s attempt to reimpose a sales tax on precious metals came as a surprise, given the state's progress in passing sound money legislation earlier this year.
“Politicians see an opportunity to fill the state coffers without understanding the inefficiencies of imposing taxes on sound money,” said Cortez. Grassroots mobilization quickly followed, leading to the removal of the sales tax provision. “Hearing from people in the state is ultimately what determines the success of these legislative projects,” he said. Watch the podcast
BMO increases gold price forecast as its role as a global currency grows
The start of the Federal Reserve’s new easing cycle has sparked fresh momentum in gold. While lower interest rates will continue to support investment demand, one Canadian bank sees gold’s growing importance as a global monetary metal as a bigger driving force for long-term prices.
Late Tuesday, commodity analysts at BMO Capital Markets published updated commodity price forecasts, highlighting that gold was their most notable upgrade ahead of the fourth quarter.
In the near term, the bank sees gold prices averaging around $2,700 an ounce in the fourth quarter, up 15% from its previous forecast of $2,350 an ounce. Gold trading at record highs is already within striking distance of BMO’s new price target. December gold futures last traded at $2,687.20 an ounce, up 0.38% on the day.
Looking at gold over the next 12 months, the Canadian bank sees prices averaging in 2025 around $2,663 an ounce, a 21% jump from its previous estimate of $2,200. The bank also updated its long-term price forecast to $1,900, up 15% from $1,650 an ounce. Read More
West versus the rest of the world - Willem Middelkoop on the chief reason why gold is spiking
There is a lack of big discoveries in the mining sector, said Willem Middelkoop, founder and CEO of Commodity Discovery Fund.
Last week, Middelkoop spoke to Kitco Mining at the Gold Forum Americas/XPL-DEV 2024 in Colorado.
Middelkoop expressed optimism that the gold price could reach $3,000 before the end of the year, potentially marking the start of a new bull market.
"Gold could be on the verge of a breakout. This could be a violent move," Middelkoop said.
He cited key factors driving the rise in gold prices, including currency debasement, a shortage of significant new discoveries, and heightened geopolitical tensions between the West and the rest of the world.
"That's why we see many people fleeing towards gold—even central banks. And I think the last point is the most important reason for this rise in the gold price," he added. Watch the podcast
International ‘gold ATM’ offers self-service buying and selling of precious metals
Precious metals customers around the world will soon be able to instantly buy – and even sell – physical gold, in any currency, at a self-serve ATM-style kiosk.
KINGHOOD, a Fortune China 500 ranked company, recently unveiled the international version of their Smart Gold Store for the first time at Jewellery & Gem World (JGW) Hong Kong.
The Smart Gold Store combines a smart gold recycling terminal with a self-service gold jewelry purchasing terminal. According to the company, the terminals provide an eco-friendly and intelligent gold recycling and purchasing experience similar to using an ATM.
As of September, KINGHOOD said they have established Smart Gold Stores in around 40 cities across China, including Beijing, Shenzhen, Macau, Hangzhou, Xiamen, and Urumqi. The stores are located in convenient spots, such as banks, supermarkets, and retail shops. Read More
Gold's stellar performance: consolidation after record-breaking rally
The precious metals market has witnessed an extraordinary surge in gold prices, with the yellow metal achieving one of its most impressive runs in recent history. Gold has soared by over 21% this year, reaffirming its status as both a safe-haven asset and a potential source of significant returns. The rally intensified following the Federal Reserve's first interest rate cut since 2020, with gold gaining nearly 3% in the week after the announcement.
On September 25, gold reached a new record high of $2,694.90 per troy ounce, narrowly missing the psychologically important $2,700 mark. As of 6:15 EDT, December gold futures were trading at $2,681.30, reflecting a marginal decline of $0.80 from the opening price of $2,682.80.
Image Source: Kitco News
The recent price surge can be attributed to several factors. Market participants are reacting not only to the Fed's single rate cut, but also to the perception that this move signals a pivotal shift in monetary policy. Investors anticipate a series of rate cuts that could bring the federal funds rate down to approximately 3% by mid-2025. Additionally, rising geopolitical tensions in the Middle East and the ongoing conflict between Russia and Ukraine have contributed to gold's appeal as a safe-haven asset.
While these factors continue to support gold prices in the long term, some market observers suggest that a period of consolidation or even a moderate price correction may be on the horizon. The timing and extent of such a consolidation remain uncertain. Read More
Gold bulls keep tight grip as new record highs continue
Gold prices are a bit higher in midday U.S. trading Wednesday and hit another record high of $2,694.90, basis December Comex futures. Silver prices are weaker on a corrective pullback from recent good gains. Safe-haven bids are keeping a floor under the two precious metals markets. Technical charts remain firmly bullish for gold and silver, too. December gold was last up $2.80 at $2,679.70 and December silver was down $0.28 at $32.15.
The Israel-Hezbollah military conflict has escalated recently, with the Israel air strikes in Lebanon this week being called the heaviest since 2006. Hezbollah has retaliated with missile strikes into Israel, most of which have been intercepted by Israeli defenses. Reports said Hezbollah fired one missile deep into Israel, showing off the group’s missile power. This situation is keeping safe-haven bids in gold and silver and will likely get worse before it gets better.
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 $2,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,572.50. First resistance is seen at the overnight contract high of $2,694.960 and then at $2,700.00. First support is seen at $2,650.00 and then at this week’s low of $2,638.60. Wyckoff's Market Rating: 9.5.
Image Source: Kitco News
December silver futures bulls have the solid overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $32.61 and then at $33.00. Next support is seen at $32.00 and then at $31.50. Wyckoff's Market Rating: 7.5. Read More
Image Source: Kitco News
Gold is actually starting its second rally, and $3,000 is not far away – Dylan Smith of Rosenberg Research
Investors concerned that gold prices may be overextended have nothing to fear as a new set of drivers are propelling the precious metal into another distinct rally, and this one will blow through $3,000 in short order, according to Dylan Smith, Senior Economist at Rosenberg Research.
In an interview with the Financial Post’s Larysa Harapyn on Wednesday, Smith was asked whether he believes the gold rally can continue after the yellow metal has already risen so far so fast. He replied that gold is actually seeing two separate rallies, each with its own distinct drivers, which means that the next stage of the bull market is only just beginning.
“I think we've seen a very big leg up in gold over the last week since the Fed [delivered] its big 50 basis point rate cut,” Smith said. “That's something we had expected to be coming for some time. But I think an important thing is happening in the gold market in terms of a big change in what's driving the gold price compared to the big rallies that we saw at the beginning of this year, so that's why we're fascinated by what's going on and we think there's more to come.”
Smith said that Rosenberg Research has held a price target of $3,000 or more for some time, and they don’t see much risk of a correction. In fact, they see more momentum coming. Read More
Volatility returns as stocks slide, gold hits new ATH, and Bitcoin struggles with $65k resistance
Volatility returned to financial markets on Wednesday as traders appeared unsure of what to expect next from the Fed and the economy amid rising recession fears and the expected increase in M2 money supply and global liquidity that will come with reduced interest rates.
“Liquidity continues to expand, pushing asset prices higher, a trend traceable to the rising US M2 money supply and the swelling balance sheets of the top 15 central banks,” noted analysts at Secure Digital Markets. “China's push for aggressive monetary easing, combined with the U.S. Fed’s 50bps rate cut, has further catalyzed market momentum.”
“With most central banks pivoting towards rate cuts, macroeconomic conditions are becoming increasingly important,” they added. “Investors should closely monitor upcoming economic reports and earnings season to gauge potential market direction.”
“Equity futures were largely flat on Wednesday, as Wall Street seeks to build on its gains from September,” the analysts said. “Despite positive momentum, concerns about an economic slowdown linger, particularly after the Fed’s recent rate cut. The futures market now places a 60% probability on another 50bps rate cut by November, a dramatic rise from just 13% last month.” 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.
Featured Image - Source: Unsplash
