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Gold Price News: Gold Range-bound Ahead of US Data
Gold prices held steady on Tuesday, trading a few dollars either side of $2,330 an ounce, and showing little impetus to move in either direction as the market awaited fresh drivers.
Prices posted an intra-day range of $2,316 to $2,337 an ounce on Tuesday, little changed from Monday’s range of $2,318 to $2,334 an ounce.
In a somewhat subdued start to the week, the markets were left looking ahead to Thursday’s US durable goods orders for May, the final GDP growth rate for Q1, and weekly initial jobless claims figures. The latest round of macro figures are set to provide a fresh health-check on the US economy and feed into the picture on expected monetary policy going forward.
On the fundamentals side, physically-backed gold ETF flows were more subdued in the week ending June 21, according to data from the World Gold Council on Monday, with North American players adding 2.7 tonnes of demand and Asian entities adding 0.3 tonnes. Demand from European entities fell by 0.9 tonnes, the figures showed. Read More
Silver Price News: Silver Falls Back Below $29.00 An Ounce
Silver prices dropped on Tuesday, losing around 2% in value and coming close to a six-week low.
Prices fell as low as $28.87 an ounce on Tuesday, down from around $29.56 an ounce in late trades on Monday. That was within striking distance of the June 13 low of $28.70, and a fall below that level would take silver to its lowest price since mid-May.
Silver’s fall on Tuesday was more pronounced than that of gold, which eased slightly in rather subdued trading in the first two days of the week.
From a technical perspective, silver is now at a critical juncture, as a four-month bullish trend is looking like it will be tested, and in the shorter-term, a bearish price channel has emerged since late May. This suggests a combination of buyers being unwilling to continue supporting prices at these higher levels of above $30.00 an ounce, and/or sellers willing to sell into the peaks.
The US dollar rebounded against other major currencies on Tuesday, following a drop on Monday, presenting a bearish factor for dollar-denominated assets like silver as it makes the metal more expensive for buyers in other currencies. Read More
Gold price holding support above $2,300 for now as silver price struggles around $29
Gold prices are experiencing some mild selling pressure as they approach critical support around $2,300 an ounce. However, there appears to be very little conviction in the price action as the precious metal remains caught in a narrow range.
Meanwhile, the silver market has attracted some bargain hunters after falling 2% on Tuesday, dropping below its 50-day moving average. However, the precious metal is struggling to hold gains above $29 an ounce.
August gold futures last traded at $2,318.70 an ounce, down 0.52% on the day; at the same time, July silver futures last traded at $28.85 an ounce, roughly unchanged on the day. The gold/silver ratio remains relatively unchanged as it trades just below 80 points.
Image Source: Kitco News
While gold and silver are experiencing some light volatility due to the persistent strength of the U.S. dollar, analysts note that the precious metals remain generally directionless as investors wait for more guidance. Read More
Image Source: Kitco News
Swarm Markets releases gold-backed NFTs as a workaround to MiCA regulations
Real-world asset (RWA) tokenization is one of the fastest-growing segments of the cryptocurrency ecosystem, and along with U.S. Treasuries, tokenized gold has become a popular choice for investors given the yellow metal's long history as a store of wealth.
Due to this growing trend, combined with the implementation of the new stablecoin rules laid out in the European Union’s Markets in Crypto-Assets Regulation's (MiCA), Berlin-based Swarm Markets has taken a novel approach to bringing gold on the blockchain: issuing a gold-backed non-fungible token (NFT).
According to an X thread posted by Swarm Markets, the firm has launched “fully asset-backed digital gold with NFTs representing ownership, which are fully tradable and can be offered peer-to-peer.” Read More
Gold price remains under pressure as U.S. new home sales drops 11.3% in May
The gold market is unable to attract any bullish momentum as prices continue to slide closer to $2,300 an ounce, even after data shows further weakness in the U.S. housing market as consumers appear reluctant to buy new homes.
New home sales dropped 11.3% last month to a seasonally adjusted annual sales rate of 619,000 homes, below April’s upwardly revised rate of 698,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced Thursday.
The latest sales data significantly missed expectations, as consensus forecasts looked for a rate of around 634,000 homes.
Annual sales, which strips out the monthly volatility, continue to highlight significant weakness in the housing market, with sales down 16.5% from May 2023. Read More
Hawkish Fed and strong USD capping gold's potential gains, but PCE will provide direction – FX Empire’s Ali
Hawkish comments from Federal Reserve officials are strengthening the U.S. dollar and capping gold's potential price gains in the near term, according to Arslan Ali, currency and commodity analyst at FX Empire.
“Gold prices (XAU/USD) continued their downward trend for the second consecutive day on Wednesday, hitting their lowest point in over a week during the Asian session,” Ali said. “Despite this decline, the metal avoided significant selling pressure.”
Ali wrote that recent hawkish comments from Federal Reserve officials have served to boost Treasury yields and the dollar and put pressure on gold prices.
“Fed Governor Michelle Bowman expressed a readiness to raise borrowing costs if inflation progress stalls, while Fed Governor Lisa Cook suggested that rate cuts might be appropriate eventually but emphasized the need for caution if inflation expectations rise,” he noted. “The persistent strength in the US economy supports this outlook, driving US Treasury yields higher and capping gold’s potential gains.” Read More
29% of North American financial advisors to increase gold allocation through 2025 - State Street-World Gold Council
While gold has seen an impressive 11% rally so far this year, with prices holding above $2,300 an ounce, the gains have come despite lackluster interest in the precious metal.
However, new research shows that sentiment is starting to change as money managers and hedge funds begin to pay more attention to the precious metal.
On Wednesday, State Street Global Advisors, in collaboration with the World Gold Council, released its annual Gold Perceptions Survey.
According to the research, 29% of financial advisors in North America plan to increase allocations to gold over the next 12 to 18 months, 62% report their allocations to gold are expected to remain the same, and 9% believe they will decrease the percentage of client assets invested in gold. Read More
Gold retreats as dollar strengthens, Yields rise, and Fed officials maintain hawkish stance
Gold prices continued to trade lower, now for the second consecutive day. As of 5:30 PM ET, the most active August gold futures contract was fixed at $2,309.40, down $22.30 or - 0.96%.
Image Source: Kitco News
A primary factor driving gold's decline is the strengthening U.S. dollar, which reached a 38-year high against the Japanese yen. Japan's top currency diplomat, Masato Kanda, expressed serious concern about the yen's rapid devaluation. The Bank of Japan's (BOJ) decision to maintain its low-interest-rate policy and bond-buying stimulus until July has contributed to the yen's weakness. Currently, the dollar is up 1.140 or +0.71% against the yen and fixed at 106.811. The dollar has also risen 0.43% taking the index to106.098. Read More
Cryptos and gold see losses in volatile day of trading as investors await Friday’s PCE data
It was a volatile day of trading across financial markets on Wednesday as asset prices trended higher during the morning session but came under pressure in the afternoon as investors focused their attention on Friday’s key Personal Consumption Expenditures (PCE) release.
The downward pressure across diverse assets from cryptos to stocks and gold comes as this week has been peppered with comments from Federal Reserve speakers who stressed their caution in deciding to make interest-rate cuts dependent on the data.
“Wall Street's focus [is in the process of shifting] to new inflation data with the release of May’s personal consumption expenditures price index on Friday,” said analysts at Secure Digital Markets. “The Federal Reserve closely monitors this preferred inflation gauge, and investors are hopeful that a continued moderation in price increases might prompt the central bank to lower interest rates later this year.” 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.
