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Silver Price News: Silver Ends Week on Back Foot
Silver prices ended the week on a quiet note, showing little convincing movement in either direction on a day-on-day basis, and ending slightly into negative territory over the week as a whole.
Prices eased very slightly to around $33.60 an ounce by Friday evening, compared with around $33.70 an ounce in late trades on Thursday. Silver did briefly spike higher to a 12-year high of $36.73 an ounce in the middle of the week, but this appeared to be an outlier trade that was not supported by sustainable volumes and the gains could not be sustained at those levels.
Silver’s performance through the week had a slightly bearish slant, contrasting with gold, which not only set a new all-time high on Wednesday, but finished the week in positive territory compared with Monday.
Stronger dollar weighs on silver:
While silver’s 12-year highs may have attracted some profit-taking towards the end of the week, part of the downward pressure may have emanated from the US dollar, which has strengthened against other major currencies so far in October. This makes dollar-denominated silver more expensive for buyers in other currencies, weakening demand. In addition, yields on US 10-year treasury notes strengthened through the week, contributing to downside pressure on silver prices. Read More
Gold Price News: Gold Holds Up Near Record Highs
Gold prices ended higher on Friday, capping a strong week for the precious metal, which included a mid-week rally to a new all-time high.
Prices edged higher to $2,742 an ounce on Friday, showing a moderate recovery from an intraday low of $2,718 an ounce. That compared with around $2,735 an ounce in late trades on Thursday.
US durable goods orders for September came in slightly below market expectations on Friday, while the Michigan consumer sentiment figures for October gave a slightly better-than-expected reading. Neither set of data did little to change market expectations of a 25-basis point cut to interest rates by the US Fed at its upcoming meeting on November 7.
Recent all-time high prompts discussion over outlook:
Wednesday’s all-time high for gold of $2,758 an ounce has prompted some discussion in the market about how high gold can go, and whether the recent rally can be sustained. Undoubtedly, the higher prices could eventually act to curb jewellery demand and retail investor interest in physical bars and coins, while at the same time sending a stronger signal to miners to increase supply as well as boosting supply from recycling. All of the above factors point to the possibility of the recent gold price rally moderating. Read More
Wall Street and Main Street rein in their optimism on gold prices for next week
The latest Kitco News Weekly Gold Survey showed a sharp pullback in bullish sentiment among both industry experts and retail traders, with both groups arriving at a nearly identical distribution of expectations for gold’s near-term price performance.
Marc Chandler, managing director at Bannockburn Global Forex, expects consolidation in the near term, and said the risks for gold are now skewed to the downside.
“Gold recorded a potential key reversal in the middle of last week by setting a record high and then selling off and settling below the previous day’s low,” he said. “There was no follow-through in the last two days, and a consolidative tone emerged.”
“Central banks buying gold and speculation of the inflationary implications of the policies of the next US administration are the main narrative for the gold bulls,” Chandler added. “It seems counterintuitive that the dollar and US rates and stocks have been rallying alongside gold. A break of $2700 would likely begin squeezing the late longs. My guess is we see $2600 before $2800.” Read More
Dollar strength likely to continue into 2025, but diversification with gold may be wise – JPMorgan
The U.S. dollar has seen a rebound in recent weeks, with the dollar index (DXY) climbing from 100.185 on September 30 to a high of 104.58 on Monday. But with the strength of BRICS rising and other headwinds mounting, analysts at JPMorgan asked the question top of mind for many global investors: can King Dollar continue its reign?
“Currency volatility has reached its highest level since May 2023 as investors contend with geopolitics uncertainty and recalibrate bets for the rate-cutting cycle ahead,” JPMorgan investment strategists Matthew Landon and Samuel Zief wrote.
They highlighted the conflict in the Middle East and interest rate cuts as the primary drivers of volatility in the currency market.
“Although it is the human impact that is our primary concern at this time, it is important to address the impact of developments in the Middle East on markets, too,” they said. “To that end, the impact on oil prices feels most intuitive. However, such events often spark a ‘flight to safety’ for investors – where assets like the dollar and gold tend to benefit from inflows.” Read More
Gold, silver near steady ahead of major U.S. data, elections
Gold and silver prices are not straying too far from unchanged in midday U.S. trading Monday. Traders bought the earlier price dips after both metals’ traded lower following the weekend attack by Israel on Iran that was deemed as being an attempt at de-escalation between the two countries. December gold was last down $1.90 at $2,752.70 and December silver was up $0.046 at $33.83.
The gold market remains supported on safe-haven demand ahead of major U.S. economic data later this week that sees the Labor Department’s October employment situation report, and ahead of next week’s U.S. presidential election and all the uncertainty surrounding it.
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 $2,650.00. First resistance is seen at today’s high of $2,758.30 and then at the contract high of $2,772.60. First support is seen at today’s low of $2,736.90 and then at last week’s low of $2,722.10. Wyckoff's Market Rating: 9.0.
Image Source: Kitco News
December silver futures bulls have the solid overall near-term technical advantage. Prices are in an accelerating 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $37.50. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at today’s high of $34.17 and then at $34.50. Next support is seen at last week’s low of $33.26 and then at $33.00. Wyckoff's Market Rating: 8.0. Read More
Image Source: Kitco News
Bitcoin hits $70k, stocks rally while gold consolidates
Stocks and cryptos rallied higher on Monday, while gold trended sideways, as concerns about the Middle East conflict cooled while traders braced for an important week of data, which includes the latest update on inflation and the monthly jobs report.
Rising sentiment in the market has been “bolstered by easing geopolitical tensions, as weekend airstrikes by Israel in Iran avoided hitting critical oil or nuclear sites, leading to a decrease in oil prices to around $67 per barrel,” noted analysts at Secure Digital Markets.
“The upcoming week is filled with key economic data: JOLTS job openings report on Tuesday, Bank of Japan's interest rate decision on Wednesday, followed by the core PCE price index on Thursday, and culminating with the crucial non-farm payroll figures on Friday,” they added. “This week also features earnings announcements from five of the 'Magnificent Seven' tech giants—Alphabet, Microsoft, Meta, Amazon, and Apple—which are poised to influence market dynamics.” Read More
Gold shines as the US dollar is being treated like monopoly money - abrdn’s Robert Minter
The gold market continues to consolidate near its record above $2,750 an ounce. Despite the precious metal’s 33% rally so far this year, one analyst says this is still the calm before the storm, and now is the time for investors to be overweight in commodities, specifically gold.
In a recent interview with Kitco News, Robert Minter, Director of ETF Strategy at abrdn, advised that investors should ignore potential short-term market volatility and focus on the bigger picture: interest rates are heading lower.
At the same time, lower interest rates and stubborn inflation pressures mean that real interest rates could fall faster than some expect. Minter added that, in this environment, investors should be overweight in commodities, with a specific allocation to gold.
Minter noted that traditionally, this environment has been favorable for gold, yet many investors are still choosing to sit on the sidelines. He pointed out that underwhelming investor interest is one of the biggest bullish factors he sees supporting long-term gold prices.
Minter highlighted that through 2023 and most of this year, institutional and retail investors have been liquidity providers, as they have sold their gold-backed exchange-traded funds (ETFs). He explained that the market was able to absorb the excess liquidity because central banks have been on an unprecedented buying spree. Read More
Gold Maintains Historic Highs Amid Global Uncertainties
Gold prices continue to demonstrate remarkable resilience, consolidating near record levels as multiple factors reinforce the precious metal's status as a premier safe-haven asset. The December futures contract settled at $2,754.70, maintaining most of its gains after reaching an all-time closing high of $2,763.10 on Tuesday, October 22.
Image Source: Kitco News
Geopolitical Tensions Underpin Values:
The precious metal's strength reflects mounting global uncertainties, with multiple geopolitical flashpoints supporting its traditional role as a crisis hedge. Israel's recent "precise and powerful" retaliatory strikes against Iran, while carefully calibrated to avoid major escalation, have nevertheless heightened regional tensions. The measured nature of these strikes, which deliberately avoided Iran's oil and nuclear facilities, has prevented a dramatic spike in gold prices while maintaining a solid floor under current valuations. Read More
Live From The Vault - Episode: 196
Looming Market Realignment! Feat Michael Oliver
In this week’s Live from the Vault, Andrew Maguire welcomes back Michael Oliver to examine the instability gripping the US stock market and the looming realignment that could prompt asset reallocations towards safe havens such as physical gold.
The founder of Momentum Structural Analysis underscores the ongoing devaluation of fiat currencies and stresses the importance of tangible assets, forecasting a surge in silver prices driven by rising demand in emerging markets.
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
