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Gold Price News: Gold Edges Higher to Pare Weekly Losses
Gold prices ticked higher on Friday, paring the previous day’s sharp losses, as the lower prices appeared to attract buyers back to the market.
Prices rose as high as $2,391 an ounce, compared with around $2,364 an ounce in late deals on Thursday.
Friday’s modest uptick represented a partial recovery of Thursday’s losses, which saw gold fall from a high of over $2,430 an ounce on Wednesday.
Both US price inflation and Michigan consumer sentiment figures came in Friday slightly above the market’s expectations, adding to the effect of Thursday’s US GDP figures which showed that the economy grew by an annualised 2.8% in the second quarter, up from 1.4% in Q1, and well above market expectations of 2%.
The stronger-than-expected economic signals would normally suggest less pressure on the US Fed to cut interest rates. However, the markets are now pricing in a 25-basis point cut in September and up to two further cuts before the end of the year, and the latest figures have done little to alter that outlook. Read More
Silver Price News: Silver Holds Flat At 11-Week Low
Silver prices held steady on Friday, continuing to trade level with Thursday’s 11-week low, as the markets waited for fresh direction.
Silver traded in a range of $27.62 to $28.03 an ounce for most of the day. Prices did briefly spike to $28.28 an ounce, although sustained trading at this level was not observed. That compared with Thursday’s range of $27.49 to $28.92 an ounce.
Silver prices have shown a capacity to test successively lower troughs in recent weeks, as evidenced by a descending channel since highs of over $32.00 an ounce in May. Absent any fresh bullish drivers, this trend is likely to bring the $27.00 an ounce level into focus in the coming weeks, representing the lower boundary of the downward channel.
US figures released last week painted a stronger-than-expected picture of the US economy, including GDP, consumer sentiment and inflation figures. While the latest data would normally imply a delay before interest rate cuts, the interest rate markets appeared unmoved and are fully pricing in a first rate cut by the US Fed in September, followed by two more cuts before the end of the year. Read More
Gold price could decline after Fed rate cut, gold and silver tops likely in – Sunshine Profits’ Radomski
The cycle tops for gold and silver prices may already have happened, and even if the Fed cuts in September, prices are just as likely to stagnate or decline as to rally, according to Przemysław Radomski, CEO of Sunshine Profits.
In a recent analysis published on FX Empire, Radomski wrote that while the assumption is that gold prices will rally after the Federal Reserve kicks off its rate-cutting cycle, the opposite could also be true.
“Things are not that simple,” he said. “It’s the real rates that matter to gold (also taking the expected inflation into account), and additionally, it’s a matter of what the market participants expect ahead of the move. And right now, the market already expects the Fed to lower the rates – the price moves that are supposed to happen based on those rate cuts (three cuts this year are expected), have likely already happened.” Read More
Gold sitting pretty as Fed expected to lay the groundwork for a September rate cut next week
Although the gold market was unable to hold initial support at $2,400 an ounce this past week, it has managed to maintain a critical bullish trend line above $2,350 an ounce, which, according to some analysts, could create new bullish momentum for the precious metal.
August gold futures last traded at $2,382.60 an ounce, up more than 1% on the day; however, the precious metal is seeing a 0.6% loss from last Friday’s close.
Despite the near-term volatility, analysts note that gold has maintained a solid uptrend as markets increasingly expect the Federal Reserve to cut interest rates by the end of the quarter. According to the CME FedWatch Tool, markets have completely priced in a rate cut in September.
Kelvin Wong, Senior Market Analyst at OANDA, said that he sees gold’s correction as price volatility in a broader uptrend. Read More
Three key reasons why gold prices are going down
We anticipate another week of negative gold prices, the first since June. Gold traders are scratching their heads and asking so many questions about why the ultimate safe haven asset is not going higher, even though there is serious panic among equity investors who are selling the big tech stocks.
The yellow metal has experienced significant price action this week and last week. This week, the yellow metal's price has primarily fluctuated below the crucial 2,400 support level. For traders, this is sort of a big deal, as bulls do not feel that comfortable with the price being below an important psychological support of 2,400.
So why has the gold price fallen? Read More
Carley Garner’s gold options play to position for $2,600 by year-end
Gold’s bullish momentum is starting to wane as prices consolidate below $2,400 an ounce; however, one market strategist says that now is the time to build a long position in gold before prices move higher.
In a recent interview with Kitco News, Carley Garner, co-founder of the brokerage firm DeCarley Trading, said that although gold has dropped from its recent record highs above $2,480 an ounce, the market is still in a strong uptrend and investors should see the drop as a buying opportunity.
“From a seasonal standpoint, normally gold sees a big flushout during the summer. It's usually late July or early August. But, once that selling runs its course, we usually get a nice rally,” she said. “If you look at gold, I think in the big picture, we're consolidating, and I don't think we're quite done going up.”
Although the market has room to move lower, Garner said that she is targeting $2,650 by the end of the year. Despite some profit-taking, she noted that the precious metal has held an important trend line. Read More
Gold, silver pressured by bearish outside market elements
Gold and silver prices are weaker in midday U.S. trading Monday, amid key outside markets being in bearish daily postures: the U.S. dollar index is higher and crude oil prices are solidly lower. The general marketplace is tentative early this week, just ahead of a big and important U.S. economic data dump in the coming days. August gold was last down $5.60 at $2,375.00. September silver was down $0.295 at $27.71, and at a 2.5-month low.
There are also reports coming out of Asia that consumer demand for gold jewelry has waned recently due to higher retail prices and due to China’s economic growth concerns.
This week’s key U.S. data releases include the FOMC meeting that begins Tuesday and ends Wednesday afternoon, the JOLTS report Tuesday, and the monthly jobs report on Friday. The Bank of England’s monetary policy decision is Thursday. The Bank of Japan’s two-day monetary policy meeting ends Wednesday. The BOJ is expected by many to raise interest rates as soon as this week.
Technically, August gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $2,433.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at $2,400.00 and then at $2,415.00. First support is seen at today’s low of $2,367.30 and then at last week’s low of $2,351.90. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
September silver futures bears have the overall near-term technical advantage. Prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $29.63. The next downside price objective for the bears is closing prices below solid support at the May low of $26.55. First resistance is seen at today’s high of $28.335 and then at $29.00. Next support is seen at today’s low of $27.45 and then at $27.00. Wyckoff's Market Rating: 4.0. Read More
Image Source: Kitco News
OTC demand continues to dominate the gold market; investment demand starting to shift - World Gold Council
The gold market continues to establish itself as a global financial asset as traditional pillars of strength weaken due to higher prices, according to the latest research from the World Gold Council (WGC).
On Tuesday, the WGC released Global Demand Trends for the second quarter. In an interview with Kitco News, Joseph Cavatoni, the Market Strategist for North America at the WGC, said there is a distinct shift in the demand profile emerging in the gold market, with Western investment demand starting to pick up as jewelry demand falters.
“We are seeing a shift from jewelry, pure consumption, maybe a form of savings, to pure savings in bars and coins. Now we have to see if one can compensate for the difference,” he said. Read More
Live From The Vault - Episode: 183.
India exploits FED’s rigged gold scam
In this week’s episode of Live from the Vault, Andrew Maguire reveals how insider selling and Asian central bank buying may soon push gold prices higher, providing a big-picture overview of the behind-the-scenes factors influencing the markets.
The precious metals expert delivers a chart-driven analysis of recent trading sessions, presenting a comprehensive overview of the bullish and bearish options expiry setups for gold.
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.
