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Pressure mounts on Gold bears
Looking at the current action in Gold, Silver, and Platinum, we can see that we are very close to reversing. There are many signs that the bear trend is over; only one thing remains to change, which is our algorithm. There are times when trend trading can be painful.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper, knowing that we can trade either side without emotions.
In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade. Read More
Record silver sales in January at the Perth Mint
In January, the Perth Mint sold 66,709 troy ounces (oz) of gold and a record 2,387,165 oz of silver in minted product form.
The mint announced last month's sales in a news release published Wednesday.
Market volatility helped drive precious metal sales, said a mint spokesperson.
"It was a volatile start to the year for precious metals, with gold trading in an almost USD 60 oz range between USD 1,790 oz on the downside, and USD 1,850 oz on the upside," said Manager, Listed Products and Investment Research, Jordan Eliseo.
"Demand was supported by the volatility seen in equity markets, which have started the year with a significant pullback, though a strong US dollar, rising bond yields and the expectation of a faster pace of monetary tightening from the US Federal Reserve, acted as headwinds across the month." Read More
Gold, silver bulls gaining a head of steam this week
Gold and silver futures prices are firmer and hit two-week highs in midday U.S. trading Wednesday, as the technical charts for both metals have seen improvement this week, which is inviting speculators to the long side of the markets. April gold futures were last up $7.90 at $1,835.70 and March Comex silver was last up $0.14 at $23.34 an ounce.
Metals traders are awaiting the U.S. data point of the week, which is Thursday morning’s consumer price index report for January, expected to come in at up 7.2%, year-on-year. That would be a hot reading if the CPI number meets market expectations.
Image Source: Kitco News
Technically, April gold futures prices hit a two-week high today. Bulls have the firm overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the January high of $1,856.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,780.60. First resistance is seen at $1,840.00 and then at $1,850.00. First support is seen at today’s low of $1,825.50 and then at $1,816.00. Wyckoff's Market Rating: 7.0. Read More
Gold market sees solid Chinese demand ahead of New Year celebrations
After a solid 2021, it appears that demand for physical gold is off to a strong start, with anecdotal evidence showing healthy purchases in China ahead of the Lunar New Year celebrations, according to one research firm.
In a report published Tuesday, analysts at the U.K. research firm Metal Focus said that gains in China's gold jewelry market are on pace to match robust gains seen last year as the market continues to recover from the COVID-19 induced-collapse in 2020.
The analysts noted that the week-long Chinese New Year festival is one of the most important holidays for the gold market. They added that gold sales are leading up to the celebration account for around 30% of demand.
"Overall, preliminary feedback from our contacts suggests that gold jewelry sales over the roughly month-long relevant period (from early January to early February) were likely flat year-on-year. It is important to stress that we see this as an excellent result, as Chinese New Year sales in 2021 had been exceptionally strong," the analysts said. Read More
Protection plays? Gold and Bitcoin are seeing 'stealth climbs' - Pepperstone
The precious metals and crypto markets are seeing a "stealth climb," says Pepperstone. But does that mean investors are stepping up their protection plays?
"There's been a stealth creep in crypto and precious metals of late, but they have kicked onto the radar and commanded more airtime in social media/trading floors," said Pepperstone head of research Chris Weston.
Markets are worried about the U.S. inflation data, scheduled for release tomorrow, and what it will mean for the Federal Reserve come March meeting.
"I will refrain from saying either market have been bought as an inflation hedge as there is simply little correlation between crypto/gold and expected inflation – I certainly see gold as a better portfolio hedge against a central bank pivoting in their stance and a potential walk back of rate hike expectations," Weston said. "I guess when rates pricing is so rich across the whole developed market spectrum and yield curves are flattening out (some see this as a rising chance of a future recession), perhaps buying some insurance, within a broad portfolio, against repricing makes sense. Either way, gold and silver are finding buyers despite higher U.S. real rates and a modestly stronger USD." Read More
Financial investors focus on tomorrow’s CPI inflation index report
This week's most important event will occur tomorrow when the Consumer Price Index report for January is published. Last month the CPI index rose to a 40 year high in December, coming in at 7%. On January 28, the BEA reported that the PCE index grew to 5.8% in December taking the preferred index used by the Federal Reserve to a 40-year high. According to analysts polled by Bloomberg, tomorrow’s report is expected to rise to an epic level of 7.3% over last year. Other polls are forecasting a rise in inflation of 7.2% over last year.
Image Source: Kitco News
One possible indication of what tomorrow’s report will reveal can be found in a survey released by the NFIB (National Federation of Independent Business). The survey polled small businesses and found that small businesses raised their average selling prices by four points to a net increase of 61% (seasonally adjusted), the highest reading since the fourth quarter of 1974.
A consumer survey by the accounting firm KPMG said that consumers are looking at a 22% increase in their food costs when compared to pricing before March 2020. Read More
Gold and silver move higher ahead of the European open
Gold (0.18%) and (0.30%) are both trading higher leading into the European open. In the rest of the commodities complex, copper (0.10%) has moved higher but spot WTI (-0.45%) has bucked the trend to move into the red.
In the risk markets, the Nikkei 225 (0.42%), ASX (0.28%), and Shanghai Composite (0.17%) all traded well overnight. Futures in Europe are pointing towards a positive open.
In FX, it was once again a very quiet session. NZD and AUD marginally increased on yesterday's gains but the movement was very thin. In the crypto space, BTC/USD is trading 1 percent lower at $43,993. Read More
Gold and silver in cashless societies, the great reset in perspective
Cash, the future of cash, and the role of gold and silver in future cash systems.
CPM Group's Jeffrey Christian discusses the history of cash, the future of cash, and the role of gold and silver in future cash systems, addressing along the way some of the misperceptions about future monetary systems. The discussion also included the use of the "Great Reset" by conflict entrepreneurs in their ongoing fear-mongering campaigns. 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.
