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Gold price hits $1,900 on mounting Russia-Ukraine tensions and recession fears
Gold prices soared to eight-month highs as investors fled to the safe-haven metal on economic growth concerns and rising Russia-Ukraine tensions. Analysts see more upside for gold, pointing to $1,903-$1,923 as the critical resistance range.
"There is a lot of different angles to look at gold right now - from the macro, geopolitical, and hedge against inflation. Bitcoin and stocks are selling off, and people are looking for places to park their money. Gold is wearing a lot of different hats right now," Blue Line Futures chief market strategist Phillip Streible told Kitco News.
A barrage of data from Thursday morning gave investors pause as positive momentum in the U.S. labor market slowed, the Philadelphia region's manufacturing sector numbers were weaker than expected, and the housing data out of the U.S. was mixed.
"The economic data are decelerating. [Officials] are trying to spin it as a great economy. But the reality is that economy is slowing while the Fed is extremely hawkish. That's the biggest problem," said Streible. "The economy will continue to slow well into the second quarter, and the Fed's tightening will really hurt growth." Read More
Could rising mortgage rates trigger the next housing crisis? These are the best real estate investment strategies - Briton Hill
With mortgage rates now at the highest level since January 2020, homeowners may be worried about a slowdown in demand and a correction in prices.
Briton Hill, president of Weber Global Management, discusses with David Lin, anchor for Kitco News his outlook for the real estate markets in the U.S., as well as some of the best property investment strategies.
Hill said that there are three main macroeconomic forces at play that will affect the real estate markets: inflation, supply chain issues, and rising interest rates.
"I think overall, there's a greater headwind for further appreciation in most areas than further tailwind. For the past four or so years we've had interest rates falling and we've had a great bond bull market that's pushed asset prices up and we're starting to see those forces change a little bit and I think a big determining factor will be how is it going to take to get this supply chain crisis under wraps," Hill said. "That's putting a lot of pressure on shooting house prices up because building costs are so expensive." Read More
60% market crash, governments seizing your money, shortage of food: Todd Horwitz's scary outlook
The Federal government of Canada recently invoked the Emergencies Act for the first time in Canadian history in response to the trucker protest in Ottawa.
Todd Horwitz, chief market strategist of BubbaTrading.com told David Lin that the stripping away of personal freedoms is not exclusive to Canada, and is only going to get worse around the world.
"That's where governments are going anyways," Horwitz said. "When people continue to vote in the directions that they vote and they give up their freedoms, you are proving to the government to do this because you keep voting in the same people that don't belong there." Read More
Gold price powers to 8-month high on safe-haven demand
Gold prices are sharply higher, hit an eight-month high, and are trading just above $1,900.00 in midday U.S. trading Thursday. Safe-haven demand is featured as reports say a Russian invasion of Ukraine is "imminent." Silver prices are moderately up, but not yet catching the strong safe-haven bid that is gold. April gold futures were last up $29.50 at $1,901.00 and March Comex silver was last up $0.265 at $23.86 an ounce.
Image Source: Kitco.com
Technically, April gold futures prices hit an eight-month high today. Bulls have a solid overall near-term technical advantage and gained more power today. Prices are in a steep uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the May 2021 high of $1,922.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at $1,910.00 and then at $1,922.40. First support is seen at $1,882.50 and then at $1,875.00. Wyckoff's Market Rating: 8.5. Read More
Gold price hits June highs as markets reprice a 50-bps move from the Federal Reserve
Gold trading at an eight-month high of around $1,900 an ounce could be a sign that traders don't believe that the Federal Reserve will be able to do much to stop the current inflation threat, at least in the near term, according to some analysts.
Gold prices have rallied higher as traders and investors see the Federal Reserve raising interest rates by 50 basis points as unlikely. At the start of the week, markets were pricing in a more than 50% chance of an aggressive move from the U.S. central bank at its next monetary policy meeting. However, since the release of the minutes of the FOMC's January meeting, expectations have dropped to about 30%.
However, the gold market is not entirely out of the woods just yet, as there is still talk that the Federal Reserve could surprise markets with an intra-meeting move. However, some analysts think that would be unlikely.
"I think a move before the March meeting would signal panic in the marketplace, and that is what they don't want to do," said Bart Melek, head of commodity strategy at TD Securities. "I think this move we are seeing in gold is because investors don't believe the Federal Reserve will be able to crack down on inflation, especially in the short-term." Read More
The one-two punch of inflation and Russia-Ukraine tensions move gold above $1900
Since January 31 gold has methodically moved to higher pricing gaining just over $100 per ounce in just over two weeks. On January 31 gold opened at approximately $1792. Gold has gained value during 12 of the last 14 trading days. Gold has increased its value by 6.02% since January 31. If this trend continues it will be a180° reversal from the price decline that occurred in 2021. Although inflationary pressures increased during 2021 gold prices did not. Gold futures lost roughly 4.7% last year. This was the steepest yearly decline since 2015.
Image Source: Kitco.com
It was rising levels of inflation that became the underlying force moving gold higher this year. With inflationary levels at a 40-year high and no quick solution to curtail inflation from moving higher, it will likely continue to have a major impact on gold taking the precious yellow metal higher throughout the year. Add to that the recent geopolitical tensions between Russia and Ukraine and collectively you have a powerful one-two punch that could cause gold prices to retest the record high that occurred in August 2020 when gold prices reached an apex at $2088 per ounce. Read More
Once gold price hits $2,000, expect a 'sharp pullback' - Florian Grummes on crack-up boom, civil unrest, and Bitcoin target
t's only a matter of time before double-digit inflation hits the U.S. said Florian Grummes, managing director of Midas Touch Consulting.
"We are on track for that. It's just a question of time. It could happen this year, maybe next year. If the Fed indeed starts to hike and starts to taper…you see the markets already giving a clear signal, so I don't think they can do it aggressively at all, if they do it at all. They probably will roll back rather quickly during the year because end of the year we have midterm elections," Grummes told David Lin, anchor for Kitco News.
Gold's multi-year bull cycle is still continuing, Grummes said. Read More
Gold continues to hold at higher levels ahead of the European open
Gold has retraced slightly from lofty levels and trades at $1891.79/oz ahead of the European open. Silver is trading 0.27% higher at $23.89/oz after two sessions of gains. In the rest of the commodities complex, copper is 1.42% higher and spot WTI fell 0.77% overnight at Russia's Lavrov agreed to meet with U.S. Secretary of State Blinken.
Stocks were mixed overnight as the Nikkei 225 (-0.42%) and ASX (-1.02%) both struggled but the Shanghai Composite rose 0.66%. Futures in Europe are mildly positive ahead of the cash open.
In FX markets, commodities currencies performed well against the greenback. AUD, CAD, and NZD all pushed higher with NZD/USD the best performer. In the crypto space, BTC/USD those 0.31% after a 7.65% fall on Thursday. 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.
