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Gold spikes higher Monday, now lower
Although Monday was a holiday in the U.S., the markets were open electronically. Gold churned most of the day before a rally ahead of the close. The reopen last night saw gold spike to $1,918; our first resistance is 1920. As of 5:45 am EST, gold is lower on the day; back below $1,900, the new pivot area.
We are seeing similar action in silver and platinum, although they are a little stronger than gold. Once again, those who try and trade the news lose. The phony narrative being spun about Russia and Ukraine continues to fuel energy and metals.
Of course, those who really understand markets know that most of that information is already priced in. The news you hear or read is already old news. Success in trading and investing is watching and understanding the price action. We are long gold and silver and look for the rally to continue. We are now looking for a close above $1,900 before the rally moves to the next level. Read More
Gold price will power to $7,400; Rally is far from over as ‘perfect storm’ brews - Chris Vermeulen
While geopolitical tensions may provide a short-lived rally in safe-haven assets like gold, there is no denying that the metal is still in a long-term technical bull cycle that mirrors the beginning of 2008, said Chris Vermeulen, chief market strategist of TheTechnicalTraders.com.
Vermeulen told David Lin, anchor for Kitco News that gold is set to hi $2,700 an ounce in one year, and up to $7,400 in five years.
“I think we’re coming into a pretty major supercycle in precious metals. I think we started back in 2019 and this is about a five-year cycle for gold, and it has been a very tough year for equities, we’ve had a very long bull market, I think things are getting a little long in the teeth in terms of the equities side,” he said. “When the stock markets get to the late stages, this is where we see commodities come to life.” Read More
Gold price beats out Bitcoin as traditional havens dominate during escalating Russia-Ukraine crisis
Russia-Ukraine tensions are pushing investors towards gold and away from Bitcoin, with the precious metal outperforming the world's largest cryptocurrency year-to-date.
Uncertainty after Russian President Vladimir Putin recognized two self-proclaimed republics in eastern Ukraine and ordered to send troops there as "peacekeeping forces" have triggered another wave of selloffs in the crypto space.
Markets are now carefully eyeing Western leaders' potential sanctions against Russia. Germany already announced that it is halting the certification process of the Nord Stream 2 gas pipeline project from Russia.
"It is not yet clear when this will happen. Any deployment of military units to Ukraine would presumably be seen as tantamount to an invasion. The West would probably react by imposing sanctions on Russia. The U.S. administration already plans to slap further sanctions on Russia today," said Commerzbank analyst Daniel Briesemann. "Gold remains in demand as a safe haven amid all this turmoil."
Gold was holding around the $1,900 an ounce level after touching $1,915 earlier in the session and trading at the highest levels in eight months. On the other hand, Bitcoin hit a low of around $36,000 overnight and was last at $38,122.16, down 2% on the day. Read More
Gold, silver see safe-haven buying as "markets on war footing"
Gold and silver prices are higher in midday U.S. trading Tuesday. Gold prices hit an eight-month high today and silver a four-week high as risk aversion is elevated and geopolitics are on the front burner of the marketplace. Gold and silver bulls are feeling confident at present, amid safe-haven demand being stronger and the charts being friendly. April gold futures were last up $5.00 at $1,904.80 and March Comex silver was last up $0.298 at $24.29 an ounce.
Image Source: Kitco News
Technically, April gold futures prices hit an eight-month high today. Bulls have a solid overall near-term technical advantage. 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 today's high of $1,918.30 and then at $1,922.40. First support is seen at today's low of $1,889.70 and then at $1,882.50. Wyckoff's Market Rating: 8.5. Read More
Gold market is finally starting to outperform broader commodities - MKS PAMP Group
The gold market continues to ride a wave of geopolitical fear, with prices holding new critical support above $1,900 an ounce. The precious metal could have further upside momentum as it has become a commodity sector leader.
In a note published last week, Nicky Shiels, head of metals strategy at MKS PAMP Group, said that gold has been outperforming the broader commodity index for the last two weeks. She noted that gold prices are up 5.5% in the last two weeks while the Bloomberg Commodity ex-Precious Metals Index is up 1.5%.
Tuesday, April gold futures last traded at $1,905 an ounce, up 0.27% on the day.
"That's a largely contrarian move as the market has favored all commodities ex-Precious for some time now," she said. "Clearly, this is a very bullish signal for gold, but it's just one angle. the key takeaway is Precious metals are at a steep discount vs. all other commodities with relative prices at their cheapest since these indices began, in 2009." Read More
Gold price holds $1,900 as Biden announces first tranche of Russia sanctions
The gold market is relatively calm as investors digested the West's reaction to escalating Russia-Ukraine tensions with U.S. President Joe Biden's announcement of the first tranche of sanctions against Russia.
Tensions escalated on Tuesday as the West reacted to Russian Vladimir's Putin announcement recognizing two self-proclaimed republics in eastern Ukraine and ordering troops there as "peacekeeping forces."
In response, U.S. President Joe Biden said he is releasing the first tranche of sanctions against Russia, which will target Russian banks and sovereign debt.
"Today, I am announcing the first tranche of sanctions to impose a cost on Russia in response to their actions yesterday. We'll continue to escalate sanctions if Russia escalates. We are implementing full blocking sanctions on two large Russian financial institutions VEB and military bank. We are implementing comprehensive sanctions on Russia's sovereign debt. That means we've cut off Russia's government from Western financing," Biden told the press on Tuesday. "Starting tomorrow, we'll also impose sanctions on Russia's elites and family members." Read More
Gold encounters resistance at $1918 but remains above $1900
Gold prices oscillated between today’s low of $1889.70 and high of $1918.30. As of 4:15 PM, gold futures basis's the most active April contract is currently fixed at $1901.30 after factoring in today’s gain of $1.50 or 0.07%. This article will focus upon today’s high as it occurs at a key level of possible strong resistance. Historical data has shown this price point is important in both short and long-term studies as evidence that $1920 is a key technical level that remains in play.
Image Source: Kitco News
Chart number one looks at gold from August 2020 reaching its record high to the correction that followed. After trading to the record high of $2088, gold began to a steep price decline taking gold from the record high to a low of approximately $1675 in March 2021. What followed was a clear and defined range with highs defined at $1920 and a low of $1670. There have been two instances since gold declined from $2088 when gold traded to a high of $1920. The first occurrence was in June 2021 with today’s high marking the second occurrence. Read More
As Russia begins invasion, these strategic commodities will benefit the most – Phil Streible
Russia is a key supplier of not just oil but several strategic commodities, all of which should benefit from heightened geopolitical tensions in Eastern Europe, said Phil Streible, chief market strategist of Blue Line Futures.
Streible’s comments come as The White House on Tuesday called Russia’s latest advances “the beginning of an invasion.”
Russian President Vladimir Putin announced that he recognizes the territorial claims of two self-declared separatist republics in eastern Ukraine and has deployed troops to those regions.
The U.S. and the U.K. have moved ahead with sanctions; U.S. President Joe Biden announced Tuesday that the first wave of sanctions will target Russian banks and sovereign debt. Biden vowed tougher punishments if Russia continues its aggression.
“What [the Russians] would do is they would divert their oil. Instead of selling it into the current export structure that they have, they could easily make agreements with other countries to buy that oil, like China. Also, they can take off some of that oil, they can hold back. There’s no reason for them necessarily to sell, they have too many other key commodities that prices can drive up on,” Streible told David Lin, anchor for Kitco News. Read More
Gold is trading just under $1900/oz ahead of the EU open
Gold is flat leading into the European open trading just under $1900/oz. Silver has managed to climb 0.18% higher. In the rest of the commodities complex, copper and spot WTI are trading 0.25% in the black.
In the risk markets, things took a slightly positive turn overnight. The ASX (0.62%) and Shanghai Composite (0.93%) both traded higher overnight. Japanese markets were closed due to a public holiday. Futures in Europe are looking slightly positive ahead of the cash open.
In FX markets, NZD was the main mover after the rate hike and hawkish stance from the RBNZ. NZD/USD is trading 0.56% higher overnight. In the crypto space, BTC/USD is half a percent lower trading at $38,066. 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.
