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Gold & Silver Market Analysis for Monday 17th January
Kinesis Gold Price Analysis: This inflationary environment should be positive for gold with the price now holding comfortably above the psychologically important level of $1,800 an ounce.
Gold Price ($/g) - 15 mins - from Kinesis Exchange
With no clear moves yet on currency markets and with reduced volumes for anything US-related today as a result of the public holiday, gold is likely to spend another day shuffling around the $1,820 level that has been its home for the last few days.
From a dollar per gram perspective, that position translates into gold holding station at $58 per gram with today’s initial gains seeing it nudge towards $59.
Kinesis Silver Price Analysis: Read More
One thing is certain: gold is stuck in a range
Watching gold, silver, and platinum trade overnight and into this morning, we see slow markets that are leaning higher. Taking a deeper look into their trading patterns -- except for being long versus short -- the metals have gone nowhere.
Many times, we have written about the consolidation pattern, which is also known as the time of most confusion. That is precisely where we are now. Gold, silver, and platinum continue to torment us, whether long or short. Obviously, we are looking for a move higher based on our algorithm. However, that doesn’t relieve the misery and congestion.
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
Kirkland Lake Gold achieves record production in 2021, beats guidance
Kirkland Lake Gold (TSX:KL) today announced record quarterly and full-year production for the fourth quarter of 2021 ("Q4 2021") and full-year of 2021 ("FY 2021"), respectively.
The company said that its Q4 2021 production totaled 380,472 ounces driven by record quarterly production at Detour Lake Mine of 210,980 ounces and a 33% increase in production at the Macassa Mine compared to Q3 2021 to 61,336 ounces.
For FY 2021, the company’s consolidated production totaled 1,432,616 ounces, which is 5% higher than in FY 2020 and exceeded both the company’s original FY 2021 production guidance issued on December 10, 2020, of 1,300,000 – 1,400,000 ounces as well as improved guidance for the year of 1,350,000 – 1,400,000 ounces issued on November 3, 2021. Read More
Detour Lake was the largest gold mine in Canada in Q3 2021; top 10 local mines up production 12% - report
Kirkland Lake Gold’s Detour Lake mine was the largest gold operation in Canada in Q3 2021 by production. The top 10 domestic gold mines increased output by 12% in Q3 2021.
Kitco ranked the top 10 largest gold mines in Canada in Q3 2021 based on publicly reported production figures.
Kirkland Lake Gold’s Detour Lake mine was the largest gold mine in Canada in Q3 2021 and achieved a record quarterly production of 189,233 ounces. The 189,233 ounces of production was 35% higher than the 140,067 ounces produced in Q3 2020 and increased 14% from the previous quarterly record of 165,880 ounces in Q2 2021. The increase in production quarter over quarter mainly reflected a 5% increase in tonnes processed as well as an 8% improvement in the average grade with mining during the quarter focused largely on high-grade areas as part of the Phase 2 mining plan. Read More
Listening to gloom-and-doomers will make you lose out on another year of gains - David Barse
While valuations of the global equity markets may seem high by conventional metrics’ standards, this doesn’t indicate that markets are due for an imminent correction, said David Barse, CEO of XOUT Capital.
“When we use the word valuations, we’re talking about metrics that have been the historical basis for evaluating market prices. What XOUT is all about is one of the most significant forward-facing risks that all companies are dealing with and that’s technological disruption. What technological disruption has shown us in the last couple of years is that valuations in the traditional, traditional sense, really matter that much because the paradigm around how one evaluates or values a company has to change,” he said. Read More
Gold prices flat as firmer U.S yields hurt appeal
Gold prices were flat on Tuesday as a weaker dollar partially offset pressure from elevated U.S. Treasury yields, which dim the appeal of non-yielding bullion.
Spot gold held its ground at $1,818.87 per ounce, as of 0022 GMT. U.S. gold futures edged up 0.1% to $1,818.50.
Treasury yields rose along the curve on Tuesday, lifting the short end to new pandemic highs on rate hike expectations.
The focus is now on the U.S. Federal Reserve's Jan. 25-26 meeting after policymakers signaled that they would start raising interest rates in March to tame inflation.
Gold is considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates, which increases the opportunity cost of holding non-interest-bearing bullion. Read More
Gold holding $1,800 even as hedge funds liquidate bullish bets
The gold market is holding the line above $1,800. However, it is still unable to gain any upside momentum as hedge funds pair back their bullish bets, according to the latest data from the Commodity Futures Trading Commission.
Although gold prices have been unable to break above critical resistance around $1,830 an ounce, many have noted the precious metal's resilience as real yields have pushed to their highest level in nearly two years.
The gold market has held steady as markets start to price in more aggressive action from the Federal Reserve as it tries to bring the rising inflation threat under control. This year, markets see the potential for four rate hikes, with lift-off commencing as early as March.
"Hawkish signals coming from the Fed, market expectations suggesting a March Fed funds hike is imminent, and increasing speculation that QT is in the cards over the next twelve months prompted specs to aggressively decrease their long gold exposure. Investors extended short positioning and sold longs, as yields across the curve moved convincingly higher," said commodity analysts at TD Securities. Read More
The ‘Black Swan’ event that could wipe out your wealth and how to hedge against it
Stock market corrections are not the only thing that investors should be concerned about, said hedge fund manager Roy Niederhoffer, president of R. G. Niederhoffer Capital Management.
In fact, another event, although more unlikely, would be far more catastrophic, Niederhoffer told Michelle Makori, editor-in-chief of Kitco News.
“I believe the edge case downside is [that] inflation is so powerful and the Fed can’t do anything about it, because they can’t [raise interest rates] above 3%, 4%, because the government can’t fund itself at those levels. The stock market crashes, whatever it is, something happens, and it causes money printing to be the only solution. Inflation is the only thing that can solve the funding problem the government has and in that situation, if you’ve got any sort of cash asset, it’s going to be devalued not 30% or 50% like a stock market crash but 90%, 95%, 99% or more,” he said. Read More
Gold and silver edge lower heading into the European open
As U.S. fixed income yields rose overnight the USD strengthened and this sent gold (-0.24%) and silver (-0.18%) lower. In the rest of the commodities complex, copper trades -0.22% in the red while spot WTI bucked the trend to push 1.57% higher.
Risk sentiment was also poor overnight, the Nikkei 225 (0.27%) and ASX (-0.11%) closed lower but the Shanghai Composite rose 0.80%). Leading into the European open index futures are indicating a weak cash open.
In FX markers the biggest mover was USD/JPY which rose 0.28%. In the crypto space, BTC/USD fell half a percent to trade at $42,011. 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.
