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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 slightly down Tuesday but silver sharply up, hits 7-week high
Gold futures prices are a bit lower in midday U.S. trading Tuesday. The yellow metal sees some price pressure from rising government bond yields and a stronger U.S. dollar index on this day. Meantime, silver hit a seven-week high and the bulls have started a near-term price uptrend in the metal. Some keener risk appetite in the marketplace early this week is supportive for the safe-haven metals. February gold futures were last down $2.50 at $1,813.90 and March Comex silver was last up $0.557 at $23.47 an ounce.
Image Source: Kitco News
Technically, February gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the January low of $1,781.30. First resistance is seen at today's high of $1,822.90 and then at last week's high of $1,829.30. First support is seen at today's low of $1,804.70 and then at $1,800.00. Wyckoff's Market Rating: 6.0 Read More
Investors focus on the next FOMC meeting, 10-year Treasuries and dollar strength
A combination of factors stemming from the upcoming FOMC meeting have pressured U.S. equities lower, moved U.S. Treasury Notes and bonds higher, and had a substantial impact on taking the U.S. dollar higher. This month’s FOMC meeting is scheduled to begin one week from today, on January 25, and conclude on the following day.
Image Source: Kitco News
Although multiple asset classes had strong reactions to the possible actions of the Federal Reserve next week, it was dollar strength that most affected gold prices today. As of 4:25 PM EST, gold futures basis, the most active February 2022 Comex contract, had a modest to fractional decline resulting in a loss of $3.10 or 0.17% and is currently fixed at $1813.30. However, the three other precious metals which trade on the futures exchange all had moderate to strong price gains. Silver led the way with the most active March contract gaining 2.63%, fixing current pricing to $23.52. Platinum gained 1.58%, a net gain of $15.20 with the most active March 2022 futures contract fixed at $979.80, and lastly, palladium gained 1.11%, taking the most active March contract to $1899.
Gold pricing actually had fractional gains before factoring in dollar strength. This can be clearly illustrated by the KGX (Kitco gold index). As of 4:28 PM, EST spot gold is currently fixed at $1813.60, based upon normal trading adding $4.00 worth of value and dollar strength taking away $9.60. 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 investors should see the glass as half full even after disappointing 2021 – VanEck’s Joe Foster
While most investors were disappointed with gold’s nearly 4% drop in 2021, one fund manager says that investors should see the precious metal’s price action in a more positive light.
In his latest gold market report, Joe Foster, portfolio manager for VanEck’s gold strategy, noted that while gold’s performance last year was disappointing, it still managed to for a new higher base around $1,800 an ounce.
“The many uncertainties and risks brought on by the pandemic, along with radical fiscal and monetary policies, have lifted gold to new highs as investors sought safety. Since the pandemic crash in March 2020, gold has averaged $1,817 per ounce,” he noted in his report.
While increasing inflation, which saw an annual rise of 7% last month, should have been a positive environment for gold, Foster pointed out that the precious metal also faced significant headwinds last year.
He noted that rising inflation was met with growing hawkish rhetoric from the Federal Reserve.
“While we believe the belated Fed response to inflation may be too little too late, the markets seem to have blind faith in the Fed’s ability to manage the economy,” he said. Read More
Gold holds up and silver rises heading into the European open
Gold is flat this morning despite rising yields. The yellow metal is trading at $1813/oz. Silver has risen 0.44% overnight to hit $23.5/oz. In the rest of the commodities complex, copper is trading 0.31% higher and spot WTI lost -0.55% after hitting its highest level since October 2014.
Stocks continued to trade lower after a tough U.S. session. The Nikkei 22 (-2.80%), ASX (-1.03%) and Shanghai Composite (-0.33%) all fell overnight. Futures in Europe look weak ahead of the cash open.
In FX markets, there was not too much movement overnight. The biggest mover was NZD/USD which rose 0.23% higher in the Asian session. In the crypto space, BTC/USD fell -2.42% to trade at $41,359. Read More
Indian gold demand remains firm according to the WGC
The Indian CEO of the World Gold Council (WGC) has been on the wires discussing his thoughts on the Indian gold market. P.R. Somasundaram said that demand was affected by the pandemic due to lockdowns and the lack of weddings but there has been an increase in demand.
He noted, "In the last quarter of 2021, there was a spurt in demand as the festivals and weddings came back. Savings rates in India were higher as expenditure was down". He added "even equities markets performed well but gold played its part very well"
In regards to central bank buying Somasundaram noted "the RBI has also been buying gold. He said central bank buying does not move local market sentiment. India is driven by weddings and savings rates into gold" Read More
Gold & Silver Market Analysis for Wednesday 19th January
Kinesis Silver Price Analysis: While gold may be proving a dull asset currently, silver is catching the eye. Breaking through resistance at $23 an ounce has seen a rush of new buying with silver now marching up towards $24.
The spike was triggered by the New York Empire State Manufacturing Index which rocked markets by turning negative for the first time in 20 months, sparking a rush of traders to unwind short positions on the metal.
With silver continuing to gain sharply this morning, the market will be following price moves closely to see if this is just a flash in the pan or the start of a sustained push, bringing back memories of last year’s WallStreetBets-inspired squeeze on the metal. 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.
