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Gold prices holding gains as Philly Fed Survey rises to 23.3
Gold price are holding on to solid gains even as momentum in manufacturing picks up, according to the latest data from the Philadelphia Federal Reserve.
The regional central bank said that its manufacturing business outlook rose to a reading of 23.2 in January, up from December’s reading of 15.4. The data was stronger than expected as economists’ forecasts were calling for an increase to around 18.9.
The gold market continues to see solid gains following its breakout on Wednesday as prices rallied $30. Spot gold prices last traded at $1,845.70 an ounce, up 0.29% on the day. Read More
Gold investors seeing through rising bond yields as Fed unlikely to be overly aggressive in 2022
Gold investors appear to be calling the Federal Reserve's bluff that it will be able to get inflation under control as prices continue to hold above Wednesday's breakout move, according to analysts.
Not only are gold prices trading near a two-month high, but Wednesday's breakout came as U.S. bond yields pushed to their highest level in more than two years. The 10-year yield is currently trading at 1.83%, down slightly from Wednesday's rise to 1.87%. Real 10-year Treasury yields jumped more than 50 basis points since late last month and are hovering around -0.60%.
Meanwhile, spot gold prices last traded at $1,841 an ounce, relatively unchanged on the day.
Ole Hansen, head of commodity strategy at Saxo Bank, said that it appears that with a lot of bad news already factored in, the gold market is finally starting to react positively to rising inflation pressures, which is also pushing real yields and nominal yields higher. Read More
Gold pauses, silver soaring as bulls have power for more upside
Gold prices took a routine rest day after scoring solid gains Wednesday, but silver bulls kept their foot on the gas to push prices sharply up. Both metals scored two-month highs today. The bulls are in firm near-term technical control, to suggest the path of least resistance for prices will remain sideways to higher for at least the near term. February gold futures were last down $1.20 at $1,841.90 and March Comex silver was last up $0.454 at $24.68 an ounce.
Image Source: Kitco News
March silver futures prices hit another two-month high today. The silver bulls have the firm overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $25.54 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $24.755 and then at $25.00. Next support is seen at $24.50 and then at today’s low of $24.125. Wyckoff's Market Rating: 6.5. Read More
Are gold prices about to fly? Gold is a hedge against a policy mistake, says Pepperstone
The recent trading pattern in gold shows signs that a bull market could be just around the corner, with investors starting to price in a possible policy mistake as central banks worldwide begin to raise rates.
Gold hit two-month highs this week as prices surged above $1,845 an ounce level. But what's surprising is the environment in which the yellow metal is able to make new gains — a hawkish central banks backdrop and rising U.S. Treasury yields.
"We are not just talking about the rise in nominal Treasury rates, we are talking about the rise in real Treasury rates. And these are Treasuries adjusted for inflation expectations. Usually, gold and yields move in a close inverse relationship. If real rates go higher, then gold goes lower," said Pepperstone head of research Chris Weston.
Gold doesn't have a yield. This is why when yields on a real basis climb, gold becomes less attractive. "Since the start of the year, we are seeing a really interesting dynamic where real rates are moving sharply higher, but gold price is holding in really well," Weston said on Thursday. Read More
The precious metals rally continues with solid gains except for gold
Except for gold, the remaining precious metals traded on the futures markets had solid gains continuing the precious metals rally. Although gold was the only precious metal to close with modest declines, on closer inspection it was all about dollar strength rather than a lack of buying interest that moved gold lower on the day. After a fractional decline yesterday the dollar gained 0.32% taking the U.S. dollar index to 95.81.
Image Source: Kitco News
As of 4:16 PM, EST spot gold is currently fixed at $1838.90. According to the KGX (Kitco Gold Index), there was fractional buying resulting in a gain of $2.80 per ounce. However, dollar strength resulted in headwinds of $4.20 resulting in a fractional decline of $1.40. The February Comex gold futures contract is currently down $3.40 or 0.18% fixed at $1839.80.
The remaining precious metals; silver, palladium, and platinum all closed higher for the last three consecutive days, gaining over 1% in trading today. Palladium continues to lead the path with the largest percentage gain today of 2.57%. Basis the most active March 2022 Comex contract palladium futures gained $45.10 and is currently fixed at $2053.50. March platinum gained 1.23%, and after factoring in a gain of $12.40 is currently fixed at $1041. Lastly, March silver gained 1.21% or $0.294, and is currently fixed at $24.525. Read More
Gold market finally realizes Fed is completely wrong; $2,000 now on the way
“With all indicators pointing to inflation continuing to be problematic, the U.S. dollar index leveling off, and crude oil prices remaining high, gold prices could hit $2,000 an ounce this year,” emphasized Jim Wyckoff, Senior Market Analyst at Kitco News.
David Lin, Anchor at Kitco News discussed gold and inflation with Wyckoff.
Wyckoff explained that the reason there was a decoupling between gold and the Consumer Price Index last year was because it was perceived by the marketplace as an occurrence that was not going to be permanent. “The Fed called it transitory, and that’s just not the case. It’s proving not to be transitory. It is proving to stick around for a while longer,” Wyckoff said. “Future inflation reports are going to be watched by gold traders. And if they continue to be hot, that’s going to support upside gold price moves.” Read More
Gold and silver trade higher leading into the European open
Gold (0.11%) and silver (0.18%) are trading higher leading into the European open. On Thursday gold slightly struggled at the highs of $1847.94/oz and closed marginally lower but silver managed to print 1.39% higher. In the rest of the commodities complex, spot WTI (-0.05%) and copper (-0.05%) are both slightly subdued.
Risk sentiment in the Asia Pac area was largely subdued. The Nikkei 225 (-0.90%), ASX (-2.27%) and Shanghai Composite (-0.91%) all traded lower. Futures in Europe are pointing towards a negative open.
In FX markets, EUR/USD managed to move 0.19% higher overnight but conversely, GBP struggled. The biggest mover was AUD/USD which dropped 0.40%. BTC/USD dropped below $40K to trade at $39,776. Read More
Gold & Silver Market Analysis for Friday 21st January
Gold Price Analysis: After spending much of 2022 drifting in a range between $1,800-$1,820 an ounce, gold sprung into life on the back of the plunging Nasdaq and broader drop on equities earlier in the week. With gold proving popular from its age-old role as a safe haven asset, its price jumped up to nearer $1,840, before falling back so far today.
Image Source: Kinesis
It will be interesting to see gold’s next step as investors continue to weigh up the contrasting factors of a declining stock market that would typically be supportive of gold, versus an environment where rising interest rates are expected, which would typically be negative for the non-yield bearing gold.
In dollars per gram, gold broke through $59 earlier in the week but is now drifting once again, this time between $59.20 and $59.40.
Silver Price Analysis: 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.
