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Gold drops against Canadian dollar as BoC embarks on new tightening cycle
The gold price in Canadian dollars is trading near session lows as the Bank of Canada raises interest rates and signals further rate hikes this year even as Russia’s invasion of Ukraine has created uncertainty with the global economy.
Wednesday, the Canadian central bank said it increased its target for the overnight rate to 0.50%, with the Bank Rate at 0.75 % and the deposit rate at 0.50 %. The central bank acknowledged that this is just the start of its tightening cycle.
“As the economy continues to expand and inflation pressures remain elevated, the Governing Council expects interest rates will need to rise further,” the Bank of Canada said in its monetary policy statement.
Gold priced in Canadian dollars last traded at $2,446.83 an ounce, down 1.52% on the day. Gold is underperforming the loonie compared to other markets. April Comex gold futures prices last traded at $1,931.60 an ounce, down 0.66% on the day. Read More
When the ‘nuclear triggers are dusted off’, own this asset for protection – Randy Smallwood
When it comes to assets to own in times of extreme geopolitical uncertainty in the world, there is only one that acts as the ultimate store of value, and that is gold, said Randy Smallwood, CEO of Wheaton Precious Metals.
Smallwood told Michelle Makori, editor-in-chief of Kitco News on the sidelines of the BMO Global Metals and Mining Conference that markets have so far been rather complacent in regards to the threat of nuclear war. Read More
Market at 'risk of collapse' if war persists - CEO of Barrick, world's second-largest gold miner
The crisis in Ukraine remains precarious, with no clear path to resolve the conflict, but what is clear is that protracting the war will be highly detrimental to financial markets, said Mark Bristow, CEO of Barrick Gold.
Barrick is the world’s second-largest gold producer, operating mines in five continents.
Speaking to Michelle Makori, editor-in-chief of Kitco News at the BMO Global Metals and Mining Conference, Bristow said that even though the conflict is so far only contained within Ukraine, the economic ramifications are global.
“If you look at this crisis, there’s a whole lot of potential of unintended consequences. We’ve got very hot markets, and we are now going to really stress the global economy out. Everyone’s going to be impacted. If this goes on for much longer…the threat of that is it could collapse the market,” Bristow said. Read More
Gold, silver see routine profit taking at mid-week
Gold and silver prices are lower in midday U.S. trading Wednesday, on routine downside corrections and profit-taking from the shorter-term futures traders after recent gains. The Russia-Ukraine geopolitical situation will continue to keep the precious metals prices elevated. April gold futures were last down $23.80 at $1,920.30 and May Comex silver was last down $0.366 at $25.175 an ounce.
Image Source: Kitco News
Technically, April bulls still have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the February high of $1,976.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,882.50. First resistance is seen at $1,935.00 and then at this week’s high of $1,952.60. First support is seen at today’s low of $1,916.00 and then at $1,900.00. Wyckoff's Market Rating: 8.0. Read More
Gold has a moderate decline as the second round of negotiations begin
Today gold prices declined as Russian and Ukrainian diplomats met to negotiate an end to the war. We are seeing the same reaction that occurred during their first round of negotiations, which was a softening of gold pricing and then a return to a rally mode once it was apparent that the negotiations ended in a stalemate. The fact is that there is little to no common ground between the two sides. Ukraine and Russia have opposite intentions for a peaceful resolution of the war. The only common element that they want is for the war to end.
Image Source: Kitco News
Both sides have drawn hard lines in the sand that are the opposite of the desires of the other side. Russia is adamant that their invasion will not end unless Ukraine firmly commits that they will not seek to align with the EU or NATO. This is an un-negotiable component that Putin demands. Read More
Gold price retreats from $1,950 as Powell supports a 25-point hike in March but remains uncertain over Russia-Ukraine risk
Federal Reserve Chair Jerome Powell said he supports a traditional 25-basis-point rate hike during the March 15-16 policy meeting. The big concern for the U.S. central bank going forward will be the economic effects of Russia's invasion of Ukraine and the unintended consequences of sanctions.
"It is not yet knowable if the war in Ukraine affects our rate hike plan for this year," Powell testified to the U.S. House of Representatives Financial Services Committee.
Gold saw $30 price swings during Powell's comments as the U.S. stock market recovered and risk-on sentiment somewhat improved despite during oil prices and intensified Russia's assault on Ukraine. April Comex gold futures were last at $1,925.10, down 0.96% on the day.
In a rare move, Powell gave an overview of the upcoming March meeting. Read More
Gold-copper price strength to continue says BMO’s Hamilton
Strong gold and copper prices are set to continue throughout 2022 due to a combination of macro and micro factors, according to BMO Capital Markets commodities analyst Colin Hamilton. Read More
Big tech companies may buy silver miners soon says Keith Neumeyer
Becoming more vertically integrated throughout the entire supply chain would be logical, and it’s only a matter of time before these tech companies begin acquiring miners of strategic metals, according to Keith Neumeyer, CEO of First Majestic Silver.
“We’ve seen Elon Musk invest in nickel and also lithium. I wouldn’t be surprised to see the technology sector start buying up miners. Why not own the entire supply chain? If you are producing iPads, you’re at the mercy of the miners. In a constrained environment where the metals are not there, you need to own a mine to close the supply chain,” Neumeyer told Michelle Makori, editor-in-chief of Kitco News at the BMO Global Metals and Mining Conference. Read More
Gold is trading flat ahead of the European open
Gold is trading flat leading into the European open at $1928.50/oz. Silver is 0.38% higher at $25.38/oz after recovering from yesterday's lows. In the rest of the commodities complex, copper is 2% higher and spot WTI has risen another 4.25%.
Risk sentiment overnight was mixed. The Nikkei 225 (0.70%) and ASX (0.49%) closed higher while the Shanghai Composite fell 0.09%. Futures in Europe are pointing towards a negative open.
In FX markets, the biggest mover overnight was AUD/USD. The pair rose 0.32% as most of the other majors lost ground against the greenback. In the crypto space, BTC/USD fell 1.02%. 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.
