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Silver Strong as Metals Maintain Momentum
The $1915 level in gold re-affirmed its resilience as support, having been tested yet again intraday yesterday.
Perhaps the strength in gold has begun leaking into silver, which outperformed gold intraday; the signs of that catch-up trade are beginning to manifest. Platinum bulls broke price through $1065 again and should expect some congestion between $1100 and $1035. Palladium leads the complex, trading up to $2780 overnight, putting in another higher high, dating back to its December low.
Stocks caught a huge bid yesterday and futures indicate a flat open this morning. Equity indices moved up almost in lockstep with the selling in U.S. Treasuries, as the 10-year yield made its way back up to 1.86%. This could indicate that, indeed, the flow of cash is to move out of safe-havens, tip-toeing back into risk. Read More
Video: 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
Gold is the only safe-haven alternative - Schroders
Geopolitical uncertainty as Russia’s invasion of Ukraine hits the one-week mark has ignited a fire in the gold market, with prices holding well above $1,900 an ounce.
However, one British asset management firm said that regardless of what happens in Eastern Europe, there are other reasons why investors should be looking to add precious metals to their portfolios.
In a commentary published Wednesday, James Luke, fund manager at Schroders, which manages more than $990 billion in assets, said that along with Russia’s war in Ukraine, which has created a massive humanitarian crisis impacting millions of people, shifting monetary policies around the world poses another major threat to the global economy.
“Besides looking for a store of value in times of heightened market stress, we believe many investors see the coming rate hiking cycle as extremely risky given the abnormal macroeconomic backdrop,” Luke said in his commentary.
“Apart from being highly indebted, developed economies have become reliant on massive monetary and fiscal stimulus. The potential for negative feedback loops (a reaction that causes a decrease in function in response to a stimulus) into the real economy and financial markets as stimulus is removed and interest rates rise, is elevated,” he added. Read More
Safe-haven demand continues to push gold price higher
Gold prices are moderately higher in midday U.S. trading Thursday, on continued safe-haven demand as risk appetite remains squelched by the Russia-Ukraine geopolitical situation. April gold futures were last up $11.20 at $1,933.70 and May Comex silver was last down $0.035 at $25.155 an ounce.
Image Source: Kitco News
Technically, April gold futures bulls 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 today’s high of $1,941.40 and then at this week’s high of $1,952.60. First support is seen at today’s low of $1,923.10 and then at $1,916.00. Wyckoff's Market Rating: 8.0. Read More
Interest in gold and its utility will only grow – Sprott's Grosskopf
Gold prices have pushed solidly higher in the last few weeks as investors look for safe-haven assets to protect against geopolitical risks due to Russia's invasion of Ukraine, however, more volatility has also been introduced into the marketplace, according to one fund manager.
In a recent interview with Kitco News, Peter Grosskopf, CEO of Sprott Inc, said that investors need to ignore the daily price swings and focus on the market's broader long-term uptrend. While gold prices have pushed above $1,900 an ounce, the market is well off last week's highs as a rush of safe-haven demand flooded the market.
April gold futures last traded at $1,935.80 an ounce, up 0.70% on the day.
Looking at gold's broader prospects, Grosskopf added that more and more investors are turning to gold for various reasons.
"We're on the front lines of gold business, and what we are seeing is more investors moving into gold and adding it to their portfolios at higher percentages. That's the underlying bid for gold," he said. Read More
Gold and silver edge higher leading into the European open
Gold (0.13%) and silver (0.15%) moved higher overnight leading into the European session. There was more risk-off market sentiment as Russia attacked a Ukrainian nuclear facility. In the rest of the commodities complex, copper is 1.65% higher and spot WTI is another 1% in the black.
Indices were weaker overnight as the Nikkei 225 (-2.23%), ASX (-0.57%), and Shanghai Composite (-0.96%) all closed lower. Futures in Europe are indicating a negative cash open.
In FX markets, EUR/USD was the biggest mover as the issues in Ukraine remain prevalent. The pair fell 0.46% to break the previous wave lows on the daily chart. In the crypto space, there was also weakness in BTC/USD as it fell 2.60% to reach $41,354. Read More
Gold ETF inflows continue to rise
The world's biggest gold ETF has seen a surge in volume as risk-off sentiment continues to grip financial markets. Overnight there has been more news from the Russian/Ukraine conflict as a nuclear power plant was attacked and this could send more flow into safe-havens. Last week, State Street reduced the management fee of its $4.6 billion SPDR Gold MiniShares exchange-traded fund from 0.18% to 0.10%, a new low for the group.
Last week 70.99mln contracts had been traded in the SPDR gold trust ETF (GLD:NYSE) contracts had been traded and this week that level will be supposed as at the moment the volume stands at 72.55mln. Looking at the weekly chart below, the price has just recently broken a strong resistance zone at the orange zone but there is another resistance level at 183 (marked in purple) that the price has stalled at once already. Read More
Image Source: Kitco News
Kinesis: Gold Price Analysis
Gold ($/g) - 15 minutes chart from Kinesis Exchange
Gold has been one of the few beneficiaries of the dreadful scenes in Ukraine with investors rushing to safe havens at a time of crisis. But while the price is now trading at around $1,940 an ounce at levels not seen for 14 months, it has failed to climb noticeably higher despite the dramatic escalation in the Ukrainian conflict with Russia’s shelling of Europe’s largest nuclear power plant.
This suggests that macroeconomic factors are still playing a key role in investors’ attitudes towards gold with Federal Reserve Chairman Jerome Powell reaffirming the US central bank’s intention to raise interest rates later this month, starting off a series of hikes to tackle inflation. While the Fed will have to tread “carefully” given the situation in Ukraine, this confirmation of interest rate hikes is putting a ceiling on gold, with its lack of yield making it less attractive in a climate of rising interest rates.
Silver Price Analysis: Silver looks to have found its ceiling for the time being with the precious metal now trading comfortably above $25 an ounce but failing to break through resistance at around $25.60. After a similar push in November broke down at similar levels, silver’s upward momentum on the back of the rush to haven assets looks to have stalled. Yet for investors who have held silver since the start of the year, it has still been a rewarding couple of months with the price having gained almost $3 an ounce. 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.
