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Gold and silver pass tests, rally exploding
Gold, silver, and platinum have passed the test of levels and got through with flying colors and higher prices. They are now set to test the next resistance levels. The price action has been very strong, more importantly steady.
Many will talk about the news as the driving factor for the recent rallies. We will say that this rally began long before the news of Russia/Ukraine and the other news items. In fact, the price action told us something was happening and to expect a move.
How far can this rally take the metals? Gold is on target for new all-time highs. Silver’s next level is $28 and platinum $1,300. There will be some pauses in the rally where we will see minor selloffs, but prices are going higher. Until further notice, all dips to support should be bought. Read More
'Mortar fire rarely coincides with bull market' - E.B. Tucker on how your taxes may soon rise
“In these tense times of the Russia-Ukraine war, investors should be looking at gold. This is the time to buy gold because the gold price is under assault. The volume is extremely high in the gold futures market,” E.B Tucker, Director of Metalla Royalty explained. “My prediction is that the gold market will be very volatile during this war. Once this is done, gold goes back over $2,000 an ounce.”
Tucker, who is also the Director of Carbon Neutral Royalty, spoke to David Lin, Anchor at Kitco News, about where to invest during a war and about carbon taxes. Carbon Neutral Royalty, which was just launched, is a carbon credit streaming and royalty company. Read More
Gold rips higher overnight
Gold prices shot higher Sunday evening; however, the rally was capped at $2000 before cooling off. Bulls will be looking to find support around the $1975 level.
Image Source: Kitco News
Despite yesterday’s gap up open, silver has yet to take the lead in the metal’s advance. Silver bulls may now be looking to $25.50-60 to act as support rather than resistance. Platinum was sold after a run to $1165 overnight. It trades $1135 as of this writing, which is within the most likely parameters for a consolidation. Palladium made new all-time highs overnight, hitting $3420 on escalating fears of supply constraint. Read More
LBMA suspends six Russian gold, silver refineries from Good Delivery list
The global precious metals market could see another significant disruption in its supply chain after the London Bullion Market Association (LBMA) has suspended the membership of six Russian precious metals refiners.
In a press release published Monday, the LBMA said that in light of UK/EU/US sanctions and to ensure an orderly market, it has suspended the following gold and silver refiners immediately:
JSC Krastsvetmet (gold and silver)
JSC Novosibirsk Refinery (gold and silver)
JSC Uralelectromed (gold and silver)
Moscow Special Alloys Processing Plant (gold)
Prioksky Plant of Non-Ferrous Metals (gold and silver)
Shyolkovsky Factory of Secondary Precious Metals, SOE (gold and silver)
"These six refiners will no longer be accepted as Good Delivery by the London Bullion market until further notice," the LBMA said. Read More
Hedge funds are 'all in' on gold - CFTC
Hedge funds continue to increase their bullish bets in gold as Russia's war with Ukraine drives commodity prices significantly higher, according to the latest data from the Commodity Futures Trading Commission (CFTC).
Although gold remains an attractive safe-haven asset and inflation hedge, analysts note that sentiment appears to be slowing down following three weeks of significant increases. Matt Simpson, market analyst at Forex.com, said fund managers are now "all in" on the metal and are the most bullish they have been since March 2020.
The CFTC disaggregated Commitments of Traders report for the week ending March 1 showed money managers increased their speculative gross long positions in Comex gold futures by 3,859 contracts to 187,215. At the same time, short positions fell by 5,786 contracts to 38,594.
Gold's net length now stands at 148,621 contracts, up nearly 7% from the previous week. Gold's net length has jumped almost 200% in the last four weeks. Read More
Rising oil and commodity prices mean gold's uptrend will last long after Ukraine war is resolved
Russia's war with Ukraine continues to roil global financial markets and global supply chains, which is driving commodity prices higher and adding further momentum to gold, according to some analysts.
While off its highs, overnight gold prices pushed above $2,000 an ounce, hitting their highest level since September 2020. The rally in the precious metal came as oil prices jumped 10%, rising to $130 a barrel, its highest level in 14 years.
According to many analysts, oil prices jumped as the U.S. said that it was considering placing sanctions on Russian oil exports due to its incursion into Ukraine. The ongoing conflict in Eastern Europe is also generating safe-haven demand for gold. However, analysts have said that gold is also seeing new momentum on rising commodity prices pushing inflation higher. Read More
Gold hits 1.5-year high but bulls may now be near-term exhausted
Gold prices are higher in midday U.S. trading Monday, but well down from their overnight 1.5-year high of $2,007.50. Silver overnight an eight-month high of $26.37 but are now trading lower on the day. More safe-haven demand is featured in gold early this week amid the war raging in Europe. April gold futures were last up $19.90 at $1,986.40 and May Comex silver was last down $0.174 at $25.62 an ounce.
Image Source: Kitco News
Technically, April gold futures prices hit a 1.5-year high of $2,007.50 overnight. Bulls still have the solid overall near-term technical advantage, but appear tired. Prices are in a five-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $2,007.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,007.50. First support is seen at today's low of $1,964.20 and then at $1,950.00. Wyckoff's Market Rating: 8.5. Read More
Record high food prices and the rising threat of inflation
Rising commodity prices, especially record-high food spikes, are raising the risk of recession, warned Bloomberg Intelligence.
In response to the ongoing war in Ukraine following Russia's full-scale invasion, commodities have staged a massive rally. And increases in raw commodities feed into food prices, increasing concerns over future inflation expectations.
Wheat prices jumped to 14-year highs on Monday as the impact of the Ukraine war weighed on supply concerns.
Russia is the world's largest wheat exporter, with buyers looking for alternative options due to financial sanctions introduced against Russia. Russia and Ukraine account for nearly 30% of global wheat exports and 19% of corn exports. Read More
Gold market sees inflows of 35.3 tonnes in global ETFs - WGC
Rising inflation fears and geopolitical uncertainty pushed investors into gold-backed exchange-traded funds (ETFs), helping the price rise 6% in February, its best monthly gain since May 2021, according to the latest report from the World Gold Council.
Monday, the WGC said that the global gold ETF market saw net inflows of 35.3 tonnes, valued at $2.1 billion. The report noted that inflows were even split among North American and European-listed funds.
"Global net inflows were driven by stubbornly high inflation and a surge in geopolitical risk on the back of the Russian invasion of Ukraine, which pushed the gold price to an intra-month high of US$1,936/oz," the analysts said in the report.
The WGC said North American funds saw inflows of 21.5 tonnes, with the market dominated by larger funds in absolute terms. Across the Atlantic, the report said that European funds saw inflows of 21.4 tonnes.
"The Russian invasion of Ukraine exacerbated inflation fears due to its implications for energy supply in the region. At the same time, sovereign bond yields declined towards the end of the month as projections for monetary tightening by the European Central Bank were delayed to 2023 in the wake of the conflict," the analysts said. Read More
Gold price’s break above $2k won’t last; Correction is coming as fear subsides – Lobo Tiggre
Fear in the markets has driven up demand for safe-haven assets, which is why both the dollar and gold have been rallying in tandem over the last month, but it’s only a matter of time before this fear subsides, said Lobo Tiggre of The Independent Speculator.
Gold has briefly breached $2,000 an ounce between 5:00 am ET and 6:00 am ET Monday before falling back down. This would be the first time since August 2020 that gold has hit this price level. Spot gold last traded at $1,998.60 an ounce.
Tiggre told David Lin, anchor for Kitco News, that gold’s next price move should be down, not up. Read More
Gold flirts with $2000 as U.S. equities continue to encounter a dramatic selloff
Gold continues to gain value based upon rising inflation levels and the current crisis in Ukraine. The combination of geopolitical tensions and high levels of inflation are highly supportive of higher gold and silver pricing in the future. Also, major selling pressure resulting in lower prices in U.S. equities has market participants moving risk-on investment dollars into safe-haven assets.
Crude oil futures continue their dramatic price increase. The most active crude light futures contract gained an additional 3.14%, or $3.63, and is now fixed at $119.42 per barrel. This will be reflected in rising gasoline prices that could now cost as high as five or six dollars per gallon in the United States.
Image Source: Kitco News
In trading overseas last night, gold futures, basis the most active April 2022 contract peaked at $2007.50. After trading to a low of $1964.20, gold prices recovered and are currently fixed at exactly $2000 per ounce, which is a net gain of $33.40 or 1.70%. Gold seems to be forming a base above $2,000.
The current level of inflation coupled with the crisis in Ukraine will continue to be highly supportive of gold and take the precious yellow metal yet to higher prices. Inflationary pressures continue to get hotter and the conflict in Ukraine continues to escalate which most certainly will continue to support higher pricing for gold. Now that gold is trading right around $2000, it is highly likely that $2,000 will become a new level of support. Read More
Gold holds above $2015/oz ahead of the European open
Gold climbed just over 1% overnight to cement its position above $2000/oz. Silver also pushed higher by 1.36% to break $26/oz. In the rest of the commodities complex, copper pushed 3.14% higher and spot WTI also rose 2.09%.
Indices in the Asia Pac area once again fell. The Nikkei 225 (-1.71%), ASX (-0.83%) and the Shanghai Composite (-2.35%) all dropped overnight. Futures in Europe are also pointing towards a negative cash open.
In FX markets, AUD/USD was the biggest mover falling 0.32% but EUR/USD rose 0.20% too off its recent lows. In the crypto space, BTC/USD traded 1% higher and hit $38,400. Read More
Goldman Sachs pushes up its gold price forecasts
U.S. investment bank Goldman Sachs has pushed up its gold price projections in light of recent political events. With the ongoing conflict, the gold price pushed up to $2020.98/oz overnight. This is the highest level the yellow metal has traded since the summer of 2020. Next up for the precious metal is all the all-time high at $2075.14/oz and the bulls could aim for this resistance zone. 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.
