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Gold exploration fell slightly in the third quarter
Australian Bureau of Statistics (ABS) reported that gold was down in terms of exploration expenditure for the 3rd quarter. Iron ore however made up ground by $23.8 million. Exploration for the yellow metal dropped just $100,000 to $429.7 million over the quarter, but it remained well above the pack.
"Other minerals' recorded the largest rise of $25 million, and iron ore's jump of 15.8 percent to $174.6 million was the second-largest gain of the quarter. Existing deposits received attention worth $636.3 million (up 5.8 percent) and new deposits jumped 11.5 percent to $346.1 million. Read More
Gold testing 1800, looks like a selling opportunity
As we approach the end of the year, gold, silver, and platinum have work to do on the downside. The dramatic drop last Friday, Monday and Tuesday did a lot of technical damage to the charts. Gold broke down from congestion and is now below $1,800 based on March futures.
The next support level for gold is $1,750; if that fails, $1,700 is in play. If you have watched markets for any period of time, everything is based on probability and the most money is made trading with the trend. The break from congestion was a possibility even though the trend at the time was higher. Read More
Fed's Powell says risk of higher inflation has increased
The higher prices seen today are generally related to the pandemic, but some price increases are also being seen more broadly and the risk of higher inflation has increased, Federal Reserve Chair Jerome Powell said on Tuesday.
"Generally, the higher prices we're seeing are related to the supply and demand imbalances that can be traced directly back to the pandemic and the reopening of the economy," Powell said during a hearing with the U.S. Senate Banking Committee. "But it's also the case that price increases have spread much more broadly ... and I think the risk of higher inflation has increased." Read More
Gold sells off after early solid gains, as Powell leans hawkish
In what may be one of the most important trading days of the year, gold and silver prices are lower in midday U.S. trading Tuesday and lost good early gains as Fed Chairman Jerome Powell "wrong-footed" the marketplace by suggesting that a tighter U.S. monetary policy is necessary to keep inflation at bay and to keep supply chains moving along. The U.S. dollar index regained most of its sharp, early losses on Powell's remarks and that was bearish for the metals. Also, Nymex crude oil prices tanked to a three-month low of $65.65 as of this writing, also negative for the metals and the raw commodity sector. February gold was last down $13.90 at $1,771.50 and March Comex silver was last down $0.082 at $22.77 an ounce. Read More
Inflation is here to stay no matter what the Fed says or does - Murenbeeld & Co.
The Federal Reserve is looking to tighten its monetary policy in 2022 and even speed up the reduction of its monthly bond purchases; however, there is little they will be able to do about the global supply disruption that is driving inflation higher, according to one market analysts.
In a recent telephone interview with Kitco News, Chantelle Schieven, head of research at Murenbeeld & Co., said consumers should brace for higher inflation for the next several years as it will take time to repair the global supply chain.
"It could take four to five years to completely fix the damage the COVID pandemic caused to the global supply chain. Companies are resourceful, and they will find short-term fixes and other methods, but it will push costs up," she said. Read More
Gold price sheds gains as Powell talks more aggressive tapering, wants to drop 'inflation is transitory' term
Gold fell below the $1,800 an ounce level again, shedding nearly $40 as Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen testified before the U.S. Senate Banking Committee.
The price of the yellow metal moved down when Powell spoke about a more aggressive tapering and more problematic inflation, sounding more hawkish than before.
Powell told the U.S. Senate that the U.S. central bank would be considering wrapping up tapering a few months earlier than June.
"At our next meeting, it is appropriate for us to discuss whether to wrap up our asset purchases a few months earlier," he said. "We've seen elevated inflation pressures, strong labor market data, strong spending data. Every dollar of asset purchases does increase accommodation. The U.S. economy is strong and inflationary pressures are high." Read More
Gold reacts to Covid variant "Omicron" fears and testimony from J. Powell
It was an extremely volatile day for market participants who trade gold. The first part of the trading session can be characterized by a surge in gold pricing. Concerns about the new Covid-19 variant "Omicron" took the precious yellow metal back above $1800, hitting a high of $1811.40 in the most active February 2022 Comex contract. However, that bubble burst almost immediately as the chairman of the Federal Reserve, Jerome Powell, testified to the Senate Banking Committee. Read More
As investors flee U.S. stocks, stay away from cash, says Ray Dalio
With markets plunging on a more hawkish Federal Reserve and omicron fears, Bridgewater Associates' Ray Dalio reminded investors to stay away from cash, stating that it will be eaten away by inflation.
"Cash is not a safe investment…because it will be taxed by inflation," the founder of the world's biggest hedge fund told CNBC on Tuesday.
Dalio explained that during periods of market volatility, the key is to have a well-balanced portfolio, stating that wealth is rotated.
"It's a fool's journey to time the way into the market and out of the market … Even if you were a great market timer, the things that are happening can change the world, so it changes what could be priced into the market," Dalio said. Read More
Gold and silver trade higher heading into the European open
Gold is once again heading into the European session on the front foot but is below $1800/oz. Silver is 0.62% in the black trading at $22.92/oz. In the rest of the commodities complex, copper is 0.33% higher and spot WTI has also risen 1.58%.
Risk sentiment was mixed overnight. The Nikkei 225 (0.41%) and Shanghai Composite (0.36%) pushed higher while the ASX dropped -0.28%. Futures in Europe are pointing towards a positive open. Read More
Gold & Silver Market Analysis for Wednesday 1st December
Kinesis Money Macroeconomic Analysis
Today, investors are continuing to evaluate the projected danger of the new coronavirus variant and the potential consequences on the global economic situation. The rebound on Monday was followed by a decline on Tuesday, while today, has seen that the markets are back in green.
Overall, the increased volatility in the financial markets is apparent. However, fears of another economic collapse, as seen in March 2020, quickly dissipated as the situation develops.
Despite the growing uncertainty, Jerome Powell did not act dovishly after his last speech. Unlike Christine Lagarde, he admitted that inflation is, in fact, not transitory – a rhetoric that has been largely supported by the central banks for months.
In response, this could be an implicit signal that the tapering process is about to speed up in the next few months. This means that the first-rate hike could arrive sooner than expected, even if the Federal Reserve monitors the evolution of the pandemic closely.
Today’s economic calendar is extremely busy, with speeches from both Powell (speaking for the Federal Reserve) and Bailey (speaking for the Bank of England). In addition to this, the ADP non-farm employment change will be released.
After a recent price dip in oil categorizations: West Texas Intermediate (WTI) and Brent, investors will be carefully monitoring the US oil inventories, released today at 16:30 (European time). 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.
