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Gold Price News: Gold Hits Two-Week High On Increased Geopolitical Risk
Gold prices rebounded on Tuesday to their highest level in two weeks, with the market showing a risk premium amid ongoing Middle-East tensions.
Prices rose as high as $2,048 an ounce on Tuesday, rebounding from a low of $2,020 an ounce early on Monday, although prices eased back later to trade almost unchanged day-on-day.
Gold’s relative strength came as geopolitical tensions once again came to the fore after a drone attack against a US military base in northeast Jordan on Sunday, which killed three US military personnel. The latest developments raise the risk of the conflict spreading, pushing gold higher as a safe-haven investment in times of turbulence.
Gold’s retracement lower to around $2,033 an ounce later on Tuesday afternoon followed the release of data showing that the number of US job openings surged in December to its highest in three months, and well above market expectations. Signs of strength in the US economy make it more likely that the US Fed would leave interest rates unchanged in the short-term, creating a headwind for non-yield-bearing assets like gold. Read More
Silver Price News: Silver Gains Following Stronger Gold Prices
Silver prices made modest gains on Monday and Tuesday, taking a lead from gold prices, which saw a similar upward trend at the start of the week.
Prices finished the day at around $23.15 an ounce on Tuesday, compared with around $22.80 an ounce late Friday.
Silver’s price moves largely followed gold, which reached a two-week high on Tuesday amid heightened geopolitical tensions in the Middle East.
On the fundamentals side, total global silver demand is forecast to rise by around 1% to 1.2 billion ounces in 2024, the Silver Institute said in a report released Tuesday.
If borne out, 2024 would see the second-highest year ever for silver demand, it said, led by stronger industrial offtake for the metal. Read More
Higher gold prices are coming, but investors will have to be patient – MarkeGauge’s Michele Schneider
The gold market remains in a solid holding pattern as it waits for some direction from the Federal Reserve, and one market strategist is warning potential precious metals investors that they need to be patient, as 2024 will be the year of nuanced trading.
In a recent interview with Kitco News, Michele Schneider, director of trading education and research at MarketGauge, said that while she is bullish on gold and silver in the new year, the precious metal market could see some volatility and weakness in the first half of the year.
The comments come as gold remains stuck below resistance at $2,050 an ounce. February gold futures last traded at $2,034.10 an ounce, up 0.43% on the day. Read More
Central banks and OTC markets drive record gold demand in 2023 – WGC
An “invisible hand” along with central bank purchases helped drive record physical demand for gold in 2023, leading to an all-time high price in the final month of the year, according to the latest report from the World Gold Council.
Wednesday, the WGC published its 2023 fourth quarter and full-year gold demand trends report, saying that annual gold demand, excluding over-the-counter markets, totaled 4,448 tonnes, a 5% drop below robust demand reported in 2022; however, when including OTC markets and stock flows total gold demand rose to a record 4,899 tonnes last year.
In an interview with Kitco News, Juan Carlos Artigas, head of Research at the WGC, said that despite challenging headwinds as the Federal Reserve maintained its aggressive monetary policies, supporting the higher bond yields and the U.S. dollar, gold prices saw a 15% gain. Read More
Why copper and gold are 2024's 'perfect combo' - Goldfinger Capital's Robert Sinn
Copper and gold are perfectly paired while silver's thesis is muddied, said Robert Sinn, founder of Goldfinger Capital.
In mid-January, Sinn spoke to Kitco Mining at the Metals Investor Forum Vancouver.
Sinn said metals should get a lift in 2024.
"China is going to do a lot of stimulus to help their economy along, which is really struggling right now, and I think the [Federal Reserve] is about to pivot," said Sinn.
Sinn said that copper is needed for economic progress and gold is a timeless store of value with no counterparty risk.
"I think gold and copper are the perfect combos. Those are my two best ideas for the year. It's kind of a sweet spot...since copper often comes with gold," said Sinn. "You are able to play both sides." Read More
Gold rose 9 out of 11 times - Jeff Clark on coming macro environment that will favor the metal
History is a good predictor of what happens to gold and gold stocks when interest rates fall, said Jeff Clark, founder of TheGoldAdvisor.com.
In mid-January, Clark spoke to Kitco Mining at the Vancouver Resource Investment Conference 2024.
Clark said he looked back at 11 monetary easing periods since the 1970s, and in nine of those periods the gold price rose.
He also referenced John Hathaway, co-portfolio manager of the Sprott Gold Equity Fund, who recently put out a report showing that gold stocks as a group rose up to 400 percent during the last three rounds of Fed easing. “That is our-short-term catalyst for gold,” Clark said.
Clark believes gold needs to have “a sustainable breakthrough” to all-time highs for there to be upward movement in gold equity prices. Read More
Gold prices holding solid gains above $2,050 as Fed sees little impetus to cut rates
The gold market continues to hold support above $2,050 as the Federal Reserve provides few hints on when it will start cutting interest rates.
As expected, the Federal Reserve left interest rates unchanged in a range between 5.25% and 5.50% on Wednesday. However, analysts note that they have been more interested in any potential forward guidance from the central bank as to when its easing cycle will begin.
According to the latest monetary policy statement, the central bank might not be in a hurry to adjust its monetary policy as it remains fairly upbeat on economic activity even as risks loom on the horizon.
“Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have moderated since early last year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated,” the monetary policy statement said. “The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.” Read More
Silver market to see record physical demand in 2024 as industrial demand remains strong – Silver Institute
Silver prices continue to struggle as economic uncertainty and restrictive interest rates weigh on investor demand; however, the market remains well supported as an industrial metal, according to the latest report from the Silver Institute.
In a report published Tuesday, the Institute said that despite the headwinds, global silver demand is expected to reach 1.2 billion ounces in 2024, which would be the second-highest level on record.
“Stronger industrial offtake is a principal catalyst for the rising global demand for the white metal, and the sector should hit a new annual high this year,” market analysts said in the report.
The Institute said that it looks for industrial silver demand to increase 4% this year to a record 690 million ounces as demand for solar energy and electric vehicles remain critical segments of support within the broader global green energy transition. Read More
Gold firmer but loses altitude after hawkish FOMC statement
Gold prices are modestly up in early afternoon U.S. trading Wednesday, but down from daily highs, in the wake of the just-released FOMC statement that leaned a bit hawkish. There is still some safe-haven demand evident after the terrorist strike in Jordan that killed three U.S. soldiers. April gold was last up $7.40 at $2,059.00. March silver was last down $0.105 at $23.09.
The U.S. economic data point of the week saw the just-concluded Open Market Committee meeting of the Federal Reserve release a statement that left interest rates unchanged but said that any rate cuts will not come until the Fed has “greater confidence” annual inflation is moving toward 2%. The statement also said the U.S. economy is expanding at a “solid” pace. Traders deemed the statement as leaning a bit hawkish, and now await the press conference from Fed Chairman Jerome Powell, set to begin shortly, as of this writing.
Traders will quickly digest the FOMC meeting and start focusing on Friday morning’s monthly U.S. jobs report from the Labor Department.
Technically, April gold futures bulls have the overall near-term technical advantage. A six-week-old downtrend on the daily bar chart is now in jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,074.60 and then at $2,086.70. First support is seen at today’s low of $2,050.90 and then at this week’s low of $2,037.70. Wyckoff's Market Rating: 6.5.
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March silver futures bears have the overall near-term technical advantage. A seven-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at today’s high of $23.445 and then at $23.72. Next support is seen at this week’s low of $22.88 and then at $22.465. Wyckoff's Market Rating: 3.5. Read More
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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.
