x
Image Source: Unsplash
Gold Price News: Gold Falls for Third Day Ahead of Fed Rate Decision
Gold is down for its third consecutive day, with the precious metal now trading comfortably below $2,000 an ounce.
While safe haven demand continues to be strong amid Israel’s ongoing attacks on Gaza, today also brings the latest Federal Reserve interest rate announcement that will provide a reminder of the “higher for longer” stance of central banks.
As a result, even though gold has dipped slightly from the highs achieved at the end of October, the price remains at a very high level historically, with the recent movement more reflective of a slight correction rather than a broader downward trend. Read More
Silver Price News: Silver Slips Back Amid High Interest Rate Environment
Silver is on the decline again with the price now trading around $22.50 an ounce.
While the recent move is more a slight pullback after last week’s haven demand-induced surge rather than a significant change in direction for silver, it is also symptomatic of silver’s performance over the last 18 months.
Despite the fundamental outlook for silver pointing to a commodity that is priced well below its fair value, with demand outstripping supply and set to for a few years yet, any attempts for the price to climb are swiftly met with a countering bearish outlook to stymie any sustained rally.
Today’s reminder from the Federal Reserve of how high interest rates have climbed and the reality that they are set to stay that way for the foreseeable future is likely to have a bearish impact on silver with the physical metal’s lack of yield making it less attractive at times of high and/or rising interest rates. Read More
Geopolitical uncertainty and the Fed's 'higher for longer' approach will support elevated gold prices - State Street's George Milling-Stanley
The gold market should continue to remain well supported at elevated levels even as the Federal Reserve is expected to maintain restrictive interest rates for the foreseeable future, according to one market strategist.
In a recent interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that with the Federal Reserve now in a holding pattern, he expects that gold prices will be driven more by safe-haven demand amid a rise in global geopolitical uncertainty.
The comments come as chaos in the Middle East, generated by Israel's war with Hamas, pushed gold prices up roughly 9% from their seven-month lows. Milling-Stanley added that even as specific risk events fade, there is enough uncertainty in the world to maintain an overall bid in the marketplace through 2024.
"The Presidential election in the U.S. is next year, and it's liable to get ugly," he said. "That is going to ratchet up the level of geopolitical tension in the world. There is a lot of anxiety everywhere you look, and I don't think that is going away anytime soon. I just don't see an awful lot of downside for gold prices."
Milling-Stanley added that along with geopolitical uncertainty, gold remains an attractive safe-haven asset against economic uncertainty. Read More
Gold holding slight gains ahead of FOMC meeting conclusion
Gold and silver prices are mildly up near midday Wednesday, just ahead of the conclusion of the Federal Reserve's monetary-policy-setting meeting this afternoon. Some downbeat U.S. economic data and surprising news from the U.S. Treasury are working to support the precious metals markets this morning. December gold was last up $2.10 at $1,996.40. December silver was last up $0.043 at $22.985.
Focus at mid-week is still on central bank meetings of the Federal Reserve and the Bank of England. Most of the marketplace expects the FOMC at this meeting to pause in its interest-rate-increase cycle. Fed Chairman Jerome Powell's remarks at his press conference will be closely scrutinized. Most think the Fed will continue its “hawkish pause” rhetoric.
The Bank of England meets on its monetary policy Thursday. Friday comes the U.S. employment situation report for October.
Technically, December gold futures bulls have the 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 $2,050.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at last week's high of $2,019.70 and then at the July high of $2,028.60. First support is seen at today's low of $1,983.70 and then at $1,973.60. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
December silver futures bulls have the slight overall near-term technical advantage. However, a four-week-old price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.50 and then at this week's high of $23.75. Next support is seen at last week's low of $22.565 and then at $22.25. Wyckoff's Market Rating: 5.5. Read More
Image Source: Kitco News
Druckenmiller: Bitcoin is a store of value that could rival gold
Billionaire investor Stanley Druckenmiller has become the latest veteran of the financial industry to speak positively about Bitcoin (BTC), likening the top crypto to gold and saying that it has now established itself as a brand that could survive for a long time.
Druckenmiller made the comments during an interview with fellow hedge fund manager Paul Tudor Jones, confessing that he is experiencing a serious case of FOMO (fear of missing out) after missing out on buying Bitcoin at lower levels.
“I don’t own any Bitcoin, to be frank, but I should,” he said, hinting at a possible shift in his investment strategy.
Bitcoin’s price increased nearly 25% over the past month to hit its highest level since the summer of 2022, largely due to speculation that a spot BTC exchange-traded fund (ETF) could be passed within the next few months after years of denial by the Securities and Exchange Commission (SEC).
This has brought renewed interest in the top crypto amid broader concerns related to geopolitical uncertainty and worsening global economic conditions. While the U.S. dollar remains firmly fixed as the global reserve currency, the fact that the U.S. is now $33.6 trillion in debt, with no signs of reversing the debt hole on the horizon, has prompted many investors and sovereign funds to seek out assets that can preserve their purchasing power in the event of a currency collapse. Read More
Gold prices under pressure as Federal Reserve leaves interest rates unchanged
The gold market remains under pressure as the Federal Reserve leaves interest rates unchanged and provides little forward guidance on its monetary policy.
As expected, the U.S. central bank left the Fed Funds rate in a range between 5.25% and 5.50% as struck and optimistic tone on the U.S. economy even as it continues to expect to see some weakness.
“Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low,” the Federal Reserve said in its monetary policy statement.
“The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks,” the statement said.
The gold market is not seeing much reaction to the largely anticipated move. December gold futures last traded at $1,988.50 an ounce, down 0.29% on the day. Read More
Powell is not hawkish enough to worry the gold market as prices hold near-term support
The Federal Reserve is maintaining its tightening bias; however, the hawkish stance is not enough to worry the gold market as the price holds its elevated levels below $2,000 an ounce.
Although the Federal Reserve left interest rates unchanged following its Wednesday monetary policy meeting, Chair Jerome Powell said that it is still unclear if the committee is done raising interest rates.
"Is monetary policy restrictive enough to bring inflation down to 2%? That is what we are asking ourselves," said Powell in his press conference following the monetary policy decision.
Powell also said that decisions will be made meeting-by-meeting.
Powell's confirmation of the Fed's tightening bias caused gold prices to briefly drop to a five-day low; however, the precious metal quickly recovered and continues to hold support above its 200-day moving average. Read More
.png)
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.
