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Gold Price News: Gold Gains For Fourth Day As Dollar Weakens
Gold prices ticked higher on Friday, building on a modest recovery seen through the week after sharp falls on Monday.
Prices edged up to an intraday high of $2,667 an ounce on Friday, compared with around $2,639 an ounce in late trades on Thursday.
Gold prices were supported by currency effects through the week, as the US dollar weakened against other major currencies, making dollar-denominated gold cheaper for buyers in other currencies.
Prices go into Monday on the back foot, edging down to around $2,630 an ounce.
Gold KAU/USD – 1hr view – Kinesis Exchange
Gold prices seen down 2.4% week-on-week:
The slight uptick for gold prices on Friday added to modest gains seen from Tuesday through Thursday, with the market showing some signs of stability after a sharp fall on Monday. Prices came off their earlier highs to trade at around $2,650 an ounce by Friday evening. Overall, gold prices were down by around 2.4% on a week-on-week basis.
Elsewhere, Euro Area inflation figures came out on Friday, showing a drop of 0.3% in November, reversing a 0.3% rise in October. The inflation rate itself came out at 2.3% in November on a year-on-year basis, showing that inflation is close to the ECB’s target, providing leeway to reduce interest rates further. Read More
Silver Price News: Silver Climbs After Dip Below $30.00 Attracts Buyers
Silver prices made gains for a second day on Friday, helping to pare their week-on-week losses, as the market took support from modest gains in gold.
Prices rose as high as $30.91 an ounce on Friday, compared with around $30.28 an ounce in late deals on Thursday.
Silver fell as low as $29.71 an ounce on Thursday – the first time the grey metal has fallen below the $30.00 an ounce level since mid-November. This appeared to reignite buy-side interest, sending prices higher by the end of the week.
However, silver looked a little softer going into Monday’s session, dipping to around $30.20 an ounce.
Silver KAG/USD – 1hr view – Kinesis Exchange
Softer US Dollar helps underpin silver:
A degree of support for silver came on Friday in the form of a weaker US dollar, which tends to make dollar-denominated precious metals cheaper for buyers in other currencies.
In addition, silver, like gold, continues to benefit from expectations of a further 25 basis-point cut to US interest rates in December, which would reduce the opportunity cost of holding non-interest-bearing assets. Read More
Gold prices pull back amid dollar strength as volatility looms: what's next?
Gold prices are retracing from their recent highs once again as the strength in the dollar index is very much weighing on the yellow metal's price. Investors and traders have become cautious again in terms of backing the recent rally in the shining metal's price amid a confluence of macroeconomic factors, resulting in a 1.1% decline in spot gold to $2,625.69 per ounce.
With a new month starting, traders know that it is best not to jump the gun or make any hasty decision as a plethora of economic data is on the horizon, which could have a substantial impact on the near-term volatility of gold. The first week of December is full of important U.S. labour data, such as the ADP employment report and non-farm payrolls, which will provide crucial insights into the economy's current state. These reports will significantly influence the Federal Reserve's forthcoming rate decision, a critical factor in determining gold prices. Any indications from the labour market about a declining economy could enhance the metal's allure, as reduced interest rates make non-yielding assets like gold more attractive. On the other hand, unexpectedly strong data could further support the dollar, thereby intensifying the pressure on gold. Read More
Gold prices remain under pressure as ISM manufacturing PMI rises to 48.4
The gold market continues to struggle in the face of solid momentum in the U.S. dollar, which could find further support as activity picks up in the manufacturing sector.
The Institute for Supply Management (ISM) announced on Monday that its Manufacturing Purchasing Managers Index rose to 48.4, up from October’s reading of 46.5. Although the sector remains in contraction territory, the headline number was better than expected, as consensus forecasts looked for a rise to 47.7.
“U.S. manufacturing activity contracted again in November, but at a slower rate compared to last month. Demand continues to be weak but may be moderating, output declined again, and inputs stayed accommodative,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee, in the report.
Readings above 50% in such diffusion indexes signify economic growth and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
The gold market is not seeing much reaction to the latest economic data as it remains under pressure. February gold futures last traded at $2,669.50 an ounce, down 0.43% on the day. Read More
Gold took a backseat to Bitcoin in November – Mohamed El-Erian
November was a standout month for Bitcoin, while gold and oil saw significant losses, according to Mohamed El-Erian, Former CEO of PIMCO and current president of Queens’ College, Cambridge.
In an X post on Saturday, El-Erian shared “The usual end-of-month table for YTD performance for major assets/asset classes, along with one highlighting November's developments.”
“It was the strongest month of the year for #Bitcoin and the S&P while, at the other end, #gold and #oil registered monthly losses,” he noted.
El Erian has been sounding the alarm recently about gold prices and the broader implications of the global gold rally. On Oct. 21, he penned an op-ed in the Financial Times arguing that Western countries should pay more attention to the rise in gold prices, as the precious metal’s persistent rally reflects increasing interest in alternatives to the dollar-based financial system.
“Something strange has happened to the price of gold over the past year,” El-Erian said. “In setting one record level after the other, it seems to have decoupled from its traditional historical influencers, such as interest rates, inflation and the dollar. Moreover, the consistency of its rise stands in contrast to fluctuations in pivotal geopolitical situations.”
He said that gold’s ‘all-weather’ price increase indicates the presence of something that goes beyond short-term economic, electoral, and geopolitical developments. “It captures an increasingly persistent behavioural trend among China and ‘middle power’ countries, as well as others,” he said. “And it is a trend that the West should be paying greater attention to.” Read More
Trump’s BRICS tariff threats could support gold as nations flee weaponized U.S. dollar
President-elect Donald Trump’s ongoing tariff declarations continue to drive expectations that ‘America first’ policies will support the domestic economy, which, in turn, is pushing the U.S. dollar higher and gold lower.
The U.S. dollar index has managed to rally back above 106 points and is up 0.64% on the day, while February gold futures last traded at $2,668.30 an ounce, down 0.46% on the day.
Despite the current momentum in the U.S. dollar, some analysts have said that Trump’s proposed tariffs could have the reverse effect, driving the greenback lower and gold prices higher.
Over the weekend, Trump threatened BRICS+ nations with 100% tariffs if they moved away from the U.S. dollar and started trading with their own reserve-type currency.
“The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER," Trump wrote on social media on Saturday. “We require a commitment from these countries that they will neither create a new BRICS currency nor back any other currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy.” Read More
Gold, silver down on solid greenback rebound
Gold and silver prices are lower in midday U.S. trading Monday amid good gains in the U.S. dollar index to start the new trading week and month. Weaker crude oil prices are also a slight negative for the metals markets today. February gold was last down $19.60 at $2,661.80 and March silver was down $0.208 at $30.90.
Gold and silver have so far gotten no traction from French stocks selling off and government bonds under more pressure as that nation’s budget crisis deepens. The far-right National Rally said it could topple the government as soon as this week after the French finance minister said his administration would not be blackmailed. The U.S. dollar index is higher on safe-haven demand as the French crisis deepens, weighing on the Euro currency. Some veteran market watchers are worried the situation in France could highlight burdensome government debt in major economies and turn into a contagion at some point. Such would most likely be bullish for the safe-haven metals.
Technically, February gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,748.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at the overnight high of $2,678.50 and then at Friday’s high of $2,690.50. First support is seen at $2,650.00 and then at the overnight low of $2,644.50. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
March silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.50. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $31.135 and then at Friday’s high of $31.375. Next support is seen at the overnight low of $30.51 and then at $30.00. Wyckoff's Market Rating: 5.0. Read More
Image Source: Kitco News
Precious metals got pounded by ‘Trump trade,’ but technical picture for gold and silver remains strong – WisdomTree
While precious metals saw significant price declines following the reelection of Donald Trump, the longer-term fundamental drivers for gold remain favorable, while both gold and silver remain well-positioned technically, according to commodities analysts at WisdomTree.
“Donald Trump’s presidential victory had a resounding impact on global financial markets, leading to wide divergence across risk assets,” they wrote in the latest Commodity Monthly Monitor. “Commodities declined 0.7%, Bonds fell 0.7% while Global Equities rose 0.4% and Bitcoin soared 47.3% over the prior month.”
“The broad contours of Trump’s agenda are being reflected in asset prices, given the policies he pursued when he was last in office and his comments on the campaign trail,” they said. “What remains key are the specific policies that will eventually be implemented and their potential impact on the economy. Whether it is taxes, tariffs, deregulation, immigration, or the independence of the Federal Reserve (Fed), there remains considerable uncertainty around the sequencing of the policies that will be enacted by Trump.”
WisdomTree said that while 2024 “seemed poised to be the year when the inflation genie could finally be contained, markets are now grappling with the reflationary risks brought on by Trump’s victory,” and the “risk to market expectations for short-term US rates comes from the potentially inflationary impact of the new Trump administration’s policies (tax cuts, tariffs and immigration).” Read More
Gold navigates volatile market amid economic uncertainty
Gold futures experienced a turbulent trading session on Monday, continuing to recover from a significant price drop that occurred last week. The precious metal has been moving within a narrow trading range following its substantial decline of $91 last Monday.
The U.S. dollar demonstrated strength, gaining 0.54% and reaching an index of 106.444. This rise was attributed to growing expectations that the Federal Reserve might maintain its current interest rate stance during the upcoming central bank policy committee meeting. The market remains cautious, with investors closely monitoring potential shifts in monetary policy.
Currently trading at $2,661.90 per troy ounce, gold has shown remarkable volatility. After reaching an all-time high above $2,800, the metal experienced a dramatic pullback, dropping to $2,568.10—a decline of $255 or 9.03%. Despite this significant downturn, gold has partially recovered, rallying $174 from its lowest point.
Image Source: Kitco News
Saxo Bank analysts noted the metal's range-bound behavior, emphasizing the market's anticipation of new U.S. economic data and clarity on potential interest rate cuts. The recent release of the U.S. October personal consumption expenditures index, which rose to a 2.3% annualized rate, has added complexity to the Federal Reserve's decision-making process. Read More
U.S. economy is on asset bubbles: Why the real crash happens after rate cuts – George Gammon
The market is misreading current economic signals, says renowned investor and macroeconomic expert George Gammon.
In a recent interview at the New Orleans Investment Conference, Gammon contradicted prevailing market sentiment by arguing that disinflation, not inflation, is the more likely outcome in the near future.
"The markets are not pricing disinflation or deflation for next year," Gammon told Kitco News anchor Jeremy Szafron. "They're pricing in the opposite. If you go back to the 1970s, when you got that big unemployment spike that we typically see in a recession or hard landing, the result was disinflationary."
Gammon pointed to historical parallels, emphasizing that while a resurgence of inflation is possible, disinflation is a more probable outcome. Watch the video
Gold's U.S. market share to quadruple? What happens to gold price when that happens – Rick Rule
The only way for the U.S. to escape its current debt crisis is to inflate away the value of its obligations, much like what happened in the 1970s, said Rick Rule, veteran investor and President & CEO of Rule Investment Media. This dynamic creates a bullish case for commodities like precious metals, uranium, and copper, with energy also poised to benefit under the new presidential administration.
According to Rule, the U.S. will ultimately honor its debt obligations in nominal terms but will allow inflation to erode their real value, as it did during the 1970s.
"We faced the same circumstance, although less dire, in the 1970s," Rule told Kitco News anchor Jeremy Szafron on the sidelines of the New Orleans Investment Conference. "We will honor the nominal amount of our obligations, but we'll inflate away the net present value of the obligations."
Rule highlighted the worrying scale of U.S. debt, noting that the deficit has grown by $1 trillion since just a few months ago. Watch the podcast
Live From The Vault - Episode: 201
CHINA BLINDSIDES BULLION BEARS
In this week’s Live from the Vault, Andrew Maguire examines the recent gold retracement rally, driven by physical demand reclaiming control from speculative momentum traders, and delves into the central banks’ quiet revaluation process.
Andrew also highlights China’s strategic gold acquisitions and the PBOC’s game-changing efforts to bolster the yuan with gold-backed reserves, while Basel III pressures heighten risks of a COMEX default amid soaring delivery demands.
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.
Featured Image - Source: Unsplash
