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Silver Price News: Silver Above $25 as Market Awaits Fed Rate Decision
Silver is just about holding above $25 an ounce on a day in which the Federal Reserve is expected to announce a 25 basis point hike to its benchmark interest rate.
With today’s decision long since priced in, the focus is not so much on the decision itself but the words of the Fed Chair Jerome Powell that will follow the announcement. Silver has struggled in the face of the Fed, and other central banks, aggressive interest rate policies in the last year so investors will be hoping that Powell’s words point to this cycle of hikes drawing to a close, so attention can switch to silver’s strong fundamental case.
Silver has enjoyed an impressive run, gaining $5 an ounce or about 25% since languishing barely above $20 an ounce as recently as early March so the prospect of the Fed pausing interest rate hikes, the single biggest headwind for the precious metal in recent times, opens up the potential for silver to climb higher yet. Read More
Gold Price News: Gold Back Above $2,000 on Prospect of Final Fed Hike
All eyes will be on the Federal Reserve today as the US central bank announces its latest interest rate decision.
Gold investors are looking favourably to this afternoon’s announcement with the precious metal back above $2,000 an ounce on the expectation that today’s expected hike of 25 basis points will be the last of the Fed’s current cycle.
The fact that gold is trading in such elevated territory even after JP Morgan stepped in to buy ailing US bank First Republic and with another interest rate hike all but certainly later today shows that investors are still very much in risk-off mode.
After two months of gains in March and April, May has started on a positive note for gold too as investors look ahead to a macroeconomic environment in which interest rates stop rising with even the prospect of rate cuts coming before the end of the year. Read More
Gold, silver higher following as-expected Fed rate hike
Gold and silver prices are higher and hit daily highs in afternoon U.S. dealings Wednesday, in the immediate aftermath of an interest rate increase from the Federal Reserve that was widely expected. June gold was last up $14.00 at $2,037.50 and July silver was up $0.126 at $25.76.
The just concluded U.S. Federal Reserve Open Market Committee (FOMC) meeting saw the Fed raise the Fed funds rate range by 0.25%, to 5.00 to 5.25%, as expected. The FOMC statement signaled the committee will likely pause in its rate-hiking cycle. The rate hike move was unanimously agreed upon by the committee. The statement said the U.S. economy continues to grow modestly, but the tighter bank credit conditions are likely to weigh on the economy. Some market watchers are calling today’s FOMC statement “a hawkish pause.” Traders now await the press conference from Fed Chairman Jerome Powell.
The European Central Bank meets Thursday. The ECB is also expected to raise its main interest rate by a quarter-point.
Technically, June gold futures prices hit a three-week high today. Bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at $2,050.00 and then at $2,063.40. First support is seen at today’s low of $2,016.00 and then at $2,000.00. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
July silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the April high of $26.435. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $26.00 and then at this week’s high of $26.21. Next support is seen at today’s low of $25.355 and then at $25.00. Wyckoff's Market Rating: 7.5. Read More
Image Source: Kitco News
Gold prices push to session highs as the Federal Reserve raises interest rates by 25bps provides little forward guidance
The gold market is holding on to solid gains Wednesday after the Federal Reserve keeps its options open after raising interest rates by another 25 basis points.
As expected, the U.S. central bank raised the Fed Funds rate to a range between 5.00% and 5.25%. However, the statement provides little forward guidance in its monetary policy statement. This is the tenth time the central bank has raised interest rates in this tightening cycle.
“The Committee will closely monitor incoming information and assess the implications for monetary policy. In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments,” the central bank said.
The gold market pushed to session highs in initial reaction to the central bank’s monetary policy decision. June gold futures last traded at $2,043.10 an ounce, up nearly 1% on the day.
The Federal Reserve painted a mixed picture of the economy as it continues to monitor inflation. The committee also downplayed the ongoing banking crisis. Read More
Banking crisis will escalate if commercial real estate collapses, gold could reach $3k in 2024 - Andrew Axelrod
JP Morgan Chase bought the beleaguered First Republic Bank over the weekend, making First Republic’s failure the second-largest bank collapse in U.S. history.
According to Andrew Axelrod, global macro and Bitcoin expert, the banking crisis is just getting started. He highlighted that many banks are exposed to commercial real estate, a sector which is expected to collapse due to remote work and companies downsizing their assets.
“With the simple fact that remote work is such a big deal, that means there are a lot of open office spaces,” he told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. “When it comes time to rolling those mortgages over, they’re not going to do that… Within the banks, their collateral layer is starting to come apart.”
Axelrod’s comments echo those of Tesla CEO Elon Musk and Berkshire Hathaway’s Vice Chairman Charlie Munger, who have both warned of the risk from commercial property loans. Musk, in an April interview with now former Fox News host Tucker Carlson, forecast that commercial property is the “next anvil” to drop in the ongoing banking crisis.
As people withdraw money from banks to place them in T-bills, which carry a higher yield, and as mortgages mature, Axelrod said a “massive problem” could manifest. Read More
Gold price climbs to $2,040 on Fed Chair Powell's pause comments
The gold market kept all of its recent gains as Federal Reserve Chair Jerome Powell signaled a potential pause in tightening following another 25-basis-point rate hike.
The Fed’s tenth consecutive increase brought the federal funds rate to a 5-5.25% range – the highest since mid-2007. But the May statement included a "meaningful" change, said Powell, pointing to the decision to take out the reference to "some additional policy firming may be appropriate."
This was a sign markets needed to confirm a potential pause in rate hikes. From now on, the Fed will be driven by a combination of incoming data and credit conditions, Powell said.
"The assessment of the extent to which additional policy firming may be appropriate is going to be an ongoing one, meeting by meeting," Powell said. "We have to balance the risk of not doing enough and not getting inflation under control against the risk of slowing down economic activity too much. And we thought that this rate hike, along with the meaningful change in our policy statement, was the right way to balance that."
The focus for the Fed will be watching what small and medium-sized banks are doing and credit availability. Read More
Gold gains traction as Fed hints at a pause after raising rates ¼%
The Federal Reserve concluded this month's FOMC meeting and as expected the Fed raised its terminal rate by ¼%. This takes the Fed benchmark rate to between 5% and 5 ¼%. Most importantly, after 10 consecutive rate hikes the Fed signaled that they may finally enact a pause of further rate increases at the next FOMC meeting in June.
This would allow the Federal Reserve to assess the damage from recent bank failures, and gauge inflationary levels which will lag behind rate hikes by the Federal Reserve. A pause would also allow the Fed to wait for a resolution over the US debt ceiling dilemma.
The rate hikes enacted by the Federal Reserve have definitively taken inflation down, it has also caused tremendous fallout. Continued rate hikes not only would have a detrimental effect on the economy but it would also have less of an effect on reducing inflation. Inflation has hit an area in which many sectors remain persistent or sticky and as such continued rate hikes would not have the intended effect of reducing inflation but would have the unintended effect of causing more harm to the financial system.
Gold futures broke out of their defined trading range between $1980 and $2020 yesterday. On a technical basis, prices were stuck inside of an asymmetrical triangle with a descending upper resistance line and a flat bottom. Read More
The tyrannical side of digital currency: Is our freedom under threat? Feat. Robert Kientz
In this week’s Live from the Vault, Andrew Maguire is joined by the President of the Gold Silver Pros, Robert Kientz, who questions the agenda behind the centralised electronic currency and its possible interference with citizens’ privacy and freedom.
The two precious metals educators discuss the available solutions to address the potential collapse of the inflation-ridden Western economy, considering it might be time to allow for an alternative monetary system to enter this conversation.
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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.
