x
Image Source: Unsplash
Silver Price News: Silver Falls As Traders Mull Delayed Interest Rate Cuts
Silver prices fell back on Friday, taking a lead from gold, as the markets reacted to data showing unexpected strength in the US economy.
Silver prices slumped as low as $22.42 an ounce on Friday afternoon, down from around $23.20 an ounce late Thursday, and reversing the previous day’s gains.
US data on Friday showed an unexpectedly large rise in jobs in January, as well as separate figures showing that the unemployment rate came in slightly below expectations. The numbers pointed to a stronger-than-expected US economy in the first month of the year, raising the prospects of the US Fed holding interest rates at current elevated levels for longer. High interest rates create a negative factor for non-interest-bearing assets like precious metals.
The latest drop leaves silver prices in the middle of the range seen over the last four weeks, and still some way above the lows of around $22.00 an ounce seen on January 22. Read More
Gold Price News: Gold Falls Sharply As US Jobs Numbers Surge
Gold prices fell sharply on Friday, giving up the previous day’s gains, after US data showed a surprise jump in employment numbers in January.
Gold was trading a few cents either side of $2,055 an ounce for most of the day, but fell suddenly to as low as $2,028 an ounce by early-afternoon.
The losses came immediately after US Non-Farm Payrolls figures showed that the US economy had added 353,000 jobs in January, compared with expectations of only 180,000. Separate figures showed that the unemployment rate held steady at 3.7% in January, slightly below expectations of 3.8%.
The figures pointed to a stronger-than-expected US economy, notionally providing the US Fed with greater leeway in maintaining higher interest rates for longer in a bid to cool inflation. Higher interest rates create a hurdle for precious metals prices as they raise the opportunity cost of holding non-yield-bearing assets. Read More
Jim Rogers gives the timeline for when the worst crash of his lifetime hits, 'the signs are all there'
It has been the longest time in American history without a recession, and all the signs point to the worst crash of our lifetimes coming, according to Jim Rogers, Chairman of Rogers Holdings.
“It's been the longest [period] in American history that we've gone without a recession,” Rogers told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. “It doesn't mean there will have to be a recession, but we always have. And I see the various signs that something is going to go wrong soon.”
Rogers is a best-selling author who is best known for co-founding the Quantum Fund and launching the Soros Fund Management with George Soros, which averaged an annual return of 20% from 1970 to 2011.
There are signs that a bear market is coming, Rogers said. If it happens, it will be the worst in our lifetime, Rogers pointed out, giving his forecast for the timeline in this interview with Michelle Makori. Read More
Gold prices see solid selling pressure as ISM Service Sector PMI rises to 53.4 in January
The gold market could continue to see further selling pressure, moving further away from critical resistance at $2,050 an ounce as the U.S. service sector sees solid activity in January, according to the latest report from the Institute for Supply Management (ISM).
Monday, the ISM said its Service Sector PMI rose to 53.4 last month, up from December’s reading of 50.6. The data also beat consensus estimates that looked for an increase to 52.0.
“The majority of respondents indicate that business is steady. They are optimistic about the economy due to the potential impact of interest rate cuts; however, they are cautious due to inflation, associated cost pressures, and ongoing geopolitical conflicts,” said Anthony Nieves, Chair of the ISM Services Business Survey Committee. Read More
TD Securities going long gold, says hunting season is now open
The gold market is struggling to find some bullish momentum after the U.S. central bank significantly pushed back on expectations of an aggressive easing cycle kicking off in March. However, one Canadian bank says now is the time to buy for an inevitable rally.
Monday, commodity analysts at TD Securities published a note, saying they have initiated a tactical long gold trade and are looking for significantly higher prices in the next three months.
The bank said they entered their long gold trade at $2,035 an ounce and are looking for prices to reach $2,250 an ounce. On the downside, the trade has a stop loss at $1,910 an ounce. April gold futures last traded at $2,038 an ounce, down 0.76% on the day.
The bullish trade comes as gold starts the week seeing considerable selling pressure as prices fell below a significant support/resistance level at $2,050 an ounce. Read More
Gold volatility increases as fed pivot remains on hold
To begin what has been a volatile week in the marketplace, the tragic killing of three U.S. soldiers in Jordan over the weekend by an Iranian proxy group sparked a safe-haven rush into the U.S. dollar, T-bonds, and gold. The safe-haven metal rose above $2050 into the FOMC meeting conclusion on Wednesday, to close out January at $2067 per ounce despite recent hawkish Fed-speak.
After a failed breakout attempt in late 2023, the gold price has been quietly building a new floor at the key $2000 level. Heading into the highly anticipated first Federal Reserve Open Market (FOMC) meeting of 2024, held on the last two days of January, Gold Futures closed above this important level for a third consecutive month. Read More
Chinese gold sales looking strong despite high prices as Year of the Dragon approaches
As the Chinese New Year fast approaches, gold traders and investors are closely watching sales in the world’s largest precious metals' consumer market to gauge the impact of higher prices on recent burgeoning demand.
Chinese New Year will fall on Saturday, Feb. 10 this year, beginning the year of the Wood Dragon. As a major public holiday, Chinese people will enjoy eight days off work, from Feb. 10 through Feb. 17.
It's traditional to buy gold during the Lunar New Year holiday in China, and gold purchases continued to increase last year even as the price of gold hit new all-time highs.
According to a report from Shanghai broadcaster CGTN, the higher prices have not discouraged buyers in the run-up to this year’s holiday. Read More
Red Monday for crypto and stocks as Fed comments lead to de-risking across financial markets
The crypto market fell under pressure to start the week, as hawkish comments from Fed chair Powell regarding interest rates took a toll on all financial markets and had traders scrambling for cover on Monday.
Stocks trended lower at the open and spent the rest of the day attempting to make up for lost ground, but came up short at the market close. When all was said and done, the S&P, Dow, and Nasdaq all recorded losses on the day, closing down 0.32%, 0.71%, and 0.20%, respectively. Read More
Gold, silver down on U.S. jobs data hawkish hangover
Gold and silver prices are solidly lower in midday U.S. trading Monday, as the key “outside markets” are in bearish daily postures for the precious metals: the U.S. dollar index is firmly higher and U.S. Treasury yields are rising. The dollar strength and rise on bond yields is mostly due to the surprisingly strong U.S. jobs report on Friday that has hawkish implications on Federal Reserve monetary policy. April gold was last down $19.30 at $2,034.20. March silver was last down $0.376 at $22.42.
U.S. stock index futures are lower near midday. Risk aversion is somewhat elevated to start the trading week, following weekend U.S. and U.K. air strikes on Houthi rebel bases in Syria and Iraq, which were followed by at least six Kurdish fighters being killed in a drone attack on a Syrian base housing U.S. troops. However, on this day, gold and silver are seeing scant safe-haven demand.
Technically, April gold futures bulls have the slight overall near-term technical advantage but are fading again. 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 $2,050.00 and then at today’s high of $2,059.10. First support is seen at the January low of $2,023.30 and then at the December low of $2,007.60. Wyckoff's Market Rating: 5.5.
Image Source: Kitco News
March silver futures bears have the firm overall near-term technical advantage. A two-month-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 $22.84 and then at $23.00. Next support is seen at $22.00 and then at $21.75. Wyckoff's Market Rating: 3.0. Read More
Image Source: Kitco News
Fed could still pivot in March, but it won't be through rate cuts: Nomi Prins warns of massive banking crisis
After a hawkish Federal Reserve and a strong U.S. jobs report, markets are now pricing in the first-rate cut in May. However, Dr. Nomi Prins, geo-macro economist and best-selling author, still sees the Fed as likely to pivot in March but without the use of rate cuts. Prins was speaking in an interview with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News,
After the Fed kept rates between 5.25% - 5.5% and Powell stated that a March rate cut was not likely, markets re-adjusted their expectations from a cut in March to a 60% chance in May, according to the CME FedWatch Tool.
But Prins said investors need to pay closer attention to what's happening with quantitative tightening (QT), forecasting a pivot to quantitative easing (QE) sooner than many anticipate. Read More
Live From The Vault - Episode: 158
BRICS nations to drag US back into the gold standard? Feat. Ron Branstetter
In this week’s episode of Live from the Vault, Andrew Maguire is joined - a popular request - by Ron Branstetter of Ron’s Basement to discuss the accelerating pace of change that silver stackers should experience in the months to come.
The precious metals experts take listeners through the implications of recent manoeuvres of the Global South, questioning whether international conflict can be avoided through leveraging a global gold and silver reevaluation.
.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.
