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Silver Price News: Silver Pushes on to $25 With No Sign of Rally Ending Soon
Silver is enjoying a great run with the price climbing to around $25 an ounce to its highest level in almost a year. For silver investors, these gains are long overdue after the metal looked set to enjoy a strong 2023 yet failed to deliver on this promise for the bulk of the first quarter.
Now the headwinds that have been holding silver back look to be dwindling and the focus can shift back to the metal’s strong fundamental outlook and push the price up towards the late $20s.
A weaker US dollar, which silver is typically priced in, has given room for silver to grow with the metal already enjoying a boost from safe-haven demand in the wake of the collapse and near collapse of banks in the US and Europe last month. Add in a further boost as expectations increase that the Federal Reserve will soon end its policy of increasing interest rates and the market conditions for silver look very conducive. Read More
Gold Price News: Gold Sits Pretty Above $2,000 on Ideal Market Conditions
Gold is sitting pretty comfortably above $2,000 an ounce after last month’s surge of safe haven demand has now been sustained by the prospect of the Federal Reserve nearing the end of its interest rate hike cycle.
After March proved a fantastic month for gold, the price has continued to climb higher so far in April to reach levels not seen for over a year. While the initial fears of a broader banking crisis now look to be contained, market confidence remains low with investors keeping their risk-averse trades in place.
The market conditions play right into gold’s hands with the precious metal further supported by a weakening of the US dollar, against which gold typically enjoys an inverse relationship. Add in the likelihood of gold’s major headwind, rising Fed interest rates, coming to an end in the months ahead and the short to medium-term course for the ultimate haven asset looks set fair. Read More
Gold & Silver Monthly Review and Outlook – April 2023
After a great month for gold in March, during which the price surged from around $1,820 an ounce to above $2,000 at times, the question for April is how much of those gains can the precious metal cling on to?
The collapse and near collapse of four US banks and one major European one saw a rush to gold in March as investors sought out its safe haven qualities and its lack of counterparty risk at a time when holders of deposits in those failed banks were worried how much of their money they’d get back.
The gold price surged to its highest level in a year, even though March saw interest rate increases from a whole host of central banks, including the Federal Reserve. Read More
Disappointing ISM service-sector data supports safe-haven demand for gold and prices above $2,000
The gold market continues to hold its ground above $2,000 an ounce as the U.S. economy loses momentum, with the service sector hovering above contraction territory, according to the latest data from the Institute for Supply Management (ISM).
Wednesday, the ISM said its Services Purchasing Managers Index fell to 51.2 last month, down from February's reading of 55.1%. According to consensus estimates, economists were looking for a smaller drop to 54.3.
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.
According to some analysts, gold prices continue to attract a healthy safe-haven bid as the latest economic data highlights growing recession fears. June gold futures last traded at $2,039.20 an ounce, relatively flat on the day. Read More
Why the gold sector is about to get a big lift - Soar Financial's Kai Hoffmann
The coming quarter should give the precious metal sector a lift, said Soar Financial CEO Kai Hoffmann.
Hoffmann spoke to Kitco in April as gold was nearing $2,000 an ounce, but the GDX, an index of gold companies, was well off its 52-week highs.
"It's very, very surprising because...the miners and juniors have not caught up," said Hoffmann. "Gold is doing fine but it doesn't feel like investors are participating. On the junior side I'd almost say that we don't trust the cooking."
Hoffmann said the sector will benefit from financials due next month, with the precious metal miners benefiting from strong gold prices for most of the quarter.
"The miners should have some really decent Q1 numbers coming out fairly soon. With oil prices dropping, energy costs are down, and all-in sustaining costs should be quite positive, especially the cost of goods sold, meaning the achieved ounces," said Hoffmann. Read More
Gold, silver hit 12-mo. highs then see mild profit taking
Gold and silver prices are near steady in midday U.S. trading Wednesday, on a bit of profit-taking pressure and chart consolidation after hitting 12-month highs overnight. Both metals are in strong technical positions to suggest still more upside in the near term. April gold was last up $1.10 at $2,023.20 and May silver was up $0.01 at $25.11.
A standout feature in the marketplace this week is gold prices pushing above $2,000.00 an ounce and now closing in on the record high of $2,078.80, scored in March of 2022. A weakening U.S. dollar index and a surge in crude oil prices this week have helped to rally the yellow metal. Safe-haven demand amid the banking turmoil in the U.S. and Europe are also boosting gold and silver. JP Morgan chief Jamie Dimon said in a report issued Tuesday that the banking crisis is not over.
Technically, April gold futures prices hit a 12-month high early on today. Bulls have the strong overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the all-time high of $2,078.80, scored in March of 2022. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,950.00. First resistance is seen at today’s high of $2,033.80 and then at $2,050.00. First support is seen at $2,000.00 and then at Tuesday’s low of $1,979.00. Wyckoff's Market Rating: 8.5.
Image Source: Kitco News
May silver futures prices hit a 12-month high early on today. The silver bulls have the strong overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $25.295 and then at $25.50. Next support is seen at today’s low of $24.785 and then at $24.50. Wyckoff's Market Rating: 8.0. Read More
Image Source: Kitco News
Bank of America is looking for $2,100 gold price by Q2
It could be only a matter of time before gold prices hit record highs, with analysts at Bank of America eyeing an initial price target above $2,100 an ounce.
In a report published Wednesday, the second biggest bank in America said that gold's fundamental prospects look strong as inflation remains persistently elevated and economic concerns continue to grow with weakness in the labor market, tightening liquidity and a "brittle" credit markets.
At the same time, gold's technical outlook paints bullish pictures. Bank of America technical strategist Paul Ciana, the lead author of the report, wrote that gold's and silver's break-out moves have emboldened the precious metals market. He added that gold's rally to its all-time high of $2,078 could signal the start of a two-year bull run, which could push prices above $2,500 an ounce.
However, he added that in the current environment, his initial target is above $2,100 an ounce.
"The daily chart of gold prices shows a bullish continuation pattern called a pennant (a small triangle). It was confirmed on the April 4, 2023, rally above $2,000/oz. Technical theory suggests this pattern forms mid-trend and so the next leg of the uptrend has begun with upside to 2078, 2118 and possibly 2195 in 2023," Ciana said in his report. Read More
De-dollarization train is moving at full speed and gold is the first to react
This de-dollarization trend can directly impact the gold market, especially regarding sentiment, said Gainesville Coins precious metals expert Everett Millman.
"There is definitely a lot of discourse about the dollar losing its reserve currency status. Where that conversation goes is going to be very important for gold," Millman told Kitco News. "The idea that the dollar is going to imminently collapse is very overhyped. But it affects people's perception and sentiment in the gold market. When you look at shorts versus longs in old futures, sentiment is still fairly neutral."
If there is a swing in the public perception of what's happening with the dollar and the U.S. economy, that will shift sentiment very quickly, and gold is usually the first asset to react to that, he added.
Wednesday, the gold market continued to trade solidly above $2,000 an ounce, with June Comex gold futures last at $2,039.20, flat on the day.
After buying a record amount of gold in 2022, central banks are not letting up, with 2023 seeing the strongest start to the year in more than a decade, according to the World Gold Council (WGC).
Global gold reserves increased by 52 tonnes in February, rising for the 11th month in a row, the WGC said Tuesday. In January, central banks bought 74 tonnes of gold. Read More
Gold price inches from record highs, recession fears drive the market
Gold spent another day above $2,030 an ounce as prices eyed record highs, with recession fears driving market sentiment.
June Comex gold futures were last at $2,037 an ounce, flat on the day, after reaching a daily high of $2,049 — a 12-month high.
“Gold prices continued to rise, approaching the all-time maximum reached in the summer of 2020 when pandemic-induced uncertainty drove investors towards the safety of the precious metal,” said ActivTrades senior analyst Ricardo Evangelista. “This time around, the reasons behind investor anxieties can be attributed to fears of an economic slowdown.”
Recession risk intensified, with the latest data pointing to a slowdown in the economy. The ADP National Employment report revealed that U.S. private employers added fewer jobs than expected in March, with payrolls rising 145,000. This comes after U.S. job openings fell below ten million in February — their lowest level in nearly two years, according to the Job Openings and Labor Turnover Survey. Read More
Gold futures consolidate forming a base at recent highs above $2030
The solid breakout that moved gold futures above $2000 to a high of $2043 yesterday, and $2049.20 today indicates a new level of support well above $2000 per ounce.
Currently, the most active June 2023 futures contract is fixed at $2037.10 a net decline of $1.1 or 0.05%. The fact that gold did not immediately sell off as it has in the past after hitting the highest price since gold hit $2077 last year indicates strong bullish market sentiment that continues to drive gold higher and more importantly hold those recent high prices.
Today’s fractional decline occurs with dollar strength which indicates that there are still traders bidding the precious metal higher although not enough to take gold futures higher on the day.
The next key event that will shape the Federal Reserve’s decision will be Friday’s jobs report. This is because the Federal Reserve is laser-focused on the extremely robust labor market as a strong higher inflationary component.
Image Source: Kitco News
On a technical basis, there is no resistance until $2069 the highest closing price for gold futures on record. With a short-term bias, you can use today’s low of $2026 as a potential solid support level. 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.
