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Silver Price News: Silver Dips as Dollar Rises, Eyes on ‘Double-Top’ Formation
Silver prices fell further on Tuesday, in a continuation of the previous week’s bearish trend.
Prices fell as low as $29.41 an ounce on Tuesday, down from around $30.75 an ounce in late deals on Monday, representing a day-on-day loss of just over 3%.
Gold prices were also lower on Tuesday, creating a bearish backdrop for silver.
The US dollar strengthened against other major currencies on Tuesday, making dollar-denominated gold and silver more expensive for buyers in other currencies, denting demand.
Efforts to broker a ceasefire in the war between Israel and Palestinian militant group Hamas this week also appeared a step closer to succeeding, which potentially erodes some of the recent risk premium in precious metals prices. Read More
Gold Price News: Gold Falls Back Below $2,330 An Ounce
Gold prices fell back on Tuesday, giving up Monday’s gains, as the US dollar rebounded from a two-month low seen the previous day.
Gold prices fell as low as $2,317 an ounce on Tuesday, before edging back up to $2,325 an ounce later in the session. That was down sharply compared with around $2,351 in late deals on Monday.
The sharp downward reversal came as the US dollar rebounded against other major currencies on Tuesday, making gold more expensive for buyers in other currencies, and weighing on demand. The US dollar had hit more than a two-month low against the euro on Monday, but found a firmer footing on Tuesday.
In addition, US factory orders figures for April came in on Tuesday showing a 0.7% increase compared with March, and slightly above market expectations of a 0.6% gain. Any signs of a stronger-than-expected economy suggest the need for central banks to maintain higher interest rates, which tends to be bearish for non-yield-bearing assets like precious metals. Read More
Gold’s attractiveness to criminals forces market participants to shoulder the AML-KYC burden
The biggest gold-smuggling bust in Hong Kong’s history has brought the challenges of detecting illegal movements and transactions of precious metals into sharp relief, according to a June 2 report from consulting firm Alvarez and Marshall.
“On 27 March 2024, the Hong Kong Customs and Excise Department made its largest ever gold-smuggling bust — approximately 146kg, with an estimated market value of HKD 84 million — at the Hong Kong International Airport,” the report stated. “The gold was not smuggled as ingots or jewelry with serial numbers as one might expect, but was disguised as parts for air compressors.”
Authors Henry Chambers and Benjamin Teo wrote in ‘Following the Midas Trail – Laundering Money Through Gold and Precious Metals’ that cases such as this one raise an important question: “Can forensic practitioners trace the movement of luxury items, such as physical gold, and how are these valuable items controlled?” Read More
Gold price see a move above $2,350 as U.S. ADP says 152K jobs created in May, missing expectations
The gold market continues to hover around $2,350 an ounce but could see some bullish momentum as the U.S. labor market continues to cool, with private companies hiring fewer workers than expected in May, according to the latest report from private payroll processor ADP.
On Wednesday, ADP said that 152,000 jobs were created last month. The report missed expectations, as consensus forecasts called for job growth of around 173,000.
“Job gains and pay growth are slowing going into the second half of the year,” said Nela Richardson, Chief Economist at ADP. “The labor market is solid, but we're monitoring notable pockets of weakness tied to both producers and consumers.”
The gold market is seeing solid gains in initial reaction to the latest employment data. August gold futures last traded at $2,356.40 an ounce, up 0.37% on the day. Read More
Gold prices jump against loonie as Bank of Canada cut rates by 25 basis points
Global interest rates have likely peaked, as the Bank of Canada is the second major central bank to embark on a new easing cycle.
Gold prices are spiking against the Canadian dollar as the central bank cut interest rates by 25 basis points, bringing its overnight rate to 4.75% with the Bank Rate at 5% and the deposit rate at 4.75%.
The cut was relatively in line with market expectations as inflation in Canada continues to weaken.
“With continued evidence that underlying inflation is easing, Governing Council agreed that monetary policy no longer needs to be as restrictive and reduced the policy interest rate by 25 basis points. Recent data has increased our confidence that inflation will continue to move towards the 2% target,” the BoC said in its monetary policy statement.
In global currency markets, gold is holding solid gains against the Canadian dollar in its initial reaction to the BoC’s rate cut. Spot gold last traded at C$3,207.54 an ounce, up 0.64% on the day. Read More
Gold falls from session highs after May ISM Services PMI improves to 53.8
The health of the U.S. economy appears mixed as the service sector saw significant improvement last month, according to the latest data from the Institute for Supply Management released Wednesday morning.
The ISM said its Services Purchasing Managers Index improved to 53.8 in May, up from April’s reading of 49.4. The data was better than expected, as economists were looking for only a slight improvement to a reading of 50.8.
“The contraction in April ended a string of 15 months of services sector growth following a composite index reading of 49 percent in December 2022; the last contraction before that was in May 2020 (45.4 percent),” said Anthony Nieves, Chair of the ISM Services 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. Read More
Solid gains for gold, silver, on bargain hunting, weaker U.S. data
Gold and silver prices are firmly higher in midday U.S. trading Wednesday. Traders and investors are doing some would-be bargain hunting. A rebound in crude oil prices today and a dip in U.S. Treasury yields this week are bullish “outside market” elements supporting the precious metals markets at mid-week. August gold was last up $25.50 at $2,373.20. July silver was last up $0.448 at $30.055.
Today’s ADP national employment report for May showed a rise of 152,000 versus expectations for up 175,000. The weaker-than-expected ADP report was also a supportive factor for the rally in gold and silver markets today.
Technically, August gold bulls have the overall near-term technical advantage. However, a bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at last week’s high of $2,388.00 and then at $2,400.00. First support is seen at $2,350.00 and then at this week’s low of $2,334.80. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
July silver futures bulls have the overall near-term technical advantage. However, a four-week-old uptrend on the daily bar chart has been negated to suggest a near-term market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.50 and then at $31.00. Next support is seen at this week’s low of $29.505 and then at $29.00. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Gold is insurance against the risks of 2024, including U.S. election strife, China trade conflict, debt spiral – Ray Dalio
Diversification is even more important to investors’ returns than making the right decisions, and gold is a key diversifier, according to Ray Dalio, the billionaire founder of Bridgewater Associates.
In a remote video speech to the Greenwich Economic Forum in Hong Kong on Wednesday, Dalio went through some of what he considered the most pressing economic and geopolitical threats on the horizon.
He said that among the most significant risk factors in 2024 are the threat of internal conflict surrounding the elections in the United States. “There are two questions related to that,” he said. “Will the elections be accepted by both sides? And what are the consequences of that? We honestly don't know the answer.” Read More
Jeffrey Gundlach: Never-ending debt-based scheme is pushing people to gold, Bitcoin
The state of the global economy has emerged as a primary concern in the minds of investors around the world, and according to one CEO, prolonged higher interest rates in the U.S. could lead to a recession as soon as this year.
According to Jeffrey Gundlach, the chief executive of investment management company DoubleLine Capital, there are signs of trouble brewing in the U.S. economy – including rising credit card delinquencies and softer retail sales data – which suggest the possibility of an economic contraction is more imminent than the risk of an inflationary rebound.
"There's a lot of recessionary signals out there," he said while speaking at a webinar hosted by David Rosenberg, founder and president of Rosenberg Research. "There's more of a recessionary feel than an inflationary feel.”
The ‘Bond King’ added that he was staying away from the riskiest parts of the corporate debt market, such as triple-C rated companies' bonds and private credit investments, as he expects companies' debt defaults to surge. Read More
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.
