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Gold Price News: Concerns Over Global Economy Keeps Gold Above $1,900
Gold continues to find sufficient support to keep it comfortably above $1,900 an ounce even in the face of impending interest rate rises by central banks around the world.
Fragile market confidence and a dip in equities on the back of concerns about the health of the global economy has seen investors keen to keep hold of their safe haven gold assets. China is the latest country to publish underwhelming economic data and investors are concerned that central banks’ aggressive stance to curb stubbornly high inflation will tip economies into recession.
As such, gold finds itself in a curious position where the prospect of further interest rate hikes is detrimental to its medium-term outlook yet that same negative factor is almost a supportive one as the concern is that the hikes will be detrimental to equities and therefore supportive for gold’s haven appeal. Read More
Silver Price News: Silver Drifts As Rate Hikes Offset Strong Industrial Demand
Silver is still waiting for a fresh catalyst to shake it out of its sideways drift a little below $23 an ounce.
Surging global demand for silver from the solar industry will lead to another supply deficit this year for the metal yet silver’s strong fundamental case is failing to gain sufficient traction in the face of rising interest rates around the world.
The Federal Reserve looks set for another couple of hikes in order to ensure inflation shrinks back to its 2% target and this is weighing on silver’s ability to climb higher as the metal’s lack of yield makes it less attractive to investors at times of rising interest rates. Read More
Spot gold and silver prices hold gains, testing resistance in quiet holiday trading
Spot gold and silver prices are holding on to modest gain in a quiet trading session Tuesday as U.S. markets are closed for Independence Day.
Although gold prices remain in a downtrend, some analysts are expecting gold and silver to test near-term resistance levels after holding support at $1,900 an ounce last week. Spot gold last traded at $1,929 an ounce, up 0.38% on the day; spot silver last traded at $23 an ounce, up 0.57% on the day.
Analysts note that rising bond yields, as the 10-year yield pushed closer to 4% Monday, could keep a lid on gold and silver prices this week.
"Gold traders feel the pain of gradually mounting U.S. yields, but buyers are still willing to enter the market below the $1900 in hope that we are nearing a top in the U.S. yields' upside trajectory," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in her daily research note.
Ozkardeskaya noted that a weaker U.S. dollar also reflects the market's growing anticipation that the Federal Reserve is nearing the end of its aggressive tightening cycle. However, the much-anticipated easing pivot also remains elusive. Read More
Gold prices to remain in neutral territory for the rest of 2023, silver to see slightly higher prices - BMO Capital Markets
Gold's brief push above $2,000 an ounce in mid-May could represent the yellow metal's high-water mark for the year as markets continue to adjust to dynamic interest rate expectations and a resilient U.S. economy.
In their latest quarterly outlook, analysts at BMO Capital Markets said that they are leaving their year-end average gold price target unchanged at $1,905 an ounce, and warned that the precious metal is losing momentum as it has not been able to hold its gains above $2,000.
"Gold has struggled for direction over recent weeks as markets digest climbing treasury yields, dollar strength, the potential lagged impact of an unprecedented cumulative rate-hiking cycle, and elevated geopolitical risk," the analysts said in the report. "Our base case remains that uncertainty coupled with macro headwinds will see gold prices well supported into Q3; however, as we gain clarity on the central bank rate trajectory and the ‘hard landing' scenario is averted, we see gold losing some of its luster into year-end."
The neutral outlook comes as gold prices hold support above $1,900 an ounce but remain unable to break initial resistance around $1,930. Read More
Gold pauses ahead of FOMC minutes release
Gold prices are near steady up and silver solidly higher in midday U.S. trading Wednesday. Short covering from the futures traders was featured, especially in silver, ahead of the afternoon FOMC minutes from the Federal Reserve. August gold was last up $0.10 at $1,929.60 and September silver was up $0.308 at $23.42.
Despite a holiday-shortened U.S. trading week, it’s still a busy one for the marketplace. The latest FOMC minutes from the Federal Reserve will be scrutinized for any fresh clues on the timing of the next monetary policy move by the central bank. The U.S. employment situation report for June is out Friday. The key non-farm payrolls number is forecast up 240,000 versus a gain of 339,000 in the May report.
Technically, August gold futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,846.80. First resistance is seen at today’s high of $1,942.90 and then at $1,950.00. First support is seen at this week’s low of $1,917.70 and then at $1,900.00. Wyckoff's Market Rating: 4.0.
Image Source: Kitco News
September silver futures bears have the overall near-term technical advantage. A choppy, two-month-old price downtrend is still in place on the daily bar chart. Silver Bulls' next upside price objective is closing prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the March low of $20.425. First resistance is seen at today’s high of $23.45 and then at $24.00. Next support is seen at $23.00 and then at last week’s low of $22.485. Wyckoff's Market Rating: 4.0. Read More
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Gold Prices Dip as Expectations of Fed Rate Hike Intensify
Gold prices have experienced a downward trend recently as the possibility of a Federal Reserve rate hike looms. With the next Federal Open Market Committee (FOMC) meeting scheduled to conclude on July 26, market participants are eagerly awaiting the central bank's decision. The latest minutes from the previous FOMC meeting revealed a growing sentiment among Federal Reserve officials in favour of a 0.25% rate hike. This article explores the factors contributing to the decline in gold prices and highlights the key events that could shape the Federal Reserve's decision.
Image Source: Kitco News
While the Federal Reserve chose to maintain interest rates at their current levels during the previous meeting, officials emphasized that this pause did not signify an end to rate hikes. Instead, it provided an opportunity to evaluate the impact of prior rate hikes on inflation. The recently released meeting minutes suggest that the majority of Federal Reserve officials favour further tightening. Nearly all but two of the 18 participants indicated that at least one rate hike would be appropriate this year, with 12 of them expecting two or more hikes. According to the CME’s FedWatch Tool, there is an 88.7% probability that the Federal Reserve will raise rates by 25 bps taking their benchmark rate to between 5.25% and 5.50%. 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.
