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Silver Price News: Silver Stabilises at Start of Busy Macroeconomic Week
Silver is just about holding above $21 an ounce as markets prepare for a busy week on the macroeconomic front, with Federal Chair Jerome Powell’s testimony as well as employment data out of the US.
Silver has found itself struggling since traders and investors repriced how soon the Fed will pause its current policy of hiking interest rates so Powell’s comments on both Tuesday and Wednesday are likely to have a significant impact on determining silver’s direction. Holders of the metal will be hoping that the Fed Chair’s outlook doesn’t infer that interest rates need to climb higher than the 5% figure that is now the current expectation.
Silver has had a curious 2023 so far, having entered the new year with expectations that the stellar recovery on display in the final quarter of 2022 would continue. Read More
Gold Price News: Gold Holds Near $1,850 Ahead of Powell’s Testimonies
Gold is holding around $1,850 an ounce at the start of a week in which the market will get much more clarity on the likely trajectory of the Federal Reserve’s interest rate moves as well as how well employment is holding up against the current cost pressures.
Fed Chair Jerome Powell will give his semiannual testimony to Congress and the Senate on Tuesday and Wednesday in which he will defend the decisions of the US central bank so far as well as give his outlook on where he sees the world’s largest economy heading. Given how tied up gold has been with the moves of the Fed, these two speeches by Mr Powell will have a big factor in driving the price of gold.
Recent comments by Fed officials, with Mary Daly the latest, have reiterated the need to continue hiking rates until they reach at least 5% with the battle against persistently high inflation far from over. In this environment of rising interest rates, gold becomes less attractive to investors due to its lack of yield so holders of the precious metal will be hoping that Powell doesn’t strike a more hawkish tone than his fellow committee members. Read More
Gold, silver tread water ahead of Powell, jobs data
Gold prices are slightly higher and silver near steady in subdued midday U.S. trading Monday. Traders and investors are awaiting the two major U.S. data points of the week. April gold was last up $1.90 at $1,856.40 and May silver was down $0.023 at $21.215.
Focus is on Fed Chairman Jerome Powell’s testimony on U.S. monetary policy to Senate and House committees on Tuesday and Wednesday. Then comes the February U.S. employment situation report from the Labor Department on Friday morning. The key non-farm payrolls component of the report is expected to show a rise of 225,000 jobs, following a mammoth rise of 517,000 in the January report.
Technically, April gold futures bulls have the slight overall near-term technical advantage. A price downtrend on the daily chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,810.80. First resistance is seen at last week’s high of $1,864.40 and then at $1,875.00. First support is seen at $1,850.00 and then at $1,842.00. Wyckoff's Market Rating: 5.5.
Image Source: Kitco News
May silver futures bears have the overall near-term technical advantage. Prices are in a steep downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.25. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at $21.52 and then at $21.75. Next support is seen at $21.00 and then at $20.76. Wyckoff's Market Rating: 3.5. Read More
Image Source: Kitco News
Gold mining rights have now been tokenized and recorded on the blockchain
While Bitcoin (BTC) is often cast in a competitive light when it comes to discussing gold, the blockchain technology that underpins the top crypto has a wide range of potential use cases that can help improve the efficiency of how all financial markets operate, including precious metals markets.
A prime example of how the technology can be applied to the precious metals space is demonstrated in the recent announcement from Santo Mining Corp. The company has entered into a non-fungible token (NFT) software development agreement with Vegachi Holdings SAS to develop a series of NFTs linked to the fractionalization of land with gold mining rights.
The fractionalization of land in regard to gold mining rights is a novel approach to applying NFT technology for investing in the gold industry, but the method has been applied previously to other forms of real estate that offer multiple investors the opportunity to invest.
"We are delighted to work on this project and be able to bridge LawTech & FinTech with digital assets, and ensure that the traditional legal world can be linked and embedded with the blockchain and digital asset technology,” said Hassan Mustafa lead Attorney at Law at Mustafa & Associates and Legal Representative of Vegachi Holdings SAS. Read More
Singapore adds gold to its reserves, buys 45 tonnes in January
In the latest central banks gold-buying news, Singapore purchased 45 tonnes of gold in January, the World Gold Council said.
"Based on data on the Monetary Authority of Singapore website, it added 44.6 tonnes of #gold to its official reserves in January," Krishan Gopaul, senior analyst at the WGC, tweeted Monday.
This was the highest monthly purchase on record and the first boost to the country's gold reserves since June 2021, Gopaul pointed out. The records go back to August 2000. Singapore's gold reserves now stand at 198.4 tonnes.
After the news broke, the WGC had to revise its January totals. The WGC estimates that central banks bought 77 tonnes of gold in January, up from 31 tonnes reported Thursday.
"Following the announcement of a ~45 tonne #gold purchase by Singapore, our estimate of global net buying in January has been revised to 77 tonnes (+192% m-o-m)," Gopaul wrote. Read More
Traders are cautious as reflected in fractional declines in gold and the dollar
Market participants are trading cautiously with a wait-and-see attitude as this week contains multiple events that could have a deep impact on the financial markets across the board. Cautiousness is the overall demeanour of market sentiment as traders and investors await Chairman Powell's appearance before both the Senate and House beginning on Tuesday. This will be followed by the Labor Department's jobs report for February on Friday.
Image Source: Kitco News
As of 4 PM EST, gold futures basis most active April contract is down $2.50 or -0.13% and fixed at $1852. Concurrently, the US dollar is also trading fractionally lower down 0.18% or 18 points with the dollar index currently fixed at 104.30.
The more hawkish faction of the Federal Reserve continues its strong narrative that was evident last weekend. On Saturday the San Francisco Federal Reserve President Mary Daly discussed economic and policy issues with Michael Strain, director of Economic Policy Studies at the American Enterprise Institute. Read More
Silver mines will likely be bought by automakers like Tesla, silver to $125 per ounce - Keith Neumeyer
Automotive companies like Tesla could soon purchase silver mines, as they seek to control supply over critical metals required for electric vehicles. That's according to Keith Neumeyer, President and CEO of First Majestic Silver who forecasts that this, combined with other demand-driven factors, will send the price of silver up to $125 per ounce.
"They [automobile companies] aren't really aware of the supply-demand fundamentals of the metal," he claimed. "I think as they educate themselves and actually learn the challenges for the silver industry to supply the automotive sector, they will start looking at this industry a lot more aggressively… If I were Elon Musk, I'd be very active in this area."
Neumeyer, who founded First Majestic in 2002 and has four decades of experience in the financial industry, claimed that there would be more vertical integration and consolidated supply chains as automotive manufacturers and the solar industry seek to decrease margins they pay for raw materials.
Speaking at the BMO Global Metals, Mining, & Critical Minerals Conference with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Neumeyer observed that 2023 is the first year that car manufacturers have been present at the conference. Some automotive companies have already bought stakes in minerals companies.
Neumeyer pointed to the fact that silver is needed for car batteries and solar panels to operate efficiently. Neumeyer observed that based on estimates, the average Tesla vehicle contains 1 kilogram of silver. As demand for electrification grows, the silver price is expected to rise. Read More
Gold to reach $2,400 by 2028 as geopolitical tensions mount, central banks purchase more bullion - Pierre Lassonde
Gold will hit as high as $2,400 per ounce over the next five years, as countries like Russia seek to divest U.S. dollars, after the dollar was weaponized following Russia’s conflict in Ukraine. That’s according to Pierre Lassonde, Chairman Emeritus of Franco-Nevada and CEO of Fireside Investments, who suggested that a dual system of currency could emerge by 2028.
“I think in the next five years you will see a dual system of payment and currency,” he forecast. “What’s precipitating [this] is essentially the Russia-Ukraine war… To my mind, over the next five years, you will see $2,300 to $2,400 gold because of that.”
Speaking at the BMO Metals, Mining, & Critical Minerals Conference with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Lassonde observed that central banks are buying more gold as geopolitical tensions mount across the globe.
Central bank gold buying in 2022 was the highest since 1950, with central banks purchasing 1,136 tons. This follows twelve years of central bank net gold purchases. Read More
What Central Banks don’t want you to know. Feat: Craig Hemke
In this week’s Live from the Vault, Andrew Maguire is joined, once again, by the founder of the renowned TF Metals Report, Craig Hemke, to disclose why central banks are buying more gold than they have in 50 years.
As the pendulum of financial history swings back in favour of tangible assets, the two old friends explain why nations are starting to price commodities in gold, while the demand for the US dollar keeps falling.
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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.
