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Silver Price News: Silver Rallies As Gold Hits All-Time High
Silver prices rallied to a fresh two-month high on Tuesday, holding onto gold’s coattails as the yellow metal hit an all-time high.
Silver prices briefly climbed as high as $24.24 an ounce, the highest price since late December 2023, before pulling back to around $23.70 an ounce later in the session.
The precious metals complex has taken support from recent data showing that the US economy is not as strong as the markets had expected, lending support to expectations that the US Fed could begin its long-anticipated interest rate cutting cycle as soon as June.
The timing of any interest rate cuts is uncertain, and the silver price has been moving in both directions in recent weeks on the back of day-to-day data releases that feed into expectations of any US monetary policy changes. Read More
Gold Price News: Gold Hits All-Time High
Gold prices surged to an all-time high on Tuesday, on a combination of speculation over upcoming interest rate cuts, bullish fundamentals and haven appeal amid ongoing geopolitical tensions.
Prices briefly touched $2,142 an ounce on Tuesday – the highest-ever price – before easing back slightly to $2,134 an ounce by late afternoon.
Positive momentum in the gold market has been building after news that central banks, particularly those in China and India, have been increasing their stocks of gold in recent months. Some analysts have been pointing to expected price increases in 2024 on the back of these central bank purchases, but also due to strong retail demand in emerging markets, coupled with safe-haven flows linked to current geopolitical tensions.
This bullish backdrop for gold has been further strengthened by rising bets on the US Fed starting to cut interest rates as soon as June – a supportive factor for non-interest-bearing assets like precious metals. Read More
Gold prices are going higher, it remains the only antidote to an overvalued S&P 500 and global uncertainty - Sprott’s McIntyre
The gold market continues to move from one record close to another, even as its all-time highs remain elusive, which should attract investors’ attention, according to one fund manager.
Regardless of whether the gold’s four-day rally to $2,150 an ounce is sustainable or not, prices are going higher in the long term, said Ryan McIntyre, Managing Partner at Sprott Inc., in an interview with Kitco News.
Although some analysts are warning investors that the gold market is a little overstretched and could see a correction by the end of the week, McIntyre said that investors should ignore the near-term price action and focus on the bigger picture.
“Long-term, this is not the top for the market,” he said. Read More
Gold trading at record highs against the Canadian dollar as BoC leaves rates unchanged
Central banks maintaining restrictive monetary policies is not enough to scare the gold bulls with momentum on their side. Gold prices continue to trade at record highs against the Canadian dollar as the Bank of Canada is the latest central bank to leave interest rates unchanged.
In a much-anticipated move, the BoC left its overnight rate at 5.00%, with the Bank Rate at 5.25% and the deposit rate at 5.00%.
The central bank said that it still remains focused on inflation, and it remains above the 2% target.
The gold market is not paying much attention to what central bankers are saying today, as it continues to see solid bullish momentum. In spot markets, gold is trading at $2,906.33 an ounce against the Canadian dollar, up 0.53% on the day. Read More
Gold price remains strong as Fed Chair Powell sings the same song
The gold market is holding its recent gains but is not seeing any new momentum as Federal Reserve Chair Jerome Powell walks a fine line on monetary policy ahead of his two days of testimony on Capitol Hill.
Wednesday, Powell will be before the House Financial Services Committee. In his prepared statement that was released ahead of his appearance, Powell reiterated his stance that interest rates have peaked and are likely to go down this year, just not anytime soon.
“If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. But the economic outlook is uncertain, and ongoing progress toward our 2 percent inflation objective is not assured,” Powell said in his opening remarkets. “The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”
Powell’s comments are pretty much in line with what market analysts were expecting. Read More
Gold, silver rally as Fed’s Powell leans a bit dovish
Gold and silver prices are higher and near their daily highs in late-morning U.S. trading Wednesday. Nearby gold futures prices hit another record high today, at $2,157.50. The precious metals are getting a lift from remarks by the head of the U.S. central bank that the marketplace deemed as slightly dovish on monetary policy. April gold was last up $13.30 at $2,155.20. May silver was last up $0.421 at $24.40.
Federal Reserve Chairman Jerome Powell spoke to the U.S. House of Representatives committee on U.S. monetary policy today. Powell said interest rat cuts will likely be appropriate this year and that interest rates are at their peak for the current cycle. However, Powell said the Fed needs greater confidence on winning the inflation battle before lowering interest rates. However, he added inflation has eased notably. The U.S. stock indexes also rallied after Powell’s comments. The U.S. dollar index sold off and U.S. bond yields down-ticked a bit. Powell also said he thinks the U.S. economy can achieve a soft landing.
Technically, April gold futures bulls have the solid overall near-term technical advantage. A three-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at December high of $2,171.50, basis April futures. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $2,088.10. First resistance is seen at today’s high of $2,157.50 and then at $2,171.50. First support is seen at today’s low of $2,131.90 and then at Tuesday’s low of $2,118.50. Wyckoff's Market Rating: 8.5.
Image Source: Kitco News
May silver futures prices were poised to close at a two-month-high close today. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $22.47. First resistance is seen at this week’s high of $24.455 and then at $25.00. Next support is seen at $24.00 and then at today’s low of $23.785. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Central banks go for the gold in January, pointing to a third straight year of strong demand – WGC’s Gopaul
The factors that supported central banks’ near-record gold purchases in 2023 continued into the new year, and if January is any indication, 2024 will be another blowout year for the yellow metal, according to Krishan Gopaul, Senior Analyst, EMEA at the World Gold Council.
Gopaul noted that after the record-setting 2022 and the strong follow-up last year, “central bank gold demand has become a key support for gold.”
“Naturally, the focus has been not only on what has happened but also on what is to come,” he said. “Will central banks continue to buy gold, and if so why and how much?”
Gopaul said the answers to these questions are beginning to emerge with the latest central bank purchase data, and they bode well for gold bugs. “In January, central banks reported that they increased global official gold reserves by 39t.” he wrote. “This was more than double the (revised) December net purchases of 17t, and the eighth consecutive month of net purchases.” Read More
Gold’s shock rally has analysts grasping for explanations
Gold’s surprising rally to new all-time highs has even seasoned industry professionals scratching their heads as to the true cause.
“It is clear that despite the West's disaffection for gold […] demand in China is more than offsetting the shortfall, with monumental volumes flowing from West to the East,” wrote Metals Daily CEO Ross Norman in a LinkedIn post. “As such, this rally seems to have caught Western experts and forecasters by surprise - a stealth rally if you like - which suggests to me the buying is beyond the immediate purview of most of us.”
Norman said the “conventional explanation” is that gold is rallying ahead of an expected rate cut at the June Fed meeting, which would weaken the dollar and strengthen gold, “but the dollar is actually up YTD and silver is not validating the move higher in the complex as evidenced by a decline in the gold/silver ratio as we would have expected.”
Another possible explanation would be the decline in U.S. treasury yields, “down 1.2% in the last month and with gold up nearly 6% ... but again no evidence that institutions are behind this as ETF demand remains lacklustre.”
Norman said that there’s no doubt that short covering in the futures market has helped boost the rally, but the move is too big for that to be the main driver, “so something else is at play.” 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.
