x
Image Source: Unsplash
Gold Price News: Gold Prices Pull Back From All-Time Highs
Gold prices came under moderate downward pressure Tuesday, easing back from all-time highs seen on Monday.
Prices drifted as low as $2,011 an ounce Tuesday, compared with a high of over $2,100 an ounce on Monday. The pull-back was indicative of profit-taking after gold’s surge to an all-time high.
The gains at the start of the week came as already simmering tensions in the Middle East were ratcheted up a notch after news reports said a US warship and three commercial vessels had come under attack with drones and missiles in the Red Sea over the weekend. The news spooked the market due to the perceived risk of the attacks causing the conflict between Israel and Hamas to spread into a wider confrontation. Gold prices rose on the news as investors diverted money into safe havens.
With no further reports of wider conflict since then, gold prices pulled back. Nevertheless, with no immediate signs of an end to hostilities in Gaza, a risk premium is still present in the gold price. These events came against an already bullish backdrop for gold, with the markets weighing the chances that the US Fed will cut interest rates, potentially as soon as March. Read More
Silver Price News: Silver Falls Back from Seven-Month High
Silver prices saw a marked drop on Monday and Tuesday, with values falling sharply from a seven-month-high.
Prices fell as low as $23.98 an ounce Tuesday, compared with over $25.50 an ounce early Monday. The move lower came as gold prices retreated from all-time highs at the start of the week. Silver prices had pushed within striking distance of $26.00 an ounce – a level last seen in April and May, but the higher values appeared to attract sellers, bringing prices back down.
The market was digesting mixed signals from the US on Tuesday, which showed stronger than expected growth in the services sector in November, but a drop in job openings in October.
Figures indicating the health of the US economy matter for silver prices because they provide signals on likely interest rate decisions by the US Fed, but also on the health of the economy in general, which can determine demand for silver in the industrial sectors. Read More
Gold prices can go lower, but the uptrend is still in place - analysts
Gold investors should expect to see some further selling pressure in the precious metal, according to some analysts who have said that the market has run too far ahead of rate expectations.
While eventual rate cuts will drive gold prices higher, potential easing in March could be premature and some analysts note that the gold market has not been a very good judge of a potential pivot in monetary policy.
"Gold has benefited from the market pricing in rate cuts and elevated geopolitical tensions, buoying safe-haven demand. However, prices may have entered overbought territory and gold has been known to price in monetary policy expectations prematurely over the past two years. While we expect the Fed's next move to be a rate cut, we do not expect it to materialise immediately," said Suki Cooper, precious metals analyst at Standard Chartered Bank, in a recent note. Read More
Gold bull market is just getting started, silver has even greater upside, and Bitcoin ETFs will flop - Peter Schiff
While gold has backed well off the all-time highs it set two days ago and Bitcoin has stolen the spotlight, the real bull market for gold and silver is only just beginning, according to Peter Schiff, founder of Schiff Gold and Chief Market Strategist of Euro Pacific Asset Management.
“A lot of people are taking this to mean that that's it, this is some kind of blowoff top, this is the end of the gold bull market,” Schiff said in a video posted on Monday. “I think this is just the beginning.”
Schiff said he thinks the fact that gold traded above 2100 for the first time and set a new all-time high “is indicative of a new bull market, not an old bull market that's dying, but a new one that's just been born.”
He said the market has spent the last several months building massive support for the gold price. “Even in the face of relentless Fed rate hikes and tough talk about doing whatever it takes to combat inflation, gold has held pretty firm despite what the markets perceive as very strong headwinds, with a strengthening dollar and rising yields that are normally perceived as a big negative for gold.” Read More
Hard landing and money printing - why 2024 is the year for gold
The recent all-time high for gold supports a run to $2,500 an ounce for the precious metal, said Florian Grummes, managing director of Midas Touch Consulting.
In mid-November, Grummes spoke to Kitco at the 2023 Precious Metals Summit Zurich event.
Grummes believes there is "...actually quite a lot of downside now for the U.S. Dollar, mainly because the world is realizing that the debt situation in America is unsustainable. All the statistics are now exponential," he said. "If you look at the debt levels, if you look at the interest payments that has to be done, it's unsustainable, and I think the world is shifting now towards that view for the next few months at least, so I think we're going to see a lower dollar and that obviously will support gold."
Grummes said gold’s safe-haven status is intact, pointing to a $200 price rally following the Hamas attack on Israel on Oct. 7, and a $270 run following Russia’s invasion of Ukraine, when gold barely missed its all-time high by $5. Read More
Gold market unfazed as Bank of Canada leaves interest rates unchanged, still worried about inflation as economy slows
Central banks don't appear to be ready to give up their tightening bias even as the global economy continues to slow, as the Bank of Canada announced that it would leave interest rates unchanged.
Wednesday, in a widely anticipated move, the BoC said that its overnight rate would remain at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%.
The BoC acknowledged the slowing global economy but noted that it remains concerned about inflation risks.
"In Canada, economic growth stalled through the middle quarters of 2023. Real GDP contracted at a rate of 1.1% in the third quarter, following growth of 1.4% in the second quarter. Higher interest rates are clearly restraining spending: consumption growth in the last two quarters was close to zero, and business investment has been volatile but essentially flat over the past year," the BoC said in its monetary policy. Read More
Gold gains some ground as U.S. Treasury yields decline
Gold prices are higher just before midday Wednesday. The yellow metal is seeing some backing and filling on the charts after prices Monday spiked to a record high of $2,152.30, basis February Comex futures. A drop in U.S. Treasury yields this week is a supportive element for the gold and silver market bulls. Traders and investors are awaiting key U.S. economic data points that lie just ahead. February gold was last up $10.80 at $2,047.00. March silver was last down $0.116 at $24.43.
U.S. stock indexes slightly firmer near midday. The drop in government bond yields this week has put traders and investors in more upbeat moods.
Technically, February gold futures prices Monday scored a record high of $2,152.30 and then promptly reversed course to sell off sharply and score a technically bearish "key reversal" down on the daily bar chart. That's one chart clue the bulls are out of gas and that a near-term market top is in place. The bulls still have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at Tuesday's high of $2,059.60 and then at $2,072.70. First support is seen at this week's low of $2,027.60 and then at $2,015.00. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
March silver futures prices Monday scored a big and bearish "outside day" down on the daily bar chart. The bulls appear to have run out of gas to suggest a near-term market top is in place. The silver bulls do still have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week's high of $26.34. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $25.00 and then at $25.25. Next support is seen at this week's low of $24.32 and then at $24.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Gold ETF outflows slowed in November, COMEX net longs increased as prices rose
Global gold ETF outflows slowed significantly in November supported by net inflows into North American funds, which were driven by geopolitical risk and investor positioning, according to the latest data from the World Gold Council (WGC) published Wednesday.
“Global physically backed gold ETFs saw a small outflow of US$920mn in the month, significantly narrower than the previous month,” the WGC fund flows and holdings report noted. “Holdings lowered to 3,236t, a 9t decline in November, while total AUM rose by 2% to US$212bn, supported by a meaningful 2% rise in the gold price.”
North American funds ended the region’s five-month losing streak in November, attracting net inflows of $659 million. “During the month, the US Fed kept rates unchanged for the second consecutive meeting, bringing forward investors’ expectations for the tightening cycle ending,” the WGC wrote. “Such anticipation was intensified by decelerations in inflation and the cooling job market, weighing further on US Treasury yields and the dollar.” Read More
Central bank gold purchases remained strong through October - World Gold Council
Central banks have extended their strong summer buying spree well into the fall, adding another 42 tonnes of gold to their official reserves in October, according to the latest report published by Krishan Gopaul, Senior Analyst, EMEA at the World Gold Council (WGC).
“Central banks’ gold buying slowed in October but did nothing to alter the overall trend of robust buying that has captured the attention of gold investors,” Gopaul wrote. “Reported global net purchases totalled 42 tonnes (t) during the month, 41% lower than September’s revised total of 72t, but still 23% above the January-September monthly average of 34t.” Read More
Live From The Vault - Episode: 151
2024 Gold Revaluation Coordinated or Weaponised?
In this week’s episode of Live from the Vault, Andrew Maguire prepares us for 2024 with a new-look studio and shares some explosive predictions for next year and a recap of 2023’s stairsteps.
Looking back at the very first episode of LFTV, when Andrew first predicted a gold price reset, it is now time to reveal what the economic effects of this might be. The precious metals expert explains how the coming shock might even be weaponised.
.png)
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.
