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Gold Price News: Gold Dips As Mid-East Fears Ease
Gold prices edged slightly lower on Tuesday, coming under moderate downward pressure from an easing in geopolitical tensions in the Middle East.
Prices eased as low as $2,311 an ounce before regaining some of the losses to trade at around $2,317 an ounce by late afternoon. That compared with around $2,327 an ounce in late trades on Monday.
Palestinian militant group Hamas on Monday said it has accepted a proposal from Egypt and Qatar, which involved a weeks-long halt to fighting in Gaza and the release of several dozen hostages. However, the latest proposal did not appear to meet Israel’s conditions for halting its military operations in Gaza.
The ongoing conflict between Israel and Hamas has injected a risk premium into gold prices, and any signs of a potential end to hostilities would be taken as a bearish signal for safe haven gold.
Gold prices did rebound slightly later on Tuesday, taking support from comments by US Fed officials overnight that kept alive hopes that the central bank may yet cut interest rates this year. Recent market expectations for the first rate cut have been pushed back to September, compared with an earlier target of June. Read More
Silver Price News: Silver Edges Lower in Lacklustre Trading
Silver prices ticked lower on Tuesday in relatively stable conditions, showing some consolidation after Monday’s gains.
Prices dipped to a low of $27.19 an ounce, before pulling back higher to around $27.25 an ounce later in the afternoon. That compared with around $27.48 an ounce in late deals on Monday.
Silver followed gold’s lead, with the yellow metal edging slightly lower on Tuesday following a bullish day on Monday.
In general, the precious metals markets were moderately lower on Tuesday on the back of efforts in the Middle East to find agreement on a ceasefire between Israel and Hamas in Gaza. Nevertheless, this appeared to be far from agreed, with Israel ordering tens of thousands of civilians to start evacuating parts of Rafah city ahead of what it described as ‘limited’ operations to target Hamas militants.
The risk of the conflict spreading into a wider confrontation has been a key factor in driving precious metals prices higher due to their safe-haven appeal. Read More
Gold Futures Edge Lower as Investors Await Key Economic Data
Gold futures inched lower on Wednesday, as the U.S. dollar gained strength and investors remained cautious ahead of crucial economic data releases. The most active June 2024 contract for gold futures closed at $2,322.30 in New York, down $1.90. In the aftermath of the regular trading session, gold futures extended their decline, currently fixed at $2,316.10 as of 5:25 PM ET in Globex trading, marking an additional six-dollar drop.
The dollar's strength was a definitive component of today's decline, with the U.S. Dollar Index gaining 0.14% to reach 105.57. This dollar appreciation exerted downward pressure on the precious metal, which typically trades inversely to the greenback.
Investors remained cautious as they digested recent statements from Federal Reserve officials and awaited the release of the University of Michigan's consumer sentiment reading on Friday and the U.S. CPI (consumer price index) data on May 15. These key economic indicators could provide valuable insights into the state of the economy and influence the Fed's future monetary policy decisions. Read More
Bond yields weigh on gold prices, 5G rollout supports silver demand – Heraeus
Gold prices continue to face headwinds from elevated bond yields, while silver is set to benefit from the global 5G rollout for years to come, according to analysts at Heraeus.
In their latest precious metals report, the analysts wrote that the Federal Reserve has confirmed the markets’ assessment of the economy.
“Federal Reserve Chairman Jerome Powell dismissed the possibility of a rate hike in June during Wednesday's FOMC meeting, though he reaffirmed his commitment to prioritising inflation containment given the lack of progress towards the 2% target rate,” they said. “Although the dollar remains strong, the last two weeks have seen a decline. However, immediately following the meeting, the probability of a cut to interest rates before the end of the year ticked incrementally higher.”
They also noted the unprecedented volume of central bank gold purchases in Q1. “Global central banks added 289.7 tonnes of gold to their reserves, marking a record high for the first quarter,” they said. “Still notably absent from the gold market are Western ETF investors, particularly European funds, which shed ~30 tonnes of gold from ETF holdings in April.” Read More
It’s a no-brainer to switch from the S&P 500 into gold – Sprott’s Ryan McIntyre
Gold’s new consolidation phase is creating an opportunity for investors to increase their exposure to the precious metal and the undervalued mining sector, according to one fund manager.
In a recent interview with Kitco News, Ryan McIntyre, Managing Partner at Sprott Inc, said that looking at equity market valuations in the current economic cycle, it’s a “no-brainer” that investors should move away from the S&P 500 and into gold and gold miners.
He added that he expects investors to continue to buy dips in the market, which will continue to support prices in their elevated range.
Investment demand in the gold market has been relatively lacklustre for the past year as rising interest rates have raised the precious metal’s opportunity costs. However, McIntyre said that the focus on bond yields vs the cost of holding gold has been misguided. Read More
Big money has already moved in and bought gold - Brien Lundin says investors aren't waiting
Despite high yields and a strong U.S. dollar, gold is moving higher because of the compelling macro picture, said Brien Lundin, editor of the Gold Newsletter.
In early May, Lundin spoke to Kitco Mining at Deutsche Goldmesse in Frankfurt, Germany.
He called the rally surprising and believes it is driven by a combination of factors, including central bank buying, strong demand from China, increased buying from hedge funds and growing unease about global debt levels.
"The buying has been strong despite rising yields and strong dollar," said Lundin. "You see big money moving into the sector, and I think it's [due to] the general macro picture out there."
Investors are shifting allocations toward gold as a hedge against fiat currency risks, said Lundin. Read More
Gold, silver up a bit in quieter, two-sided trading
Gold and silver prices are just a bit higher in midday U.S. trading Wednesday, on some more backing and filling on the charts amid a lack of major, fresh fundamental news in the marketplace at mid-week. Traders are awaiting some fresh markets-moving fundamental news. June gold was last up $1.80 at $2,326.10. July silver was last up $0.156 at $27.70.
Reports said China’s central bank continues to stock up on gold reserves, adding 1.9 metric tons in April, making it 18 straight months for expanding its reserves. However, the reports said the pace of China gold buying has slowed.
Technically, June gold futures bulls have the overall near-term technical advantage. A price downtrend is still in place on the daily bar chart, however. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at this week’s high of $2,341.90 and then at $2,350.00. First support is seen at today’s low of $2,311.40 and then at $2,300.00. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
July silver futures bulls have the overall near-term technical advantage. A price downtrend on the daily bar chart has stalled. Silver bulls' next upside price objective is closing prices above solid technical resistance at $29.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $26.255. First resistance is seen at $28.00 and then at $28.25. Next support is seen at today’s low of $27.24 and then at $27.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
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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.
