Today's Gold and Silver News - 10th November

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Gold Proves Surprisingly Buoyant Amid Cryptocurrency Concerns

Gold has proved surprisingly buoyant to climb above $1,700 an ounce benefiting from a weakening in the US dollar – which the precious metal enjoys an inverse correlation with. 

Gold may also be benefiting from the sell-off on cryptocurrencies with investors switching back to the time-worn haven asset after seeing the problems the challenger is experiencing.

The fact that gold has been able to make these gains even after last week’s latest rise in interest rates by the Federal Reserve points to increased market jitters. Ever-increasing interest rates have put gold under considerable pressure with the precious metal’s lack of yield making it less attractive compared with interest-paying assets such as gold. Read More

Silver Set for Continued Good Run as Fundamental Case Gains Prominence

Silver’s good run continues with the metal pushing above $21 an ounce and now looking up to the next target. 

A slight weakening in the US dollar has given silver the push it had been waiting for after investor support for the metal had been building up considerably from October onwards. The fundamental case for silver has always remained strong, with the metal needed in key areas of the energy transition such as in photovoltaics for solar energy and in batteries for electric vehicles. Read More

Gold is cheap and wants to go higher - Dennis Gartman

The gold market has bounced nearly $100 from its two-year lows hit last week, and according to one market analyst, investors might be starting to recognize the precious metal's value.

In an interview with Kitco News, Dennis Gartman, chairman University of Akron Endowment Committee, and former publisher of the Gartman Letter, said that gold's recent drop to$1,618 an ounce was a consequential move that created solid value play for investors.

"I think gold is very cheap at this point relative to stock prices," he said. "Gold is very cheap relative to almost any other investment. It wants to go higher from these levels."

While hedge funds and other major investors have shunned gold as prices declined through the summer, Gartman said that there is one group that has taken advantage of lower prices, which is something that retail investors should pay attention to.

"The fact that central banks have been aggressive buyers of gold on the way down demonstrates where the value in the market is," he said. Read More

Gold to hit $1,900 by end of 2023 - UBS

The gold market continues to find its legs, with prices holding new support above $1,700 an ounce, and according to the Swiss Bank UBS, this could be the start of a bigger move.

The bank's precious metals expert Joni Teves, released her 2023 gold price outlook, saying that she sees the precious metal pushing to $1,900 an ounce by the end of next year.

The bullish outlook comes as gold prices have rallied $100 from last week's two-year low. December gold futures last traded at $1,717.50 an ounce, relatively unchanged on the day.

The biggest factor Teves said she sees driving gold prices up by double digits next year is a shift in U.S. monetary policy.

Not only does UBS expect the Fed to end its aggressive tightening cycle in 2023, but it is looking for the central bank to cut rates by 175 basis points by the end of the year.

Teves noted that historically, gold prices had risen 19% for every 1% cut in interest rates.

"We think gold should benefit and therefore holding a long gold position would offer an attractive risk-reward as the tightening cycle ends," said Teves in the report. Read More

Gold holds Tuesday's strong gains as crypto market still shaky

Gold and silver prices are holding close to steady price levels in midday U.S. trading Wednesday. The bulls still have technical momentum to suggest more price upside in the near term. Some safe-haven demand has been featured in the precious metals markets the past day or so, as the crypto currency markets have become very wobbly. Gains in the metals today were limited by a higher U.S. dollar index and lower crude oil prices. December gold was last up $1.00 at $1,717.00 and December silver was down $0.102 at $21.39.

The marketplace is still buzzing about the turmoil in the crypto currency markets on Tuesday that spilled over into safe-haven buying in gold and silver. The crypto exchange FTX suffered a major liquidity crisis and had to be absorbed by its bigger rival Binance. The cryptos are still shaky Wednesday, in the aftermath of Tuesday's jolt. The cryptos are just like other markets. When a crisis of confidence occurs, traders and investors all running for the exit door at the same time creates a severe liquidity crunch.

Technically, December gold futures prices hit a four-week high today. The gold futures bears have the slight overall near-term technical advantage. However, bulls have momentum as a price downtrend on the daily bar chart has been negated. Prices this week have also seen a bullish upside breakout from a trading range, to suggest still more upside in the near term. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,618.30. First resistance is seen at today's high of $1,725.80 and then at the October high of $1,738.70. First support is seen at $1,700.00 and then at $1,675.00. Wyckoff's Market Rating: 4.5.

Image Source: Kitco News

December silver futures prices hit a more-than-three-month high Tuesday. The silver bulls have the overall near-term technical advantage. Prices are in a choppy two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at this week's high of $21.72 and then at $22.00. Next support is seen at $21.00 and then at this week's low of $20.435. Wyckoff's Market Rating: 6.5. Read More

Image Source: Kitco News

Technical studies suggest gold prices could hit new record highs by Q4 2023

Financial Market analysts and market technicians understand that it is fundamental events that cause price changes in all asset classes including stocks, commodities, goods, and services.

Events that affect price are but are not limited to; geopolitical, political, and economic, just to name a few. Market technicians use technical studies composed of mathematical formulas to forecast price changes. A common thread amongst technical traders is that mathematics can distill events into numbers.

Market technicians are acutely aware that fundamental analysis is the root cause of price fluctuations. But by distilling these events into numbers it creates mathematical models that remove conjecture and noise from the process of analyzing and understanding the possible implications of events. Technical studies and the math behind them can distill fundamental events in a language that has much less ambiguity.

Image Source: Kitco News

The chart above is a weekly candlestick chart of gold futures. We use two technical studies to extrapolate a forecasting model to predict the future pricing of gold. This study concludes that it is quite possible that by the end of next year gold could trade above its current record high of $2088. The two studies used are Elliott wave theory and a Fibonacci extension. Read More

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.