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Silver Price News: Silver Edges Lower As Dollar Strengthens
Silver prices moved slightly lower on Tuesday, revisiting the previous day’s lows of just below $23.00 an ounce.
Silver traded at just below $23.20 an ounce for most of the morning session, but came under selling pressure later in the day, dropping as low as $22.92 an ounce, not far off Monday’s low of around $22.87.
The US dollar strengthened slightly against other major currencies on Tuesday, putting pressure on dollar-denominated silver prices.
The precious metals markets have also been focused on US interest rates and the possible timing of expected reductions this year. The US Fed’s rate hiking cycle is seen as over, and traders are betting on when the first cut will come. Those expectations have moved recently though, with better-than-expected US economic figures causing a drop in the chances of cuts happening as soon as March.
Looking ahead, US monthly inflation figures are set for release Thursday, which should help provide further signals on interest rate trajectories. Read More
Gold Price News: Gold Range Bound As Markets Await Fresh Data
Gold prices were little changed on Tuesday, with the market lacking overall direction as participants mulled upcoming economic data for release this week.
Gold traded in a fairly tight range of $2,027 to $2,039 an ounce on Tuesday in relatively calm conditions, compared with a wider range of $2,019 to $2,046 an ounce on Monday.
The markets have been watching for further signals on monetary policy from the major economies’ central banks.
The Euro Area unemployment rate came broadly in line with expectations at 6.4% for November, according to figures released Tuesday. The ECB raised interest rates through 2023, which has been successful in bringing inflation down nearer towards its target through the year, but the bank has held rates steady at 4.5% since October. Read More
Gold could face competition as Bitcoin ETF approvals appear imminent - MarketVector’s Yang
Gold hasn’t had much competition as an alternative asset for general investors looking to diversify; however, that could change as one analyst believes it's only a matter of time before spot Bitcoin exchange-traded funds enter the marketplace in 2024.
In an interview with Kitco News, Joy Yang, Global Head of Index Product Management at MarketVector Indexes, said the approval of a Bitcoin ETF could keep gold prices rangebound near $2,000 an ounce through most of the year as the cryptocurrency becomes an attractive alternative asset.
“A Bitcoin ETF will be the shiny new thing in the market, and a lot of investors like shiny new things,” she said. “There are some big players in the market, so there is a very good chance that Bitcoin will be a popular alternative asset as part of a diversified portfolio, and it could come at gold’s expense.” Read More
Uncertainty surrounding rates, growth and geopolitics will boost gold, but could weigh on silver – StoneX Bullion
Gold prices are well-positioned to make further gains this year due to ongoing economic and political uncertainties, while the same factors are set to hold silver back, according to the latest commodities analysis from StoneX Bullion.
“When we last wrote, the FOMC had completed its December meeting and as we noted at the time ‘the markets took the outcome of the Federal Open Market Committee’s final meeting of 2023 as (again) postulating an easier rate prognosis than is likely to be the case,’” they wrote. “Now we have had the Minutes of that meeting and as usual the devil is in the detail.”
The analysts noted that the minutes contained negative observations about the economy which were positive news for gold investors, such as “slowing growth of labour income and increased use of credit may contribute to softer consumer spending. Delinquency rates are rising for many types of consumer loans…. And in addition, some small businesses are already seeing tighter credit conditions and increasing delinquencies.” Read More
Japan could soon reclaim its place among the world’s largest gold importers – JBMA Director Ikemizu
Japan’s gold market is undergoing a radical restructuring which has the potential to catapult the Asian nation back to its former place among the world leaders in gold investment, according to Bruce Ikemizu, Chief Director of the Japan Bullion Market Association.
Ikemizu noted that before China became a major player in the global gold market, Japan was one of the world’s largest gold importers. “During the 1980s and 1990s, my primary role in physical gold trading at a trading house involved importing physical gold from Australia, Switzerland, London, South Africa and other sources,” he said. “However, the dynamics of this business gradually shifted after the introduction of a consumption tax, and more dramatically after the bursting of Japan’s economic bubble after the 2000s, following which the country became a net exporter of the gold, marking a 180-degree turn in our business operations.” Read More
Soft landing is a farce: Super QE and U.S. dollar debasement coming as Fed pivots – Matthew Piepenburg
Piepenburg dismissed the narrative of a soft landing for this year. “The idea of a soft landing or no landing to me is farcical when the evidence is that the fuselage is on fire, the luggage is over the runway, and the engine's somewhere in the grass behind the plane, and the passengers are screaming,” he told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
The real America is already in a recession, with Main Street and Wall Street indicators both supporting that thesis. “You still have an inverted yield curve that’s starting to straighten. That's actually a negative sign,” Piepenburg pointed out.
There is also the M2 money supply, which is at a 4% decline. “There have only been four times in the history of our country where we've seen a decline in the M2 money supply. The fact that there is a decline always indicates deflation, which indicates a recession or even a depression, as we saw in the 30s,” he noted. Read More
Gold, silver tread water ahead of key U.S. inflation data
Gold and silver prices are not trading too far from unchanged levels on the day in midday dealings Wednesday. Traders are awaiting the U.S. data points of the week: the December consumer price index report on Thursday and the December producer price index report on Friday. The CPI report is seen up 3.3%, year-on-year, versus a rise of 3.1% in the November report. February gold was last down $1.80 at $2,031.00 and March silver was last down $0.056 at $23.04.
The Federal Reserve has been pleased with cooling U.S. inflation—to the point of hinting of no more interest rate increases and possibly interest rate cuts in 2024. The Fed would like to see annual U.S. inflation rates of around 2%.
Technically, February gold futures bulls have the overall near-term technical advantage. Prices are in a three-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 today’s high of $2,046.20 and then at this week’s high of $2,053.30. First support is seen at this week’s low of $2,022.70 and then at $2,015.00. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
March silver futures bears have the overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $22.26. First resistance is seen at this week’s high of $23.565 and then at $23.715. Next support is seen at last week’s low of $22.88 and then at the December low of $22.785. Wyckoff's Market Rating: 4.0. Read More
Image Source: Kitco News
LBMA announces winners of 2023 precious metals price forecast contest
After a relatively quiet year, the gold market saw a sprint to the finish line, pushing prices to record highs in the final month of the year. That final drive helped to push the precious metal’s price action well above analysts' expectations.
Wednesday, the London Bullion Market Association announced the winners of its 2023 price forecast competition. Bruce Ikemizu, chief director and precious metals specialist at the Japan Bullion Market Association, won the top gold award for his average forecast of $1,950 an ounce, only $10 off the actual average LBMA price of $1,940.54 an ounce for 2023. Read More
Gold investors wait for Thursday’s inflation report and Friday’s PPI report
Market participants are focusing on tomorrow’s latest data on inflation, which will be followed by the PPI (Producer Price Index) report on Friday. Economists are forecasting that headline inflation has increased and projected a rise of 0.2% in December, which would take inflation year-over-year from 3% to 3.2%. Although the Federal Reserve’s preferred measure is core inflation, headline inflation is a primary focus of consumers as it also looks at increases in food and energy prices.
This could weigh heavily on the Federal Reserve’s announcement of upcoming rate cuts this year. According to the Fed’s “dot plot” as well as Chairman Powell’s press conference after the December FOMC meeting, the Federal Reserve intends to cut rates by three-quarters of a percent this year. 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.
