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Gold Price News: Gold Pushes Further To Fresh Highs On Bullish Momentum
Gold prices continued their surge higher on Tuesday, posting a fresh all-time high, as the recent bullish momentum showed few signs of abating.
Prices reached a high of $2,365 an ounce – a new all-time high – before easing back to around $2,350 an ounce later in the session. That compares with around $2,340 an ounce in late trades on Monday.
Gold’s powerful move higher over recent days seemed to defy the metal’s typical drivers, with a recent scaling back of bets on a US Fed interest rate cut in June, which might be expected to dampen demand for the yellow metal.
Gold’s ability to override these factors may reflect longer-term positioning in the market, given a raft of bullish elements to contend with. Central bank buying has been strong in recent months, and the current heightened geopolitical tensions in the Middle East and in Russia and Ukraine have certainly raised the appeal of safe-haven assets relative to equities and other higher risk investment classes. Read More
Silver Price News: Silver Hits Highest Price Since May 2021
Silver prices rose to their highest in almost three years on Tuesday, taking a lead from gold prices, which set another all-time high.
Silver prices traded comfortably above $27.80 an ounce for most of the day on Tuesday, and briefly rose as high as $28.36 an ounce – the highest price since May 2021.
Silver prices have undoubtedly benefited from gold’s recent performance, with the yellow metal marking a fresh all-time high of $2,365 an ounce on Tuesday.
In addition, recent analyst reports have focused on inflows into the market for silver ETFs over the last few weeks, which may have supported the recent gains. Added to that, the US dollar has fallen against other major currencies since the start of April, supporting dollar-priced assets like gold and silver. Read More
The gold market is well-supported as ETF selling slows to a two-year low - WGC
Gold-backed exchange-traded products are showing signs of life as they attracted some attention from North American investors last month, even as European markets continued to see significant outflows, according to the latest data from the World Gold Council (WGC).
The WGC released its latest report on monthly ETF flows on Tuesday, which showed that global outflows dropped to their slowest rate since February 2020 and are 21% lower than the month-end record of 3,915t in October.
The analysts noted that North American-listed funds saw holdings actually increase by 4.8 tonnes, valued at $360 million.
“Inflows were mainly driven by activities in the options market: the gold price rally triggered exercises of in-the-money calls in mid-March, creating sizable inflows,” the analysts said. “Demand would have been stronger if investors didn’t sell their holdings in early and late March, taking advantage of gold price advancements.” Read More
Don’t expect CPI inflation data to slow the gold price down - analysts
Since its initial breakout rally last month, the gold market has been unstoppable, marking new intraday record highs nearly every day. Although the momentum indicators are becoming overstretched, some analysts have said the rally still has room.
Overnight June gold futures ran to $2,384.50 an ounce; although prices have fallen slightly from their session highs, the precious metal is still holding significant gains. June gold last traded at $2,377.20 an ounce, up more than 1% on the day.
Analysts note that gold’s rally comes ahead of Wednesday’s Consumer Price Index report. The inflation data could create some volatility in the marketplace as investors try to anticipate the start of the Federal Reserve’s tightening cycle. Read More
India’s silver imports skyrocket in February, now on pace for 66% increase in 2024
India imported a record amount of silver in February, with silver imports surging 260% during the month, according to government and industry sources.
The country imported a record 2,295 metric tons of silver during the month, more than tripling the 637 tons recorded in January. India is the world's biggest silver consumer, and with imports of the gray metal now on pace for a 66% year-over-year increase, the demand could help catalyse the nascent silver breakout.
The outsized imports were supported in part by lower duties, which spurred larger purchases from the United Arab Emirates (UAE). India imported 939 tons from the UAE in February, representing 41% of the monthly total, as traders bought large volumes to benefit from a lower duty, the official said.
According to provisional data from India’s Ministry of Commerce and Industry, silver imports rose to 2,932 tons in the first two months of 2024 compared to 3,625 tons for the entire year of 2023. Read More
Retail gold demand drives $100 to $200 million in sales for Costco
The gold market has been acutely aware of lacklustre demand from generalist investors for a while; however, investors are mostly shunning paper gold products as major retail has seen significant growth in physical bullion sales.
Last year, Costco surprised the investment community after it announced it sold $100 million in one-ounce gold bars between August and September. Equity analysts at Wells Fargo said that investors should start paying attention to the retailer’s gold business, as it has helped drive momentum of online sales.
The analysts expect that Costco’s gold sales have only grown since its third-quarter announcement. Read More
Gold weaker, silver hits nearly 3-yr. high after hotter U.S. CPI
Gold prices are moderately lower in midday U.S. trading Wednesday, while silver prices are a bit higher and hit a nearly three-year high. Precious metals traders do not seem too concerned about U.S. inflation report that came in higher than expected. June gold was last down $10.20 at $2,351.10 but up from its daily low. May silver was last up $0.151 at $28.15.
Today’s U.S. consumer price index for March came in at up 3.5% and up 3.8% for the core rate, year-on-year. The March CPI was seen by the marketplace as coming in at up 3.4%, year-on-year. The core CPI, excluding food and energy, was seen at up 3.7% annually. Today’s CPI data favors the U.S. monetary policy hawks. “This is really going to call into question whether the Fed can cut rates in June,” said a Bloomberg Radio host.
Technically, June gold futures prices hit a contract and record high Tuesday. The bulls have the strong overall near-term technical advantage. A seven-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 $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 the contract high of $2,384.50 and then at $2,400.00. First support is seen at today’s low of $2,337.10 and then at this week’s low of $2,321.70. Wyckoff's Market Rating: 9.0.
Image Source: Kitco News
May silver futures scored a bullish “outside day” up today and hit nearly three-year high. The silver bulls have the solid overall near-term technical advantage. An accelerating seven-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $30.00. The next downside price objective for the bears is closing prices below solid support at $26.40. First resistance is seen at today’s high of $28.655 and then at $29.00. Next support is seen at $28.00 and then at today’s low of $27.64. Wyckoff's Market Rating: 8.5. Read More
Image Source: Kitco News
FOMC March minutes show concern about high inflation readings even before today’s CPI report
Nearly all members of the Federal Open Market Committee (FOMC) still believed it would be appropriate to cut rates this year, and they also favored cutting the pace of monthly asset runoff by 50%, but some cautioned that recent rises in inflation were broad-based and not ‘noise’, according to the minutes from the March 19 - 20 meeting released Wednesday afternoon.
In their discussion on the policy outlook, “participants judged that the policy rate was likely at its peak for this tightening cycle, and almost all participants judged that it would be appropriate to move policy to a less restrictive stance at some point this year if the economy evolved broadly as they expected,” the minutes read. “In support of this view, they noted that the disinflation process was continuing along a path that was generally expected to be somewhat uneven. They also pointed to the Committee's policy actions together with the ongoing improvements in supply conditions as factors working to move supply and demand into better balance.” Read More
ECB-Fed divergence and political upheaval could roil currencies and boost gold, analysts warn
The European Central Bank (ECB) will issue its interest rate decision on Thursday morning, and while markets are not predicting any change to the rate at the April meeting, expectations are ramping up for them to kick off the cutting cycle soon.
But across the pond in the United States, a stronger-than-expected economy coupled with higher-than-expected inflation readings are pushing the prospect of rate cuts from the Federal Reserve further into the future.
Could the world’s two most influential central banks be on the verge of a divergence in interest rate policy? And if so, what are the implications for the euro, the dollar, and gold? 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.
