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Gold Price News: Gold Falls to One-Month Low on US Data
Gold prices fell sharply on Friday, dropping to their lowest since early May, after US figures showed an unexpectedly large increase in employment in May.
Prices fell as low as $2,306 an ounce on Friday, compared with around $2,377 an ounce in late trades on Thursday. The dramatic fall in prices followed a two-week high seen on Thursday.
US non-farm payrolls figures came out on Friday showing an increase of 272,000 in May, way more than the market’s expected 185,000. The jump in employment provided a surprisingly resilient view on the economy in May, casting some doubt on the need for interest rate cuts by the US Fed, at least in the short-term.
Gold prices were already under pressure early Friday on news reports stating that China’s central bank didn’t buy any gold for its official reserves in May, and the US jobs figures only added to the downward momentum. Read More
Silver Price News: Silver Falls to Three-Week Low
Silver prices fell sharply on Friday, as precious metals took a knock after a jump in US jobs numbers and reports that China’s central bank had stopped buying gold in May.
Silver prices fell as low as $29.17 an ounce, compared with around $31.37 an ounce in late trades on Thursday. The fall means silver more than gave up the previous day’s gains, taking the grey metal down to its lowest price since May 15 – a three-week low.
Prices came under pressure during the morning session after news reports said the People’s Bank of China had stopped adding to its official gold holdings in May, halting an 18-month period of monthly purchases. The news quickly sent gold prices lower on Friday morning, and the weakness spilled over into silver.
Adding to the downward momentum, US non-farm payrolls figures were released Friday showing a rise of 272,000 jobs in May, well above market expectations. The increase in employment painted a stronger than expected picture of the US economy in May, prompting markets to dial back their expectations of interest rate cuts in the next few months.
Looking ahead, the markets will be watching out for industrial and manufacturing data for the UK and India on Wednesday, followed by US inflation figures for May. Read More
China’s shock pause on gold purchases overshadows jobs report, triggers algo-driven search for stops
The People’s Bank of China (PBoC) announced overnight that they bought no gold at all in May, triggering a sharp algorithmic selloff in precious metals, overshadowing the blowout nonfarm payrolls (NFP) report released later in the morning and leaving traders scrambling to determine where the selling would stop, and how low gold could go.
The news that China’s central bank broke its 18-month streak of net gold purchases hit the wires at 4:00 am EDT, and it sent shockwaves through the gold market as Asian and European traders immediately began liquidating their precious metals positions.
Spot gold sank like a stone, falling from $2,373.85 just before 4 am to $2,343.68 only one hour later, with much of the move taking place in a matter of minutes. Read More
Physical gold ETFs see first net inflows in 12 months in May - World Gold Council
Volatility is picking up in the gold market as prices saw their sharpest decline in two years last week; however, the precious metal also showed strength as it attracted new investors last month.
In its monthly analysis of gold-backed exchange-traded funds released Thursday, the World Gold Council (WGC) announced that global flows turned net positive in May, ending 12 consecutive months of outflows.
However, investment demand still has a big hole to dig itself out of.
“With improved gold ETF demand in May, collective holdings rebounded to 3,088t, but remaining -8.2% below the 2023 average,” the analysts said in the report.
The WGC noted that Asian markets continue to see growing interest in paper gold investments. Meanwhile, European demand turned positive last month, while North American interest in gold was slightly negative. Read More
Gold prices slide on USD strength after ECB, BoC cuts, silver longs hit four-year high – Heraeus
Gold prices face near-term headwinds from a hawkish Federal Reserve rate policy, while silver is entering dangerous reversal territory with longs hitting a multi-year-high, according to precious metals strategists at Heraeus.
In their latest precious metals report, the analysts noted that gold prices got a boost following two G7 rate cuts last week, but the move was short-lived.
“On 6 June, the European Central Bank (ECB) implemented its first-rate cut in five years, reducing the interest rate by 25 basis points to 3.75%, despite higher-than-expected inflation figures from May,” they wrote. “This move followed a similar rate cut by the Bank of Canada which reduced its interest rate by 25 basis points just a day earlier. These cuts reflect Western central banks’ shifting priorities to supporting economic growth rather than cracking down on inflation.”
The analysts pointed out that the euro:dollar exchange rate held up well in the wake of the ECB’s rate cut, but the greenback strengthened considerably on Friday, which exacerbated the yellow metal’s price weakness. Read More
Bulls working to stabilize gold, silver markets
Gold prices are near steady and silver prices firmer in midday U.S. trading Monday. The precious metals bulls are trying to recover from the very recent surges in the U.S. dollar index and U.S. Treasury yields, following last Friday’s stronger U.S. jobs report. August gold was last up $1.20 at $2,326.50. July silver was last up $0.365 at $29.805.
It’s an extra important U.S. data week, highlighted by inflation readings and the FOMC meeting. Barron’s says in a story today: “After Friday’s jobs shocker, it’s hard to imagine a bigger event than Federal Reserve Chairman Jerome Powell’s press conference on Wednesday for shaping the outlook for investors the rest of this year.” U.S. Treasury yields and the U.S. dollar index spiked higher after the hotter jobs report Friday morning. The FOMC is not expected to take any new monetary policy action this week. The marketplace is putting odds at around 60% that the Fed will make a rate cut before November.
Technically, August gold bulls have lost their overall near-term technical advantage. A bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at last week’s high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at $2,335.00 and then at $2,350.00. First support is seen at last week’s low of $2,304.20 and then at $2,300.00. Wyckoff's Market Rating: 5.0.
Image Source: Kitco News
July silver futures bulls have the overall near-term technical advantage but have faded. A price uptrend on the daily bar chart has been negated to suggest a near-term market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.00 and then at $30.50. Next support is seen at last week’s low of $29.22 and then at $29.00. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Live From The Vault - Episode: 176
The Financial Reset Feat. Bill Holter
In this week’s episode of Live from the Vault, Andrew Maguire is joined by popular returning guest Bill Holter, former stockbroker and branch manager turned precious metals expert and Miles Franklin contributor.
The old friends discuss the shadowy movements operating behind the scenes to reset the world’s financial system, and how individuals can take steps to protect themselves and their families from coming troubles.
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.
