Today's Gold and Silver News - 11th August

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Silver Holds Above $20 With Strength of Recent Recovery Set to Be Tested by US CPI Data

Silver is continuing to hold above $20 an ounce as the market awaits the key macroeconomic event of the day, the release of the latest US inflation figures. 

The fact that silver has now been able to hold above this significant threshold for a number of days points to a market in which support is slowly returning and the lows reached in July were indeed the bottom for the price. 

However, today could yet rock silver’s boat if the US inflation figure disappoints and shows that rising consumer prices haven’t yet peaked. The expectation is that July’s figure will come in lower than June and ease the pressure on the Federal Reserve on how aggressive it needs to hike interest rates in the coming months.

As silver’s fortunes have been so tied to the actions of the Fed in the last few months, there will remain some jitters in the market before that CPI figure lands. If silver can hold above $20 after today then the strength of silver’s recent resurgence will be underlined and the focus can start switching to silver’s positive fundamental outlook. Read More

Gold Tracks Towards $1,800 as Market Expectation Mounts that US Inflation Has Peaked

Gold is steadily climbing towards the key threshold of $1,800 an ounce as investors look ahead to the US inflation data due out later today.

Expectation is mounting that the July CPI figure will come in lower than June, pointing to inflation having peaked in the US, and giving the Federal Reserve more leeway in how aggressive future interest rates need to be as the central bank seeks to bring inflation back down to 2%.

The prospect of fewer and less aggressive rate hikes going forward has been the driver behind gold’s recent gains so a CPI figure that comes in at market expectations of 5.9% or lower may be the nudge needed to see gold climb back above $1,800 an ounce.

However, if this figure disappoints and suggests that inflation is yet to peak then the sell-off could be significant with no clear support for gold until it reaches the July low at just under $1,700 an ounce.

For so long, inflation has been the dominant theme of the market agenda and today is no different. The only change is that optimism is mounting that for the US at least, the worst ravages of ever-faster rising prices may be over. Read More

Silver technical analysis

Silver has had a decent run in the past few weeks but the grey metal is down 0.35% as we head into the U.S. market open. The price recently broke out of a wedge-type structure (marked in red) and found resistance just ahead of the 61.8% Fibonacci retracement zone. Looking ahead, the price may come back to test the wedge structure before continuing in its uptrend but the aforementioned 61.8% Fib zone looks like a strong bit of resistance.

This does look like a new higher low is being developed but just in case it is important to look at support levels on the downside too. The next major area of support could come in the psychological $20/oz area. This area has been a pretty sticky zone for the price and it could be once again if the bears get control of the market. Below that, there is a consolidation high close to $19.20/oz which might come into play. The current consolidation low stands at the orange line at $1955/oz.

For now, the bulls look like they are in charge and a break of the previous wave high at $20.73/oz is the level to watch. Read More

Image Source: Kitco News

Gold price jumps as U.S. inflation cools a bit in July but key core metric pace remains unchanged

Gold rallied after inflation in the U.S. cooled slightly in July, coming in at 8.5%, which is still close to its highest annual rate in four decades.

The U.S. Consumer Price Index (CPI) came in at 8.5% in July and was lower than the market expectation of 8.7%. The most recent data follows June's 9.1% annual gain.

On a monthly basis, the headline number was unchanged from last month following an advance of 1.3% in June, the U.S. Labor Department said on Wednesday. The flat number was mainly due to a 7.7% drop in gasoline prices, which offset increases in other sectors.

Core inflation, which strips out volatile food and energy costs, accelerated 5.9% from a year ago, surprising slightly on the downside but maintaining the same pace as in June. Meanwhile, the monthly increase was also below markets' expectations, with an advance of 0.3%.

The biggest price drop was in the energy sector, down 4.6% on a monthly basis. “The gasoline index fell 7.7 percent in July and offset increases in the food and shelter indexes, resulting in the all items index being unchanged over the month. The energy index fell 4.6 percent over the month as the indexes for gasoline and natural gas declined, but the index for electricity increased. The food index continued to rise, increasing 1.1 percent over the month as the food at home index rose 1.3 percent,” the release stated.

In an immediate reaction to the data, gold jumped to a fresh daily high of $1,824 an ounce. At the time of writing, December Comex gold futures were trading at $1,816.90, up 0.25% on the day. Read More

The Inflation Reduction Act will do nothing; The U.S. economy's 'inevitable collapse' will come due to excessive debt - Ron Paul

Over the weekend, the Senate passed the Inflation Reduction Act, which aims to reduce inflation. The bill contains $430 billion in new spending, including $300 billion earmarked for climate change and clean energy.

The bill is now being sent to the House, where it is expected to pass, and on to President Biden’s desk for signing.

Despite being an ‘Inflation Reduction’ Act, the nonpartisan Congressional Budget Office (CBO) forecasts that the act’s measures will have a negligible impact on inflation. Democrats have argued that the bill will tackle rising prices, while Republicans argue that the new spending will aggravate inflation.

The bill also contains efforts to raise taxes, which the Congressional Budget Office predicts will end up lowering the deficit slightly.

For former Congressman Ron Paul, it is too little, too late. Read More

Gold, silver gain a bit amid slightly tamer U.S. inflation data

Gold and silver prices are modestly up in midday U.S. trading Wednesday, in the wake of a U.S. inflation report that came in not as hot as the marketplace expected. Gold prices hit a four-week high and silver prices a five-week high today. October gold futures were last up $3.70 at $1,805.10. September Comex silver futures were last up $0.273 at $20.755 an ounce.

The U.S. consumer price index report for July came in unchanged from June and up 8.5%, year-on-year. The report was expected to be up 8.7%, year-on-year, after a rise of 9.1% in the June report. Gold prices initially rallied to a four-week high on the news, as the U.S. dollar index dropped sharply and U.S. Treasury yields declined. However, bond yields then ticked back up. Meantime, the U.S. stock indexes rallied amid “risk-on” trading attitudes that also worked to push the safe-haven metals down from their higher levels. After having a bit of time to think about today’s CPI data, traders and investors reckoned that while the data was a bit tamer, it still suggests problematic price inflation that will probably keep the Federal Reserve on its aggressive path of tightening U.S. monetary policy. Thursday comes the producer price index report for July, seen up 0.2% from June and compares to the June report’s rise of 1.1% from May.

Technically, October gold futures prices hit another four-week high today. The gold futures bears still have the slight overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart to suggest more upside in the near term. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,814.40 and then at 1,825.00. First support is seen at today’s low of $1,793.00 and then at Tuesday’s low of $1,788.50. Wyckoff's Market Rating: 4.5.

Image Source: Kitco News

September silver futures prices hit a five-week high today and scored a bullish “outside day” up on the daily bar chart. The bears have the slight overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20.83 and then at $21.00. Next support is seen at today’s low of $20.315 and then at $20.00. Wyckoff's Market Rating: 4.5. Read More

Image Source: Kitco News

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.