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Silver Price News: Silver Holds Steady After Monday’s One-Month High
Silver prices traded flat on Tuesday, holding onto solid gains seen on Monday.
Prices moved in a range of $31.76 to $32.33 an ounce on Tuesday, compared with around $31.90 an ounce in late deals on Monday. Monday saw prices rally from as low as $30.92 an ounce earlier in the day to hit a one-month high of $32.44 an ounce.
The stability for silver came as gold prices made solid gains for a second day, providing a supportive backdrop for the grey metal.
Silver KAG/USD – 1hr view – Kinesis Exchange
China policy news gives precious metals a lift:
Precious metals markets took support at the start of the week from news that China’s central bank had restarted its purchases of gold after a six-month hiatus. A more accommodative monetary policy stance unveiled by the Chinese government also gave traders a reason to step into precious metals on the buy side.
Silver buoyant ahead of rate cuts:
Silver, like gold, continues to draw support from broad expectations that the US Fed will cut interest rates by 25 basis points on December 18th. However, while the market widely anticipates cuts before the end of the year, the outlook for 2025 remains less clear as expected trade policies by the incoming Trump administration are likely to be inflationary, curbing the prospects for further monetary loosening by the central bank. Read More
Gold Price News: Gold Climbs to Two-Week High
Gold prices made solid gains on Tuesday, rising for a second day, after China announced a looser approach to monetary policy that could involve lowering interest rates.
Prices rose as high as $2,696 an ounce on Tuesday – their highest since November 25th. That compared with around $2,660 an ounce in late deals on Monday.
Gold KAU/USD – 1hr view – Kinesis Exchange
Gold took support from news on Monday that China plans to loosen its stance on monetary policy for the first time in 14 years. The prospect of lower borrowing costs in China follows a monetary stimulus in September and fiscal measures in November, which sought to boost economic conditions in the country.
Chinese central bank buying gold again:
Boosting gold even further, the People’s Bank of China has resumed gold purchases after a six-month pause, according to news reports this week. A return to buying by China’s central bank is undoubtedly bullish for the precious metal, which has made extraordinary gains in recent years that were partly driven by central bank demand.
Geopolitical tensions continue to be a wildcard factor for gold, with eyes on Syria after the recent collapse of the government headed by former President Bashar al-Assad. This has increased uncertainty over the future stability of the country, supporting interest in gold due to its safe-haven appeal. Read More
Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout
Spot silver gained 4.6% in 10 hours on Monday to top out at $32.268 per ounce, its highest level since precious metals sold off following the U.S. election in early November. According to Eran Tal in the Jerusalem Post, the gray metal is being supported by bullish technical patterns, declining SLV short sales, and rising industrial demand, and a break above key resistance levels could trigger a powerful rally.
Tal said silver’s break back above $32 shows renewed optimism for the precious metal.
“While this surge has drawn fresh attention, it aligns with a broader trend of emerging bullish signals that could pave the way for further price gains,” Tal wrote. “Investor sentiment toward silver has been notably pessimistic in recent months. Ironically, this negative sentiment is proving to be a reason for optimism, as contrarian market dynamics often see silver bounce back during such times.”
He said that several technical and market-based indicators suggest silver may be on the verge of breaking out of its recent period of consolidation. Read More
Gold pushes above $2,700/oz but inflation threat remains a risk - Analysts
News that China’s central bank is back in the gold market continues to inject fresh energy into the precious metals sector, with gold managing to rebound to $2,700 an ounce.
However, some analysts note that bullish investors still have work to do to undo the damage caused by last month’s sharp selloff and ensuing volatility. In a recent interview with Kitco News, Christopher Vecchio, Head of Futures & Forex at Tastylive.com, said February gold needs to push above $2,725 to maintain its short-term bullish advantage.
As of 10:43 a.m. EST, February gold futures were trading at $2,710.80 an ounce, up nearly 1% on the day.
David Morrison, Senior Market Analyst at Trade Nation, observed that gold’s rally since Monday has pushed prices above their 20-day and 50-day moving averages. Although technical momentum remains slightly negative, Morrison noted it is starting to improve.
“The bulls will be hoping that this upside momentum builds further and helps to push prices back above $2,700 relatively quickly,” he said. “If so, this will represent an impressive recovery from the lows hit less than a month ago. But the bulls will also want gold to hold $2,600 as support on any pullbacks.” Read More
Gold’s weighting in Bloomberg Commodity Index to drop in 2025
Although investment demand has picked up in recent months, it remains a weak pillar of support within the marketplace, and 2025 could prove to be another difficult year.
In a recent commentary, Jim Wiederhold, Commodity Indices Product Manager at Bloomberg, highlighted that gold’s weighting in the Bloomberg Commodity Index (BCOM) will drop to 14.29% in 2025, down from this year’s peak of 17.53%.
“This will be the largest absolute percentage change across the 24 commodities futures that make up BCOM,” said Wiederhold in the note. “The next two biggest reductions in weight are seen from coffee and natural gas.”
At the same time, oil and soybeans will see their weighting in the commodity index increase next year.
Wiederhold noted that this is the third consecutive year that gold’s weighting in the BCOM has dropped. He explained that the weighting is determined by the five-year average of a commodity's trading volume and global production.
Although the gold market has seen trading volume pick up this year as prices have rallied nearly 30%, it hasn’t been enough to overcome broader lackluster interest. Read More
Trump policies are bearish for oil prices, but the gold rally’s drivers remain intact for 2025 – Citi’s Max Layton
The outlook for oil prices next year is becoming more bearish as Trump’s agenda takes shape, but the key drivers of the gold rally remain in place, and gold prices are projected to continue rising in 2025, according to Max Layton, global head of commodities research at Citi.
Layton said the backdrop for oil was already quite bearish following the election, and that was before the base case included Trump levying significant tariffs on Chinese imports during the first quarter of 2025.
“The prospect of using tariffs to fund some kind of reduction in the budget deficit, or at least not growth in the budget, is going to potentially hang over the market, so tariffs related to that is going to be an issue in 2025,” he told CNBC International. “More broadly, I think Trump […] is going to be quite net bearish for oil. A lot of the statements that he said have been about how he wants to encourage drilling in the U.S., [and] Bessant has talked about three million barrels more supply growth over the term in the U.S.” Read More
Emerging market central bank demand will drive gold in 2025 - Wells Fargo’s John LaForge
Investment demand for gold may struggle in 2025 as a solid U.S. economy supports the dollar and ends the Federal Reserve’s easing cycle. However, this won’t stop the precious metal from reaching new highs next year, according to commodity analysts at Wells Fargo.
John LaForge, Head of Real Asset Strategy at Wells Fargo, said that heading into 2025, investors should have exposure to a broad basket of commodities. He added that he recommends investors embrace a dumbbell strategy, with oil as the cheapest commodity on one end and gold on the other.
Wells Fargo expects gold to end next year between $2,800 and $2,900 an ounce. Meanwhile, West Texas Intermediate (WTI) crude oil prices are forecast to end the year between $85 and $95 a barrel.
The bank’s bullish outlook comes as it also expects the Federal Reserve to cut rates only once next year as inflation pushes back above 3%. Read More
Gold finds strong support amid geopolitical tensions and central bank strategies
Gold futures have surged significantly, with the February 2025 contract gaining $34.90, or 1.30%, to reach $2,717.80 per troy ounce. This breakthrough comes after an extended period of consolidation, marking a notable shift in the precious metal's trading pattern.
Image Source: Kitco News
The current rally is underpinned by multiple compelling factors, beginning with geopolitical uncertainties in the Middle East. Market sources report increased safe-haven buying following dramatic regional developments, including the reported collapse of Syria's long-ruling regime. Interestingly, this price appreciation occurs despite a stronger U.S. dollar, traditionally a bearish indicator for commodity prices.
Central bank activity has emerged as another significant driver of gold's momentum. The People's Bank of China has particularly stood out, signaling a renewed appetite for gold reserves after a potential pause at previous record high prices. This institutional buying suggests growing confidence in gold as a strategic asset allocation. Read More
Gold price holding its ground near $2,700 as U.S. annual CPI rises 2.7% in line with expectations
Gold prices are holding within striking distance of $2,700 an ounce, as stubborn inflation fails to drive investors out of the marketplace.
The Consumer Price Index (CPI) rose 0.3% last month after October’s 0.2% rise, the U.S. Bureau of Labor Statistics announced on Wednesday. The inflation data was in line with expectations.
The report stated that, in the 12 months leading to October, headline inflation rose 2.7%, also in line with expectations and up from September’s 2.6% print.
Core CPI, which excludes volatile food and energy prices, increased 0.3% in November, matching expectations and mirroring September’s 0.3% reading.
The report also noted that annual core inflation rose by 3.3% last month, unchanged from October’s reading and consistent with expectations.
Although inflation has moved higher, there were no major surprises to unsettle investors. The gold market is seeing some modest buying but remains close to neutral territory. Spot gold last traded at $2,697.90 an ounce, up 0.15% on the day. Read More
Gold price dips against the Canadian dollar as BoC cuts rates by 50 basis points
Spot gold sold off in CAD while strengthening in USD after the Bank of Canada (BoC) cut its key interest rate by 50 basis points, lowering rates for the fifth consecutive meeting.
The Bank of Canada lowered its target for the overnight rate to 3.25% on Wednesday, with the Bank Rate at 3.75% and the deposit rate at 3.25%.
“Monetary policy has worked to bring inflation back to the 2% target,” said BoC Governor Tiff Macklem in the monetary policy statement. “Our policy focus now is to keep inflation close to target.”
Macklem outlined what the BoC is seeing in the economy and how it played into their decision to deliver a half-percentage-point cut.
“Canada’s economy grew by 1% in the third quarter, which was slower than we expected,” he said. “Recent data also suggest growth will be lower than projected in the final quarter of this year. Growth in the third quarter was pulled down by business investment, inventories and exports. But consumer spending and housing activity both picked up, as lower interest rates started to boost household spending.” Read More
Gold powers to 9-week high on bullish fundamentals, technicals
Gold prices are sharply up and hit a nine-week high in midday U.S. trading Wednesday, following an important U.S. inflation report that was in line with market expectations. Bulls have momentum and are eyeing new record highs that are now not far from their reach. Safe-haven demand and chart-based buying remain the features in gold this week. February gold was last up $38.70 at $2,757.20 and March silver was up $0.263 at $33.01 and hit a nine-week high, too.
The U.S. data point of the week was today’s consumer price index for November, which came in at up 2,7%, year-on-year, which was right in line with market expectations and compares to a rise of 2.6% seen in the October report. Gold and silver market bulls breathed collective sigh of relief when the CPI data came in as expected and was not hot.
The Federal Reserve’s FOMC’s monetary policy meeting is next week. Today’s CPI report does not likely change the trajectory of what the Fed is thinking on its monetary policy. The CME’s FedWatch tool shows the probability of a 25 basis-point interest rate cut at around 90 percent.
Technically, February gold bulls have the solid overall near-term technical advantage. A nearly four-week-old price uptrend is now in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,826.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,650.00. First resistance is seen at today’s high of $2,759.70 and then at $2,780.00. First support is seen at today’s low of $2,719.10 and then at $2,700.00. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
March silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at this week’s high of $32.945 and then at $33.00. Next support is seen at Tuesday’s low of $32.305 and then at $32.00. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Silver could outperform gold again next year, spot price forecast to hit $40/oz in 2025 – Heraeus
While a likely U.S. recession in Q2 would impact industrial demand for silver, most of the gray metal’s recent strengths are expected to carry over into the new year, and the price of silver is projected to outperform gold in 2025, according to analysts at Heraeus Precious Metals.
In their Precious Forecast 2025, the analysts said that if market conditions unfold as expected, they believe silver will outgain gold once again in 2025.
“This year, the silver price has seen the largest percentage gains across the precious metals (+26.82% to the end of November),” they noted. “The beginning of the next phase of the global interest rate cycle earlier in the year has helped both gold and silver. Meanwhile, relentless growth in solar photovoltaic demand and a strong rebound in implied demand from India have also supported the price on the physical side.”
The analysts pointed out that the elevated gold:silver ratio suggests that silver is still historically undervalued relative to gold despite this year’s sector-leading rally. “Silver tends to outperform gold in the later stages of bull markets, and a reversion to the 27-year mean ratio of 67 as a result of a rally in silver implies a price of $40/oz,” they said. Read More
Gold Prices Surge as Inflation Continues Upward Trajectory
Gold futures have experienced a remarkable week of gains, climbing nearly $100 per troy ounce across three consecutive trading sessions. The recent price surge coincides with the latest Consumer Price Index (CPI) report, which reveals a persistent inflationary trend that has caught the attention of financial markets and Federal Reserve officials.
The November inflation report shows a 2.7% annual increase, marking a slight uptick from previous months. Core inflation, which strips out volatile energy and food prices, has been even more pronounced, rising 3.3% on an annualized basis. While the data aligns with economists' expectations, it signals a concerning direction for price pressures in the economy.
Federal Reserve Chairman Jerome Powell has acknowledged the progress made since inflation peaked at over 8.5% in March 2022, but remains cautious about the current economic landscape. Speaking at a recent conference, Powell noted that economic growth is stronger than anticipated, and inflation continues to present challenges. The Fed's ultimate goal remains achieving a 2% inflation target, a benchmark that still seems distant given the current economic indicators. 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.
Featured Image - Source: Unsplash
