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Gold Price News: Gold Falls Ahead of Chinese New Year Break
Gold prices fell sharply on Friday, capping off a bearish week for the metal, amid doubts over the timing of interest rate cuts and ahead of the Chinese New Year break.
Prices fell to around $2,025 an ounce in late deals Friday, down from a high of $2,038 an ounce seen on Thursday.
Gold was trading comfortably at around $2,032 to $2,034 an ounce in the morning session, but prices started to come under pressure soon after midday, and from there it was all downhill.
Recent economic data have indicated a relatively strong US economy, and this has weighed on expectations that the US Fed will start to cut interest rates in the near term. Data from interest rate traders points to a roughly 52% chance of a 25-basis point rate cut on May 1, and a 39% chance of no change, according to the CME FedWatch Tool.
The uncertainty over the timing of rate cuts in the coming months means the market will likely continue to focus on the release of macroeconomic data from the US, to gauge the temperature of the economy, and in particular inflation levels. Read More
Silver Price News: Silver Ends Little Changed, Capping Strong Week
Silver prices held steady on Friday, showing little change from the previous day’s levels.
Prices did show significant within-day movement, briefly rising as high as $22.72 an ounce before falling as low as $22.38 an ounce. However, silver finished the day trading at around $22.60, more or less level with Thursday’s close.
Friday’s action means silver capped the week in strong form, having tested the downside at just above $22.15 on Thursday.
Silver’s bullish performance at the end of the week contrasted with gold prices, which came under pressure towards the end of the week as the market mulled the risk of interest rates staying higher for longer. Read More
Gold’s price momentum is strong and only getting stronger - SSGA’s Milling-Stanley
Gold’s significant December momentum waned last month as the precious metal saw a disappointing start to the year; however, one market analyst said that despite all the headwinds gold faces, the market is still in very good shape.
Seasonally, January is one of the best months for gold, and prices have seen an average monthly gain of more than 3% over the last ten years. However, last month, the market saw a decline of 0.2%. Gold prices continue to consolidate in a range, unable to hold consistent gains above $2,050 an ounce, and April Gold futures last traded at $2,047.10 an ounce, down 0.22% on the day.
However, in a recent interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that although gold faces some significant headwinds, it remains well-positioned as it holds critical support above $2,000 an ounce. Read More
Why 2024 may suit silver, and production jumps at New Gold
New Gold announced a big production update this week, noted mining audiences manager Michael McCrae.
On Saturday, McCrae recorded Kitco Roundtable with correspondent Paul Harris.
New Gold reported that consolidated gold production is expected to increase by approximately 35% from 2023 to 410,000 to 460,000 ounces in 2026 driven by increasing production profiles at both Rainy River and New Afton as growth projects are completed in the near-term. The company still sold off in a down market for gold miners, off 6% for the week to $1.58 a share.
New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine.
The other precious metal, silver, shows promise. According to Christopher Vecchio. Read More
China’s equity slide is supercharging gold demand, new USD highs could come in April - GSC Commodity Intelligence’s Carr
The sharp downturn in China’s equity markets and real estate sector is contributing to strong gold sales ahead of the Lunar New Year, and other currencies provide clues about when gold will hit new highs in USD, according to Phil Carr, cofounder of GSC Commodity Intelligence.
Gold traders and investors are closely watching consumer purchases in China as the world’s largest precious metals market gears up for the Chinese New Year (CNY) celebrations. CNY will fall on Saturday, Feb. 10 this year, beginning the year of the Wood Dragon, with Chinese workers enjoying a holiday week off from Feb. 10-17.
Carr said the firm sees Chinese investors, households, and financial institutions “piling into Gold at one of the fastest paces seen since the Global Financial Crisis as the country’s stock market and real-estate sector continues to sink deeper into economic meltdown,” with equities experiencing one of the worst starts to the year on record. Read More
Gold is stuck, but silver may have room to run as investors wait for the Fed
The Federal Reserve is in no hurry to shift its current higher-for-longer monetary policy stance, which has significantly weakened bullish momentum in the gold market, and according to some analysts, it will take a big miss in inflation to push the precious metal one way or another out of its current trading channel.
Analysts note that gold is caught in a tight trading range as the Federal Reserve lays the groundwork for eventual rate cuts, but pushes back on the start of the easing cycle. Markets now see the Fed easing rates in May.
The gold market is holding support well above $2,000 an ounce, but is unable to break resistance above $2,050 an ounce. April gold futures last traded at $2,038.90 an ounce, down 0.75% from last week.
“The market is in a wait-and-see mode with a focus on incoming US data,” said Ole Hansen, head of commodity strategy at Saxo Bank. “A weak CPI next week would support prices but may not be enough, simply because traders/investors now want to see clear signs of a cut before committing.” Read More
Retail traders and market experts see little downside for gold next week as inflation takes center stage
The most dramatic moves in the gold market were made early this week, as spot prices kicked off Sunday night trading above $2,041 per ounce before falling to their weekly low of $2,016 by 9 am EST Monday morning.
Afterwards, gold prices largely traded within that range, though the spot market did set its weekly high of $2,042.53 on Wednesday morning, and tested support near the $2,021 level on both Thursday and Friday.
The latest Kitco News Weekly Gold Survey showed Wall Street and Main Street back in the same neighborhood as far as price expectations, with both seeing very little chance of a significant selloff in the coming days as the market arrived at a consensus forecast of ‘steady with a chance for gains’ next week.
Adrian Day, President of Adrian Day Asset Management, sees gold’s continued sideways price action in a positive light. “Gold has already pulled back after Federal Reserve chairman Jerome Powell dashed expectations of a near-term rate cut,” he said. “Now gold can find its base again and start to move back up. The start of the bull market has been postponed but not cancelled.” Read More
India’s and Turkey’s central banks start the new year buying gold
Central bank gold demand has dominated the marketplace for the last two years and that trend is expected to continue through 2024, albeit at a slightly slower pace.
In his latest comments on social media, Krishan Gopaul, Senior Analyst, EMEA at the World Gold Council, noted that the Reserve Bank of India and the Central Bank of the Republic of Turkey increased their gold reserves in the first month of the new year.
According to the post, India bought nine tonnes of gold last month, its first purchase since October.
Meanwhile, Turkey increased its official gold holdings by 12 tonnes. “Total gold holdings are now 552 tonnes, just 6% off the all-time high of 587 tonnes back in February 2023,” Gopaul said.
Market analysts have been closely monitoring Turkey’s official gold reserves, as they were the biggest sellers last year. Read More
Gold prices will remain rangebound near $2,000 per ounce, silver could fall below $22 - Heraeus
The lack of clear drivers should keep gold prices rangebound near $2,000, while silver could fall below $22 per ounce if it fails to find support on the weekly charts, according to precious metals analysts at Heraeus.
“Overall, the gold price has lacked impetus so far in 2024 and investors have continued in their negative attitude towards ETFs, particularly as upside price risk from an early-2024 interest rate cut has faded,” they wrote in their latest precious metals report. “Gold ETF products have seen net outflows of 1,932 koz since the beginning of the year, with only a couple of days with positive inflows to note. Outflows year-to-date are equal to 2% of total holdings at the end of 2023, and as of Friday stood at a four-year low.”
Given the absence of any drivers for positive price action, the analysts said they expect gold to continue hovering around $2,000 per ounce for the time being. “However, the outlook for 2024 as a whole remains bullish thanks to interest rate cuts that, although now likely to be farther away than initially thought, are still very much on the cards,” they added. “When ETF investors do jump back in, this should provide a good tailwind for the gold price.” Read More
Gold pressured by bearish outside markets Monday
Gold prices are lower and silver prices modestly up in midday U.S. trading Monday. Gold is feeling the pressure from bearish daily outside markets that include a firmer U.S. dollar index and a slight up-tick in U.S. Treasury yields. The U.S. stock indexes today hit record highs again, which is also a negative for the safe-haven gold and silver markets. April gold was last down $12.20 at $2,026.40. March silver was last up $0.136 at $22.735.
Asian and European stock markets were mixed in quieter overnight trading. China is celebrating its Lunar New Year holiday this week. Many China markets are closed much of this week for the annual holiday. In China it is the year of the Dragon. Broker SP Angel reports in a morning email dispatch that jewelers in China are reported to have stocked up on dragon-themed gold jewelry, with gold jewelry sales expected to rise 30% this year.
Technically, April gold futures prices hit a two-week low today. The bulls have lost their slight overall near-term technical advantage. Prices are in a nine-week-old downtrend 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 $2,041.80 and then at $2,050.00. First support is seen at the January low of $2,023.30 and then at the December low of $2,007.60. Wyckoff's Market Rating: 5.0.
Image Source: Kitco News
March silver futures bears have the overall near-term technical advantage. A nine-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 $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at today’s high of $23.15 and then at $23.445. Next support is seen at today’s low of $22.575 and then at last week’s low of $22.195. Wyckoff's Market Rating: 3.5. Read More
Image Source: Kitco News
UK-listed RMAU has half of its holdings in recycled gold
After a difficult 2023, impending interest rate cuts will make gold more attractive, and one UK-listed fund is also helping investors improve their portfolio’s Environmental Social Governance (ESG) standing.
Last week, the Royal Mint’s Responsibly Sourced Physical Gold ETC (LSE: RMAU), announced that half of its gold holdings are now comprised of 100% recycled gold.
HANetf, the firm behind the physically-backed exchange-traded commodity, is the world’s first ETP to be backed in part by recycled gold bars. The fund achieved its 50% target two years after its launch.
“Thanks to the unique partnership with The Royal Mint, there is close control over the ETC’s supply chain, allowing for the percentage of recycled gold to steadily increase,” the fund said in a statement. “The Royal Mint intends to continue to add recycled gold bars as the ETC continues to grow with the target of remaining at over 50%. RMAU also gives investors the opportunity to access gold that aligns with their values.” Read More
Live From The Vault - Episode: 159. Gold weaponised nuclear option
In this week’s episode of Live from the Vault, Andrew Maguire provides critical, data-driven insights on the accelerating pace of dedollarisation and a possible reevaluation of gold.
The London whistleblower takes us through insider-only updates on enormous outflows of gold from the COMEX and towards global central banks, reviewing current price action and evaluating silver in the short term.
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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.
