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Silver Price News: Silver Price Continues its Consolidation Amid Rising Rates
Silver is consolidating above the $23 level, inching closer to the initial resistance zone at around $23.5 per ounce. The first part of the week has seen relatively limited volatility for silver, with the price ranging between $23 and $23.60.
This can be viewed positively, indicating a sense of equilibrium in the market. In other words, silver does not appear ready for significant rallies or an easy reclaiming of the psychological threshold at $25, but the overall trend is gradually improving.
From a technical perspective, silver is still in a lateral consolidation mode, but there are signs of strength following the decline observed in May and early June. A clear breakthrough above $24 would be necessary to confirm a proper inversion, but it appears that silver is steadily heading in that direction. Read More
Gold Price News: Gold Moving Closer to $1,950 While Markets Await US Inflation
The outlook for gold remains positive as the price continues to hold above the $1,920 support zone and shows signs of approaching the $1,950 level.
This week, the bullion price has traded within a narrow range of 1.5%, fluctuating between $1,918 and $1,945, indicating a consolidation phase. From a technical perspective, there have been no significant changes in the past 48 hours, but a clear breakthrough above the resistance zone of $1,945-1,950 could alter the scenario.
Investors are eagerly awaiting the release of US inflation data, scheduled for today at 1:30 PM London time. The average of Analysts’ forecasts, gathered by Reuters and Bloomberg, suggests a projected monthly increase of 0.3% in the core Consumer Price Index (CPI) for June, compared to a 0.4% increase seen in May. Year-on-year data is expected to be released at 5.0%, down from the 5.3% recorded in May, indicating a continued decline in inflation. Any significant deviation from these forecasts could act as a catalyst for market movement. Read More
Gold remains an important strategic asset even if the market faces Fed rate hike headwinds - Invesco's Hooper
The gold market remains trapped below $1,950 an ounce as the Federal Reserve is expected to maintain its aggressive monetary policies through the summer; however, price action is one factor that investors should be looking at when building a core position in gold, according to one market strategist.
In a recent interview with Kitco News, Kristina Hooper, chief global market strategist at Invesco, said that while gold faces a challenging environment as markets expect the Federal Reserve to raise interest rates by another 25 basis points later this month, it remains an important strategic asset to own.
She added that gold could continue to be well supported in the near term as investors look for opportunities to hedge against growing risks in the marketplace.
"If we look back at 2022, that was a reminder of the importance of being well diversified. It means investors should hold more than just equities and bonds. They should hold alternative assets as well, including gold," she said. "It's important to be thinking strategically as opposed to tactically, and that's what makes the case for gold, even as it faces some headwinds in the near term." Read More
Gold repatriation in full swing as countries fear sanctions - Invesco study
More countries want to store gold reserves within their own borders, fearing a similar fate as Russia, which saw a slate of coordinated sanctions by the West following its invasion of Ukraine last year, according to the annual Invesco Global Sovereign Asset Management Study.
The West froze almost half of Russia's $640 billion of gold and forex reserves last year, and that triggered a shift in central banks' thinking about what assets to hold and where to store them, Invesco said in its survey that polled 85 sovereign wealth funds and 57 central banks, which collectively manage about $21 trillion in assets.
"A substantial percentage of central banks are concerned about the precedent set by the U.S. freezing of Russian reserves, with the majority (58%) agreeing that the event has made gold more attractive," the survey said.
A "substantial share" of central banks is now concerned by the precedent that had been set with Russia, Invesco said.
Also, the survey showed that 68% of respondents now store their physical gold holdings at home. And 74% plan to do so in five years. In 2020, that percentage was at 50%. Read More
CPI reveals consumer prices recorded the lowest yearly increase since 2020
At 8:30 EDT the Labor Department released the latest inflationary report, the Consumer Price Index (CPI) for June. The report revealed that inflation has declined to its lowest monthly increase since August 2021. The Consumer Price Index gained 0.2% last month double the increase of 0.1% in May. The vast majority of increases in consumer pricing was in the category of shelter which made up 70% of last month’s rise in the CPI. Increases were also evident in automobile insurance, and fuel which rose 1.0 %. However, there was a significant decrease in the cost of used trucks and cars.
The key takeaway from today’s report is that inflation is declining considering that it is roughly half of last year’s inflation rate of 9.1%. However, inflation is still running at a level that is unlikely to soften the resolve of the Federal Reserve from raising rates two times this year.
On the surface, gold futures had a significant gain today. The most active August futures contract is currently fixed at $1963.10 after factoring in today’s gain of $26 or 1.34%. But as we have seen throughout this last couple of weeks gains in gold have much more to do with dollar weakness than traders actively bidding the precious yellow metal higher.
The dollar had one of its deepest one-day declines since January 2023. The dollar opened at 101.295 which was also the highest value of the day and traded to a low of 100.18. Currently, the index is down 1.14% and fixed at 100.25. Considering that gold futures gained 1.34% in the dollar index declined by 1.14% only 0.2% of today’s gains in gold can be attributed to traders bidding gold prices higher. Read More
Silver prices are up 4%; Is this the start of the rally? TD Securities says it is still three months away
Silver is doing what it does best, outperforming gold in a new upswing after the U.S. government reported weaker-than-expected inflation pressures.
However, Bart Melek, head of commodity strategy at TD Securities, warned that the silver market needs to see a significant change in investor demand and renewed industrial interest if it is going to escape the gravity around $23 an ounce in the near term.
"Concerns surrounding higher-for-longer interest rates, a lack of speculative appetite, less physical demand amid Chinese economic weakness and a pending U.S. recession suggest the silver market is set to be looser than the projected 110koz annual deficit this year suggests," he said. "Consequently, silver is projected to trend near a low $23/oz for much of the next three months."
However, Melek added that he sees solid potential for silver by year-end as the Federal Reserve starts to cut rates as recession conditions begin to bite.
"As it becomes clear that the Fed and other central banks will start to pivot to a more dovish monetary policy stance in the early months of 2024, boosting the prospects for an economic recovery on the horizon, we expect the white metal will set its sights towards $26/oz in the final days 2023," he said. Read More
Gold, silver see strong rallies after tamer U.S. inflation report
Gold and silver prices are sharply up, nearer their daily highs and hit three-week peaks Wednesday, in the aftermath of a morning U.S. inflation report that came in a bit tamer than market expectations. August gold was last up $24.60 at $1,961.70 and September silver was up $1.014 at $24.295.
The U.S. data point of the week saw the consumer price index report for June come in up 3.0%, year-on-year, which is slightly lower than the expected rise of 3.1% and compares to the gain of 4.0% in the May report. The "core" CPI, which excludes food and energy, came in at up 4.8%, year-on-year, compared with expectations of up 5.0%. These numbers fall into the camp of the monetary policy doves, who want to see the Federal Reserve continue to stand pat on interest rate levels.
The U.S. dollar index sold off sharply, stock indexes rallied and U.S. Treasury yields dropped following the upbeat CPI data.
Technically, August gold futures prices hit a three-week high today. Bulls and bears are back on a level overall near-term technical playing field but the bulls have momentum. A nine-week-old downtrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,900.60. First resistance is seen at today's high of $1,963.60 and then at $1,975.00. First support is seen at $1,950.00 and then at today's low of $1,937.50. Wyckoff's Market Rating: 5.0.
Image Source: Kitco News
September silver futures prices hit a three-week high today. The silver bulls have gained the slight overall near-term technical advantage. A nine-week-old price downtrend on the daily bar chart has been negated. Silver Bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at $24.50 and then at the June high of $24.835. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 5.5. Read More
Image Source: Kitco News
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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.
