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Silver Price News: Silver Plummets to Test $22.00 Level
Silver prices fell sharply on Tuesday, taking a lead from gold, which dropped to a two-month low as US inflation figures came in higher than expected.
Silver prices had one of their largest single-day sell-offs in months, dropping as low as $22.03 an ounce in the afternoon session, compared with above $22.90 an ounce in the morning.
The grey metal was caught up in a larger downturn in the precious metals markets on Tuesday after the release of figures showing that US inflation fell to 3.1% in January from 3.4% in December, but well above expectations of 2.9%. The higher-than-expected inflation reading makes it more likely that the US Fed will keep interest rates on hold for longer – a bearish factor for precious metals, which don’t carry a yield.
Silver’s sharp price drop is likely to focus minds on the longer-term charts, given the metal has tested the $22.00 an ounce level in recent months, notably in November 2023 and again in January. On a technical basis, a break below this level could leave the market open to further downside, while a rebound would help solidify $22.00 as a support base. Read More
Gold Price News: Gold Falls Below $2,000 As US Inflation Figures Surprise
Gold prices crashed to a two-month low on Tuesday after figures showed US inflation fell by less than expected in January.
Gold prices fell sharply below $2,000 an ounce on Tuesday for the first time since December 13, 2023, dropping as low as $1,991 an ounce. That compares with around $2,020 an ounce in late deals on Monday.
The trigger for the sudden price drop was the release of US CPI inflation figures on Tuesday, which showed a value of 3.1% year-on-year, down from 3.4% in December, but above market expectations of 2.9%.
The higher-than-expected inflation figures suggest the US Fed may need to keep interest rates unchanged for a longer period in order to get inflation down to target levels. Read More
Gold’s bull case remains intact; creating solid value for senior producers - Gabelli Gold Fund’s Chris Mancini
The gold market continues to struggle as hotter-than-expected inflation causes investors to push back their expectations for a rate cut; however, one fund manager said his bullish outlook for gold remains in place through 2024.
In a recent interview with Kitco News, Chris Mancini, Associate Portfolio Manager of The Gabelli Gold Fund (GOLDX), said that despite the current challenges, the gold market remains well supported. He added that although the timing of the Federal Reserve’s easing cycle remains in doubt, inevitable rate cuts this year mean that it’s only a matter of time before gold prices start to move higher.
“As interest rates come down, money market rates become less attractive, and I think that will attract some investor attention again,” he said. “At the very least, it will stop the outflows; that could be enough to support higher prices.”
Although investment demand remains an important factor in prices, it continues to be overshadowed by unprecedented central bank demand, which Mancini said is a trend he expects will continue through the new year. Read More
Higher-for-longer interest rates mean lower-for-longer gold and silver prices – CPM Group’s Jeff Christian
This morning’s hotter-than-anticipated U.S. CPI report for January sparked declines across the broader market, and precious metals in particular took a pounding. According to a video post from Jeff Christian, Managing Director of the CPM Group, a detailed unpacking of the CPI components shows why higher-for-longer rates likely mean lower-for-longer gold and silver prices.
“Gold has moved into a slightly higher range, but it's basically been trading sideways for several months now,” he said. “It did fall this morning, but it remained within its range.” Christian said gold is stuck in a range of approximately $2,000 and $2,100, and silver between $22 and $23 per ounce, as they await “significant issues to take them out of the range that they've been in, either bad economic and political or financial issues that could take gold over $2,100, or better and stronger world economic and political conditions, which don’t seem likely, which could take us below $2,000.”
Addressing the latest inflation numbers, Christian said that January’s annualized reading of 3.1%, which was higher than the consensus forecast of 2.9%, “shows the markets that, as the Fed has been saying, we're not out of the inflation woods. There are inflationary pressures, not hyperinflationary pressures, but inflationary pressures.” Read More
A new era for commodities begins - Willem Middelkoop
The commodities market stands at the threshold of a significant shift, reminiscent of the transformative period witnessed in 2016. Willem Middelkoop, Chairman of the Commodity Discovery Fund and author of seven books on economics and financial markets, in a conversation with Jeremy Szafron of Kitco News, draws parallels to the early months of 2016—a time that marked the end of a prolonged bear market in commodities, followed by a sudden and robust market recovery. "This feels like January 2016. We came at the end of a very long bear market... And then in the middle of the month, the market changed without any news, and the buying came back," Middelkoop says. The recovery in 2016 was attributed to various factors, including stabilization in the Chinese economy and a rebound in oil prices, which collectively contributed to a surge in commodities. Middelkoop suggests that in 2024, similar patterns, coupled with emerging shortages across various markets, could signal the beginning of a new bullish era for commodities.
For insights into the similarities between the current commodities market and the recovery phase of 2016, watch the full interview with Willem Middelkoop
Capitalight’s $2,400 gold target for 2024 not ‘overly bullish’ as financial risk, geopolitical uncertainty loom
The gold market is struggling to hold support at $2,000 an ounce, trading near a two-month low; however, one analyst said that the gold market can still see significantly higher prices this year as the Federal Reserve is forced to cut rates even as it fails to get inflation under control.
Gold prices have seen significant selling pressure this week after the U.S. Consumer Price Index showed annual core inflation rising 3.9% last month. While inflation pressures continue to ease, consumer prices were hotter than expected, as economists looked for a rise of 3.7%.
Persistently stubborn inflation is forcing markets to push back their expectation for aggressive monetary policy easing from the Federal Reserve. Markets have nearly completely priced out a March rate cut, and now see only a 35% chance of a move in May. Read More
Gold weaker on follow-through selling from Tuesday’s solid losses
Gold prices are down a bit on follow-through selling pressure after solid losses posted Tuesday. Prices hit a three-month low overnight. Silver prices are firmer after hitting a four-month low early on today. April gold was last down $3.20 at $2,004.20. March silver was last up $0.271 at $22.425.
The marketplace Wednesday had mostly digested Tuesday’s U.S. consumer price index report for January that came in at up 3.1%, year-on-year, compared to forecasts for up 2.9% and compares to a rise of 3.4% in the December report. The “core” CPI (excluding food and energy) for January came in at up 3.9%, year-on-year. The U.S. stock indexes sold off sharply, the U.S. dollar index surged, U.S. Treasury yields rose significantly, and gold prices posted solid losses. The CPI report all but dashed hopes the Federal Reserve would start to lower interest rates early this spring. The warmer-but-still-not-hot CPI print Tuesday was not that far out of line from market expectations, yet the aforementioned markets showed serious reactions. It’s my bias the CPI report that was a bit warmer than expected was just an excuse for the U.S. stock market to experience a downside correction that was needed anyway, after the major U.S. indexes hit record highs earlier this week. And the U.S. dollar index was already trending up before the CPI news. Bond yields were already creeping up, too. Don’t be surprised to see stock market bulls look at Tuesday’s big pullback as a buying opportunity in existing solid price uptrends for the major indexes.
Technically, April gold futures prices hit a three-month low early on today. The bears have the 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 the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,975.10. First resistance is seen at $2,010.00 and then at $2,023.30. First support is seen at today’s low of $1,996.40 and then at $1,985.00. Wyckoff's Market Rating: 4.0.
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March silver futures prices hit a four-month low early on today. The silver 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 $23.445. 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 $22.75 and then at $23.00. Next support is seen at today’s low of $21.975 and then at $21.50. Wyckoff's Market Rating: 3.0. Read More
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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.
