Today's Gold and Silver News - 15th September

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Gold traded above $1,700 despite U.S. inflation above expectations

Gold is trading just above the $1,700 mark, after losing over 1% in yesterday’s trading session. Markets are still digesting the U.S. inflation figure after there was unexpected growth in monthly consumer prices. 

Analysts forecasted an 8.1% increase on the yearly data, while the official figure released by the U.S. Bureau of Labor Statistics office was 20 basis points higher at 8.3%.

Thanks to the ease of the pressure on fuel, there has been a slowdown from the 8.5% of July and from the forty-year record of June, when inflation jumped above 9%. But investors are still cautious while talking about the peak of inflation. Moreover, these figures are most likely not enough for the Federal Reserve to decrease the speed of the tightening process. Read More

Silver holds above $19 per ounce as support remains despite high inflation

Silver has been under the spotlight in the last few days, showing an interesting signal of recovery.

Earlier this week, silver gained in conjunction with the rebound of stock markets and with the retreat of the U.S. Dollar, after months of strength. From the bottom reached at the beginning of September, in the region of $17.50 per ounce, silver rallied by almost 15% to close in on the $20 mark.

This trend was interrupted yesterday by U.S. inflation data, which once again came in above forecast. Energy is still 24% higher than a year ago (declining from the July figure, which stood at a record level of +32.9%), while food is growing by 11.4% YoY, the largest increase since 1979. Read More

Will Jerome Powell have to go full "Volcker"?

First, for anyone unaware of who Paul Volcker is: https://en.wikipedia.org/wiki/Paul_Volcker

We mentioned last week that we thought it might take a Jerome Powell "more hawkish than is currently expected" to break gold down from its two-year major support. The FED received an impetus to perhaps "shock" markets with a hawkish tone at its upcoming September meeting by way of hotter-than-expected core inflation data released yesterday.

The below is a very speculative look at what may be in store for gold should major support at $1650-85 break down and a cascade-like sell-off occur.

Image Source: Kitco News

Notice that the weekly stochastic RSI failed to turn all the way back up into the overbought area, with the next Fed meeting as a quickly approaching catalyst. We are not saying that gold will break down; we are simply imagining possible scenarios based on evolving market conditions and technicals. And if the FED ramps up and follows through on an increasingly hawkish path regardless of collateral damage in other asset classes and the labor market (which would ensure the opposite of a soft landing); then the probability of such a bearish scenario playing out in gold should merit equal attention. Read More

Inflation triggered worst market sell-off since 2020, analyst predicts even more pain - John Feneck

Markets are reacting poorly to the expectation that "inflation is here to stay," said John Feneck, Founder of Feneck Consulting. The Bureau of Labor Statistics on Tuesday reported that year-on-year inflation was 8.3 percent in August, higher than the 8.1 percent that markets priced in.

"We're starting to see that the Fed's endgame of 2 percent inflation or whatever is going to be a joke," said Feneck on Tuesday. "[The CPI report] shows that we may still see a persistent inflation number despite the Fed's actions."

Feneck's remarks come amid the market's largest single-day drawdown since June of 2020. On Tuesday, the S&P 500 dropped by 4.3 percent, the NASDAQ was down 5.1 percent, Bitcoin was down 9 percent, and gold fell by 1.5 percent.

Feneck spoke with David Lin, Anchor and Producer at Kitco News, at the 2022 Precious Metals Summit in Beaver Creek, Colorado. Read More

All eyes on gold's long-term support as markets see growing chance Fed will raise interest rates by 1% next week

 Inflation is proving to be significantly more persistent than initially expected as falling energy prices provide little relief for consumers who continue to see a sharp rise in shelter and food costs.

The ongoing inflation threat is creating more volatility in interest rate expectations as markets see a potential for the Federal Reserve to be increasingly more aggressive through the rest of the year. A more aggressive central bank could significantly impact gold, with prices hovering above a critical long-term support level.

Interest rate expectations have jumped since Tuesday after markets were surprised by hotter-than-expected consumer inflation rising to 8.3% in August.

According to the CME FedWatch Tool, markets are now pricing in a more than 30% chance that the Federal Reserve will raise interest rates by a full 1%. Last week, investors were still debating whether the U.S. central bank would raise the Fed Funds rate by 50 or 75 basis points. Read More

Cathie Wood says Fed is making a mistake as calls for 100bps hike grow, Elon Musk confirms warning

The Federal Reserve should be more worried about long-term deflationary trends, said ARK Investment Management LLC CEO Cathie Wood, adding that the U.S. central bank is making a mistake with its aggressive rate hikes.

Wood pointed to lower commodity prices, gold prices, and declining freight fees as signs that price pressures are coming down.

She explained that gold, which is known for its inflation-hedge properties, is trading well below its peak of above $2,000 an ounce, while commodities like copper, lumber, iron ore and oil have dropped dramatically from earlier highs.

She also noted that the U.S. economy is already likely in a recession, which will eventually weigh on prices and bring down inflation.

The Fed's aggressive hiking cycle "will prove a mistake," Wood said in an investor webcast Tuesday. "We are getting some loud voices now accompanying us on this deflation risk." Read More

Gold weaker on follow-through selling from Tuesday's solid losses

Gold prices are modestly lower in midday U.S. trading Wednesday, on some follow-through technical selling pressure from Tuesday's more significant losses. The metals markets showed little reaction to another U.S. inflation report that this time met market expectations. October gold was last down $4.90 at $1,702.20 and December silver was up $0.109 at $19.595.

Today's U.S. producer price index report for August came in down 0.1%, which was right in line with expectations. The August PPI follows the July PPI reading of down 0.5%. After the CPI report, the marketplace was worried the PPI report would also show a higher-than-expected inflation print, but that was not the case.

Technically, October gold futures bears have the solid overall near-term technical advantage and gained fresh power today. Bulls' next upside price objective is to produce a close above solid resistance at $1,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at $1,715.00 and then at $1,725.00. First support is seen at this week's low of $1,696.90 and then at $1,686.30. Wyckoff's Market Rating: 1.5.

Image Source: Kitco News

December silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $20.00 and then at $20.25. Next support is seen at today's low of $19.215 and then at $19.00. Wyckoff's Market Rating: 3.0. Read More

Image Source: Kitco News

The 'biggest crash in history' is here - should you protect yourself with gold, silver, and livestock? - Robert Kiyosaki

The S&P 500 has lost 18 percent of its value over the year, and it is only going to get worse, according to Robert Kiyosaki, best-selling author of the Rich Dad, Poor Dad series. Kiyosaki suggested that investors protect their portfolios with "hard assets" like gold, silver, and livestock, as the "biggest crash in history" unfolds.

Kiyosaki spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News. Read More

Gold and silver move lower ahead of the European open

Gold (-0.49%) and silver (-1.47%) are both trading lower ahead of the European cash market open. In the rest of the commodities complex, copper (0.13%) is holding its head above water, and spot WTI (-0.61%) has taken a dive. 

In the Asia Pac area, the indices had a small bounce back as the Nikkei 225 (0.21%) and ASX (0.21%) rose slightly. The Shanghai Composite however fell 1.34%. Futures in Europe are indicating a mixed cash open. 

In FX markets the biggest mover overnight was USD/JPY which rose 0.34%. In the crypto space, BTC/USD is trading at $20,044. 

News from overnight: 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.