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Gold Price News: Gold Jumps After Signs of Lower US Inflation
Gold prices rebounded strongly on Friday on the back of weaker than expected US inflation data, rounding the week off in bullish mood and more than recouping the losses seen earlier in the week.
Gold prices rallied as high as $2,061 an ounce, putting the metal back to levels last seen on January 5. The latest gains more than eclipsed losses seen on Thursday, when the yellow metal traded as low as $2,013 an ounce.
US Producer Price data released Friday showed that inflation was weaker than expected in December, going against recent signs of strengthening inflation and making it more likely that the US Fed would start to cut interest rates sooner rather than later.
Gold had already started to rebound in late trades Thursday, and Friday’s US data injected extra momentum to the upside move. Read More
Silver Price News: Silver Surges Above $23 On US Data, Middle-East Tensions
Silver prices rebounded back up through the $23.00 an ounce mark with ease on Friday, having traded as low as $22.49 an ounce on Thursday.
Gold and silver prices both surged on Friday, with silver reaching a high of $23.55 an ounce. The latest catalyst was a combination of macro-economic data and rising geopolitical tensions in the Middle East.
US inflation figures for December released on Friday showed a surprise fall, increasing the chances that the US Fed will need to start cutting interest rates soon, and this provided a shot in the arm for zero-yield assets like precious metals.
Silver also received a bullish signal after reports that a US-led coalition had launched extensive air strikes against Houthi-controlled military assets in Yemen. Any escalation of conflict is bullish for gold and silver, as it drives investment flows away from risky assets into perceived safe havens. Read More
Wall Street sees gains for gold amid geopolitical risk, Main Street remains divided
The gold market was moribund for the first half of the week, but contradictory U.S. CPI and PPI data pushed gold prices sharply down on Wednesday and back up on Thursday, while a sudden escalation of conflict in the Middle East on Thursday evening saw gold prices posting steady gains heading into the holiday weekend.
The latest Kitco News Weekly Gold Survey showed a continuation of last week’s sentiment, with half of retail investors predicting gains for gold next week, while more than two-thirds of market analysts are taking a bullish stance on the yellow metal’s near-term prospects.
Marc Chandler, Managing Director at Bannockburn Global Forex, sees more strength from gold next week. “The US-UK strike on Yemen helped lift gold through the recent highs short of $2050 to nearly $2060, where the downtrend line off the December highs is found,” he said. “The threat of a broadening war in the Middle East may trump the role of the dollar and interest rates in the short run.” Read More
Geopolitical uncertainty and Fed rate cuts driving gold price momentum next week
Market conditions are aligning for the gold market as the precious metal benefits from safe-haven demand and growing expectations that the Federal Reserve will cut rates sooner than expected.
The gold market is ending the week testing resistance at $2,050 an ounce and according to some analysts, the precious metal still has room to move higher as bullish momentum is just starting to pick up.
February gold futures are looking to end the week at $2,047 an ounce, nearly unchanged from last Friday’s close. Although the yellow metal is unable to close the week with a gain, some analysts note that investors shouldn’t be too disappointed as prices are well off their four-week lows seen at the start of the week.
Ole Hansen, head of commodity strategy at Saxo Bank, said that while it might be too early to see a breakout rally, investors shouldn’t fight the bullish momentum. Read More
Gold rises as safe-haven demand, rate cut bets keep prices elevated
Gold prices advanced on Monday, as the metal's appeal was boosted by safe-haven demand owing to tensions in the Middle-East, while markets raised bets that the Federal Reserve will cut rates sooner than expected.
Spot gold was up 0.2% at $2,053.00 per ounce, as of 1026 GMT. U.S. gold futures rose 0.3% to $2,057.50, with trading expected to be low due to the Martin Luther King Day holiday.
The war between Israel and Hamas has passed the 100-day mark as Israel continues its fierce offensive, while the Houthi militia's threat to respond to U.S. air strikes on Yemen kept risks elevated.
Gold tends to perform well during economic turmoil, with reliability that can help offset the risk of more volatile assets in conditions such as geopolitical uncertainty. Read More
Gold market holds the line at $2,050, waiting for another catalyst
The gold market continues to hold the line at critical resistance at $2,050 an ounce, but according to some analysts, the precious metal needs a new catalyst or at least further insight into the Federal Reserve’s monetary policy trajectory to break out of its current range.
Gold is seeing a relatively quiet start to the week as U.S. Markets are closed in recognition of Martin Luther King Jr. Day. In the international spot market, gold last traded at $2,053.70 an ounce, up 0.24% on the day. At the same time, spot silver last traded at $23.20 an ounce, roughly unchanged on the day
The gold market is not seeing much direction from the Greenback, as the U.S. dollar index trades listlessly during the holiday. The index last traded at 102.63 points, up 0.20% on the day.
Although gold has managed to start the new year above $2,000 an ounce, analysts said the market could continue to consolidate as it waits for further guidance regarding the Federal Reserve’s monetary policy. Markets continue to price in aggressive rate cuts this year, with the easing cycle projected to start in March, even as central bankers have pushed back on this idea. Read More
Will ECB and Fed monetary policy divergence support gold prices?
The U.S. dollar is struggling to find new bullish momentum as there seems to be a growing divergence in monetary policies between the U.S. and Europe.
The Federal Reserve has signalled three potential rate cuts this year; meanwhile, committee members from the European Central Bank are pushing back on the idea of any easing in 2024.
In an interview with CNBC on Monday, Robert Holzmann, the governor of Austria’s central bank, said that anyone looking for a rate cut in April “will be deeply disappointed.” Read More
Hedge funds are selling their gold, but they are not bearish
Volatility surrounding U.S. interest rates is taking its toll on gold prices as hedge funds liquidated their bullish bets but remain hesitant to make any significant bearish bets, according to the latest trade data from the Commodity Futures Trading Commission.
Although gold prices have managed to hold solid support above $2,000 an ounce, some analysts note that shifting momentum in the marketplace could weigh on prices in the near term.
In an interview with Kitco News, Craig Erlam, senior market analyst at OANDA, said that he sees the price action in the precious metal as a “tossup” as the market lacks a catalyst to drive prices higher.
The CFTC's disaggregated Commitments of Traders report for the week ending Jan. 6 showed money managers decreased their speculative gross long positions in Comex gold futures by 20,051 contracts to 134,333. At the same time, short positions increased by only 639 contracts to 45,874.
The latest selling pressure has pushed gold’s net length to a two-month low. The precious metal is net long by 88,459 contracts. However, the market has been reasonably stable as prices have traded in a range between $2,000 and $2,050 an ounce. Read More
Live From The Vault - Episode: 155
2024 reveals a GOLD BEAR TRAP
In this week’s episode of Live from the Vault, Andrew Maguire shares his yearly outlook and provides a long-term analysis of what we should expect as 2024 trading begins - will we see a gold price over $2500 by the end of the year?
The precious metals expert examines the bullish drivers that could propel gold forward this year, including Russian-chaired BRICS developments, globally accelerating de-dollarisation and the impact of geopolitical escalations.
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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.
