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Gold Price News: Gold Bounces Back As US Dollar Falls
Gold prices edged higher to reclaim the $2,350 an ounce mark on Tuesday, after the US dollar fell to a one-month low. Prices rose as high as $2,356 an ounce on Tuesday, compared with around $2,338 an ounce in late trades on Monday.
The US dollar on Tuesday fell to its lowest level against the Euro since April 10, which is bullish for dollar-denominated gold prices, as it makes the yellow metal cheaper for buyers in other currencies. In addition, the markets were digesting the implications of the latest economic data from the US.
US producer price inflation rose by 0.5% in April, according to figures released Tuesday, well above market expectations of a 0.3% gain. That followed a downwardly-revised fall of 0.1% in March.
Signs of higher inflation strengthen the case for central banks to maintain higher interest rates, and this would normally weaken gold as it strengthens the dollar and raises the opportunity cost of holding non-interest-bearing assets. However, persistent inflation can encourage investors to transfer wealth into safe haven assets like gold, as a protection against the loss of a currency’s purchasing power. Read More
Silver Price News: Silver Adds to Monday’s Gains as US Dollar Dips
Silver prices made solid gains on Tuesday, building on Monday’s strength, and pushing up through the $28.50 an ounce mark after the US dollar weakened further. Prices briefly rose as high as $28.75 an ounce but settled back into a range of $28.58 to $28.64 an ounce by late afternoon. That compared with $28.29 an ounce in late trades on Monday.
Silver and gold prices both took support from the US dollar, which weakened against other major currencies on Tuesday, falling to a one-month low against the Euro.
Elsewhere, data released on Tuesday showed that US producer price inflation rose by 0.5% in April, some way above market expectations of a 0.3% gain.
Higher inflation bolsters the case for maintaining interest rates at higher levels by central banks, and this would normally be a bearish element for precious metals prices. However, signs of persistent inflation can also provide an incentive to buy gold and silver as a hedge against the wealth-eroding effect of inflation on currencies. Read More
Fed uncertainty weighs on gold, but prices are going higher this year - NDR’s Tim Hayes
Investors should expect to see higher volatility in the gold market as the precious metal continues to defy expectations but looks increasingly vulnerable in the near term, according to one market analyst.
In a recent interview with Kitco News, Tim Hayes, Chief Global Investment Strategist at Ned Davis Research, said that he expects gold prices to eventually surpass last month's record highs above $2,448 an ounce, but the breakout might not happen until the Federal Reserve actually pulls the trigger on rate cuts.
Hayes' qualified bullish outlook comes as the precious metal has been unable to hold last week's gains and drops below support at $2,350 an ounce. June gold futures last traded at $2,343.50 an ounce, down more than 1% on the day. Read More
Western gold investors watching the Fed while Chinese demand dominates the market - Natixis’ Dahdah
The gold market has been holding significant gains since the start of the year, but the momentum behind the bullish drive has dried up as investors once again focus on the Federal Reserve’s monetary policy.
The gold market has been consolidating around $2,350 an ounce for the last three weeks as the Federal Reserve signals a reluctance to start a new easing cycle with inflation stubbornly elevated.
However, one bank analyst said that U.S. monetary policy is becoming a secondary factor as Asian markets evolve from price-taking to price-setting.
In his latest commentary on the gold market, Bernard Dahdah, precious metals analyst at Natixis, said that Asian markets have seen a significant evolution since 2008. Read More
Gold near highs after New York manufacturing index misses expectations again in May
Manufacturing activity in the New York region showed continued weakness this month even as inflation pressures eased, according to the latest figures published by the New York Federal Reserve.
The regional central bank said on Wednesday that its Empire State manufacturing survey declined to -15.6 in May, after coming in at -14.3 in April. The data was worse than expected, as consensus forecasts called for a -10 reading.
“Manufacturing activity continued to contract in New York State in April, and employment continued to decline,” said Richard Deitz, Economic Research Advisor at the New York Fed. “Optimism about the outlook for future business conditions remained subdued.”
Gold prices shot to session highs following the 8:30 am EDT release, which came out at the same time as the U.S. CPI and Retail Sales reports, and the precious metal continues to trade near the top of its daily range. Read More
Nationwide gold & silver tax cuts: 13 states scrap capital gains, Fed on high alert – Jp Cortez
In the US, legislation is being reshaped by a combination of state and federal efforts aiming to revise the taxation and legal tender status of gold and silver. This trend is catalyzed by a broader movement among lawmakers and fiscal conservatives who see these changes as essential to reinforcing economic stability.
"Both the state of Nebraska and the state of Alabama passed legislation exempting capital gains from gold and silver on the state level. This is part of a movement. Other states have recently done the same thing," notes Jp Cortez, Executive Director of Sound Money Defense League.
In response to these state-level initiatives, federal legislation is also being considered, with "Congressman Alex Mooney recently reintroduced legislation to end all federal income taxation on gold and silver, coins and bullion in the entire country.” Read More
Gold prices holding gains as U.S. CPI rises 0.3% in April, up 3.4% for the year
The gold market is seeing some renewed momentum as investors breathe a sigh of relief with consumer prices rising roughly in line with expectations.
The Consumer Price Index (PPI) rose 0.3% in April, following March's 0.4% increase, the Labor Department said on Wednesday. The latest inflation data was a tick lower than expected, as economists looked for a 0.4% increase.
The report said that in the last 12 months, wholesale inflation rose 3.4%. Annual inflation rose in line with expectations and fell from 3.5% in March.
Core inflation, which excludes volatile food and energy prices, increased 0.3% last month, rising in line with expectations. For the year, core inflation rose 3.6%.
The gold market was trading in positive territory ahead of the report and is seeing some new buying interest in its initial reaction to the latest inflation data. Spot gold last traded at $2,373.10 an ounce, up 0.66% on the day. Read More
China sees strong gold imports and record ETF demand, but high prices are hurting jewelry sales – World Gold Council
Sky-high imports, unprecedented ETF demand, and elevated price premiums show that China’s gold market continues to lead the world, but high prices look set to depress jewelry demand and slow central bank purchases, according to Ray Jia, China Research Head at the World Gold Council.
“Gold prices rose again in April, albeit at a slower pace than March,” Jia wrote in the latest WGC China update. “The LBMA Gold Price AM in USD rose by 5% whilst the SHAUPM in RMB saw a smaller increase of 3%.”
“Factors such as increased geopolitical risks and active futures trading contributed to gold’s strength in the month,” he said.
Jia pointed out that when compared to other major assets, the yellow metal has performed quite well to date this year. “April extended the RMB gold price return to 14% y-t-d and drew continued attention from local investors,” he said. Read More
Gold, silver see strong gains following cooler U.S. inflation report
Gold and silver prices are sharply higher in midday U.S. trading Wednesday following a U.S. inflation report that came in just a bit cooler than expected. A drop in the U.S. dollar index and in U.S. Treasury yields today also worked in favor of the precious metals market bulls. June gold hit a three-week high and was last up $30.20 at $2,390.10. July silver was last up $0.998 at $29.70 and hit a four-week high today.
This morning’s U.S. consumer price index report for April saw CPI up 0.3% versus the consensus forecast of up 0.4% and compares to the March report showing a rise of 0.4%. The annual CPI April reading was up 3.4% and was forecast at up 3.6% and compares to up 3.8% in the March report. Traders and investors were thinking the CPI report might come in hot today, following the producer price index report for April that was out Tuesday morning and ran hot on inflation. Today’s CPI report falls into the camp of the monetary policy doves, who want to see the Federal Reserve cut interest rates sooner rather than later. That scenario is bullish for the precious metals, from a consumer and commercial demand perspective.
Technically, June gold futures prices hit a three-week high today. The bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,448.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at $2,400.00 and then at $2,415.00. First support is seen at $2,365.00 and then at $2,350.00. Wyckoff's Market Rating: 7.4.
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July silver futures prices hit a four-month high today. The silver bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the contract high of $30.19. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at $30.00 and then at $30.19. Next support is seen at $29.00 and then at today’s low of $28.675. Wyckoff's Market Rating: 8.0. 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.
