x
Image Source: Unsplash
Silver Price News – Silver continues to rally despite dollar strength
In just a week, for both silver and gold, everything has changed. When the bearish pressure seemed to be inescapable, the precious metals sector reversed the trend, with a massive rebound. Gold and silver jumped by over 5% last week, recovering a large part of the loss posted in the final part of September and in the first few days of October.
In particular, silver gained almost 10% from the recent low. The price rallied from $20.8 to $22.6 an ounce, with a renewed strength among buyers. From a technical point of view, the picture has significantly improved with prices surpassing several resistance levels ($22, $22.2 and $22.5).
The market’s mood changed quickly and in just a few days, we moved from an oversold situation to an overbought picture. This could increase the chances of seeing some consolidation movements in the next few days, even if the positive trend should still be dominant for silver. Read More
Gold Price News – Gold shines amid geopolitical uncertainty
In the last few days, the conflict in Israel has lifted demand for safe assets, supporting a rebound in the gold price. Moreover – despite US inflation coming in above expectations – we have registered some comments with doveish tones from policymakers.
For example, Fed member Collins affirmed that the persistent increase of yields registered in bonds could reduce the need of further restrictive measures. As a consequence of this scenario, the gold price extended its rebound, returning to $1,920 an ounce, while the price in dollars per gram jumped to $62.
We should also note that tensions in the Middle East, apart from boosting the demand for risk-off assets, are also increasing hopes that the U.S. Central Bank will not raise interest rates in the two final meetings scheduled for this year. In other words, there are growing chances that the peak has been reached. Read More
Central bank buying will drive gold over $2100 next year - TD Securities' Melek
Sustained and robust gold purchases made by central banks provided a firm floor for gold prices during the recent downtrend, and they will be the key driver that pushes the precious metal to new all-time highs in the new year, according to Bart Melek, Head of Commodity Strategy at TD Securities.
“Central bank buying is likely why the recent higher interest rate-driven gold selloff, did not go through key supports slightly above $1,800/oz,” Melek wrote in the latest commentary from TD Securities. “The yellow metal managed to post a modest recovery in recent days as the Fed continued to signal higher rates for longer in its FOMC minutes and rates remained high across the yield curve. We believe the official sector will continue to be supportive in the months to come and should be a catalyst for our $2,100/oz projection next year.”
Melek said these physical purchases by central banks will be very important after the Fed pivot, which “should remove the high cost of carry” as a major obstacle to discretionary traders. “The US central bank should pivot even as inflation is above target,” he said. “The market will need to see signs that the economy is weakening materially, before this occurs.” Read More
Rising tail risks in the market warrant holding more than 6% of your portfolio in gold - BIS' Zöllner
Gold's solid 6% rally last week off its recent seven-month lows is a major reason why investors need the precious metal in their portfolio. A panel discussion during the 2023 London Bullion Market Association's Global Metals Conference agreed that gold is doing exactly what it is supposed to do during times of uncertainty.
The panel discussion included Peter Zöllner, head of banking department at the Bank of International Settlements, Frederik von Ameln, portfolio manager at Publica and James Strawson, a precious metals trader at Citadel.
The three panellists agreed that gold's lacklustre performance through most of 2023 has made sense as the Federal Reserve's aggressive monetary policies have pushed interest rates at an unprecedented speed higher, increasing real yields.
The analysts also said that gold could continue to struggle as the Federal Reserve maintains its restrictive monetary policies longer than many anticipate. However, the three also agreed that despite the headwinds, gold remains an important asset for investors to own. Read More
The monetary system today: 'Council of elders deciding the price of money' - Lyn Alden
With all eyes on the Federal Reserve and whether it will be forced to hike one more time this year due to high inflation numbers, Lyn Alden, Founder of Lyn Alden Investment Strategy, points to the opaque process of setting monetary policy and the 12 unelected individuals calling all the shots.
The Fed has a tremendous impact domestically and globally, but its policy is far from transparent or accountable, Alden told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, on the sidelines of the Pacific Bitcoin Festival.
"Interest rates and balance sheet size affect the price of money," Alden said. "And if you look in most markets, price controls are not historically effective. But in this current era, we have price controls for the price of money, or specifically the price of credit."
Instead of letting the market determine an appropriate price of credit, the central bank is in charge, Alden pointed out.
"Various parts of the interest rate pricing mechanism are heavily set by the centralized group. And it's literally 12 people that decide. It's seven members of the board of governors, and then it's a revolving set of other central bank heads," she said.
And none of them are elected, Alden added. "It's almost like a council of elders deciding this is the price of money today. And then, they divine the tea leaves, and every six weeks, everybody tunes in to see what color smoke's going to come out of the group of 12 people sitting around the table to decide." Read More
Gold is a better diversifier when bonds are this correlated to stocks - TheStreet's Dierking
Bonds are no longer a very good diversifier as they have become too correlated with equities, making gold and other commodities a superior choice, according to David Dierking, Editor of ETF Focus at TheStreet.
Dierking noted that investors who stuck with the classic 60/40 portfolio over the past couple of years have suffered, as “only a 100/0 portfolio really had a chance at generating positive returns.” And while 5% yields on Treasury bills have looked very attractive recently, long-term Treasury bonds are down 45% from their 2020 peak.
“As the Fed has executed the most aggressive rate hiking cycle in history, it’s lifted bond market volatility to historically high levels,” he said. Read More
Gold sees mild profit taking; bulls still confident
Gold and silver prices are a bit weaker in midday U.S. trading Monday, on normal downside corrections and profit taking from the shorter-term futures traders following last week's solid gains. Rising U.S. Treasury yields to start the trading week were also a bearish daily outside market element for the precious metals markets. December gold was last down $6.60 at $1,934.80 and December silver was down $0.085 at $22.815.
There were no surprise, major developments in the Middle East over the weekend that moved markets significantly. Still, risk appetite in the general marketplace remains dented as Israel appears poised for an all-out invasion of at least parts of the Gaza Strip. The Middle East situation remains highly uncertain. This scenario should at least keep a floor under gold and silver prices for the near term.
December gold futures see recent price action suggesting a market bottom is in place. However, the bears still have the overall near-term technical advantage. A five-month-old price downtrend is in place on the daily bar chart, but just barely. 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 October low of $1,823.50. First resistance is seen at last week's high of $1,946.20 and then at $1,950.00. First support is seen at today's low of $1,921.20 and then at $1,913.60. Wyckoff's Market Rating: 3.5.
Image Source: Kitco News
December silver futures bears still have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart, but just barely. Recent price action suggests a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at $23.00 and then at $23.50. Next support is seen at $22.555 and then at $22.25. Wyckoff's Market Rating: 3.5. Read More
Image Source: Kitco News
Live From The Vault - Episode: 144
The West’s 100-year plan for total control reaching its final chapter - Feat Bill Holter
In this week’s episode of Live from the Vault, Andrew Maguire is joined by precious metals broker Bill Holter to discuss how a 100-year plan being implemented by the West is coming to an end with rising interest rates and the looming spectre of CBDCs.
The precious metals experts delve into potential delivery failures hindering the gold wholesale market, why silver is the “go-to” barter currency if the global financial system fails, and the risk of holding your wealth in cash in a credit collapse.
.png)
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.
