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Silver Price News: Silver Sees Solid Support Zone Above $25
Silver began the new week trying to rebound, after the correction seen on Friday.
The price of futures related to the precious metal retraced from the 12-month high of $26.2 to around $25.5. Silver followed the decline of gold, which was mostly linked to a moderate rebound of the greenback and Treasury yields.
However, this quick bearish movement should be analysed in the context of the current scenario, in which many investors decided to take a profit, temporarily reducing their long exposure to the precious metal after an astonishing performance of almost +30% in less than six weeks.
From a technical point of view, silver has created a solid support zone at $25.2 – $25.3. If the price manages to hold above this level, we could see new recoveries, with an easy target of $26- $26.2, last week’s top. Conversely, if the price continues to decline, the next support zones are placed at $24.5 and $24.75. Read More
Gold Price News: Gold Starts the New Week in the Green After Friday’s Retracement
The gold price has started the new week in the green after the reversal seen last week.
The correction came after days of gains, just as bullion was approaching an all-time high at $2,070. The bearish impulse was mostly due to the rebound of the dollar index. Moreover, a modest recovery of US Treasury yields, after some hawkish comments from Fed board member Waller, was another catalyst for the decline of gold.
However, the retracement seen on Friday cannot yet be seen as a proper inversion. After weeks of gains, it appears that a pullback to the key level of $2,000, is a pause which has a good chance of helping bullion to consolidate after the recent rally, finding new fuel for another bullish movement and re-starting its journey to $2,075. Read More
Gold can protect investors from the Fed's monetary mayhem - Grant's Interest Rate Observer
Despite gold's failed attempt to break to new all-times, the precious metal still has room to move higher, according to one market strategist.
In an interview with Kitco News, James Robertson, an analyst at Grant's Interest Rate Observer, said that the potential for the Federal Reserve to end its most aggressive tightening cycle is creating a lot of volatility in financial markets and gold remains an attractive hedge against monetary policy mayhem.
He added that last month's banking crisis with the failure of Silicon Valley Bank and Signature Bank along with the collapse of Credit Suisse, one of Europe's largest banks, shows that pressure in the global economy is starting to build and the "rivets are starting to pop."
"The monetary disorder that we have seen is far from over, and right now, we are just waiting to see how it will spread," he said. "This will continue to support gold prices."
Robertson's bullish outlook on gold comes as the precious metal is holding support just above $2,000 Friday after falling from a 13-month high posted Thursday. Heading into the weekend, June gold futures last traded at $2,019 an ounce, down 1.77% on the day.
Robertson said that gold has room to move higher as Western retail investors are just starting to jump back into the gold market. Speculative positioning in gold remains below the August 2022 highs, even as bullish momentum has increased in recent weeks.
According to monthly data from the World Gold Council, March was the first time the gold market saw net monthly inflows into global gold-backed exchange-traded products ending ten months of consecutive outflows. Read More
When central banks and Wall Street are both buying gold, “that is a recipe for a bull market” - ByteTree's Charlie Morris
The weakening dollar and rising sovereign risk mean that gold and Bitcoin are poised for large and sustained gains, according to Charlie Morris, Founder and Chief Investment Officer at ByteTree Asset Management.
“The econometrics are so simple,” Morris said. “It's absolutely clear that if you were in gold and Bitcoin, you just don't really have a bad day.”
Morris, whose company specializes in diversifying investors into alternatives like gold and crypto, spoke with Kitco News reporter Ernest Hoffman on April 12. He believes markets are witnessing the early stages of “a great bull market for precious metals.”
“The fundamentals feel right, and the dollar’s coming off the boil,” he said. “You put it together and you can see why the case is so strong.”
Morris said that for the first time in a generation, he’s seeing the gold price rising despite the lack of support from Wall Street. “I've been watching the gold market for 25 years and this is the first time I've seen the divergence between fund flows and the gold price,” he said. “It is different this time.” Read More
Gold and silver hit a brick wall as hedge fund buying cools down
Gold and silver remain well supported in their technical uptrends, but both precious metals have some slowing momentum as hedge fund positioning becomes more nuanced in the marketplace.
Both gold and silver hit brick walls last week as prices pushed to new highs for the year. Gold was unable to break to new all-time highs above $2,075 an ounce and silver was unable to hold any gains above $26 an ounce. Despite renewed selling pressure, analysts said that both gold and silver remain in long-term bullish rallies as investors protect themselves from persistently elevated inflation and global economic uncertainty.
Some analysts have said that silver could have more potential than gold through 2023 as speculative bullish positioning remains well below peak levels last year when prices briefly pushed above $27 an ounce.
Some analysts said that silver continues to benefit as a monetary metal with the Federal Reserve looking to end its current hiking cycle with one last rate hike next month; at the same time, industrial demand is expected to remain robust through the year due to the global green energy transition, which is driving demand for solar power.
"Silver is a metal investors should be watching," said Robert Minter, director of ETF Investment Strategy at abrdn, in a recent interview with Kitco News. "Given its potential, we think silver is very much undervalued." Read More
Gold, silver see heavy profit-taking amid rebound in USDX
Gold and silver prices are solidly lower in midday U.S. trading Monday. Heavy profit-taking pressure has been featured in both metals the past two sessions after prices hit 13-month highs last week. The downside price action in gold and silver is so far normal corrections in uptrends that remain firmly in place on the daily charts. However, the gold and silver market bulls do need to step up and show fresh power soon to avoid some near-term technical damage being inflicted. June gold was last down $14.40 at $2,001.40 and May silver was down $0.41 at $25.05.
Technically, June gold futures bulls still have the solid overall near-term technical advantage but need to show fresh power soon. Prices are still in a four-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the April high of $2,063.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at today’s high of $2,028.00 and then at $2,050.00. First support is seen at $1,980.00 and then at $1,965.90. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
May silver futures bulls still have the solid overall near-term technical advantage. Prices are in a steep five-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today’s high of $25.71 and then at $26.00. Next support is seen at $24.50 and then at $24.00. Wyckoff's Market Rating: 8.0. Read More
Image Source: Kitco News
Gold futures trade to $1993.40 and recover back above $2000
As of 4:25 PM EST, gold futures basis the most active June 2023 contract is trading down $8.50 or 0.42% and fixed at $2007.20. In earlier trading market participants actively moved gold below the key psychological level of $2000, taking June gold to its intraday low of $1993.40.
Image Source: Kitco News
Today’s price decline in gold can be 100% attributed to dollar strength. Currently, the dollar is up 0.54%, however, when compared to gold’s decline of -0.41% investors are bidding the precious yellow metal fractionally higher.
Spot gold is also trading lower with dollar strength being 100% responsible for the decline. Currently, spot gold is fixed at $1994.40 a decline of -0.45%. However, on closer inspection dollar strength accounted for $-11.00, and normal trading add + $1.90 resulting in today’s $9.10 decline, according to the Kitco Gold Index (KGX).
Recent statements by members of the Federal Reserve have maintained its current hawkish demeanour underscoring the need for the Fed to continue raising interest rates. On Friday speaking at a conference in San Antonio Texas Federal Reserve Governor Christopher Waller said, “Because financial conditions have not significantly tightened, the labor market continues to be strong and quite tight, and inflation is far above target, so monetary policy needs to be tightened further.” Read More
Gold price targets explained: from $1,600 to $3,200 - MKS outlines scenarios
Given the magnitude of the gold price rally this past month, there are several outcomes that investors need to be prepared for.
And as gold attempts to hold the $2,000 level, MKS PAMP identified key upside and downside gold price targets.
"We know the story and the narrative of why it's been a respected bull trend since Nov 2022 (slower Fed, inflation, economic slowdown, banking/crisis of confidence, rotation of wealth, de-dollarization etc)," said MKS PAMP's head of metals strategy Nicky Shiels.
In the last month, gold quickly blew past $1,900 and $2,000 levels and marked new record highs in many currencies, including the Australian dollar.
"This has been a statement repricing (eerily similar to the 2020 & 2022 moves in size/pace) indicative of a macro regime shift," Shiels noted. "Typical low volatility, safe haven, reserve currency assets such as gold, usually do not gap into new territory unless there's conviction, even despite the liquidity shortcomings. So where can pricing go?" Read More
100+ nations to simultaneously pull out of the dollar system? Feat. Andrew Schectman
In this week’s Live from the Vault, Andrew Maguire sits down with the founder of Miles Franklin Investments, Andrew Schectman, to address the exacerbating levels of global financial anxiety, as people flock to gold, seeking alternatives to traditional banking.
The two precious metals informers explore the dynamic expansion of BRICS and SCO nations as they continuously form new relationships, united in a common goal of economic betterment away from the US dollar hegemony.
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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.
