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Silver Price News: Silver Falls Out of Favour as Price Slides Below $24
Silver has once again found itself falling out of favour with investors in the short-term with the place sliding below $24 an ounce to its lowest level since the end of March.
Given its smaller market size than its precious metal peer, gold, silver is often exposed to sharper price movements when sentiment switches. Right now, the fundamental case remains strong for silver, with the supply/demand balance forecasting another deficit this year based on healthy demand from the solar and electric vehicle industries in particular.
However, silver doesn’t solely trade on its fundamentals and instead is often knocked by economic sentiment and the words and actions of the Federal Reserve. Read More
Gold Price News: Gold Slips Below $2,000 Following Hawkish Fed Comments
Gold has slipped back below $2,000 an ounce following hawkish comments from Federal Reserve officials that hinted at the possibility of further interest rate hikes yet.
Gold had surged comfortably above this key threshold earlier in the month in part due to the expectation that the Fed would pause further increases to its benchmark rate in June. However, while a June pause is still likely, the comments by Lorrie Logan, John Williams and Raphael Bostic suggest further hikes can’t yet be ruled out with inflation still remaining well above the Fed’s 2% target.
This slight readjustment of the interest rate outlook has taken some of the shine off gold but the precious metal continues to trade at an elevated level that it has only reached a handful of times in its long history. Read More
Gold price ticks down and trades below $1,990 on mixed U.S. housing data
Gold edged down following the release of the U.S. April housing data, which showed mixed activity in housing starts and building permits.
U.S. housing starts rose 2.2% to a seasonally adjusted annual rate of 1.401 million units last month, the Commerce Department said on Wednesday. Consensus forecasts were calling for starts to come in at 1.4 million. March’s data was revised down to 1.371 million units. For the year, housing starts were down 22.3%.
At the same time, building permits, which are a precursor to future projects, were down 1.5% at 1.416 million units in April after March’s upwardly revised total of 1.437 million. Consensus calls were expecting 1.437 million units last month. For the year, building permits dropped 21.1% from the April 2022 levels.
Gold ticked down close to daily lows following the data release, with June Comex gold futures last trading at $1,986.60, down 0.32% on the day. Read More
Want to know the price of gold? Pay attention to currencies
The recent bank collapses after a string of interest rate hikes are deeply foreboding for the U.S. monetary system, said Egon von Greyerz, founder and managing partner at Matterhorn Asset Management.
Earlier this month Greyerz spoke to Kitco at Deutsche Goldmesse in Frankfurt, Germany.
This year there have been a series of bank failures as the Fed quickly raised interest rates, making it hard for financial institutions to adjust. In March SVB Financial Group, the parent company of Silicon Valley Bank (SVB), filed for bankruptcy. Signature Bank, a New York-based regional bank also went under, the third-biggest bank failure in U.S. history.
Greyerz argued the moves portend a larger move.
"[We have] reached the end of this monetary era," said Greyerz. "It doesn't happen overnight and it's taken longer than I expected nevertheless it's happening and..it's starting to accelerate." Read More
Resurgent greenback constraining metals markets bulls
Gold and silver prices are down near midday Wednesday. Both markets hit six-week lows early on. A solid rebound in the U.S. dollar index that hit a six-week high today, and is trending higher, is a significantly bearish outside market element working against the metals market bulls at mid-week. June gold was last down $8.70 at $1,984.50 and July silver was down $0.053 at $23.84.
Trader and investor risk appetite is keener at mid-week. The U.S. debt-limit extension talks held Tuesday afternoon were upbeat. President Joe Biden and House Speaker Kevin McCarthy named top emissaries to negotiate a deal to avert an unprecedented national default. Biden cut short an upcoming overseas trip in hopes of closing an agreement before a June 1 deadline. In a press conference Wednesday morning, Biden said “We had a productive meeting” on Tuesday. “We are going to come together because there is no alternative.”
Technically, June gold futures prices hit a six-week low today. Bulls still have the overall near-term technical advantage but are fading. A 2.5-month-old uptrend on the daily bar chart has been at least temporarily negated. Bulls' next upside price objective is to produce a close above solid resistance at the record high of $2,085.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,950.00. First resistance is seen at $2,000.00 and then at $2,007.00. First support is seen at today's low of $1,978.10 and then at the April low of $1,965.90. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
July silver futures prices hit a six-week low again today. The silver bulls and bears are on a level overall near-term technical playing field but the bulls are fading. Silver Bulls' next upside price objective is closing prices above solid technical resistance at the April and May high of $26.435. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at $24.00 and then at this week's high of $24.395. Next support is seen at today's low of $23.715 and then at $23.50. Wyckoff's Market Rating: 5.0. Read More
Image Source: Kitco News
Gold slumps as Fed confirms its resolute stance on lowering inflation
In the span of just under two weeks, from Thursday, May 4 to Wednesday, May 17 we have seen gold drop substantially and concurrently the dollar gained substantially.
Gold traded to a high of $2085 on March 4 and today traded to a low of $1978 resulting in a drop of $107 in just under two weeks. This is a net decline of 5.26% per ounce. When we look at the dollar index it traded to a low of 100.53 on Thursday, March 4 and today traded to a high of 102.96. This means that the U.S. dollar when compared to a basket of eight other international currencies gained roughly 2.42% for the same period.
Image Source: Kitco News
Comparing the percentage decline of gold to the percentage advance of the dollar index it is clear that dollar strength has been a major component to the fall in gold pricing. However, the decline in gold is not isolated to just dollar strength, additional selling pressure by market participants was also a major contributor. Read More
Gold price down nearly $100 after testing all-time highs, but selloff is 'exhausted' and new cycle highs ahead, says TD Securities
The gold market selloff is nearly done, and prices will be heading to new all-time highs next, said TD Securities, which activated a new long gold trade at $1,994 with a target of $2,150.
"We long active gold at $1994/oz, anticipating imminent selling exhaustion in precious metals and rising discretionary interest to support the yellow metal towards new all-time highs," said TD Securities senior commodity strategist Daniel Ghali.
After testing record highs two weeks ago, the gold market fell, with June Comex gold futures last trading at $1,986.30. This is nearly $100 lower since testing those record highs at $2,085 on May 4.
"Our positioning analytics argue that selling exhaustion in precious metals could be imminent, barring margin calls associated with a debt-ceiling catastrophe," Ghali said Tuesday. "The bar for algorithmic liquidations in gold to pressure prices is elevated, whereas Shanghai trader length is nearing year-to-date lows. Further, dry-powder analysis highlights that position sizing for gold bulls remains near average levels, which points to less pain associated with the recent pullback."
Evidence suggests that gold bulls still have some trading flows to invest and push prices higher. Read More
The gold window reopens! An opportunity among threats. Feat David Tice
In this week’s Live from the Vault, Andrew Maguire is joined by mining stock expert and investment specialist, David Tice, to discuss the major threats facing the US power grid and the domino effect this could have on the Western economy.
Pulling back the curtain on the industry, the two precious metals experts offer up solutions and actionable insights on how investors can protect themselves in a geopolitical climate of declining 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.
