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Gold Price News: Gold Recovers as Investors Defy the ‘Dot Plot’
Gold unexpectedly surged on Friday, gaining almost $30 an ounce to close above $2330 an ounce and a weekly gain of $37 per ounce (+1.6%). While this move has taken gold back above resistance at $2312, it remains challenged by a flattening 50-day simple moving average at $2345. Today’s early trading has seen gold decline towards $2317.
Friday’s move is particularly worthy of comment, as it appears anomalous when framed against incoming data.
It is certainly the case that both the US May Import Prices and US June Michigan Consumer Sentiment prints on Friday came in below expectations and are somewhat gold-supportive. However, both are, at best, secondary drivers for gold investors. Indeed, the Michigan survey also highlighted consumers’ continued expectation of long-term inflation above the Fed’s target and the Cleveland Fed’s updated nowcast for core PCE inflation remains stuck at 2.6%.
Despite this absence of key data, Friday saw a very big shift in Fed Fund Futures, which was ultimately the primary gold price driver. Read More
Silver Price News: Silver Weathers Weak China Data
Like Gold, Silver also has a better day on Friday, adding c. $0.6 an ounce to the resistance level of $29.5 and a weekly gain of $0.4 (+1.1%). Today’s early trading sees silver trending back down towards $29 per ounce.
The large, and somewhat anomalous downward shift in US rate expectations seen at the end of last week has already been detailed in today’s gold commentary. As a non-yielding asset, such a move will have been a support for Friday’s rally, although silver has historically been less interest rate sensitive than the yellow metal, as the latter is overwhelmingly used for various forms of investment.
Real (industrial) demand for silver is also an important driver for silver prices and in this respect Friday’s soft Michigan Consumer Sentiment flash estimate for June might be considered something of a mixed blessing, while the disappointing China lending data for May released earlier in the day, was undoubtedly silver bearish. Read More
Gold looks good again next week as both Wall Street and Main Street turn bullish
After last week's price action was dominated by Friday’s news from China and the employment report, precious metals markets were squarely focused on inflation data and the Federal Reserve’s interest rate path this week.
After kicking off the week trading at $2,293.70 per ounce during the Sunday evening Asian session, spot gold broke above the $2,300 level about two hours before the North American market open, and that level held throughout the rest of the week's roller coaster ride.
Gold prices chopped along in a relatively narrow $15 channel as market participants waited for Wednesday, which would bring the consumer inflation report in the morning, then the FOMC rate announcement, updated economic projections, and Chair Powell's press conference in the afternoon. Read More
Gold price holds up in the face of Fed hawkishness, silver tests key support as coin sales diverge – Heraeus
Gold prices have fared fairly well in the wake of the Fed’s hawkish rhetoric and rate projections, while silver’s coin demand is seeing a significant divergence between major producers as spot prices test support, according to precious metals strategists at Heraeus.
In their latest precious metals report, the analysts noted that gold prices have made gains despite the Federal Reserve’s renewed hawkishness.
“On 12 June, the US reported a relatively flat headline CPI – a 3.3% year-on-year increase and unchanged on a seasonally adjusted basis – the lowest numbers in three years,” they noted. “This provided some support for the gold price, although Fed Chairman Jerome Powell’s subsequent signalling of cautiousness on rate-cutting after a Federal Open Market Committee (FOMC) meeting made it temporary.”
“Currently, members of the FOMC remain divided on whether to support one or two rate cuts this year,” they said, adding that the swap market is still pricing in a 42% chance that the Fed will deliver 50 basis points of rate cuts in 2024. “The gold price is still consolidating its gains, with support around $2,280/oz holding,” they said. Read More
Bank of America remains bullish on silver, sees $35 an ounce by 2026
Although market volatility has knocked silver down a peg, with prices trading below $30 an ounce, a growing chorus of analysts is not ready to give up on the precious metal just yet.
Bank of America is the latest institution to weigh in on the market, seeing robust potential in the mining sector. Despite the recent selloff in silver, Michael Widmer, the bank’s precious metals strategist, expects silver prices to push to $35 an ounce within the next two years.
In the short term, many analysts note that even in the current correction, silver has managed to hold solid support at its upward-trending 50-day moving average. July silver futures last traded at $29.235 an ounce, down 0.86% on the day.
In the last couple of years, gold has been the go-to safe-haven asset as investors looked to hedge against geopolitical risks; however, Bank of America expects that now it’s silver's time to shine as it has just recently started to perform within the precious metals sector. Read More
Gold, silver lower on bearish daily outside markets
Gold and silver prices are lower, with gold solidly down, in midday U.S. trading Monday. There is a lack of major, fresh fundamental news to drive the metals markets to start the trading week, so gold and silver traders were focused on the outside markets, which are in a mostly bearish daily posture. U.S. Treasury yields have up-ticked, and the competing asset class of equities sees the U.S. stock indexes at or near record highs. August gold was last down $24.80 at $2,324.00. July silver was last down $0.257 at $29.215.
Technical selling is also featured in the gold and silver markets today, as the near-term chart postures for both precious metals has deteriorated the past few weeks.
Technically, August gold bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at $2,350.00 and then at last week’s high of $2,358.80. First support is seen at Friday’s low of $2,316.70 and then at the June low of $2,304.20. Wyckoff's Market Rating: 5.0.
Image Source: Kitco News
July silver futures bulls have the overall near-term technical advantage. However, prices are trending down on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at today’s high of $29.65 and then at $30.00. Next support is seen at $29.00 and then at this week’s low of $28.73. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Why central banks are increasing their gold reserves: 29% plan to buy more in 2024 - World Gold Council report
Central bank gold purchases continue to dominate and transform the gold market, and this trend is only getting stronger, according to the latest report from the World Gold Council.
On Tuesday, the WGC published the results of its annual Central Bank Gold Reserves survey. Of the 70 responses, 29% said they expect to increase their gold reserves in the next 12 months.
The WGC said this was the highest level it has seen since it started the annual survey in 2018.
“The planned purchases are chiefly motivated by a desire to rebalance to a more preferred strategic level of gold holdings, domestic gold production, and financial market concerns, including higher crisis risks and rising inflation,” the analysts said in the report. Read More
Live From The Vault - Episode: 177
Half a $Trillion reasons gold could hit $10K
In this week’s episode of Live from the Vault, Andrew Maguire opens by outlining how close the wrong-footed Fed came to completely imploding after gold’s recent all-time-highs.
The London whistleblower and precious metals expert answers the community’s burning questions, from where gold and silver prices could be heading in the short term, to the latest updates about the upcoming BRICS gold-backed currency.
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.
