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Gold Price News: Gold Holds Above $1,950 Amid Global Economic Concerns
Gold is continuing to hold above $1,950 an ounce with investors and traders still wary of committing fully to equities with the latest Chinese data adding to concerns about the health of the global economy.
The fact that gold is still able to trade in such elevated territory despite the prospect of another interest rate hike by the Federal Reserve when the bank’s committee meets later this month illustrates how fearful investors remain with them still seeking out gold’s safety blanket.
The next few weeks are likely to be crucial in determining gold’s medium-term outlook with a busy period of corporate earnings as well as the Fed’s latest interest rate decision providing big indicators on how well the global economy is holding up in the face of first stubbornly high inflation and now ever-rising interest rates. Read More
Silver Price News: Silver Consolidates As Investors Buy Into Strong Fundamental Case
Silver has started a new week dipping a fraction from the highs touched at the end of last week but remains close to $25 an ounce.
The precious metal has enjoyed a turnaround in its fortunes with investors finally buying into silver’s bullish fundamental outlook with rising industrial demand from the solar and electric vehicle sectors pushing the metal into another supply deficit this year.
While this supply deficit has been well known with demand outstripping the supply of silver since 2019, the fundamental story has failed to get a look in while the focus has been on the Federal Reserve’s series of interest rate hikes it has implemented over the last year or so. Now while the Fed hasn’t yet finished hiking, with another increase expected when the committee meets later this month, investors are looking ahead to the end of the hiking cycle and now looking at the positive demand outlook of silver, which has a crucial role to play in the energy transition away from fossil fuel sources in favour of renewable ones. Read More
Gold prices sees some profit-taking as New York Fed Empire State Survey comes in stronger than expected
After last week's solid gains for gold, the precious metal is seeing some profit-taking as the New York Federal Reserve reports showed stronger-than-expected activity in its regional manufacturing survey.
Monday, the regional central bank said that its Empire State manufacturing survey's general business conditions index fell to 1.1 in July, down from June's reading of 6.6. However, the data significantly beat expectations as economists were looking for the index to fall into negative territory at 3.4.
The better-than-expected data is keeping a lid on gold prices as the market tries to hold support above $1,950 an ounce. August gold futures last traded at $1,954.70 an ounce, down 0.47% on the day. Read More
Turkey's central bank is back to buying gold after a 3-month selling spree
Turkey is back to adding gold to its reserves after a three-month selling spree, the World Gold Council (WGC) reported.
The central bank of Turkey increased its reserves by 11 tonnes in June, said WGC's senior analyst Krishan Gopaul.
"Official gold reserves (CB + treasury) increased by 11 tonnes during the month, lifting total official gold reserves now total 440 tonnes," Gopaul said in a tweet last week.
This comes after Turkey sold 159 tonnes in the previous three months, which dropped the country's official gold reserves to 428 tonnes.
"Since March, the central bank has sold nearly 160 tonnes, equivalent to its cumulative purchases over the preceding 12 months," Gopaul wrote in a report. Read More
Weaker China data crimps gold, silver on demand worries
Gold and silver prices are modestly down in midday U.S. trading Monday. There are some renewed concerns about the demand for metals after China, a voracious raw commodity consumer, released some downbeat economic data. August gold was last down $7.40 at $1,957.00 and September silver was down $0.129 at $25.065.
China, the world's second-largest economy, saw its gross domestic product rise 6.3% in the second quarter, year-on-year, which was below market expectations for a rise of 6.9%. The news put some downside price pressure on the metals and crude oil markets. “The Chinese economy is clearly sputtering," said one analyst in a Wall Street Journal story on the matter.
Technically, August gold futures bulls and bears are on a level overall near-term technical playing field. Prices are in a fledgling uptrend on the daily bar chart. 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 June low of $1,900.60. First resistance is seen at today's high of $1,9763.60 and then at the July high of $1,968.50. First support is seen at today's low of $1,949.00 and then at $1,937.50. Wyckoff's Market Rating: 5.0.
Image Source: Kitco News
September silver futures prices hit a two-month high Friday. The silver bulls have the overall near-term technical advantage. A three-week-old price uptrend is in place on the daily bar chart. Silver Bulls' next upside price objective is closing prices above solid technical resistance at the April high of $26.645. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at the July high of $25.255 and then at $25.50. Next support is seen at today's low of $24.815 and then at $24.50. Wyckoff's Market Rating: 6.5. Read More
Image Source: Kitco News
Gold prices are stuck at $1,950 for now but can still end the year at $2,000 - Commerzbank
The gold market could be stuck around $1,950 an ounce through the rest of the summer as the Federal Reserve has not finished raising interest rates, according to the latest research from Commerzbank.
However, Thu Lan Nguyen, head of commodity research at the German bank, added that while she has lowered her average price target for the third quarter, she still sees prices pushing back to $2,000 an ounce by the end of the year.
The updated forecast comes as August gold futures last traded at $1,959.30 an ounce, down 0.25% on the day. After hitting a three-week high last week, the gold market is seeing some modest profit-taking.
In her latest research report, Nguyen noted that the Federal Reserve's hawkish monetary policies remain the dominant force for gold in the near term. Markets are expecting the Federal Reserve to raise interest rates by 25 basis points later this month and projections from June show the central bank could raise interest rates one more time after the summer.
"We had previously assumed not only that the Fed would end its hiking cycle in May, but also that it would hold out the prospect of the first rate cuts towards the end of the year, which would have given gold a significant boost,“ Nguyen said in her report. "As the precious metal is a non-interest-bearing investment, the outlook for yields in the world's largest capital market, the US, is by far the most important price driver. The recovery is now likely to come later.“ Read More
Gold, silver and oil will skyrocket if U.S. economy pulls off a soft landing - Jim Wyckoff
A recession-free soft landing for the U.S. economy will send commodity prices skyrocketing as global demand picks up, according to Kitco Senior Market Analyst Jim Wyckoff.
“There is a sense now that the Federal Reserve may be nearer the end of its monetary policy tightening cycle because inflation appears to be under control and in a downward trajectory,” he said. “It appears right now that we are going to come in for a soft landing for the U.S. economy in the coming months”
Wyckoff joined reporter Ernest Hoffman to look at the potential impact of a strengthening U.S. economy on gold, silver, oil, and other key commodities. He said that it appears increasingly likely that the U.S. economy will emerge from two years of high inflation and high-interest rates without sustaining any serious damage.
“This has been the most broadly-forecast economic recession that's never happened,” he said. “Even if there is a mild recession, all it's going to be is mild.”
Wyckoff pointed to the recent strength in precious metals prices following last week’s better-than-expected CPI and PPI reports as signs of shifting market sentiment.
“We've seen a solid rebound in the gold market, and a strong rebound in the silver market,” he said. “There's a growing notion in the marketplace that there may be only one or two more small Fed rate hikes before this tightening cycle is over. That's good for the U.S. economy, that's good for the world economy. It suggests better demand for raw commodities.” Read More
The U.S. dollar 'will die' with BRICS new currency, warns Robert Kiyosaki
The end of the U.S. dollar is near, said the best-selling author of 'Rich Dad Poor Dad' Robert Kiyosaki, citing an upcoming BRICS summit in South Africa as a trigger.
Kiyosaki is projecting that the BRICS group, comprised of Brazil, Russia, India, China, and South Africa, will announce their new gold-backed digital currency during its summit on August 22-24, and it will have dire consequences for the U.S. dollar.
"August 22, 2023, in Johannesburg, South Africa, BRICS nations announce gold backed crypto. US $ will die," Kiyosaki tweeted last week. "Trillions of US $ rush home. Inflation through the roof." Read More
August BRICS Summit hails death knell for the dollar
In this week’s episode of Live from the Vault, Andrew Maguire discusses the latest Basel III advancements and the indisputable impact of NSFR regulations on physical gold, following its reclassification as a “first tier” asset class.
The whistleblower dives deep into the major unwinding risks emerging on the ‘illusionary’ ETF markets due to BRICS’ positive influence on central banks’ gold purchases, prompting them to ditch derivatives and pursue the tangible asset.
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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.
