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Silver Price News: Silver Above $25 as Focus Switches to Strong Fundamental Case
Silver has broken through the threshold of $25 an ounce with the metal finally enjoying the kind of price rally its strong fundamental outlook had been calling for.
A weaker dollar and the prospect of the Federal Reserve soon bringing its aggressive monetary policy to tackle high inflation to an end have been the catalysts silver has needed to mount its recent climb.
The fundamental case for silver, in which the metal is set for another supply deficit this year, has been evident all year but this has been overshadowed by the wider macroeconomic environment in which the Fed and other central banks have been implementing a series of rate hikes to bring down stubbornly high inflation. Read More
Gold Price News: Gold Proves Remarkably Resilient Despite Fed Hikes
Gold is remaining remarkably perky despite the near certainty of the Federal Reserve implementing another interest rate hike when the committee meets next week.
Even though the macroeconomic environment looked set to provide a challenging scenario for gold, lingering fears over the true health of the global economy have kept the precious metal well supported with the price pushing up towards $2,000 an ounce.
How long gold can continue to trade at such high levels remains to be seen with the reaction to next week’s Fed rate decision a key staging post for gold’s long-term durability. Read More
Gold prices push to six-week high as expectations grow for Fed rate hike pause
Growing expectations that the Federal Reserve will end its tightening cycle after next week's monetary policy decision is providing new momentum for the gold market as prices test another important resistance point.
Gold prices have pushed to a seven-week high, with August gold futures currently trading at $1,979.90 an ounce, up 1.2% on the day. According to some market analysts, this could be the start of a new push to $2,000 an ounce.
Julia Cordova, founder of Cordovatrades.com, said that gold's price action is forming a technical bull-flag pattern, and a weekly close above $1,973 would be a breakout move.
She added that the next resistance level to watch would be around $2,017 to $2,020. She said that this level could be tested as early as next week.
James Stanley, market strategist at StoneX, said that the gold bulls are in complete control of the market. He added that he is also watching the $2,000 level closely.
"It might take another day or two, but the momentum and the sentiment are there,” he said. Read More
Gold prices find some support as U.S. housing starts drop 8% in June
The gold market is holding in neutral territory at a critical resistance point of around $1,980 an ounce, as economic data shows that the U.S. housing market continues to struggle to highlight.
Housing starts dropped by 8% to a seasonally adjusted annual rate of 1.43 million units last month, the Commerce Department said on Wednesday. The data came in weaker than expected as economists looked for a drop to 1.48 million units. At the same time, May's data was revised lower to a rate of 1.56 million units from the previously reported 1.63 million units.
The report said home construction is down 8.1% for the year.
The gold market saw some technical profit-taking ahead of the data after prices surged to a six-week high on Tuesday. However, the disappointing economic data is helping the precious metal hold support at around $1,980 an ounce, roughly unchanged on the day.
The housing market is a significant contributor to U.S. economic activity, and according to some economists, the weak construction numbers could add to fears that the U.S. will slip into a recession by the end of the year. Read More
Qatar buys 1.6 tonnes of gold in June; Kazakhstan sells 3.2 tonnes - WGC's Gopaul
Gold continues to play an active role in central banks' foreign reserves, according to updated data from the International Monetary Fund, highlighted by the World Gold Council.
Tuesday, in a Twitter post, Krishan Gopaul, senior analyst for the WGC, said that Qatar bought 1.6 tonnes of gold last month. He noted that this is the first increase in the nation's gold reserves since October 2023.
Qatar's central bank now holds 93.4 tonnes of gold in its foreign reserves.
At the same time, Gopaul said that data showed that the National Bank of Kazakhstan sold 3.2 tonnes of gold last month. Kazakhstan said that the central bank has reduced its gold reserves by 42.1 tonnes since February. In January, the central bank bought 3.9 tonnes of gold.
However, in his research, Gopaul has noted that its common for nations like Kazakhstan, which has solid domestic production, to sell its gold. Read More
Gold sees routine pause Wednesday after recent gains
Gold prices are down just a bit in midday U.S. trading Wednesday. Some mild profit-taking from the shorter-term futures traders is featured, prompted by a mid-week bounce in the U.S. dollar index. August gold was last down $1.50 at $1,979.30 and September silver was up $0.119 at $25.375.
Technically, August gold futures prices hit a 2.5-month high Wednesday. Bulls have the overall near-term technical advantage. Prices are in a three-week-old 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 this week’s high of $1,988.30 and then at $2,000.00. First support is seen at $1,972.00 and then at Tuesday’s low of $1,958.10. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
September silver futures prices hit a nine-week high again today. The silver bulls have the firm 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 today’s high of $25.46 and then at $25.85. Next support is seen at $25.00 and then at this week’s low of $24.815. Wyckoff's Market Rating: 7.0. Read More
Image Source: Kitco News
There is no doubt gold is going higher, but investors should be looking at the miners - Sprott's Ryan McIntyre
The gold market is once again starting to shine as the Federal Reserve looks to enter the end game of its current tightening cycle; however, according to one portfolio manager, if investors want to value, they need to look at the mining sector.
In an interview with Kitco News, Ryan McIntyre, managing partner at Sprott Inc., said that while there is a lot of focus on the precious metal, the equity side of the market has been forgotten about, which has created a massive imbalance in valuations.
"I always think of physical gold as an important strategic allocation that will never change in your portfolio," he said. "From a gold equity perspective, that is where investors can become a lot more tactical."
McIntyre noted that sentiment in the mining sector is pretty dismal, and it has been a challenging environment for companies trying to raise money. He said that these two factors highlight a significant low point in the market and it won't take much to push sentiment higher.
McIntyre also pointed out that companies have significantly improved their balance sheets and are better positioned to take advantage of higher gold prices. Read More
There is a reasonable probability the Fed will conclude its rate hikes this month
The CME's FedWatch tool is predicting that there is a 99.8% probability that the Federal Reserve will implement a ¼% rate hike on July 26 when the next FOMC meeting concludes. It is also likely that this month's rate hike will conclude the series of hikes by the Federal Reserve that began in March 2022. The latest CPI (Consumer Price Index) and PPI (Producer Price Index) reports indicate that inflationary pressures are diminishing and getting closer to the Federal Reserve's target of 2%.
At its highest point, the CPI was at 9.1% and has now contracted to 3% in June. This combined with a decrease of 0.2% through June in the Producer Price Index (for all goods minus food and energy). A survey conducted by the University of Michigan revealed that consumer sentiment skyrocketed to 72.6% in July 13% above sentiment in June.
If the Fed is as they have long proclaimed "data dependent" then these recent reports demonstrate that the U.S. economy has contracted substantially bringing down the level of inflation.
The CME's probability indicator is forecasting an 87.9% probability that rates will be left where they are at the September FOMC meeting, a 71.8% probability in November, and a 64% probability in December. Read More
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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.
