Today's Gold and Silver News: 20-12-2022

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Silver Price News: Silver’s Recovery Resumes as Year Set to End on High

Silver is starting the final full trading week of the year looking up once again with the price resuming its steady upward trajectory after the slight dip at the end of last week.

Silver is on a very strong fundamental base with the metal in strong demand from industry, coin and bar and investment sectors, while positive numbers on both inflation and easing interest rate hikes have given the precious metal more room to climb. 

Assuming silver is able to stay on its current course, it looks set to end the year higher than it started – something that looked fanciful when the precious metal was enduring a multi-month slump from April through to September. Read More

Gold Price News: Gold Stable Around $1,800 Awaiting Fresh Driver

Gold is hovering either side of $1,800 an ounce with the precious metal going through a period of sideways trading while it awaits the next market driver.

Last week’s positive inflation figures have increased the likelihood of the Federal Reserve taking a less aggressive course with its interest rate moves in the early part of 2023. With the current price drift in the final full trading week of the year, gold looks to end 2022 at almost the same level it started – just under $1,800.

Given that the price climbed above $2,000 and sank close to $1,600 over the last twelve months, it has been a relatively volatile year with the precious metal prone to the actions and words of the Fed and its officials.

With stock markets remaining jittery with investors worried about a sustained global recession next year as well as ongoing Covid concerns in China and the fallout from the FTX debacle, the appeal of gold as a dull asset that ticks along steadily is more attractive now than it was during the recent bull run, free money cycle that boosted equities. Read More

Gold, silver mildly lower in choppy, 2-sided trade

Gold and silver prices are a bit weaker in midday U.S. holiday-type trading Monday. Prices have traded both sides unchanged today amid a quieter start to the trading week and as the holiday season begins. Traders are awaiting fresh fundamental inputs for the metals. February gold was last down $1.70 at $1,798.50 and March silver was down $0.113 at $23.225.

Global stock markets were mixed to weaker overnight. U.S. stock indexes are down at midday. Reports say the relaxed Covid restrictions in China have caused a surge in infections in the world’s most populous country. Traders will continue to closely monitor this situation. Some China watchers are saying the Covid infections and deaths situation in China could become very bad in the coming few months.

Technically, gold bulls still have the overall near-term technical advantage. However, a six-week-old uptrend on the daily bar chart is in some jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at the December high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,808.60 and then at $1,820.00. First support is seen at last week’s low of $1,782.00 and then at $1,770.00. Wyckoff's Market Rating: 6.0

Image Source: Kitco News

The silver bulls have the overall near-term technical advantage. Prices are in a choppy 3.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today’s high of $23.625 and then at $24.00. Next support is seen at $23.00 and then at last week’s low of $22.735. Wyckoff's Market Rating: 6.5. Read More

Image Source: Kitco News

Gold will explode higher in 2023 but it's the miners investors should pay attention to - ESGO's Eric Strand

Although gold prices are expected to end the year with a slight loss, the precious metal has seen a solid rally, setting itself up for a healthy start to 2023 and one asset management firm sees potential for prices to push back above $2,000 an ounce.

With gold prices hovering around $1,800 an ounce, the precious metal is looking to end 2022 with an 11% rally from last month"s two-year lows. Eric Strand, portfolio manager and creator of the European-listed AuAG ESG Gold Mining exchange-traded fund (LSE: ESGO), said in his 2023 outlook that this could just be the start of a new bull run in gold.

"We anticipate a new all-time high for gold during 2023 and the start of a new secular bull market when the price goes over 2 100 USD per troy ounce," he said in his commentary.

Investor demand for gold has been lacklustre through most of 2022 as the Federal Reserve embarked on its most aggressive tightening cycle in 40 years in an effort to cool inflation, which also reached a 40-year high.

However, the gold market has shifted in investor interest as it appears the Federal Reserve"s nearing the end of its aggressive monetary policy stance. Read More

Hedge funds finally place bullish bets on gold and silver

Gold's ability to hold the line around $1,800 an ounce is finally starting to attract new bullish speculative interest as hedge funds increase their long exposure in the precious metal and further reduce their short bet.

According to some analysts, investors are testing the precious metals markets as falling inflation raised expectations that the Federal Reserve will start to slow the pace of its rate hikes with its tightening cycle close to ending.

Commodity analyst from Société Générale noted that the precious metals market saw inflows of $3.6 billion last week following weaker-than-expected inflation data for November.

"Although lower inflation would typically be bearish for gold, the bullion has been supported recently by the prospect of the Fed slowing interest rate increases. Because gold is a non-interest generating asset, a lower peak interest rate is bullish for the bullion," the analysts said in a note Monday. Read More

Silver price to beat gold in 2023? Precious metal plays catch-up on strong demand, ETFs remain missing puzzle piece

Silver is gearing up to outperform gold in 2023 after a mixed year, according to analysts, who point to a more positive macro environment, strong physical demand, and a good technical set-up.

Next year looks promising for both gold and silver, but many analysts expect silver to rally more than the yellow metal because of its volatility profile and the lack of attention it received in the prior two years.

Year-to-date, spot silver is up 0.21%, trading at $23.40 an ounce, and spot gold is down 1.8%, trading at $1,797.60 an ounce.

Silver saw most of its gains in the first quarter of this year, hitting $27 an ounce, which is similar to gold's trading pattern. Then it saw losses for six months, hitting a 2-year low of $17.50 in September. In the fourth quarter, prices started to pick up as investors began to anticipate a pivot by the Federal Reserve.

"I'm a little more positive on silver in that we're back to $23 an ounce. It's the high beta play," Wells Fargo head of real asset strategy John LaForge told Kitco News. "In a year where stocks are down, precious metals essentially follow stocks down. In that kind of environment, you'd expect silver not to be flat, which is better than gold's performance."

One major driver that held silver and other precious metals back this year was the Federal Reserve's aggressive tightening cycle with a total of 425 basis points for 2022. Read More

Gold could see a difficult start to 2023 but will shine brighter by year-end - analysts

After a difficult year filled with challenging headwinds, the gold market is ending 2022 on an upswing in roughly neutral territory at around $1,800 an ounce.

The precious metal is looking to end the year down less than 2%, which would make it one of the best-performing assets, just behind the U.S. dollar. While bullish sentiment is building in the marketplace, some analysts are warning investors that they will need to be patient in 2023.

Although the gold market is expected to continue to outperform most asset classes in the new year, some major banks and commodity analysts are not expecting to see a significant push higher until the second half of the year. For now, gold prices are expected to remain in neutral territory at around $1,800 an ounce.

Conditions that weighed on gold through most of the year, mainly the Federal Reserve's aggressive monetary policy stance, could remain in place through at least the first half of 2023.

In its last monetary policy meeting for 2022, the Federal Reserve forecasted the Fed Funds rate peaking above 5% in 2023. The central bank's updated forecast capped a year that saw the most aggressive tightening cycle since 1981 as inflation rose to a more than 40-year high. Read More

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.