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Gold Price News: Gold Nudges Higher, Paring Mid-Week Losses
Gold prices edged slightly higher on Friday, continuing a modest rebound from mid-week lows.
Prices briefly rose as high as $2,038 an ounce on Friday, but fell back to around $2,025 by late deals. That compared with a mid-week low of $2,002 an ounce.
The markets were digesting the latest mix of economic data while taking into account the ongoing tensions in the Middle-East, which have injected a risk premium into the market.
Taking the week as a whole, gold prices were down as the market came under pressure from relatively strong economic data from the US. This prompted a stronger US dollar and higher Treasury yields – a bearish combination for gold prices.
The US Michigan Consumer Sentiment data for January released Friday came in much stronger than forecasts, reaching its highest score since July 2021. This added to a more favourable view on the US economic outlook and points towards a higher-for-longer scenario for interest rates, which would likely create a headwind for gold prices. Read More
Silver Price News: Silver Falls As Market Scales Back Bets On Rate Cuts
Silver prices fell as low as $22.48 an ounce Friday, rounding off a markedly bearish week for the precious metal.
Prices did manage to claw back some ground later in the day to trade at around $22.60 an ounce, but this was still far below values of around $23.30 seen at the start of the week.
The market came under pressure through the week from bullish economic data from the US, which challenged expectations of US interest rate cuts coming as soon as March. US Michigan Consumer Sentiment figures for January released Friday beat market expectations by a large margin, registering the highest sentiment reading since July 2021.
The latest figures indicate a more buoyant US economy, helping to push the US dollar and Treasury yields higher, as well as giving more leeway for the Fed to maintain the current interest rates of 5.25-5.50%, all of which weighed on silver as a non-interest-bearing asset. Read More
BRICS Plus expansion is accelerating petrodollar collapse, ultimately leading to massive global dollar dump – Schechtman
The BRICS expansion is a major catalyst for the ultimate demise of the U.S. dollar, with the additional five new members accelerating the de-dollarization process as they increase trade in local currencies and buy and sell oil not using the dollar, thereby further destabilizing the petrodollar, warned Andy Schectman, President and Owner of Miles Franklin Precious Metals.
As of January 1st, the BRICS bloc – Brazil, Russia, India, China, and South Africa – officially welcomed Saudi Arabia, the United Arab Emirates, Egypt, Iran, and Ethiopia as new members of the alliance.
Saudi Arabia joining the group is particularly significant given its role in maintaining the status of the petrodollar, Schectman told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
“This is a very big deal,” Schectman said. “Saudi Arabia is the linchpin to the dollar hegemony … Whether it emanates from the BRICS or from within, the day of reckoning is coming.” Read More
March rate cut expectations drop, volatility looms for gold as consolidation deepens
The gold market continues to consolidate in a narrow range as investors swing back and forth on the timing of the Federal Reserve's interest rate cuts this year.
Heading into the weekend, markets now see a roughly 50/50 chance of a rate cut in March. Expectations have dropped significantly compared to last week, as markets saw an 80% cut next month.
The hawkish shift in U.S. monetary policy caused gold prices to fall to a five-week low just above $2,000 an ounce. Although gold has bounced off its recent lows, the precious metal is preparing to end the week with a loss. February gold futures last traded at $2,030.10 an ounce, down 1% from last Friday.
Analysts aren’t expecting gold prices to break out of this consolidation any time soon, as economic data provides little guidance on U.S. monetary policy. Read More
Gold prices restrained by dollar strength, silver investment demand could rebound - Heraeus
Gold prices are being held back by the strong U.S. dollar, while weak physical demand for silver could be offset by the return of investment demand, according to the latest precious metals report from analysts at Heraeus.
The analysts pointed out that USD strength was the major factor in keeping precious metal prices down last week.
“Expectations of a cut to US interest rates in March have receded again after the Federal Reserve Board Governor, Christopher Waller, said last week that the central bank should not rush towards interest rate cuts until the bank is sure that lower inflation will remain,” they wrote. “The prospect of higher for yet-longer interest rates has boosted the dollar most since 2 January, and gold fell by more than 1% week-on-week as the negative correlation between the two assets asserted itself.”
Gold prices are near the middle of their daily range on Monday, with spot gold last trading at $2,022.46 at the time of writing, down 0.35% on the session. Read More
Silver prices down 2% as delayed Fed rate cuts, weak Chinese economy weigh on markets
Concerns over China’s economy and shifting expectations surrounding the first rate cut of the Federal Reserve’s impending easing cycle are creating some solid selling pressure in the silver market, according to some analysts.
However, although silver is significantly underperforming in the precious metals sector, some analysts have said that the dip could be seen as a buying opportunity.
The selling in silver started overnight as Chinese investors started dumping the precious metal; some analysts have said that growing fears over China’s slowing economy could weigh on the metal’s industrial demand.
“Overnight news that China left its monetary policy unchanged and did not ease was seen as a negative for metals,” said Jim Wyckoff, senior technical analyst at Kitco.com. “China is a voracious commodity consumer and its listing economy has bearish demand implications for metals.” Read More
Mega crash is coming in 2024: This is the signal that everything is about to selloff — Harry Dent
The "everything bubble" could finally burst in 2024, warned Harry Dent, founder of HS Dent, who forecasts a meltdown in all assets except one.
Bubbles are dangerous because the economy has been overstimulated, and once assets start to sell off, the move down will happen fast, Dent told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
"We won't know until the second half of this year whether we'll be able to get through this. And the problem is that things could be happening very fast by then," he said. "Bubbles crash because they go to such extremes by nature - when people are just investing in things because they're going up." Read More
Gold, silver sink on technical selling pressure
Gold and silver prices are down in midday U.S. trading Monday, with silver solidly lower and hitting a three-month low. Technical selling is featured in both metals to start the trading week. The precious metals bulls have also been crimped early this year by better U.S. economic data that has prompted lower expectations from the marketplace for U.S. interest rate cuts sooner from the Federal Reserve. February gold was last down $3.70 at $2,025.50. March silver was last down $0.411 at $22.30.
U.S. stock index futures are higher near midday and have hit new contract and 12-month highs. The rally in the U.S. stock market has also been a negative for the precious metals, as equities are a competing asset class for gold and silver.
Technically, February gold futures bulls still have the overall near-term technical advantage but have faded recently. A three-month-old uptrend on the daily bar chart is in serious jeopardy. Bulls’ next upside price objective is to produce a close above solid resistance at $2,067.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,034.10 and then at Friday’s high of $2,041.90. First support is seen at today’s low of $2,017.40 and then at the January low of $2,004.60. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
March silver futures prices hit a three-month low today. The silver bears have the solid overall near-term technical advantage. A steep six-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.50. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at $22.50 and then at today’s high of $22.78. Next support is seen at today’s low of $22.04 and then at $21.75. Wyckoff's Market Rating: 2.5. Read More
Image Source: Kitco News
Hedge funds turning bear on gold and silver as short bets continue to rise
Shifting interest rate expectations surrounding the timing of the Federal Reserve’s first rate cut of its impending easing cycle are taking their toll on gold and silver as hedge funds start to increase their short positions, according to the latest trade data from the Commodity Futures Trading Commission.
Analysts note that gold is being weighed down, as pared-back rate cut expectations support the U.S. dollar.
“It’s been a disappointing start to the year for precious metals bulls, many of whom have been anticipating a strong rally across the sector in 2024. But the dollar’s recovery since late December continues to put downside pressure on prices. We’ll see if this dynamic changes in the coming weeks and months,” said David Morrison, senior market analyst at Trade Nation. Read More
Live From The Vault - Episode: 156
"Volatility isn’t in gold or oil, it’s in the dollar!" Feat. Alasdair Macleod
In this week’s episode of Live from the Vault, Andrew Maguire is joined by Alasdair Macleod, stockbroker and Head of Research for Goldmoney, to exchange views on the US dollar hegemony and its impact on the price of gold.
Giving an update on the de-dollarisation process and the geopolitical impact of tensions in the Middle East affecting the global economy, the precious metals experts take us through the debt trap the US has fallen into.
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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.
