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Gold Price News: Gold Edges Down After Hitting Record $2,450 An Ounce
Gold prices held up well above $2,400 an ounce on Tuesday, somewhat lower following Monday’s climb to a fresh all-time high of $2,450 an ounce.
Prices appeared to remain well supported at around the $2,410 mark at the start of the week, and the market was trading at around $2,420 an ounce by late Tuesday afternoon. That was down slightly from $2,428 an ounce in late deals on Monday.
US Fed officials gave speeches early in the week which broadly suggested a cautious stance on monetary policy, as inflation remains stubbornly above targets. This translates into ongoing uncertainty over when the central bank will start to cut interest rates, with a need to maintain the current hawkish stance for the time being.
However, a backdrop of heightened geopolitical risks continues to provide support for gold prices. Read More
Silver Price News: Silver Steady After Fresh 11-Year High
Silver prices briefly rose to a fresh 11-year high of $32.63 an ounce on Tuesday – the highest price since December 2012.
However, prices drifted back down to around $32.05 an ounce later on Tuesday. That compared with Monday’s range of around $31.10 to $32.48 an ounce.
Silver’s action largely mirrored gold prices, which hit a new all-time high on Monday, albeit with a slight downward bias on Tuesday.
Fundamentals were already looking supportive for silver prices in 2024, after industry group the Silver Institute forecasted a structural supply deficit this year for the fourth consecutive year.
Gold’s recent push to all-time highs above $2,400 an ounce has been seen as giving ‘permission’ for silver to break through resistance into higher territory. This was particularly evident when the gold/silver price ratio hit highs of over 90 in January and February, suggesting that silver was undervalued in a relative sense to gold, and setting the market up for a potential leg higher. Silver’s recent gains have since reduced the gold/silver ratio back to around 76 as of Tuesday. Read More
Financial market feud: Coinbase launches oil & gold futures, CME targets bitcoin spot market
A potential West Coast/East Coast feud is brewing in financial markets as two major exchanges creep into each other's carved-out lanes.
Last week, Coinbase Derivatives, the leading U.S. cryptocurrency derivatives exchange, announced it would launch retail-sized futures contracts for oil and gold on June 3.
“After launching Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Dogecoin futures, we have noticed increasing demand for retail-focused products on an accessible and regulated exchange. Therefore, we are thrilled to extend these benefits to gold and oil futures and provide investors with cross-hedging opportunities across asset classes,” the company said in a press release.
The company said the size of the futures contracts will be based on 10 barrels of oil and 1 troy ounce of gold. Oil futures will trade under the ticker NOL, and gold futures will have the GLD ticker. Read More
A pause in Western investor selling has been enough to drive gold to new record highs - Commerzbank
Western investors appear to be finally having a positive impact on the gold market, or at the least, they are not getting in the way of higher prices, according to one market analyst.
In his latest comments on the gold market, Carsten Fritsch, precious metals analyst at Commerzbank, said that current market conditions, while supportive for gold, do not fully explain the precious metal’s rally to a new record high above $2,450 an ounce.
Although gold prices have fallen from their all-time high at the start of the week, they continue to hold initial support above $2,400 an ounce. June gold futures last traded at $1,215.90 an ounce, down 0.48% on the day. Read More
Gold struggling at $2,400 an ounce as U.S. existing home sales fall 1.9% in April
The gold market continues to see solid technical selling pressure, with prices struggling to hold support at $2,400 an ounce. The market has been unable to attract any new buying momentum, even as U.S. consumers largely stay away from the housing market.
Home sales fell 1.9% last month to a seasonally adjusted annual rate of 4.14 million units, down from March’s rate of 4.22 million, the National Association of Realtors said on Wednesday. The data missed expectations, as economists forecasted remain roughly unchanged.
Existing home sales are down 1.9% compared to April 2023.
The disappointing housing market data is not having much impact on gold. June gold futures last traded at $2,399.80 an ounce, down 1% on the day. Read More
Signs that a global gold standard is gaining traction – Steve Forbes
There are multiple indications that the world is progressing towards a transition to a new gold standard, according to Steve Forbes, Chairman and Editor-in-Chief of Forbes Media.
“It’s hard to believe, but the world is beginning to lurch toward a gold-based monetary system,” Forbes wrote in an article published May 21. “This, despite the fact that the historical gold standard is held in almost universal contempt by economists and financial officials.”
He said that despite the many myths and pervasive ignorance surrounding gold-based money, it worked very well for a long time. “The U.S. was on a gold-based system for 180 years until the early 1970s,” Forbes wrote. “We never had inflation when the dollar’s value was tied to the yellow metal, and the U.S. experienced the greatest long-term economic growth in human history.” Read More
Gold, silver sink on profit taking, weak long liquidation
Gold and silver prices are sharply lower in midday U.S. trading Wednesday, on corrective pullbacks and profit taking following recent solid gains. Weak-handed longs in the gold and silver futures markets are also being forced to liquidate their recently established positions. June gold was last down $31.60 at $2,394.40. July silver was last down $0.523 at $31.555.
A Wall Street Journal report today said gold’s rally the past several months has been mostly due to buying by central banks and especially China. The Journal said central banks of the world are starting to diversify more away from U.S. dollar-based assets that can be more easily sanctioned. The report said U.S. economic sanctions on Russia, following its invasion of Ukraine, that have helped to crimp Russia’s economy, were sort of a wake-up call for countries like China, which could also be sanctioned by the U.S. The Journal report is headlined: “Gold’s latest allure? It’s sanctions proof.”
Technically, June gold futures bulls still have the solid overall near-term technical advantage. However, there is now the possibility of a bearish double-top reversal pattern forming on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,454.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at $2,415.00 and then at today’s high of $2,430.50. First support is seen at today’s low of $2,385.30 and then at $2,375.00. Wyckoff's Market Rating: 7.5.
Image Source: Kitco News
July silver futures bulls have the solid overall near-term technical advantage. Prices are in a steep, three-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $33.00. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at $32.00 and then at $32.50. Next support is seen at this week’s low of $31.18 and then at $31.00. Wyckoff's Market Rating: 7.5. Read More
Image Source: Kitco News
Gold prices remain under pressure as Fed sees possible rate hikes if inflation picks up
Although U.S. monetary policy has become a secondary factor in the gold market, persistent inflation could create some further selling pressure as it could force the Federal Reserve to raise interest rates again, according to the minutes from the April/May Federal Open Market Committee meeting.
In recent days, members of the monetary policy committee have said that while they are not ready to cut interest rates as inflation remains stubbornly elevated, they are also not looking to raise them.
However, the minutes of the meeting show that another rate hike could be a possibility.
“Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate,” the minutes said.
The gold market is not reacting significantly to the latest minutes. It is experiencing solid selling pressure as support at $2,400 broke down. June gold futures last traded at $2,390.20 an ounce. 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.
