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Gold Price News: Gold Rebounds Above $2,000 After Monday’s Dip
Gold prices made solid gains on Tuesday, showing a rebound from moderate losses seen on Monday.
Prices touched a high of $2,007 an ounce, compared with a low of just over $1,966 an ounce Monday. The latest action shows that prices have pushed higher compared to the end of the previous week ending November 17th.
Figures released Tuesday showed that Canadian inflation for the year-to-date 2023 came in slightly below the market’s expectations, adding weight to the probability that interest rates will not be raised from the current 5%. In the current monetary environment, the prospect of no further rate hikes among central banks has provided a supportive element for gold prices.
The US dollar also continued to come under pressure against other major currencies on Monday and Tuesday, providing a bullish input for dollar-denominated gold prices.
Looking ahead, Wednesday will see the release of US durable goods orders for October, followed by the UK’s Autumn statement. Read More
Silver Price News: Silver Gains As US Dollar Weakens
Silver prices rebounded back above $24.00 an ounce Tuesday, reversing Monday’s drop, as precious metals markets saw renewed strength.
Prices had dipped as low as $23.33 an ounce Monday as the market took a breather after a very strong week of gains. However, Tuesday saw prices once again push higher to test the recent high above $24.00 seen November 17.
The US dollar made losses against other key currencies at the start of this week, which helped propel dollar-denominated gold and silver prices higher. General expectations that central banks will avoid raising interest rates further have also provided recent support for the precious metals, and any avoidance of a recession would provide some confidence in demand for silver from the industrial sectors. Read More
Gold prices trying to hold $2,000 level as the Federal Reserve signals interest rates will remain in restrictive territory
The gold market is off its highs and struggling to hold above $2,000 an ounce as the Federal Reserve signals it will keep interest rates in restrictive territory for the foreseeable future.
According to the minutes from the central bank's November monetary policy meeting, the Federal Reserve is maintaining a slight tightening bias. Although the Fed Funds rate is close to a peak, the central bank appears to be in no hurry to lower interest rates anytime soon.
"Participants continued to judge that it was critical that the stance of monetary policy be kept sufficiently restrictive to return inflation to the Committee's 2 percent objective over time," according to the Minutes. "All participants agreed that the Committee was in a position to proceed carefully and that policy decisions at every meeting would continue to be based on the totality of incoming information and its implications for the economic outlook as well as the balance of risks."
The gold market is not seeing much reaction to the Fed's elevated neutral stance. December gold futures last traded at $1,999.60 an ounce, up nearly 1% on the day. Read More
Gold prices struggling even as durable goods orders drop 5.4% in October
The gold market is not finding much support as the U.S. manufacturing sector lost momentum in October.
Wednesday, the Commerce Department said that U.S. durable goods orders fell 5.4% last month, following September’s revised increase of 4.0%. The data was weaker than expected; consensus expectations compiled by various news organizations called for durables to increase fall by 3.2%.
Meanwhile, core capital goods orders, which excludes the transportation sector, was unchanged last month. The data also missed expectations, as economists were looking for a 0.2% increase. September’s data was also revised lower to 0.2%.
Core capital goods, excluding non-defense spending and the transportation sector fell 0.1%, following September’s revised 0.2% decline.
The disappointing economic data is not having much impact on gold as prices continue to test support around $2,000 an ounce. December gold futures last traded at $1,999.60 an ounce, down 0.10% on the day. Read More
Gold and silver due for ‘Santa rally', mining stocks will catch up in 2024 - Saxo Bank's Hansen
The end of rate hikes means a decline in bond yields and the dollar, which will propel gold and mining stocks higher in 2024, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.
“Gold is once again challenging key resistance above $2000 with a break potentially setting up another strong end-of-year finish, like what both gold and silver saw during the past six years when December ‘Santa’ rallies yielded an average return in gold of 4% and 7.25% in silver,” he wrote.
“Both metals have thrived during the past month on rising speculation the Federal Reserve has reached the end of the road of its aggressive rate hike regime, and that next year could see a reversal, with a full percent rate cut currently priced in next year with the swaps market seeing the first 25 basis points cut no later than June.”
Hansen said recent economic data from the U.S. and other economies have strengthened his view that the rate hikes are done, and markets are now focused on the timing and the pace of the coming cuts. Read More
Massive money printing coming in 2024, the Fed to 'catastrophically' break something - Preston Pysh
As the financial world grapples with divergent views on what's coming in 2024, Preston Pysh, co-founder of the Investors Podcast Network, warns that the Federal Reserve could surprise markets next year with massive money printing during an election year.
With just over one month left of the year, Wall Street is very much divided over the likelihood of a recession and the Federal Reserve's reaction to it. Read More
Gold and silver prices stuck, waiting for a catalyst - Quant Insight's Huw Roberts
Financial markets are collectively holding their breath, waiting for a new catalyst to determine the next price movement, according to one research firm. This consolidation phase can be seen in the price action in gold and silver.
In an interview with Kitco News, Huw Roberts, head of analytics at Quant Insight, said that gold and silver are near their fair value in the current environment. According to QI's short-term modeling, gold's fair value is around $2,004; at the same time, its longer-term valuation is around $1,968.
Gold's neutral outlook comes as the price is unable to hold gains above $2,000 an ounce. December gold futures last traded at $1,991 an ounce, down 0.53% on the day.
Roberts noted that the gold market is in a positive and rising macro regime; however, there is no strong buy signal. He described the price action as a "grind higher."
"Gold is in a constructive environment, but it's not doing much. It's kind of boring," he said. "We don't see these prices as a good entry point. The market is coiling, just waiting for a new catalyst." Read More
Gold, silver slide as USDX rallies, crude oil sells off
Gold and silver prices are lower in midday U.S. trading Wednesday, pressured by solid gains in the U.S. dollar index and sharp losses in crude oil. Better risk appetite in the general marketplace this week is also a bearish element for the safe-haven metals. December gold was last down $8.80 at $1,992.90. December silver was last down $0.194 at $23.675.
The key outside markets today see the U.S. dollar index solidly higher after hitting an 11-week low Tuesday. Nymex crude oil prices are sharply lower and trading around $74.75 a barrel. Reports today said the OPEC-plus cartel postponed its weekend meeting in Vienna because members are in disagreement on further oil-production cuts. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.428%.
Technically, the gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in December futures above solid resistance at the October high of $2,019.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,935.60. First resistance is seen at $2,000.00 and then at this week's high of $2,009.80. First support is seen at Tuesday's low of $1,979.90 and then at this week's low of $1,967.20. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. First resistance is seen at $24.00 and then at the November high of $24.22. Next support is seen at this week's low of $23.30 and then at $23.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Neglected gold trade: Why wealth advisors, hedge funds & investors are about to flock to gold in a major way - Tavi Costa
As mainstream, leading financial institutions like Goldman Sachs downplay the likelihood of a U.S. recession in 2024, Tavi Costa, Partner and Macro Strategist at Crescat Capital, warns of a starkly different outlook.
There is a profusion of macro indicators that point to a hard-landing scenario, Costa told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
Costa disagreed with Goldman Sachs' relatively optimistic outlook that sees a 15% chance of a contraction in the U.S. economy next year, likely due to an exogenous shock, according to Goldman Sachs chief economist Jan Hatzius.
The U.S. economy is currently teetering on the brink of a significant downturn, Costa said, citing the moves in the yield curve and the alarming trends in the unemployment rate.
"We've had one of the most deeply inverted yield curves in the U.S. that we've seen in history. And now, with the steepening of that coming out of those inversions, it is one of those classic signs that you tend to see in credit markets where recessions tend to follow," Costa said. Read More
Dollar strength takes gold marginally lower today as the year-end holiday season begins
Gold basis the most active February 2024 contract settled down $8.60 in New York at $2013.20. As of 3:05 PM EST, February gold is currently trading at approximately the same value fixed at $2013.70 down $6.80 or 0.34%. This occurred after yesterday’s extremely strong gain of just over $20 per ounce closing at approximately $2020 after reaching an intraday high of $2030.
Image Source: Kitco News
Today’s decline of approximately seven dollars is the largest single-day drop since gold hit a low of $1955 on Monday, November 13.
Today’s price decline can be directly attributed to marginal strength in the dollar. Currently, the dollar is up 36 points or +0.34% and fixed at 103.805. This clearly illustrates that dollar strength is up the same percentage as gold futures are down. 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.
