Today's Gold and Silver News: 24-11-2022

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Silver Price News: Silver Perks Up on Prospect of Positive Spin on Fed Minutes

Silver has perked back up above $21 an ounce ahead of the release of the November minutes of the Federal Open Market Committee as a slight weakening of the US dollar allied to a likely positive market reaction to the publication of these minutes boosted support for the precious metal.

This slight uptick is a reminder of the strong fundamental case that currently holds for silver. The metal is a key component within the solar energy, 5G and electric vehicle industries, whilst investment demand has also been on the rise.

Therefore, in contrast to the situation earlier in the year where every macroeconomic release prompted a fresh decline for silver, optimistic investors are now seeking the positives for silver in every new data point. Today’s Fed minutes will give greater clarity on where the US central bank sees its interest rate curve going over the coming months. Read More

Gold Price News: Gold Treads Water Ahead of Fed Meeting Minutes

Gold and the broader markets are treading water while investors and traders await the release of the November minutes of the Federal Open Market Committee later today.

Since the Fed announced a further 75 basis point hike to its benchmark interest rates at the start of this month, sentiment has shifted to how quickly the US central bank will be able to slow the pace of future rate increases. Today’s publication of the minutes could serve as a reminder of the more dovish position at the time and prompt a fresh rally for equities and gold alike. Read More

First gold, then silver; TD Securities now has a tactical short bet for platinum

TD Securities is looking to complete the bearish trifecta in the precious metals market as they have announced a tactical short position in platinum.

Daniel Ghali, senior commodity strategist at the Canadian bank, published the trade Wednesday morning as prices struggle to hold gains above $1,000 an ounce. January platinum futures last traded at $997.90 an ounce, up 0.22% on the day.

In the note to clients, the bank said that it is shorting platinum at $993.20 an ounce and looks for prices to fall to $850 an ounce within the next two months.

Ghali said that it is clear buying momentum in the precious metal is close to being exhausted.

"The set-up for a bull trap has been forming in precious metals markets, as a slew of narratives ranging from an imminent reopening in China to peak central bank hawkishness catalyzed a massive short covering rally, exacerbated by CTA buying activity," he said in the note. "Buying exhaustion appears most notable in platinum markets, with only minimal follow-through buying activity expected even for the bull case in prices. Instead, platinum prices are now vulnerable to a tactical sell-off as substantial CTA selling activity is expected as prices are weighed down by a sluggish Chinese recovery and as the backlog that feeds auto sales begins to subside with global economies headed towards recession." Read More

Gold prices push above $1,750 as Fed looks to slow the pace of rate hikes - FOMC minutes

The gold market is trading just off session highs above $1,750 an ounce as the Federal Reserve signals a slower pace of rate hikes through year-end, according to the minutes of the November monetary policy meeting.

Although persistently high inflation remains a significant threat, the central bank committee said that it would be appropriate to slow the pace of rate hikes.

“A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate. A slower pace in these circumstances would better allow the Committee to assess progress toward its goals of maximum employment and price stability,” the minutes said.

However, the discussion is a lot more nuanced, as the minutes show that some committee members wanted to keep the current pace in place.

“A few other participants noted that, before slowing the pace of policy rate increases, it could be advantageous to wait until the stance of policy was more clearly in restrictive territory and there were more concrete signs that inflation pressures were receding significantly,” the analysts said.

According to some analysts, a slightly dovish tilt to the minutes is helping gold prices push above the critical physiological level at $1,750 an ounce. December gold futures last traded at $1,750.20 an ounce, up 0.60% on the day. Read More

Gold prices should be closer to $1,614 than $1,750 - Quant Insight

The gold market is holding on to solid gains after bouncing off a two-year low at the start of the month. However, one market analyst says that the precious metal is overvalued when looking at the overall macroeconomic landscape.

In an interview with Kitco News, Huw Roberts, head of analytics at Quant Insight, said that gold prices are overvalued by 7.4% according to his firm's modelling. He added that given the current macro environment, gold's fair value is around $1,614 an ounce. The comments come as gold prices last traded at $1,744 an ounce, up roughly 0.20% on the day.

Gold prices have rallied nearly 8% from their two-year low on Nov. 3.

"From our perspective, we would not be chasing gold at these levels," he said.

At the same time, Roberts said that he would also not be looking to fade this rally just yet.

Roberts said that he suspects short-term flow from hedge funds has been the most significant factor behind gold's over-priced move.

"It looks like it's positioning and flow that have driven this rally, not macro fundamentals," he said. “Our modeling shows that macro fundamentals still matter," he said.

Positioning in the futures market would also appear to confirm QI's modelling. The latest data from the Commodity Futures Trading Commission showed that gold's rally has been driven mostly by short-covering. Read More

Gold price firms after FOMC minutes lean a bit dovish

Gold and silver prices are higher and hit daily highs in afternoon U.S. trading Wednesday. The U.S. data point of the week saw the FOMC meeting minutes tilt slightly dovish on U.S. monetary policy. December gold was last up $5.70 at $1,745.50 and December silver was up $0.381 at $21.43.

The just-released minutes from the last FOMC monetary policy meeting showed FOMC members saying it would soon be appropriate to slow the pace of U.S. interest rate increases. However, they also see a higher terminal Fed funds rate than they had earlier expected. Some Fed officials were worried the Fed could be tightening monetary policy more than necessary. As always, traders were looking at the minutes to see if they contain any new clues on the future path and timing of Fed monetary policy.

Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. A fledgling price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at the November high of $1,791.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,675.00. First resistance is seen at this week’s high of $1,755.00 and then at $1,770.00. First support is seen at $1,725.00 and then at today’s low of $1,719.00. Wyckoff's Market Rating: 5.0.

Image Source: Kitco News

The silver bulls have the slight overall near-term technical advantage. Prices are in a choppy 2.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the November high of $22.38. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $22.00 and then at $22.38. Next support is seen at $21.00 and then at this week’s low of $20.60. Wyckoff's Market Rating: 5.5. Read More

Image Source: Kitco News

Live From The Vault: Episode 100

Why has the BIS bought back 500 tonnes of gold? What are you doing? 

In this milestone, 100th episode of Live from the Vault, Andrew Maguire evidences the game-changing revelation that holds the potential to bring the 50-year-long paper market manipulation to a close - while opening doors for gold and silver price reset.

The London whistleblower confirms that Basel III regulations are now being implemented across central banks globally, forcing insiders to start backing up their claims with physical gold for the first time in decades.

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.