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Silver Price News: Silver Stabilises After Heavy Slump
Silver prices were relatively stable on Tuesday following Monday’s sharp fall, moving in a similar pattern to gold.
Silver traded in a range of $26.70 to $27.40 an ounce on Tuesday, down from as high as $28.50 an ounce in early deals on Monday.
After a relatively stable February, silver prices underwent a dramatic push higher through March and the first three weeks of April, clocking up multi-year highs of over $30.00 an ounce. The subsequent fall this week suggested traders were taking profits on the sharp increase seen in recent weeks.
Both silver and gold pulled back this week on easing fears that recent hostilities between Israel and Iran could spiral into a wider conflict. Read More
Gold Price News: Gold Falls Back as Geopolitical Risks Ease
Gold prices fell sharply at the start of the week, pulling back from near all-time highs as geopolitical risks were seen easing.
Prices fell to around $2,320 an ounce by Tuesday afternoon, down from around $2,330 an ounce in late deals on Monday, and from highs of over $2,400 at the end of the previous week.
Gold’s falling price on Monday and Tuesday was linked to an easing of geopolitical tensions after it became clear that Israel and Iran were not willing to enter into an escalating round of retaliatory air strikes that would risk a broader confrontation. Recent tensions in the Middle-East, as well as Russia and Ukraine, have increased the appeal of safe-haven assets like precious metals.
On the economic front, US manufacturing PMI figures for April released Tuesday came in weaker than the markets had expected, posting a four-month low. Signs of a weaker-than-expected economy strengthen the case for interest rate cuts, which are seen as supportive for non-interest-bearing assets like gold. However, the markets still appear to be dialling back expectations of as many as three interest rate cuts by the US Fed this year. Read More
Gold prices continue to consolidate as U.S. durable goods orders rise 2.6% in March
The gold market is consolidating around critical support levels as the U.S. manufacturing sector sees stable activity in March.
Wednesday, the Commerce Department said that U.S. durable goods orders increased 2.6% last month, following February’s downwardly revised reading to 0.7%. The data was roughly in line with expectations, as economists were looking for an increase of 2.5%.
Core durable goods, which strips out the volatile transportation sector rose 0.2% in March after February’s data was revised down to a 0.3% increase. The data was also roughly in line with expectations, as consensus estimates looked for a 0.3% increase.
The gold market, while under pressure, has moved off its session lows in reaction to the latest manufacturing data. June gold futures last traded at $2,333.30 an ounce, down 0.37% on the day. Read More
Gold up a bit on perceived bargain hunting
Gold prices are slightly higher and silver prices near steady in midday U.S. trading Wednesday. Still-bullish bargain hunters are mildly stepping back in to buy the present dips in prices. June gold was last up $2.90 at $2,345.00. May silver was last down $0.007 at $27.355.
The precious metals bulls are working to halt the downside price corrections presently in place. Downside price corrections in existing uptrends can be painful for the bulls, but they are a normal occurrence in all traded markets. Importantly, the price uptrends on the daily bar charts for gold and silver are still in place and have not been broken. More strong selling pressure in the near term would likely do such, to then begin to suggest near-term market tops are in place.
Technically, June gold futures bulls have the firm overall near-term technical advantage. They are keeping alive a nine-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at $2,370.00 and then at $2,400.00. First support is seen at today’s low of $2,344.90 and then at this week’s low of $2,304.60. Wyckoff's Market Rating: 7.0.
Image Source: Kitco News
May silver futures bulls have the firm overall near-term technical advantage. A two-month-old price uptrend on the daily bar chart is still alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $29.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $27.525 and then at $28.00. Next support is seen at today’s low of $27.06 and then at this week’s low of $26.715. Wyckoff's Market Rating: 7.0. Read More
Image Source: Kitco News
$35 billion Thai pension fund shifts assets to gold and oil to mitigate geopolitical risk
Wars, elections, and interest rate uncertainty have driven Thailand’s state pension fund out of capital markets and into gold, local media reported Wednesday.
The Thai government pension fund (GPF) is in the process of reducing investments in assets that may be affected by war and increasing investments in gold and oil to mitigate risk, GPF Secretary-General Songpol Chevapanyaroj told the Bangkok Post.
“This year, we will adjust investment proportions by reducing assets that could be affected by war and increasing investments in alternative assets such as gold and oil, which help to mitigate risk,” he said. Gold and oil currently account for about 5% of the GPF's portfolio. Read More
Gold declines as Middle East tensions subside, and investor’s focus shifts
Image Source: Kitco News
After Monday's dramatic $60 price decline, both spot and gold futures pricing has steadied with modest daily price declines. The primary force that took gold substantially lower in a single day was a direct result of an easing of risk premium connected to tensions in the Middle East.
According to Jim Wyckoff, senior analyst at Kitco Metals, "Market focus is back on economic reports and the Fed. If we see hot inflation data, then it is going to be harder for the Fed to cut rates and gold could drop to below $2,200."
Today's moderate decline occurred concurrently with U.S. dollar strength, which added to downward pricing pressure. The dollar index gained 0.12% to 105.879. Rising U.S. Treasury yields also created bearish headwinds for the non-interest-bearing gold, with the 2-year note yield rising 3.8 basis points to 4.496% and the 10-year note yield up 5.6 basis points to 3.662%. Read More
Texas says digital gold depository is an illegal MLM scheme
The Texas State Securities Board has moved to shut down a digital gold vault that it claims is actually an illegal international multilevel marketing (MLM) operation, according to a recent enforcement action published on its website.
“Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order to stop an international multilevel marketing scheme offering Texans the opportunity to invest in a digital gold vault,” the order said.
According to the Securities Board, Billionico Academy “began by promoting itself as an education platform that sold learning modules” but on April 19, 2024, the company started promoting investments in “a digital gold vault issued by Auratus, a precious metals firm purportedly operating in Hong Kong.”
“The order alleges the investments are being illegally and fraudulently offered in Texas and the respondents are threatening immediate and irreparable public harm,” they wrote. Read More
Chinese demand will continue to support the gold market after the sharp drop from record highs -Metals Focus
Gold has suffered significant losses this week as speculative investors focus on the Federal Reserve delaying its easing cycle until after the summer or even after the 2024 U.S. elections in November.
Although prices have room to move lower in the near term, one research firm noted that fundamental demand from Chinese and other Asian investors remains strong and should continue to support higher prices through 2024.
Gold demand in China has been so strong that retail investors have been paying an elevated premium since late 2023. The price premium for gold traded on the Shanghai Gold Exchange has traded consistently around $40 above the gold benchmark established by the London Bullion Market Association through the early part of 2024.
In a recent research report, analysts at Metals Focus noted that historically, Asian investors have sold into rising gold prices; however, this rally has been different as demand for physical bullion has remained strong as prices pushed to record highs above $2,400 an ounce. Read More
U.S. response to geopolitical flare-up is 'extremely inflationary,' record deficits already a massive problem for the Fed, Treasury – James Lavish
Any U.S. response to a sudden geopolitical flare-up will be "extremely inflationary," posing a massive problem for the Federal Reserve and U.S. Treasury, which are already facing 'monumentally irresponsible' record deficits, says James Lavish, Managing Partner at Bitcoin Opportunity Fund.
The U.S. government has been printing and spending money at a time when the Federal Reserve has been battling sticky inflation, Lavish told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "The government [is] spending $2.2 trillion more every year than we're taking in tax receipts," Lavish said. "We're running deficits that are record-size at a time when we're not even in a recession." Read More
Sharp daily declines don’t spell the end of gold’s bull run – OANDA’s Kelvin Wong
While gold has posted a pair of disappointing days this week, the technical picture still points to further price gains for the precious metal, according to OANDA Senior Market Analyst Kelvin Wong.
“The price actions of Gold (XAU/USD) have shaped the mean reversion decline after a test on the US$2,420 intermediate resistance,” Wong wrote. “It tumbled by -2.7% on Monday, 22 April, its worst daily performance since 13 June 2022 (almost two years), and continued to extend its losses in yesterday’s (23 April) Asian session.”
Wong noted that yesterday’s intraday low of $2,291 represents an accumulated loss of 5.8% from spot gold’s recent all-time high of $2,431 set on April 12.
“Now, the golden question for Gold (XAU/USD); can the bulls be revived or is it game over for its medium-term uptrend that kickstarted in mid-February 2024?” he asked. 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.
