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Gold Price News: Gold Prices Nudge Lower In More Subdued Trading
Gold prices edged lower in the first two days of the week, in relatively quiet trading compared with the hefty gains seen last week.
Prices briefly edged as low as $1,955 per ounce Tuesday, before rising as high as $1,975 later in the session. That compares with a sharp rally the previous week when prices jumped from $1,911 to $1,997 per ounce – a gain of 4.5%.
The strong gains reflected increased interest in safe-haven assets amid heightened geopolitical tensions in the Middle East, with the ongoing conflict in Palestine and Israel adding a risk premium to precious metals due to the potential for hostilities spreading more widely in the region. Moreover, these risks are increasing the chances that the US Federal Reserve will keep rates at the current level, rather than hiking them, in the final meetings this year.
The slight pullback in prices so far this week may indicate a lower risk of a wider conflict, at least for the time being. Nevertheless, the markets are likely to remain on edge due to the ongoing conflict. Read More
Silver Price News: Silver Prices Dip On Profit-Taking
Silver prices fell back below the $23.00 per ounce level on Tuesday, adding to the modest losses seen on Monday.
The dominant theme appeared to be profit-taking after the previous week’s sharp gains, which saw prices rally to a one-month-high.
Prices briefly eased as low as $22.74 per ounce before rebounding to touch the $23.00 level later in the day. That compares with a high of $23.36 on Monday.
Silver prices, to some extent, took a lead from moderately weaker gold prices at the start of the week, which came as the market took a breather, after a three-week-long rally.
German GfK Consumer Confidence figures for November released Tuesday came in slightly below forecasts, lending a bearish tone to the market. Approximately 50% of the demand for silver comes from the industrial sectors, making economic data a key input for prices. Read More
Gold prices consolidating just below $2,000, caught between opposing forces
Sentiment in the gold market has turned significantly bullish as renewed safe-haven demand due to rising geopolitical uncertainty pushed prices back to $2,000 an ounce; however, some analysts are warning that the price is a little overstretched and could be starting a new consolidation pattern.
Analysts have said that investors and traders need to keep an eye on support around $1,950 an ounce. Gold prices have managed to hold initial support, but some analysts have said that $2,000 could provide near-term resistance as U.S. bond yields remain elevated just below 5%.
December gold futures last traded at $1,989.30 an ounce, up 0.14% on the day.
"The price action for the precious metal is caught in a tussle between two opposing forces," said Ricardo Evangelista, senior analyst at ActivTrades.
"On the one hand, despite growing hopes of a diplomatic solution, geopolitical instability and the threat that the conflict in Israel and Gaza could envelop the entire region continue to drive haven demand for the precious metal, a dynamic accentuated by fears of a recession in Europe, after the release of disappointing PMI data on Tuesday," Evangelista added. "However, the upside for bullion has been limited following the release of better-than-expected U.S. economic data that led to the overnight strengthening of the US dollar, supported treasury yields, and dented the appeal of the non-yielding gold." Read More
Gold holding near session highs against the Canadian dollar after BoC leaves interest rates unchanged at 5%
The gold market is holding its ground near session highs against the Canadian dollar as the Bank of Canada continues to focus on fighting inflation.
Thursday, the Bank of Canada announced that it would leave interest rates unchanged at 5.00%, in line with expectations. The central bank said that it is leaving rates unchanged as a slowing economy continues to cool inflation pressures.
"In Canada, there is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures," the BoC said in its monetary policy statement. "Overall, a range of indicators suggest that supply and demand in the economy are now approaching balance."
However, the central bank also noted that it needs to be vigilant in its fight to bring inflation down to 2% as consumer prices remain relatively stubbornly elevated. Read More
Gold ETF performance suggests a Bitcoin ETF could see $14.4 billion in year-one inflows - Galaxy Digital
The prospect of the first spot Bitcoin (BTC) exchange-traded fund (ETF) launching on U.S. markets has brought a fresh wave of momentum to the cryptocurrency ecosystem as investors have moved to position themselves ahead of a possible influx of trillions of dollars worth of institutional money into digital assets.
As analysts work to predict what level of interest a spot BTC ETF will see after its launch, some are using the performance of gold ETFs to try and help anticipate the amount of inflows that a Bitcoin ETF would see in its first year and the effect that will have on BTCs price.
In August, Bitwise Chief Investment Officer Matt Hougan said his firm estimates U.S. spot BTC ETFs could see $55 billion in net flows in their first five years on the market, and suggested these products could eventually reach the level of assets under management as gold ETFs.
On Tuesday, Hougan tweeted a graphic that shows more people buy gold bars than gold ETFs. “ETFs were a game-changer for gold because they brought new investors and new demand into a market with relatively fixed supply,” he said. “Sound familiar?” Read More
LBMA faces challenges as it looks to establish gold as a High Quality Liquid Asset
Gold has established itself as a store of value for thousands of years; however, the London Bullion Market Association says it faces further work to establish it as an important financial asset within the larger global marketplace.
After helping bullion banks avoid a funding crisis because of Basel III regulation, the LBMA said they are now focused on getting physical gold recognized as a High-Quality Liquid Asset (HQLA).
According to the Basel Framework, laid out by the Bank of International Settlements (BIS), financial institutions must hold HQLA to cover their total net cash outflows over a 30-day period under the stress scenario.
"In order to qualify as HQLA, assets should be liquid in markets during a time of stress and, ideally, be central bank eligible,” according to the Basel Framework. Read More
Modest price gains for gold as bulls still have strength
Gold prices are mildly higher and silver mildly lower in midday U.S. trading Wednesday. Chart consolidation is the feature in both metals this week, but the bulls still hold the upper technical hand at present. December gold was last up $5.10 at $1,991.90. December silver was last down $0.111 at $23.005.
Trader and investor attention is no longer keenly fixated on the Israel-Hamas war. That means more normal market factors are in play. Today, the precious metals markets are seeing buying interest limited due to this week’s rally in the U.S. dollar index and an uptick in U.S. Treasury yields at mid-week.
Technically, December gold futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $2,009.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,920.00. First resistance is seen at $2,000.00 and then at $2,009.20. First support is seen at today’s low of $1,973.60 and then at this week’s low of $1,964.60. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
December silver futures bulls have the overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart, but bulls need to show fresh power soon to keep it alive. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at $21.60. First resistance is seen at this week’s high of $23.505 and then at last week’s high of $23.88. Next support is seen at today’s low of $22.69 and then at $22.50. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Gold holds just below $2000 as investors wait for key economic reports
As of 4:00 PM EDT, gold futures basis the most active December contract is up $5.80 and fixed at $1992. Gold futures did trade to $1998.60, just $1.40 under the key psychological of $2000 per ounce. On Friday, October 20 gold futures traded to an intraday high of approximately $2008. However, the move was unsustainable with gold closing at $1994.40. Today's high is the closest gold has traded to that elusive benchmark since.
Gold's gain of $5.80 was more than respectable in light of dollar strength today. The dollar is currently up 0.26% and fixed at 106.35. Dollar neutrality would have in essence doubled the gain in gold today. Physical gold prices were much more robust today with a net gain of $9.60 taking spot gold to $1980.10. On closer inspection, investors were active buyers bidding up gold by $14.90 and dollar strength reducing the net gain by $5.30, according to the Kitco Gold Index (KGX).
Gold pricing is still being supported by the geopolitical crisis and war in Israel. The ongoing conflict continues to drive investment dollars into safe-haven assets. Possibly one explanation for both gold and the dollar moving higher today. 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.
