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Gold Price News: Gold Price Jumps As US Treasury Yields Fall
Gold prices rose sharply on Friday, amid a marked drop in US Treasury yields.
Prices rose as high as $2,040 an ounce in late deals Friday, rebounding off a low of $2,016 an ounce seen in the morning session. That compared with around $2,025 an ounce in late deals on Thursday.
The trigger for gold’s sudden gains appeared to be a sharp drop in US Treasury yields on Friday. The yield on 10-year bond notes fell from 4.35% to 4.25% within the day, reversing gains seen on Tuesday and Wednesday.
Falling treasury yields are bullish for gold because they reduce the opportunity cost of holding non-interest-bearing assets like precious metals.
Adding another element to the bullish sentiment, US bank Goldman Sachs on Thursday published a report forecasting that gold prices will rise 6% in the coming 12 months. The bank’s analysts cited an expected continuation of robust central bank purchasing and strong retail demand in emerging markets as key reasons for the forecasted price rise. Read More
Silver Price News: Silver Rebounds to $23.00 Following Gold's Strength
Silver prices rebounded late Friday to pare the losses seen earlier in the week, taking a lead from a late rally in gold markets.
Prices climbed back to just above the $23.00 an ounce mark in late deals on Friday, up from an intraday low of $22.58 an ounce.
The strength for precious metals markets came as US Treasury yields took a sharp downturn on Friday, boosting the appeal of non-interest-bearing assets.
Looking at the week as a whole, silver prices lost ground, in sharp contrast to gold prices, which ended the week with solid gains. However, Friday’s rebound for silver helped to mitigate the week-on-week losses, which were pegged at around 2.2%. Read More
Central banks are turning to gold as they lose faith in bonds - ANZ
Central banks have been solid gold buyers for more than a decade; however, their appetite has become insatiable in the last two years as global reserves have risen by more than 1,000 tonnes in both 2022 and 2023.
Commodity analysts at ANZ noted that in the last two years, central bank gold purchases as its share in global demand has tripled, representing between 25% and 30%.
Although the pace of purchases could slow from the current record pace, the Australian bank expects central bank demand to remain a dominant factor in the gold market for at least the next six years. Read More
Boring gold faces tough competition from euphoric equity markets next week
While the gold market is ending the week with modest gains, it remains caught in its weeks-long channel as resistance at $2050 an ounce continues to hold.
The gold market continues to attract investor attention even after imminent rate cuts were taken off the table, as the Federal Reserve has signaled that it will ease its monetary policy this year. Many analysts and economists expect the central bank to embark on its new easing cycle in June.
As of 1:20 p.m. ET, April gold futures were trading at $2,048.50 an ounce, up 1% from last week.
Analysts remain bullish on gold as rates will inevitably move lower; however, according to some, gold could continue to struggle as many investors look for excitement in equity markets. Other analysts believe that the S&P 500’s continued push into blue sky territory also presents an opportunity for the precious metal. Read More
Gold market remains under pressure as U.S. new home sales rise 1.5% in January, missing expectations
The gold market continues to tread water above $2,000 an ounce but is unable to attract any new bullish momentum even as the U.S. housing sector remains weak.
New home sales increased 1.5% last month to a seasonally adjusted annual sales rate of 661,000 homes, down from December’s downwardly revised increase of 651,000, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said on Monday.
The sales rate was slightly weaker than expected, as consensus forecasts looked for a sales rate of 681,000.
The gold market is largely ignoring further weakness in the U.S. housing sector. April gold futures last traded at $2,036.50 an ounce, down 0.63% on the day. Read More
Gold and silver frustrating bearish and bullish hedge funds
Solid support in gold and silver is frustrating some bearish hedge funds. Both precious metals saw some short-covering momentum last week, according to the latest trade data from the Commodity Futures Trading Commission.
The CFTC's disaggregated Commitments of Traders report for the week ending Feb 20 showed money managers decreased their speculative gross long positions in Comex gold futures by 1,802 contracts to 98,840. At the same time, short positions fell by 17,549 contracts to 48,917 contracts.
The short covering improved gold’s bullish position from last week’s two-month low. The market is now net long 49,923 contracts. During the survey period, gold prices managed to test resistance at $2,050 an ounce but did not have enough momentum to break the resistance level.
Although silver saw a more significant short squeeze than gold, it still didn’t have enough momentum to break its bonds above $23.50 an ounce. Read More
Gold, silver down on technical selling
Gold and silver prices are lower in midday U.S. trading Monday. Chart-based selling is featured in a quieter marketplace to start the trading week. The precious metals markets traders are looking for a fresh fundamental spark to drive price action. April gold was last down $11.90 at $2,037.50. March silver was last down $0.452 at $22.525.
U.S. stock index futures are narrowly mixed at midday but not far below the record highs scored Friday. The recent stock market rally has been a negative for the safe-haven metals, amid the better risk appetite in the marketplace.
Technically, April gold futures bears have the slight overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the February high of $2,083.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at today’s high of $2,046.80 and then at last week’s high of $2,053.20. First support is seen at last Friday’s low of $2,025.40 and then at $2,007.60. Wyckoff's Market Rating: 4.5.
Image Source: Kitco News
March silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $23.56. The next downside price objective for the bears is closing prices below solid support at the February low of $21.975. First resistance is seen at $23.00 and then at $23.20. Next support is seen at $22.40 and then at $22.00. Wyckoff's Market Rating: 3.5. Read More
Image Source: Kitco News
Live From The Vault - Episode: 161
40 Million ounces of COMEX gold vaporised!
In this week’s episode of Live from the Vault, Andrew Maguire tackles a burning question from a US-based bullion dealer: is it possible that the Federal Reserve could try and confiscate your hard-earned gold savings?
The precious metals expert provides an update on the effects of Bitcoin ETFs on the gold price and comments on the strong geopolitically-driven demand for precious metals. Finally, Andrew shares some very good news for Silver Stackers.
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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.
