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Silver Price News: Silver Sees Fortunes Reverse on Russia Rebellion
Silver has enjoyed a sharp reversal of its fortunes on the back of the drama playing out in Russia following the aborted rebellion by Yevgeny Prigozhin’s Wagner Group.
Suddenly market attention has moved away from interest rates and onto what is happening in Russia, a key producer of many of the world’s commodities, including silver, but also a nuclear superpower that has been responsible for the first war in Europe for a couple of decades.
The initial market reaction has been clear to see with investors looking to get risk off the table but with Russia sitting outside most people’s portfolios following its invasion of Ukraine last year, the direct impact on investors is much more muted. Read More
Gold Price News: Gold Gets Boost From Dramatic Weekend in Russia
Gold has perked back up following the weekend’s dramatic developments in Russia as investors seek out the precious metal’s safe-haven appeal once again.
Just days after looking set for a period of steady decline as the bearish factors for gold outweighed the bullish ones, uncertainty over how the Ukrainian war will now play out and the prospect of an internal battle within Russia have sharply reversed gold’s fortunes.
How long-lasting this boost to the gold price proves will be determined by how widespread the butterfly effect of the aborted rebellion by Yevgeny Prigozhin’s Wagner Group turns out to be. If this proves to be the beginning of the end for President Vladimir Putin’s totalitarian control on Russia, then the resultant uncertainty is likely to keep gold supported in the medium-term with investors wanting to keep some risk off the table. Read More
Gold will rise with dollar as 'violent' global debt crisis unfolds, de-dollarization will take at least a decade - Brent Johnson
The dollar will gain strength relative to other currencies, along with gold, as a "violent" global debt crisis unfolds. That is according to Brent Johnson, Founder and CEO of Santiago Capital.
Johnson, who created the Dollar Milkshake Theory, said that "there is no alternative to the dollar" when it comes to international trade and debt agreements.
"I think that in that scenario [a global sovereign debt crisis], despite all the protestations to the contrary… the dollar will be seen as the cleanest dirty shirt," he told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "Investors and entities around the world will seek out dollars as a safe haven in that environment."
Johnson said that a global sovereign debt crisis is highly likely given "the growth of debt in the world," and the aftermath of a credit crunch. Read More
Failed insurrection in Russia shows how fragile the global social fabric is, which will support long-term gold prices
The gold market is starting the week on a slightly positive note, and while it may not be catching a major safe-haven bid after a 24-hour insurrection in Russia, analysts said that gold should remain a vital portfolio diversifier in times of heightened uncertainty.
The gold market remains under the critical psychological level at $1,950 an ounce after mercenaries with the Wagner Group, led by Yevgeny Prigozhin, launched an armed rebellion and marched to within 200 kilometres of Moscow during the weekend.
August gold futures last traded at $1,936 an ounce, up 0.34% on the day.
The rebellion ended nearly as quickly as it started as Moscow made a deal with Prigozhin, exiling him to Belarus and offering amnesty to Wagner's professional soldiers if they stood down.
Although Vladimir Putin remains the leader of Russia, according to many political analysts, his iron grip on power has weakened significantly in the last 24 hours.
Jeffrey Christian, managing director of CPM Group, said with the attempted coup failing, gold prices in the next few days could see some short-term selling pressure as cooling geopolitical fears reduce the precious metal's safe-haven allure.
However, he added that long-term, the instability seen during the weekend should provide long-term support for the precious metal. Read More
Gold, silver see mild safe-haven demand after Russia revolt
Gold and silver prices are higher, with silver solidly up, in midday U.S. trading Monday. Some safe-haven buying is featured following an aborted insurrection in Russia over the weekend that has left the nuclear-armed nation’s military destabilized and has the rest of the world wondering what happens next. August gold was last up $5.50 at $1,935.20 and July silver was up $0.521 at $22.875.
Geopolitics is back on the front burner of the marketplace following the weekend coup attempt in Russia that has at least temporarily been averted. Still, risk aversion is a bit higher to start the trading week. It’s apparent to most that Russian President Putin has seen his once-powerful authoritarian grip on his country loosened significantly, which has likely destabilized the Russian military. The marketplace will continue watching this situation very closely as its geopolitical implications are huge.
Technically, August gold futures were up $6.30 at $1,936.00 in afternoon trading and near mid-range. Short covering was featured after prices hit a 13-week low last Friday. Bears have the slight overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,960.00. First support is seen at last week’s low of 1,919.50 and then at $1,910.00. Wyckoff's Market Rating: 4.5.
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July silver futures were up $0.523 at $22.88 at midday and near the session high. Short covering was seen after prices hit a three-month low last Friday. The silver bears still have the overall near-term technical advantage. A choppy, six-week-old price downtrend is in place on the daily bar chart. Silver Bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $23.00 and then at $23.23. Next support is seen at today’s low of $22.435 and then at the June low of $22.14. Wyckoff's Market Rating: 4.0. Read More
Image Source: Kitco News
State Street Global Advisors sees healthy demand for gold and investors are getting younger
Significant risks that the global economy will fall into a recession as central banks worldwide continue to raise interest rates aggressively will provide long-term support for the gold market, according to the latest research from State Street Global Advisors.
The firm's latest gold investment study, published Monday, showed that investors have become a lot more tactical in their investment strategy, opting for low-cost precious metals products. State Street's latest study was published in recognition of the fifth anniversary of the launch of SPDR Gold MiniShares Trust (NYSE: GLDM).
The firm noted that GLDM has become a leader among low-cost gold ETFs in the market, with assets under management growing to $6.2 billion in the last five years.
"Since its launch, GLDM has grown to be the third largest gold ETF in the U.S.," State Street said in its report.
Currently, the mini-ETF holds 100.58 tonnes of gold with inflows of 12 tonnes so far this year. The world's largest ETF, SPDR Gold Shares (NYSE: GLD), has seen inflows of 9.46 tonnes of gold year-to-date.
"At just 10 basis points, GLDM has proven to be a great low-cost choice for long-term buy and hold investors seeking access to the benefits of gold," said George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors.," said George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors in the report. "With recession risk still looming, the allure of gold as an investment in today's market environment continues to be very strong." Read More
Gold rattled by central banks' rate outlook but geopolitics could re-ignite price rally - analysts
The gold market is looking to end June down around $47 — its worst month since February. The precious metal is reacting to central banks doubling down on hawkish rhetoric and ignoring Russia's turmoil. But some analysts see geopolitics playing a more significant role in driving the gold price.
In response to the events in Russia, gold had paused its selloff, finding support for the time being.
"Gold has perked back up following the weekend's dramatic developments in Russia as investors seek out the precious metal's safe haven appeal once again," said Kinesis Money market analyst Rupert Rowling. "Just days after looking set for a period of steady decline as the bearish factors for gold outweighed the bullish ones, uncertainty over how the Ukrainian war will now play out and the prospect of an internal battle within Russia have sharply reversed gold's fortunes."
It is still unclear how permanent of a role the geopolitical triggers will play within the gold space, Rowling said. "If this proves to be the beginning of the end for President Vladimir Putin's totalitarian control on Russia, then the resultant uncertainty is likely to keep gold supported in the medium-term with investors wanting to keep some risk off the table," he said.
Some analysts see the turmoil in Russia as lowering the overall risk appetite and igniting the safe-haven gold trade. 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.
