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Gold Price News: Gold Rally Runs Out of Steam
Gold prices ended little changed on Tuesday, with an initial currency-backed rally going into reverse in the afternoon session.
Prices briefly rallied as high as $2,200 an ounce on Tuesday, but fell back later in the day to trade at around $2,177 an ounce by late afternoon. That compared with around $2,173 an ounce in late trades on Monday.
Gold’s initial strength was helped by the US dollar, which weakened against other currencies on Monday and Tuesday, supporting dollar-denominated assets like gold. However, the dollar rebounded later, halting gold’s gains and sending prices back down sharply.
The price reversal was further compounded by US durable goods orders figures released Tuesday, which showed an increase of 1.4% in February, well above market expectations of a 1.1% gain. The figures pointed to a stronger-than-expected economy, working against expectations that the US Fed will start to cut interest rates in the coming months. Read More
Silver Price News: Silver Drifts In Quiet Trading
Silver prices eased slightly lower on Tuesday in a largely lacklustre day for the precious metal.
Prices touched a low of $24.40 an ounce before trading at around $24.47 an ounce by late afternoon. That compares with around $24.70 an ounce in late trades on Monday.
Prices did manage a modest rally through the middle of the day, taking a lead from a spike in gold prices. However, gold’s rally quickly went into reverse, putting downward pressure on silver prices though the afternoon session.
The day’s action was partly driven by currency effects, with the US dollar first falling in value against other currencies before rebounding later in the day, weighing on the precious metals complex.
All in all, silver’s moves on Tuesday were minor compared with last week’s dramatic surge to 11-month highs of over $25.75 an ounce, which came as the markets increased bets on US interest rate cuts in the coming months. Read More
Are high gold prices impacting Chinese demand? Bullion imports through Hong Kong cut in half last month
Sky-high gold prices may finally be impacting demand in the world’s second-largest economy and number-one bullion market, as the latest data showed China’s net gold imports from Hong Kong fell 48% last month.
Net imports from the Special Administrative Region were 39.826 metric tons in February, data from the Hong Kong Census and Statistics Department showed, far lower than the 76.248 tons imported in January and the lowest level since November 2023.
“It sounds as if international bank import quotas have been delayed as the government defended the currency and that is probably the key issue here,” StoneX analyst Rhona O’Connell told Reuters, adding that the country’s declining property market is spurring citizens to invest in gold. The People’s Bank of China (PBoC) sets the quotas that determine the amount of gold that commercial banks can import.
The low February numbers could also have been impacted by the Lunar New Year holidays, which shuttered markets and stopped most business activities between Feb. 10-17. The country saw very high demand for the yellow metal in the run-up to the New Year, with Chinese sellers fetching premiums as high as $55 per ounce above global spot prices. Read More
Silver can still outperform gold even as prices fall 1% below $24.50 - MKS
Silver continues to underperform within the precious metals market and has been unable to hold gains above $25 an ounce even as gold prices hold near their record highs.
Despite the disappointing price action, many analysts remain optimistic that silver will have its turn to shine in the spotlight.
Even with higher volatility, Nicky Shiels, head of metals strategy at MKS PAMP, said silver is building a solid floor above $23.50 an ounce. She added that she sees potential for the white metal to reach $28 an ounce this year.
The bullish outlook comes as gold prices hold solid support above $2,150 an ounce; spot silver has fallen to a one-week low, last trading at $24.36 an ounce, down more than 1% on the day. The gold/silver ratio remains elevated and is above 89 points. Read More
Gold’s essential role in economic and financial stability continues to prove out, research shows
Sovereign gold reserves continue to play an important part in the economic health and stability of many countries, according to a recent article by researcher and journalist Manuel Freire-Garabal y Núnez.
“Research findings have demonstrated that certain nations, including the United States, Italy, France, Switzerland, Japan, the Netherlands, and India, have consistently maintained consistent levels of gold reserves throughout their respective histories,” the author wrote in the Times of India report. “Gold reserves play an integral part in ensuring financial stability and facilitating strategic decision-making in various countries. In the context of economic difficulties, currency volatility, and geopolitical concerns, these reserves serve as a protective measure.”
The author said that the United States’ position in the global economy is also in large part founded on its substantial gold reserves. “The gold reserves of the country serve as a strong basis for its currency and enhance its status as a significant participant in global finance,” he said. “In a similar vein, nations such as Italy, France, and Switzerland have traditionally upheld substantial quantities of gold reserves.” Read More
Gold to hold the line near record highs for the rest of 2024 – Commerzbank
The gold market could see limited upside potential through the rest of 2024 as there is little to justify its recent record highs above $2,220 an ounce, according to commodity analysts at Commerzbank.
In her latest research report, Thu Lan Nguyen, head of commodity research at the German bank, said that she is skeptical that gold can run much further after rallying more than 9% in March.
However, she is also not expecting to see much downside for the precious metal as she modestly increases her year-end price target.
“Further upside potential is likely to be limited in the medium to long term. This is because a pronounced cycle of interest rate cuts in the US is unlikely, given the persistent risks of inflation. We have recently, therefore, ‘only’ raised our gold price forecast for the end of this year and the end of next year from USD 2,100 to USD 2,200 per troy ounce,” she wrote in her note. Read More
Gold futures soar to historic highs ahead of long weekend
Gold futures reached unprecedented heights on Thursday, with the June contract smashing through the $2,200 an ounce barrier to trade at a staggering $2,233 per ounce as of 6 PM EDT in New York. This remarkable surge propelled the precious metal to its highest value in history, fueled by a confluence of factors that have ignited a buying frenzy among investors.
Image Source: Kitco News
One of the primary catalysts behind gold's meteoric rise has been the growing optimism surrounding potential rate cuts by the Federal Reserve. In both the December and March meetings of the Federal Open Market Committee (FOMC), the central bank released its Summary of Economic Projections (SEP), a document that outlines the voting members' expectations for future interest rates. Read More
Gold sees decent gains on technical buying
Gold prices are posting double-digit gains in midday U.S. trading Wednesday, supported by a fully bullish technical posture that is prompting chart-based speculators to play the long side of the market. Silver prices are slightly up. April gold was last up $13.80 at $2,191.10. May silver was last up $0.087 at $24.71.
It was a quieter trading affair at mid-week. However, it’s a very busy U.S. data release schedule Thursday, including U.S. Q4 GDP data as well as a major USDA crop planting intentions report. U.S. markets are closed Friday for the Good Friday holiday, but personal income and outlays, including PCE inflation data, will be released that day.
Technically, April gold futures bulls have the solid overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract and record high of $2,225.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,149.20. First resistance is seen at $2,203.00 and then at the contract high of $2,225.30. First support is seen in today’s low of $2,172.10 and then at this week’s low of $2,164.40. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
May silver futures prices hit a two-week low today. The silver bulls have the overall near-term technical advantage but are fading a bit. Silver bulls' next upside price objective is closing prices above solid technical resistance at the March high of $25.975. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week’s high of $25.055 and then at $25.50. Next support is seen at today’s low of $24.445 and then at $24.22. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Currency risks will drive gold and silver sky-high by year-end – BMO Capital Markets
While gold and silver prices may continue to consolidate in the near term, the rally in the precious metals sector is only getting started, according to commodity analysts at BMO Capital Markets.
In a report published Wednesday, the Canadian bank announced a significant upgrade for its gold and silver price projections for the next three years, with the high-water mark in the final quarter of 2024. The bank’s commodity analysts see gold prices averaging this year around $2,169 an ounce, up 11% from its previous forecast.
At the same time, they see gold prices averaging next year around $2,100 an ounce, a 12% increase from December’s estimates. Gold prices are expected to average around $2,000 an ounce in 2026 and $1,950 in 2027, an increase of 8% and 3%, respectively from the December estimates.
Looking at silver, BMO sees the white metal averaging around $25.60 an ounce this year, up 13% from the December forecasts. 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.
