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Gold Price News: Gold Steadies After Monday’s Fall
Gold prices were broadly steady on Tuesday, as the markets consolidated after Monday’s sharp drop.
Prices moved in a range of $2,606 to $2,644 an ounce on Tuesday, showing a much more stable pattern, compared with Monday’s hefty drop from as high as $2,719 an ounce.
Gold KAU/USD – 1hr view – Kinesis Exchange
The weakness at the start of the week came as stock markets were in a bullish mood, recovering from a bout of softness in mid-November. A recovery in higher-risk assets tends to put downward pressure on safe-havens like gold.
Geopolitical risk eases
Gold prices have also come under downward pressure as the geopolitical risk environment appeared to cool after the Israeli security cabinet voted in favour of a ceasefire deal to end fighting with Lebanese militant group Hezbollah, according to news reports on Tuesday. However, the situation continues to carry risk, and it remains to be seen if any talks can bring a permanent end to the hostilities.
Market positioning
Investment flows into gold-backed ETFs were more balanced in recent days, following signs of falling interest in late October and early November. North America saw inflows of 10.8 tonnes in the week to November 22nd while Europe saw outflows of 7.1 tonnes, according to World Gold Council data: Gold ETF: Stock, Holdings and Flows | World Gold Council. That compared with the previous week, which saw total net outflows of 23.6 tonnes. Read More
Silver Price News: Silver Ticks Higher After Sharp Fall
Silver prices made modest gains of around 0.8% on Tuesday, showing signs of stabilising after a more pronounced fall on Monday.
Prices moved in a range of around $30.07 to $30.73 an ounce on Tuesday, compared with a fall from as high as $31.40 an ounce on Monday.
Silver KAG/USD – 1hr view – Kinesis Exchange
Silver’s action largely mirrored activity in the gold markets at the start of the week, which similarly showed a sharp fall on Monday and a steadier market on Tuesday.
Safe haven appeal takes dip
The precious metals markets came under downward pressure at the start of the week as the financial markets appeared to go into ‘risk on’ mode, lifting stock markets and undermining support for safe-havens. Efforts to broker peace in the Middle East have temporarily taken the edge off investor interest in precious metals as safe havens.
Technical analysis
Silver’s slump on Monday has once again seen the grey metal test levels close to the psychological $30.00 an ounce mark. On the technical charts, silver is also testing rising oblique major support at $30.10 an ounce as of Tuesday. A rebound off this level could clear the way for a price recovery, while any convincing downside break below this trend line could leave silver exposed to further losses in the short-term. Read More
Spot gold nears session high after U.S. durable goods rise 0.2% in October
The gold market is trading near session highs after the latest economic data showed sales of durable goods came in below expectations in October.
The Commerce Department announced on Wednesday that U.S. durable goods orders rose 0.2% last month, following September’s unrevised decrease of -0.7%. The data was worse than expected, as the consensus view of economists called for a 0.5% increase.
Core durable goods, which strip out the volatile transportation sector, rose 0.1% in October, below the consensus forecast for a 0.2% increase. September’s core print was unrevised at 0.5%.
Meanwhile, non-defense capital goods orders excluding aircraft manufacturing fell -0.2% in October, well below the expectation for a 0.5% increase and September’s 0.7% print.
The gold market rose close to session highs following the better-than-expected economic data, which was released at the same time as the second estimate of U.S. Q3 GDP and weekly jobless claims. Spot gold last traded at $2,651.67 per ounce, up 0.71% on the session. Read More
Gold prices holding above $2,650 as Q3 GDP expands 2.8%
The U.S. economy continues to show resilient strength, as activity remained steady in the third quarter.
In its second reading of third-quarter GDP, the Bureau of Economic Analysis said the economy grew 2.8% between July and September, unchanged from the first print.
Economic growth remains down slightly from the 3% reported in the second quarter.
“The update primarily reflected upward revisions to private inventory investment and nonresidential fixed investment as well as downward revisions to exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down,” the report said. “Compared to the second quarter, the deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory investment and a larger decrease in residential fixed investment.”
The gold market is not reacting much to the latest economic data, as prices see a solid recovery from significant selling pressure at the start of the week. December gold futures last traded at $2,651.50 an ounce, up more than 1% on the day. Read More
Gold prices slide as U.S. pending home sales beat expectations with 2.0% rise in October
Hopes for a stabilizing U.S. housing market got a boost after the number of potential home buyers improved beyond expectations last month, according to the latest data from the National Association of Realtors (NAR).
The U.S. pending home sales index rose 2.0% in October, the NAR announced on Wednesday, after September’s 7.5% increase. The data was significantly better than forecasts, as economists expected a 2.0% decline. All four regions posted monthly gains in transactions, with the Northeast leading the way.
For the year, pending home sales rose 5.4% against expectations for a 3.9% increase, and following a 2.6% rise in September. All four regions also posted gains year-over-year, with the West registering the highest annual growth.
“Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”
Spot gold fell sharply in the minutes following the housing data, which was released at the same time as U.S. core PCE for October. It last traded at $2,640.80 per ounce, for a gain of 0.30% on the day. Read More
Gold price sees some selling pressure as annual PCE rises 2.8%
The gold market is losing ground, with prices dropping below $2,650 an ounce as inflation remains stubbornly elevated,
The U.S. Department of Commerce reported Wednesday that its core Personal Consumption Expenditures (PCE) index increased by 0.3% last month, compared to September’s increase of 0.3%. The data rose in line with expectations.
The report noted that in the last 12 months core inflation rose 2.8%, up from the previous reading of 2.7%.
Persistently elevated inflation appears to be taking its toll on the gold market as it sees its gains pared. December gold futures last traded at $2,642 an ounce, up 0.79% on the day. Gold prices were up above 1% ahead of the inflation data.
According to some economists, the rise in the Federal Reserve’s preferred inflation gauge could be enough to force the central bank to leave interest rates unchanged next month. Read More
Gold will benefit from Trump-induced geopolitical uncertainty - BCA’s Ibrahim
Elevated volatility is taking its toll on the gold market as prices struggle to attract consistent bullish momentum.
However, one research firm remains bullish on the precious metal and expects prices to continue rising as long as central banks maintain their gold-buying activity.
Gold prices have struggled as President-elect Donald Trump continues to promote his America-First policies, which have bolstered the U.S. dollar. However, in her latest report, Roukaya Ibrahim, Commodity Strategist at BCA Research, said these policies could ultimately backfire on Trump.
“The new U.S. administration’s use of ‘maximum pressure’ and ‘fire and fury’ tactics will cement EM central banks’ interest in raising the share of gold in their reserves. Therefore, we expect the tailwind to gold from central bank purchases – which remain elevated by historical standards – to persist going forward,” she said in the report.
In the current environment, the Montreal-based research firm recommends buying gold on dips as it maintains its long position.
“Gold is the major commodity that is best suited to benefit from the new U.S. administration’s policies. Increased global policy uncertainty will support demand for the yellow metal,” Ibrahim said. Read More
China's gold imports from Hong Kong fell 43% y/y in October, retailers see sharp declines
China's net gold imports through Hong Kong fell 4.6% in October from the prior month and were down 43% from the previous year, the Hong Kong Census and Data Department announced on Tuesday.
“The latest figures from Hong Kong Customs and Excise make interesting reading,” wrote StoneX Bullion analyst Rhona O’Connell. “The big outlier this month is China (which is always the country worth monitoring, for obvious reasons).”
O’Connell shared a table showing Hong Kong’s net imports and exports with its biggest trading partners.
“The China numbers show us that Hong Kong's net exports into China last month were down by 51% against the January-September average, although the absolute Export+Re-Export numbers, at 28t, were only down by 30%,” she said. “The reason for this is that there were 13t of imports into Hong Kong from China in October. It is well-known that domestic demand at the retail level has been sluggish due to the anaemic domestic economic recovery and thus an associated reluctance to spend on adornment jewellery,” although demand for investment grade jewelry, bars and coins remains stronger. Read More
Sticky inflation sparks dollar decline, boosting Bitcoin, altcoins, and gold
Cryptocurrencies roared back to life on Wednesday following Tuesday’s correction, while stocks traded underwater and gold experienced volatility after the latest Personal Consumption Expenditures (PCE) report showed that inflation remains sticky.
The latest reading of the Federal Reserve's preferred inflation gauge showed that while prices saw a marginal increase in October compared to the previous month, inflation remains well above the central bank’s 2% target, raising questions about whether their efforts have been effective.
“The Fed is about to face a policy quagmire, in my view,” said Tavi Costa, macro strategist at Crescat Capital. “With core PCE inflation now at 2.8%, today's data reaffirms that consumer prices are likely bottoming.”
“History suggests we might be witnessing the start of a second inflationary wave,” he warned. “What makes this situation unique is the Fed’s limited capacity to combat this second wave, as raising rates further could exacerbate the government’s already heavy debt burden.”
Gold, meanwhile, trended higher early in the day but fell under pressure in the afternoon as it continued to consolidate below the record high of $2,792/oz set at the end of October. At the time of writing, spot gold trades at $2,636.90 for a gain of 0.15% on the session. Read More
Gold gains as U.S Treasury yields dip, USDX solidly down
Gold prices are solidly higher in midday U.S. trading Wednesday. A sharply lower U.S. dollar index and a down-tick in U.S. Treasury yields at mid-week are boosting the yellow metal. Silver prices are weaker. December gold was last up $21.10 at $2,642.20 and December silver was down $0.27 at $30.135.
The U.S. Thanksgiving holiday is Thursday and U.S. markets are closed. Friday’s trade is likely to be more subdued and is usually one of the lightest-volume trading days of the year across the marketplace.
Technically, December gold bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $2,723.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,600.00. First resistance is seen at today’s high of $2,657.90 and then at $2,675.00. First support is seen at today’s low of $2,627.20 and then at this week’s low of $2,605.30. Wyckoff's Market Rating: 5.5.
Image Source: Kitco News
December silver futures bears have the slight overall near-term technical advantage. Bears are working to restart a price downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the November low of $29.75. First resistance is seen at today’s high of $30.75 and then at $31.00. Next support is seen at today’s low of $29.99 and then at $29.75. Wyckoff's Market Rating: 4.5. Read More
Image Source: Kitco News
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.
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