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Silver Price News: Silver Rebounds To Test 11-Year Highs
Silver prices were moderately higher on Tuesday, adding to Monday’s hefty gains as the metal rebounded close to recent 11-year highs.
Prices rose as high as $32.33 an ounce on Tuesday, before edging back down to around $31.90 an ounce later in the session. That compared with around $31.65 an ounce on Monday, when prices rallied by more than a dollar an ounce.
The bullish moves for silver prices so far this week contrasted with gold, which looked more subdued at the start of the week, following the previous week’s significant slump.
Silver’s rebound to around $32.00 an ounce this week means the price has returned to within striking distance of its recent 11-year highs of just over $32.60 an ounce. Read More
Gold Price News: Gold Nudges Higher, Struggles Above $2,360
Gold prices edged slightly higher on Tuesday, with the market largely in consolidation mode after last week’s sharp losses.
Prices nudged higher to $2,364 an ounce on Tuesday before easing back to $2,356 an ounce later in the day. That compared with around $2,353 an ounce in late deals on Monday.
The gold market appeared to be in wait-and-see mode ahead of economic data set for release later in the week.
Thursday will see US GDP growth figures released for Q1, as well as weekly initial jobless claims figures. Then on Friday, the markets will be watching out for the latest US PCE price inflation figures, all of which will play into expectations of interest rate changes by the US Fed as it tries to bring inflation down to target levels before cutting rates. Read More
The gold price rally is not over; UBS is calling for $2,700 by next year
Although gold is finding some sticky resistance around $2,400 an ounce, the rally in the precious metals market is far from over, as one Swiss bank has increased its price forecast across the board.
In its updated gold market outlook, published last week, commodity analysts at UBS said they expect gold prices to run to $2,500 an ounce by September and hit $2,600 an ounce by year-end; the forecasts are up from the original estimates of $2,400 and $2,500 an ounce, respectively.
At the same time, UBS also released its 12-month forecast, predicting that gold prices will rise to $2,700 an ounce by June 2025.
(Kitco News) - The analysts said they see three factors supporting gold's 12-month uptrend, with the first pillar of support coming from the Federal Reserve. Although the U.S. central bank has been reluctant to signal a rate cut anytime soon as inflation remains elevated, UBS said that it's only a matter of time before interest rates start to fall. Read More
Gold investors need to buy the dip because that is what central banks are doing - WisdomTree
Although gold has found solid resistance around $2,400 an ounce, investors should not expect to see any major correction any time soon, according to one market strategist.
Insatiable central bank demand has transformed the gold market, providing solid support for the precious metal. In an interview with Kitco News, Nitesh Shah, Head of Research at WisdomTree, said he expects this demand to stay strong for a while.
Shah expects the gold market to form an interesting pattern in this environment. He explained that while central banks aren’t necessarily concerned with prices, they can still make strategic purchases.
“My guess is that every price dip they see, they'll be buying. Maybe they slowed down the purchase a little bit in response to the high prices, but they know if they want cheaper prices, they need to load up now before the end of the year,” he said. Read More
Gold pressured by bearish outside markets, hawkish ‘Fedspeak’
Gold prices are solidly lower and silver prices up just a bit in midday U.S. trading Wednesday. The precious metals markets are feeling the bearish effect of comments Tuesday by Minneapolis Fed President Neel Kashkari, who leaned hawkish in his comments on U.S. monetary policy. He said U.S. interest rates will be held steady as long as needed, or even raised if necessary. Bearish daily “outside market” forces are also limiting buying interest in the metals markets at mid-week, as the U.S. dollar index is firmly higher, crude oil prices are weaker and U.S. Treasury yields are on the rise. June gold was last down $14.90 at $2,341.60. July silver was last up $0.093 at $32.22.
Silver prices shot sharply higher Tuesday and challenged the recent 11-year high. Frank Watson of Kinesis says: “Silver’s dual role as a precious and industrial metal means it has also benefited from the current environment of reasonably strong economic growth and high inflation, boosting precious metals as a hedge against rising costs, at the same time as market expectations of interest rate cuts later this year which would reduce the opportunity cost of holding non-interest-bearing assets.”
Technically, June gold futures bulls have the overall near-term technical advantage but have faded. A bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,454.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,285.20. First resistance is seen at this week’s high of $2,365.50 and then at $2,375.00. First support is seen at last week’s low of $2,326.30 and then at $2,315.00. Wyckoff's Market Rating: 6.0.
Image Source: Kitco News
July silver futures bulls have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at the overnight high of $32.515 and then at $32.75. Next support is seen at $31.50 and then at $31.00. Wyckoff's Market Rating: 8.0. Read More
Image Source: Kitco News
Gold Tumbles as Stronger Dollar, Rising Yields Cast Doubt on 2023 Rate Cuts
Gold prices fell sharply on Thursday, as U.S. dollar gains and climbing Treasury yields sparked concerns over the Federal Reserve's anticipated path of interest rate cuts this year.
The precious metal's decline came ahead of a critical inflation report due on Friday, with investors bracing for potential surprises that could force the Fed to recalibrate its monetary policy outlook.
At the center of attention is the Personal Consumption Expenditures (PCE) price index for April, set to be released by the Bureau of Economic Analysis (BEA). The core PCE is the Fed's preferred inflation gauge, capturing changes in consumer spending across a wide range of goods and services.
Treasury yields surged on Thursday, reflecting muted demand at this week's $183 billion bond auctions, as investors grew wary of persistent inflationary pressures amid improving economic growth prospects. Read More
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.
