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Gold Price News: Gold Prices Hit 7-Month High As Dollar Dips
Gold prices surged to a seven-month high of $2,040 an ounce Tuesday — their highest price since early May.
The latest price driver for gold appeared to be continued weakness in the US dollar, which again dropped in value against other major currencies on Tuesday, including the euro, UK pound and Canadian dollar.
The further drop comes in a month in which the value of the US dollar has fallen from just under 95 euro cents to less than 91 euro cents, in a bullish move for dollar-denominated assets such as gold and silver.
The gains have left gold prices very close to their May 2023 levels of almost $2,045 an ounce.
Recent economic data from the US has painted a picture of a soft economy, leading to expectations that the US Fed will not raise interest rates any further. Moreover, the markets appear to be anticipating potential rate cuts in 2024, and this is broadly supportive of non-yield-bearing assets like gold. Read More
Silver Price News: Silver Posts Fresh Three-Month High
Silver prices made further gains Tuesday, rising to $25.00 an ounce – their highest level since September 1st.
The latest increase took prices to a three-month-high, with the uplift coming against a backdrop of rising gold prices, which hit a seven-month-high Tuesday.
A further drop in the value of the US dollar gave a lift to dollar-denominated assets like gold and silver, with the US currency having shown a sharp drop against other major currencies through much of November.
The weaker dollar came in response to recent speeches by US Fed officials, which gave further weight to expectations that the Federal Reserve has not only concluded its cycle of interest rate hikes but may slash rates as early as spring 2024. Such a scenario would be expected to provide support for precious metals as it would reduce the opportunity cost of holding non-interest-bearing assets. Read More
Gold prices and rate cut expectations rise after Fed's Waller says he sees inflation falling in Q4
Federal Reserve Governor Christopher Waller has given gold prices a boost on Tuesday after a speech in which he listed several indications that inflation was indeed continuing to retreat back toward the central bank’s 2% target.
Speaking at the American Enterprise Institute, Waller began by referring back to his speech in October, entitled ‘Something's Got to Give,’ in which he observed “strong economic growth and employment data” in Q3, alongside “clear moderation in core personal consumption expenditures (PCE) inflation.”
“While this was good news for employment growth, the pace of real economic activity seemed inconsistent with continued progress toward the Federal Open Market Committee's (FOMC) goal of 2 percent inflation,” he said. “It seemed clear to me then that something had to give— for inflation to continue falling to our 2 percent target, the economy needed to slow from its torrid third-quarter pace. If it did not cool off, then it was likely that progress on inflation would stop or even reverse. So, what remained to be seen was whether the economy would cool or inflation would heat up.” Read More
Gold will shine in summer, oil shock could send spot prices above $2,400/oz - Bank of America
Steel will be the strongest trade in the first quarter of 2024, and base metals will rally during the second half of the year, but summer will be gold’s time to shine, according to metals strategists at Bank of America.
In their recently published Metals and Mining Outlook for 2024, the BofA analysts said that while the war in the Middle East has boosted gold in the near term, “the yellow metal ultimately remains a trade on rates, so once the Fed announces a decisive end to the hiking cycle in 2Q, new buyers should come into the market.”
If the Fed cuts earlier, they believe gold could finish 2024 at $2,400 per ounce.
“Gold prices have held up against the backdrop of sharply higher US rates in recent weeks,” they wrote. “Exhibit 73 highlights that a visible gap has opened up between the assets – a development market participants are increasingly picking up on. While we acknowledge the dislocation, that chart comes with a significant caveat: Exhibit 74 shows that our traditional gold price model, which runs on US 10-year real rates and the dollar, continues to perform well.” Read More
At its current pace gold could hit new all-time highs in 10 days according to MKS' Nicky Shiels
The gold market has moved within striking distance of a critical long-term resistance point, and according to one market analyst, there has been no clear catalyst behind this new push.
In a note Tuesday, Nicky Shiels, head of metals strategy at MKS PAMP, said that if gold’s technical momentum remains at the current pace, prices could reach all-time highs within ten days. December gold futures last traded at $2,044.20 an ounce, up 0.21% at the start of the new trading session.
“Since the $1930 bottom/floor, gold has rallied at a pace of +$8/day ($88 in 11 days at the time of writing). If it keeps up that rate, that gets prices to $2100 in 10 days,” she said. That seems pretty soon, but markets have proven to trend until they don’t, and the path of least resistance is up, not down.”
Shiels noted that the gold rally comes as geopolitical safe-haven demand starts to wane, with no clear bullish narrative in the marketplace. Read More
Gold prices see some limited selling pressure as U.S. GDP grew 5.2% in Q3
The gold prices have lost some ground from its overnight highs above $2,050 an ounce as the market reacts to stronger than expected economic activity in the third quarter.
Wednesday, the Bureau of Economic Analysis said the second print of third quarter GDP showed that the economy grew 5.2% between July and September, up from the previous estimate of 4.9%.
“The update primarily reflected upward revisions to non-residential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending,” the report said.
Activity was slightly stronger than expected, as consensus forecasts were looking for an increase of 5.0%.
The gold market is down from its overnight highs but is seeing some modest selling pressure in reaction to the positive economic data. December gold futures last traded at $2,038.50 an ounce, roughly unchanged on the day. Read More
Gold, silver posting modest gains amid bullish technicals
Gold and silver prices are firmer near midday Wednesday. February gold futures hit a six-month-high overnight, while March silver notched a three-month-high. The two precious metals are being boosted by increasingly bullish near-term chart postures. A recently slumping U.S. dollar index that overnight hit a 3.5-month low is also a bullish outside market element for the metals markets. February gold was last up $3.90 at $2,064.10. March silver was last up $0.138 at $25.44.
U.S. economic data released today had little impact on the gold and silver markets. The second estimate of third-quarter GDP came in just a little higher than the first estimate. The personal consumption expenditures (PCE) inflation readings were just slightly less than the first GDP estimates.
Technically, February gold futures prices hit another six-month high today. The bulls have the firm overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $2,100.00. 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 $2,072.70 and then at $2,085.00. First support is seen at $2,050.00 and then at $2,039.70. Wyckoff's Market Rating: 7.0.
Image Source: Kitco News
March silver futures prices hit a three-month-high today. The silver bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $26.10. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today's high of $25.68 and then at the August high of $25.775. Next support is seen at $25.00 and then at this week's low of $24.68. Wyckoff's Market Rating: 7.0. Read More
Image Source: Kitco News
Silver prices will see steady support from EV, solar in 2024, could spike with industrial rebound - Bank of America
Silver prices will benefit from the growing demand for EVs and solar panels in 2024, and could also get a boost from a potential rebound in industrial demand, according to metals strategists at Bank of America.
In their recently published Metals and Mining Outlook for 2024, the BofA analysts said that several of the key factors that supported prices this year in an otherwise weak macro environment should also carry over into 2024.
“1) green spending is increasingly offsetting weakness in the traditional economy; and 2) supply growth has generally been subdued,” they wrote. “While the start of 2024 may be challenging, if those trends are accompanied by 3) a wider economic rebound, then mined commodities may push higher again, potentially also supported by 4) a weaker USD/ end to the hiking cycle, along [with] 5) an end to destocking.”
The analysts said that silver prices have found solid support above $20/oz, but have struggled to move higher despite limited output from miners and growing demand from green technologies. Read More
Gold softens fractionally but does not experience major technical chart damage
After an exceedingly strong performance in gold futures, the most active February 2024 contract traded to a higher high than yesterday. However, unlike recent days, pricing during the current session moved well below the daily highs and briefly traded negative on the day.
Image Source: Kitco News
As of 11:32 AM EST, February gold is fixed at $2061.80 down $0.50. With New York futures still actively trading, we could certainly see the candlestick type that is currently identified as a doji, morph to a Japanese candlestick type that no longer has a near-equal opening price to its closing price. As of 12:10 PM EST, gold futures have moved off the recent lows and are currently fixed at $2064.70 after factoring in a gain of $1.10.
What is interesting is the identification of a single Japanese candlestick which can be identified as a doji. This candlestick type can indicate a couple of different scenarios. It can be an indication of a market that is about to enter a period of consolidation. 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.
