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Gold Price News: Gold Hits Fresh Highs Ahead of US Data
Gold prices rose further on Tuesday, reaching another all-time high amid safe-haven interest and ahead of key US economic data on GDP growth and inflation.
Prices notched up an intraday high of $2,773 an ounce on Tuesday, another all-time high. That compares with around $2,743 an ounce in late trades on Monday. Prices rose further to $2,790 an ounce going into Wednesday’s session.
Gold KAU/USD ($/g) 1-hourly Kinesis Exchange
Safe havens continue to attract buyers
The gains for gold came as safe haven assets continued to attract investors, amid a backdrop of uncertainties over the outcome of the upcoming US election on November 5 and worries over a potential escalation of the Russia/Ukraine war.
NATO on Monday for the first time said North Korean troops have been deployed to Russia and are operating in the Kursk border region. While the numbers are small compared with Russia’s total forces, the presence of troops in the region from another nuclear-armed power represents a dangerous escalation of the situation, western leaders said this week.
Gold’s gains came despite moderately higher US treasury yields and a stronger US dollar on Tuesday. Read More
The great currency war: Dollar vs. BRICS and the growing popularity of gold and Bitcoin
The decline of the U.S. dollar is a popular topic of conversation, especially in the wake of the BRICS summit in Kazan. But according to analysts at The Kobeissi Letter, the imminent death of the dollar has been overstated as it just hit its highest share of global payments in 12 years.
“There has been a ton of discussion about the US Dollar losing its dominance as a global currency,” The Kobeissi Letter wrote in a post on X. “However, the data so far continues to suggest otherwise.”
“The US Dollar's share of global payments hit 49%, the most in 12 years, according to SWIFT data,” they said in a follow-up post.
“Over the last two years, US Dollar usage in international payment transactions has jumped by 9 percentage points,” they added. “At the same time, the Euro's share plummeted from ~39% to ~21%, the lowest in a decade. Meanwhile, the Chinese Yuan usage increased from ~2% in 2023 to ~5% currently. What is happening to the Euro?”
“The US Dollar remains the most dominant global currency and it's not even close,” the analysts said. “Can BRICS really dethrone the US Dollar’s dominance?”
Many users were quick to point out that the data used is faulty in that it only tracks transactions on SWIFT, while Russia and its trading partners have been increasingly utilizing other avenues to conduct trade and money transfers. Read More
Market surge: Bitcoin nears all-time high, Nasdaq and gold set new records
Financial markets surged higher on Tuesday, with bulls setting their sights on new all-time highs for Bitcoin (BTC), gold, and the Nasdaq, while the DXY and Treasury yields declined.
The latest data from the Bureau of Labor Statistics showed there were 7.44 million jobs open at the end of September, a decrease from the 7.86 million seen in August, while the data from August was revised lower from the 8.04 million open jobs initially reported.
The interest rate path is also top of mind for investors as surging equities prices and a resilient economy have some questioning whether the Fed will have to reduce the number of planned cuts, especially if inflation starts to pick up again.
“Larry Fink, CEO of BlackRock, commented on the market's overly optimistic expectations for substantial Federal Reserve interest rate cuts this year,” noted analysts at Secure Digital Markets. “Although some rate reductions have occurred, Fink argued that the anticipated scale of cuts is not aligned with the broader economic landscape, highlighting ongoing inflation pressures exacerbated by current government policies.” Read More
Is silver on track to beat its 2020 gains
Silver is up nearly 42% for the year! Silver is up 7.4% in October alone, after gains of 7.9% in September and 0.7% in August. But the rally won't stop here and end of year gains could be significant.
In 2020, when precious metals rallied as markets were rocked by pandemic-era supply chain issues and record inflation, gold saw gains of 25%, but silver rose by 48%. Then, for the next few years, silver spot prices dropped into a narrow trading range, but in 2024, silver has consolidated enough for a major rally. If you're familiar with the historical patterns of silver, this is exactly what one would expect to see in a healthy bull market.
So is silver set to gain more than 48% in 2024? It certainly seems likely given the market fundamentals, but only time will tell.
Analysts are excited in particular over a pattern that has emerged in the charts. Read More
Gold’s new wave of record highs driven by investment demand - World Gold Council
In the first half of 2024, the gold market was driven by record central bank demand and unprecedented commercial demand in Asia, specifically China. So far, that initial momentum in the gold market has been maintained as Western investor demand picks up growing slack in other segments of the marketplace, according to the latest report from the World Gold Council (WGC).
The WGC’s Gold Demand Trends for the third quarter stated that total gold demand (including over-the-counter (OTC) investment) rose to 1,313 tonnes – a record for a third quarter and up 5% from the same quarter last year.
The report noted that investment demand was a critical component of the gold market, as the price hit consecutive record highs nearly every week during the three-month period.
Physical demand for small bars and coins and jewelry consumption struggled in the third quarter as prices saw an average increase of 28%; however, Western investment demand more than made up for this weakness.
The WGC reported that total investment demand increased by 364.1 tonnes in the third quarter, a massive 132% increase from the same quarter in 2023.
While investors were sitting on the sidelines during the first half of the year, they started to emerge as the Federal Reserve embarked on a 50-basis point rate cut in September.
The WGC noted that gold-backed exchange-traded funds (ETFs) were the biggest beneficiaries of the Federal Reserve’s new easing cycle. The report highlighted that after nine months of consecutive outflows, the gold market saw its first net increase in the third quarter. Read More
Gold prices holding firm near record highs as ADP says 233K jobs created in October
The gold market, while off its overnight highs, remains within striking distance of $2,800 an ounce even as the U.S. labor market remains fairly resilient as private companies created more jobs than expected in October, according to payroll processor ADP.
ADP said that 233,000 jobs were created this past month, significantly beating expectations. According to consensus estimates, economists were looking for job gains of around 110,000.
“Even amid hurricane recovery, job growth was strong in October,” said Nela Richardson, chief economist, ADP. “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.”
The gold market is not paying much attention to the latest employment data, as momentum continues to drive the market. December gold futures last traded at $2,788.50 an ounce, up 0.27% on the day. Read More
Bitcoin consolidates near $72k, gold hits new record high as U.S. GDP data drops
Bitcoin (BTC) consolidated above $72,000 in early trading on Wednesday, while spot gold spiked to a new record high of $2,790 per ounce after the latest government data showed that the U.S. GDP slowed to an annualized growth rate of 2.8% in the third quarter, down from 3.0% in Q2.
While GDP slowed, the latest jobs data showed that 233,000 jobs were created in the past month, exceeding economists' estimates of 110,000. The data shows that the U.S. economy remains resilient, further complicating the Fed’s decision on interest rates.
That said, the CME FedWatch Tool still puts the odds of a 25 basis point cut in November at 99%, which has kept traders engaged with the markets.
After opening in the red, the major stock indices all climbed into the green following the data releases, while Bitcoin held onto its recent gains and gold climbed higher.
“Gold was trading at a fresh all-time intra-day high this morning, having posted a record close last night. It is closing in on its next key upside target of $2,800, having broken above $2,700 less than a fortnight ago,” said David Morrison, Senior Market Analyst at Trade Nation. “The chart continues to look constructive from a bullish perspective. The daily MACD indicates that momentum remains to the upside, while below the overbought levels seen at the end of September.” Read More
Gold price continues to eye $2,800 as U.S. GDP Grew 2.8% in Q3
After a solid start in the first half of the year, the U.S. economy is showing signs of cooling as activity slowed more than expected between July and September.
The Bureau of Economic Analysis presented the first look at the third-quarter Gross Domestic Product on Wednesday; the economy grew 2.8% in the last three months, down from 3.0% in the second quarter.
“The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased,” the report said.
Activity missed economists' expectations as consensus forecasts were looking for an unchanged reading at 3.0%.
The gold market is not seeing much reaction to the economic data as it remains within striking distance of $2,800 an ounce. Read More
BTC consolidates, gold breaks record with election and economic data in focus
It was a mixed day of trading for financial markets as Bitcoin (BTC) consolidated, stocks pumped and dumped, and gold hit a fresh all-time high. The upcoming U.S. presidential election was widely cited as the reason for the uptick in volatility, along with mixed economic data, which continues to make the Fed’s decision on interest rates a challenging one.
“Economic data presents a mixed picture: the U.S. GDP growth rate slowed to 2.8% annually in the third quarter, falling short of the 3% expectation,” noted analysts at Secure Digital Markets. “However, the labor market outperformed expectations, suggesting underlying economic strength.”
While the latest data did little to change expectations for a 25 basis point interest rate cut at the November FOMC meeting, investors remain on edge, sensing that we are just one or two positive economic reports away from the Fed holding rates steady after that.
At the closing bell, the S&P, Dow, and Nasdaq all finished in the red, down 0.33%, 0.22%, and 0.56%, respectively.
Spot gold rallied to a new all-time high of $2,790/oz during the morning session and has since experienced some slight selling. At the time of writing, the yellow metal trades at $2,785/oz for a gain of 0.37% on the session. Read More
Gold prices surging to record highs amid rising U.S. debt and elevated bond yields - Sprott’s Ryan McIntyre
Not only have gold prices pushed to $2,800 an ounce, continuing their unstoppable rally, but they have also managed to hit new all-time highs even as bond yields remain relatively elevated.
Momentum in the gold market comes as the yield on U.S. 10-year notes has pushed back above 4% and is currently trading near a three-month high. Some analysts have said that the rise in U.S. bond yields is not surprising, as the U.S. economy and its labor market remain fairly resilient.
However, in an interview with Kitco News, Ryan McIntyre, Managing Partner at Sprott Inc., said that he sees another factor pushing bond yields higher. He explained that growing U.S. debt could be weighing on investors.
“The question is, as U.S. debt continues to rise, what is the yield needed to attract new investors to the market?” he said. “I think we are in an early phase where investors are starting to get worried about U.S. debt. People are starting to wonder if there could be more inflation and more debasement of the currency.” Read More
Linking gold to U.S. dollar: How America's debt and fiat dependence threaten stability – exclusive interview with Dr. Judy Shelton
With quickly rising debt levels in the U.S., dollar stability and America's economy are facing an "existential threat," warned Dr. Judy Shelton, Senior Fellow at Independent Institute and former economic advisor to President Donald Trump. She added that it is time to get back to sound money, and one historically proven option is linking gold to the U.S. dollar.
The U.S. national debt is fast approaching $36 trillion, and servicing this debt is already costing taxpayers billions of dollars yearly.
"It's come to everyone's attention now that paying the interest on the debt is now costing more taxpayer money … than to pay for our defense needs," Dr. Shelton told Jeremy Szafron, Anchor at Kitco News. Watch the podcast
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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