x
Image Source: Unsplash
Silver Jumps Above the key Resistance at $25 per Ounce
The new week started positively for the grey metal. Indeed, the silver price has surpassed the key resistance level of $25 per ounce.
It will be interesting if silver can hold above this threshold. Indeed, last week, the area between $25 and $25.10 has already managed to curb a silver rebound on a few occasions, confirming it to be a solid resistance. Therefore, a clear jump above the $25 threshold would represent a bullish signal for the precious metal.
Due to its strong correlation with gold, we could note that the surpass of $1,950 by gold could surely help silver to remain above $25. In this scenario, the gold-silver ratio, which represents how many ounces of silver it would take to buy one ounce of gold, is steady in the region of 78.5. Read More
Gold Price Close to $1,950 While Inflation Pressure Remains a key Theme for the Metal
Investors are predicting rates to remain steady, while forward guidance could be more hawkish, reflecting the rally of inflation seen in the last few months. In this case, the euro could recover against the greenback and this could represent a positive element for the gold price.
Moreover, we should note that the technical scenario for gold is improving. The new week started with the gold price jumping above the key resistance of $1,950 an ounce and trying to leave the lateral trading range between $1,890 and $1,950 over the last few sessions.
This positive movement is confirming the growing bullish pressure already seen in the last few trading sessions when gold approached the $1,950 threshold without being able to remain above it at the end of the day. Read More
Goldman Sachs continues to look for upside in gold
The U.S. Goldman Sachs bank expects that the prices of the gold ounces would exceed $2500 this year. Economists at the bank said that this increase is due to the continued Russia-Ukraine war, and the slowdown of the world economy, alongside the increase in the raw material, and products after the imposing of the sanctions against Russia.
Tim Moe, Co-Head, Asian Economics, Strategy & Commodity Research, Goldman Sachs recently said:
"We still think that the markets are under pricing energy stocks and some of the metals and mining stocks. We think the gold has a place in the portfolio. If one combines the margin resilience, the high dividend paying theme, the compounding growth theme and then the real asset theme, that would guide in the direction of having a more insulated portfolio from the macro challenges and the headwinds that are buffeting markets now." Read More
Recession risks and inflation fears keep gold price volatile, palladium price driven by Russia supply questions
Volatility is at the forefront of precious metals trading at the beginning of the week, with gold and palladium posting and then erasing double-digit gains as silver rallied.
Gold jumped and came close to testing the $1,975 an ounce level early Monday before dropping back towards $1,950. At the time of writing, June Comex gold futures were trading at $1,951.70, up 0.31% on the day. Silver also saw a significant move up, with May Comex futures last at $25.15, up 1.34% on the day.
For gold, it is all about rising recession risk and inflation headlines, according to analysts. "Gold remained well bid amid inflation worries. The precious metal has seen strong investor demand as a hedge against what looks like structurally high inflation. Safe-haven demand amid the Ukraine war also continues to support prices. A U.S. military general indicated that the conflict could last a year, supporting prices on Friday," said ANZ senior commodity strategist Daniel Hynes.
There is a growing risk of a recession in the U.S. as the Federal Reserve pursues aggressive tightening at its May and June meetings. The markets are not ruling out two oversized 50-basis-point rate hikes. Read More
Gold, silver up but well down from daily highs; U.S. CPI awaited
Gold and silver prices are posting moderate gains in midday U.S. action Monday, but prices have backed well down from their early-session highs on some profit taking by the shorter-term futures traders, and amid rising bond yields and a sell-off in the crude oil market. Gold prices hit a four-week high early on today. Still, the metals are seeing some safe-haven demand on worries about inflation becoming even more problematic in the coming months. June gold futures were last up $6.80 at $1,952.30 and May Comex silver was last up $0.267 at $25.09 an ounce.
Image Source: Kitco News
Technically, April gold futures prices hit a four-week high early on today. Bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,893.20. First resistance is seen at today’s high of $1,974.60 and then at $2,000.00. First support is seen at today’s low of $1,942.90 and then at Friday’s low of $1,930.40. Wyckoff's Market Rating: 6.5. Read More
Inflation 'causes recessions,' price pressures already out of control, warns BofA
Just ahead of the U.S. March consumer price index (CPI) data release, Bank of America (BofA) warned that inflation "causes recessions" and price pressures are already out of control.
All eyes are on Tuesday's U.S. inflation macro release this week. Market consensus calls expect annual inflation to surge to 8.4% — a new four-decade high. Close attention will is being paid to a rise in food and gasoline prices.
In light of the current macroeconomic and geopolitical situation, a recession is coming, said BofA strategists in their recent report.
"'Inflation shock' worsening, 'rates shock' just beginning, 'recession shock' coming," the strategists said. "Inflation causes recessions … Late-60s recession preceded by consumer price inflation, 1973/4 by oil/food shocks, recession of 1980 by oil, 1990/91 by CPI, 2001 by tech bubble, 2008 by housing bubble; last dominos to drop in terms of recession expectations is higher yields & weaker dollar, and steeper yield curve and banks/consumer keep falling." Read More
Gold price has peaked for the year - DailyFX.com
The gold market remains caught in a consolidation pattern, even if it is trading at the top of the range; however, one market strategist said that the precious metal faces growing headwinds as central banks around the world start to tighten monetary policy.
In a report published last week, Chris Vecchio, senior market analyst at DailyFX.com, noted Russia's invasion of Ukraine had upended financial markets, creating volatility and uncertainty. At the same time, the war has further impacted global supply chains, driving commodity prices and inflation higher. Vecchio said that these are solid reasons behind gold's strong performance in the first quarter.
However, he added that unless Russia's war expands to include Europe and the U.S., markets have priced in a lot of bad news. Although the humanitarian crisis continues to grow, Vecchio said that the conflict looks like it will remain within the borders of Ukraine.
"Unless the war escalates, I think gold has hit its highs for the year," Vecchio said in a recent interview with Kitco News. Read More
What effect has Ukraine, inflation, and the Fed had on gold prices?
Gold prices have been affected by three primary factors, inflation, the war in Ukraine, and lastly, statements and actions by the Federal Reserve. Overwhelmingly, market participants are focused on the effects of spiraling inflation levels and the war on Ukraine providing bullish market sentiment for the precious yellow metal. While statements and actions by the Federal Reserve have curtailed any sustained upside movement gold continues to gain value this year.
As of 4:15 PM EDT gold futures basis, the most active June contract is trading at $1957.80, after factoring in today's gain of $12.20 or +0.63%. Most noteworthy today is the high gold achieved in trading overseas, reaching an apex of $1974.60. Read More
Image Source: Kitco News
Gold and silver are trading higher ahead of the European open
Gold (0.20%) and silver (0.40%) once again trade higher leading into the European open. In the rest of the commodities complex, copper (0.48%) and spot WTI (2.08%) are both also trading in the black.
Risk sentiment was weak overnight as bond yields continue to move higher. The Nikkei 225 (-1.81%) and ASX (-0.42%) fell while the Shanghai Composite rose 1.45%. Futures in Europe are indicating a weak cash open.
In FX markets, USD/JPY (0.20%) continued to move higher but the biggest mover overnight was AUD/USD (0.24%). In the crypto space, BTC/USD is 0.91% higher but moved under the $40k level during yesterday's session.
News from overnight: 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.
