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Gold price remains down as Philly Fed survey disappoints, rises to 17.6 in April
The gold market continues to see solid selling pressure with disappointing economic data having little impact on the precious metal’s price action.
Thursday, the Philadelphia Federal Reserve said its manufacturing business outlook rose to a reading of 17.6 in April, down from March’s reading of 27.4. The data significantly missed expectations as consensus forecasts were calling for a reading around 21.5.
“Responses to the April Manufacturing Business Outlook Survey suggest continued expansion in regional manufacturing conditions this month. The indicators for current activity, new orders, and shipments all decreased but remained positive,” the report said.
Gold remains under pressure trapped in a consolidation range as it sees little movement in reaction to the report. June gold futures last traded at $1,948 an ounce, down 0.39% on the day. Read More
Russia can use illicit markets to sell its gold to get around economic sanctions
Western sanctions on Russia because of its war on Ukraine could affect the precious metals market as illegal gold enters the marketplace, according to the Global Initiative against Organized Crime (GI-TOC).
The group of crime experts warned that Russia could use the "well oiled" wheels of the illicit gold market to get around the sanctions. It is estimated that Russia holds about $140 billion worth of gold, which is beyond the direct reach of sanctions.
"Gold can be physically moved around the world outside of digital financial networks, including SWIFT financial messaging, making it difficult to track. Gold is also easily laundered in global markets through not declaring or disguising its origins," the analysts said. "Moscow could use foreign exchange reserves accessed through illicit gold markets for imports, to fund Russian military operations or to compensate sanctioned Russian oligarchs for their losses." Read More
The Fed's 'Ponzi Scheme' is crushing the middle class, this may be the only way out - Natalie Brunell
"I see Bitcoin as the life raft where you don't have to worry about the Fed's Ponzi scheme impacting traditional markets or if the economy crashes. You can opt into this parallel system that's based on the rules that are set," explained Natalie Brunell, Host of Coin Stories podcast. "When people finally understand Bitcoin, as our financial system unwinds and collapses, hyperbitcoinization will ensue because the dollar is no longer a safe haven."
Brunell, who is also a Bitcoin educator, spoke to David Lin, Anchor at Kitco News, about hyperbitcoinization, the concept that Bitcoin becomes the default financial system of the world, at the Bitcoin 2022 Conference in Miami. Read More
Gold price outlook 'healthy' as $1,900 level holds during next few quarters – S&P Global
The outlook for gold for the rest of the year appears "firm" as the precious metal holds the $1,900 an ounce level, boosted by jewelry demand, interest in gold-backed ETFs, and central bank gold buying, according to the S&P Global Market Intelligence.
The key themes for the precious metal will remain Russia's invasion of Ukraine, high inflation, economic growth concerns, and the upcoming interest rate hikes by central banks, said S&P Global Market Intelligence senior analyst Bjorn Goosen during Thursday's webinar.
"The global economy and credit markets are now confronting downside risks stemming from the Russia-Ukraine conflict, persistent inflationary pressures, forthcoming high-interest rates, and the lingering pandemic," he said. "The global GDP growth is estimated to be around 3.6% this year."
This environment means "firm" prices for gold in the next few quarters. "Our price outlook for gold appears healthy for the short to medium term, remaining about the $1,900 an ounce mark on the back of the geopolitical and macroeconomic uncertainties," Goosen said. Read More
Gold, silver pressured by rising bond yields, technical selling
Gold and silver prices are lower in midday U.S. trading Thursday, pressured in part by rising U.S. Treasury yields and on selling from the shorter-term futures traders. The near-term chart postures for the two metals have deteriorated this week, to embolden the chart-based bears. June gold futures were last down $13.10 at $1,942.50 and May Comex silver was last down $0.721 at $24.535 an ounce.
Image Source: Kitco News
Technically, June gold futures bulls still have the overall near-term technical advantage but have faded this week and need to show fresh power soon. 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 $1,900.00. First resistance is seen at today’s high of $1,960.10 and then at $1,972.50. First support is seen at today’s low of $1,938.00 and then at $1,928.00. Wyckoff's Market Rating: 6.5. Read More
Gold price continues to consolidate as Fed's Powell reiterates hawkish stance; ECB's Lagarde remains patient
The gold market remains firmly caught with a tight consolidation pattern and has largely ignored hawkish comments from Federal Reserve Chair Jerome Powell.
Thursday, in a panel discussion during the International Monetary Fund’s annual spring meeting, Powell reiterated the central bank’s case to aggressively raise interest rates. he added that it is essential the Federal Reserve uses its tools to get inflation and price stability under control.
“Economies don’t work without financial stability,” he said.
Powell said that it could be appropriate to raise interest rates by 50 basis points. The Federal Reserve has signaled that the committee could see at least two 50-basis point moves at the next two meetings.
He added that because of inflation, the central bank is prepared to be more aggressively compared to its previous tightening cycle.
“Inflation is much higher now and the policy rate is more accommodative. It is appropriate to move more quickly,” he said.
Although gold prices remain in negative territory, the precious metal was relatively unfazed by Powell’s comments. June gold futures last traded at $1,945.70 an ounce, down roughly 0.5% on the day. Read More
Yellen: Europe's Russian energy ban would have 'damaging impact' on inflation, global growth
U.S. Treasury Secretary Janet Yellen warned Europe that a total embargo of Russian energy imports would have a "damaging impact" globally.
Yellen cautioned Europe to be "careful" when considering banning all energy imports coming from Russia.
"Medium-term, Europe clearly needs to reduce its dependence on Russia with respect to energy, but we need to be careful when we think about a complete European ban on say, oil imports," Yellen said during a press conference Thursday.
Some of the unintended consequences of a complete ban would be upward pressure on inflation and slower growth.
"Our objective from the outset has been to impose maximum pain on Russia while attempting to mitigate damage to the United States to Europe and throughout the global economy," Yellen said. "That would clearly raise global oil prices, it would have a damaging impact on Europe and on other parts of the world, and, counterintuitively, it could actually have very little negative impact on Russia, because although Russia might export less, the price it gets for its exports would go up." Read More
Gold has moved higher ahead of the European open
Gold and silver are mixed this morning. The yellow metal is trading 0.13% higher at $1953/oz and silver has fallen 0.46% to trade at $25.52/oz. In the rest of the commodities complex, copper is 0.22% higher and spot WTI has fallen 1.62%.
Stocks moved lower overnight as the Nikkei 225 (-1.63%) and ASX (-0.57%) both fell the Shanghai Composite managed to move 0.15% higher. Futures in Europe are indicating a negative open.
In FX markets, both AUD/USD and NZD/USD fell 0.63% overnight. In the crypto space, BTC/USD is half a percent higher at $40,678.
News from overnight: 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.
