Today's Gold and Silver News - April 27th

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Commerzbank is looking past gold's selloff and ups its 2022 forecast to $1,900

Since last week, the gold market had lost nearly 5% when prices briefly tested resistance at $2,000. The market is struggling to attract new bullish momentum as it holds support above $1,900 an ounce. However, one international bank sees the precious metal well supported through the rest of the year.

Monday, Commerzbank announced that it was increasing its gold forecast for the year after a solid first-quarter performance. The German bank sees the precious metal averaging around $1,900 an ounce this year and sees prices pushing back to $2,000 in the second quarter.

In 2023, Commerzbank sees gold prices averaging the year around $1,200 an ounce.

Although gold has seen some strong selling pressure this past week, Carsten Fritsch, precious metals analyst at Commerzbank and author of Monday's report, said that it had been one of the top-performing assets since the start of the year, outperforming both bonds and equity markets.

"Gold is therefore in high demand as an inflation hedge and a safe haven. This is reflected in strong inflows into gold ETFs. The simultaneous massive rise in bond yields, on the other hand, could not stop the gold price increase but only slowed it down," he said. Read More

Gold sees corrective bounce; bulls have more heavy lifting to do

Gold prices are modestly higher in midday U.S. Trading Tuesday and are trading back above $1,900.00 as the bulls are trying to stop the bleeding after the recent downdraft that saw the market hit a nine-week low Monday. Short covering in the futures market and some perceived bargain hunting in the cash market were featured. Gold and silver bulls still have more work to do to break the near-term price downtrend lines that are now in place on the daily bar charts. June gold futures were last up $6.50 at $1,902.50 and May Comex silver was last down $0.125 at $23.545 an ounce.

Image Source: Kitco News

Technically, June gold futures see a price downtrend line in place on the daily bar chart. Bulls and bears are on a level overall near-term technical playing field. Bulls' next upside price objective is to produce a close above solid resistance at $1,950.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,912.20 and then at $1,925.00. First support is seen at this week’s low of $1,891.80 and then at $1,883.00. Wyckoff's Market Rating: 5.0. Read More

Energy and agriculture prices to remain elevated through 2022, gold price to see only modest gains - World Bank

The start of 2022 has seen unprecedented moves in commodity markets across the board. And the World Bank expects prices to remain elevated through the year as Russia's war with Ukraine continues to disrupt.

Tuesday, the World Bank released its latest commodity price forecasts, with significantly higher price outlooks for energy and agricultural commodities.

"The price of Brent crude oil is projected to average $100 [per barrel] in 2022, a 42% increase from 2021 and its highest level since 2013. Non-energy prices are expected to rise by about 20% in 2022, with the largest increases in commodities where Russia or Ukraine are key exporters. Wheat prices, in particular, are forecast to increase by more than 40% this year, reaching an all-time high in nominal terms," the analysts said in the report.

Looking past this year, the World Bank said that the conflict in Eastern Europe would have the most significant impact on commodities. Read More

Gold firms as investors digest China, inflation, and global economic contraction

Gold futures opened at $1899.60, traded to a low of $1896.30, and then recovered back above $1900 per ounce. As of 4:18 PM EDT gold futures basis, the most active June 2022 contract is currently trading up $9.30 and fixed at $1905.30. Gold’s reversal from its price decline over the last seven trading days is being supported by multiple factors and events. Read More

Image Source: Kitco News

Major Russian gold miner opts for exports versus imports as local banks buy gold at discount

Russia's second-largest gold producer Polymetal prefers to sell its gold abroad since Russian local banks buy the precious metal at a discount.

In light of Western sanctions imposed on Russia after its invasion of Ukraine in February, Polymetal's options of selling its gold are limited. The miner has been targeting non-sanctioned banks, Bloomberg reported, citing the company's CEO Vitaly Nesis as saying during an investor call Monday.

However, those local banks purchase the yellow metal at a discount price compared to the international pricing. The local banks that Polymetal usually sold to in the past were state-run banks, including Sberbank PJS, VTB Bank PJSC, and Bank Otkritie.

Due to sanctions, the miner cannot sell its gold to those institutions anymore. And Russia's central bank, which has re-started its official purchases of locally-produced gold, is not projected to buy as much as before, Bloomberg reported. Read More

Silver is trading higher ahead of the European open

Gold and silver are mixed heading into the European open. The yellow metal is down 0.36% while silver is trading 0.37% in the black. In the rest of the commodities complex, copper (0.37%) and spot WTI (0.19%) are both trading higher. 

In the stock markets, the Nikkei 225 (-1.21%) and ASX (-0.85%) both struggled while the Shanghai Composite rose 1.90%. Futures in Europe are indicating a mixed open.

In FX markets, the biggest mover was AUD/USD. The pair moved 0.83% higher. In the crypto space, BTC/USD traded 1% higher to reach $38,467 after a tough session on Tuesday. 

News from overnight: Read More

Swiss gold exports to America rose sharply in March

Swiss gold exports to the U.S. rose in March. Swiss shipments of gold to America to their highest since May 2020, Swiss customs data showed. Exports to Britain, which like the United States is a center for gold investment and trading, also rose, but shipments of gold to China and India, the biggest consumer markets, fell sharply.

On the Exchange-traded funds (ETFs) side, storing gold for investors added 185 tonnes worth around $15 billion to their stockpile in March, the most since July 2020, according to the World Gold Council. 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.