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Gold demand is expected to keep improving in India
The World Gold Council (WGC) has predicted that gold consumption in India will probably be the best in at least a decade in the current quarter as buyers stocked up for festivals in November and the peak wedding period.
Indians buy gold gifts and ornaments as the yellow metal is considered auspicious and a bringer of luck and prosperity. After the pandemic nationals with disposable income looked for some safe-haven investments and looked for a store of value as times felt uncertain. Sales increased in jewelry stores and premiums increased.
P. R. Somasundaram, regional chief executive officer for India at the council said “Weddings have come back in a big way. Almost every day there are weddings,”
Imports have been larger this year and prospects for overseas purchases remain positive as jewelry manufacturing continues to be very high, he said, adding “as of now it appears we will have another strong quarter of imports and demand.” Read More
Silver Price Technical Analysis: A big picture view
The silver price has been trending lower in recent sessions and this leads analysts to look at the important support levels and what could be an important zone for the bulls. The weekly chart below shows that the price is coming up to some very important price zones and the next few weeks could be a make-or-break situation for the precious metal.
As mentioned the price is coming up to a massive support level at the red shaded zone. Between $21.40-50/oz, there has been lots of support and this area marks the main consolidation low of the current price distribution. If you look left on the chart, the level has even been used multiple times as resistance when the price was much lower between 2015 and 2020. If the price breaks through the zone it could spell trouble as the metal could be heading back to the old distribution area between $16-18/oz. Read More
Forget pandemic lows, U.S. Weekly Jobless Claims fall to 52-year low, gold price remains under pressure
Gold prices are under pressure as the labor market sees significant growth as the number of American workers applying for first-time unemployment benefits drops to a 52-year low.
Thursday, the U.S. Labor Department said that weekly jobless claims fell by 43,000 to 184,000, down from the previous week's revised estimate of 227,000 claims.
The latest labor market data significantly beat expectations. According to consensus forecasts, economists were expecting to see jobless claims fall to around 218,000.
"This is the lowest level for initial claims since September 6, 1969, when it was 182,000," the report said. Read More
Gold, silver down on stronger greenback, weaker crude oil
Gold and silver prices are lower in midday U.S. trading Thursday, with silver notching a nine-week low. Price pressure on the metals is coming from the key outside markets being in bearish daily postures—weaker crude oil prices and a higher U.S. dollar index. This week's rise in U.S. Treasury bond yields and keener trader and investor risk appetite this week are also negatives for the safe-haven metals. February gold was last down $8.10 at $1,777.40 and March Comex silver was last down $0.417 at $22.015 an ounce. Read More
SocGen sees gold prices at $1,900 in Q2, no rate hikes until second half of 2022
The first quarter of 2022 could represent the high water mark for gold prices next year, according to commodity analysts at Société Générale.
In a report published Thursday, the analysts said they see gold prices trading around $1,900 an ounce by the second quarter. Last month the French bank said that they see gold prices pushing to $1,945 in the first quarter of 2022.
The bank reiterated that although gold prices have struggled through 2021, it remains optimistic on the precious metal as low real interest rates will continue to support prices.
"Despite Powell's renomination and his hawkish stance, our rates strategists do not expect interest rates hikes before 2Q22. This, combined with our economists' above-consensus inflation forecast, points to negative real rates; a perfect mix of for gold," the analysts said. Read More
Market participants await the November CPI inflation numbers
Tomorrow the U.S. Bureau of Labor Statistics will release the inflationary numbers vis-à-vis the CPI index. This report will be a critical component that the Federal Reserve will review before releasing its adjusted monetary policy. On Wednesday of next week, the Federal Reserve will release the statement including the revised dot plot and a press conference by Chairman Jerome Powell.
Bob Haberkorn, senior market strategist at RJO Futures said, “The stronger-than-expected jobless claims numbers along with a firmer dollar are pulling down on gold, but there are also traders waiting for the CPI data. If inflation numbers are going to be high, then gold will bounce right back up and make a move towards $1,800.” Read More
Gold and silver trade lower heading into the European open
Gold and silver are starting the session on the back foot. The yellow metal has now moved down to $1772/oz, while silver trades at $21.2/oz. In the rest of the commodities complex, copper and spot WTI are 0.29% higher.
The risk sentiment was pretty poor overnight. The Nikkei 225 (-1.00), ASX (-0.42%) and Shanghai Composite (-0.18%) all traded negatively. Futures in Europe are also pointing towards a negative cash open.
FX markets were pretty slow overnight. The biggest mover was USD/CHF which rose 0.19%. In the crypto space, BTC/USD traded nearly 1% higher to reach $47,800. Read More
Gold & Silver Market Analysis for Friday 10th December
Kinesis Money Macroeconomic & Gold Analysis - In the first part of November, bullion jumped above $1,850. Once the markets understood the heightened chance of an accelerated tapering process, bullion sharply declined below $1,800.
The bearish pressure we have witnessed found a strong obstacle with the support zone of $1,760. This led to the gold price enacting a lateral movement and generating a lateral channel between $1,760 and $1,790. Here, the lower volatility and movements are compressed between the support of $1,750 – $1,760 and the resistance of $1,790 – $1,800. 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.
