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Gold bulls aren't afraid of Fed rate hikes in 2022
There is a new rush of bullish sentiment in the gold market as prices push back above $1,800 even after the Federal Reserve signaled that it could raise interest rates three times in 2022.
However, while some analysts see the potential for higher prices in the near term, they also see this as another opportunity to sell rallies as the precious metal ultimately faces headwinds of rising real interest rates next year.
Chris Vecchio, senior market strategist at DailyFX.com, said a weaker U.S. dollar and slightly lower real bond yields are helping to push gold prices higher. Still, he added that unless gold can break above $1,835, he sees the rally as a selling opportunity.
"At present, because the fed is acting to clamp down on inflation pressures, at least talking like they're going to, then break, even rates should continue to fall. And that means real yields probably have hit a floor in the very near term, and that is a headwind for gold," he said. Read More
The Metals, Money, and Markets Weekly by Mickey Fulp - December 17, 2021
Gold is unable to hold $1800 after trading to a high of $1815
For the better part of the last 24 hours of trading, gold pricing has managed to trade above $1800. Gold futures traded to an intraday high today of $1815.70. However, with only 45 minutes left in Globex trading (New York trading has already closed) gold futures basis, the most active February 2021 Comex contract is trading up by $0.70 (+0.04%) and fixed at $1798.90.
Over the last two trading days, gold has challenged $1800 but has not effectively closed above that key psychological price point since mounting a strong rally yesterday, which took gold's close yesterday to $1798.10. Today gold opened at $1801.50 and traded to a low of $1796.50. Read More
Is gold price in a bull trap? 'December is the hardest month to trade' - analysts
The gold market has responded very well to a more aggressive Federal Reserve tightening stance, rising around $40 since Wednesday. But what's next will be critical, according to analysts.
After the precious metal breached the $1,800 an ounce this week, the next important signal will be what gold does at this strong resistance level.
Gold rose post-Fed announcement, which saw its tapering schedule accelerated and three potential rate hikes priced in for 2022. Analysts said most of that was largely priced in.
"The environment leading up to the FOMC decision has been difficult for gold. The precious metal needed to have Wall Street come into agreement as far as what that tightening policy will be like over the short term. Once the markets were able to process Fed's accelerated tapering, which was well telegraphed, Wall Street knew about the massive shock you are going to see when Fed is done buying assets," OANDA senior market analyst Edward Moya told Kitco News. "For gold, once you saw that knee-jerk selloff towards $1,750, that was the time the majority of gold's short-term weakness was priced in." Read More
Gold investors look past Fed's hawkish talk
2022 is just around the corner, and if the new year is anything like the past week, we hope that you have a seat belt because it looks like it is going to be a wild ride.
This past week Kitco News launched its 2022 outlook series, and not surprisingly, the most significant topics everyone is talking about are inflation and global monetary policies. Notably, a lot of eyes are on the Federal Reserve as it tries to talk down the growing inflation threat as consumers prices saw an annual rise of 6.8% last month.
At first glance, the Federal Reserve appears to be taking the growing risk of rising consumer prices seriously. Still, some analysts are saying that it is too little too late. This past week the Federal Reserve gave markets a little bit of a surprise after releasing its updated economic projections. The central bank now sees the potential for three interest rate hikes next year. However, they continue to downplay the inflation threat as they see it rising 2.6% next year. Read More
Will the dollar really crash in 2022? FX strategist gives outlook on gold, silver, inflation
Chester Ntonifor, FX Strategist of BCA Research discusses with David Lin, anchor for Kitco News, the direction of the U.S. dollar in next year.
“It’s pretty priced in that the Fed is going to lift interest rates in 2022 and the ECB is going to lag the Fed, so that’s already in the price of the dollar versus the euro,” Ntonifor said. Read More
Can gold price keep its post-Fed gains?
In a surprising year-end move, gold rose to three-week highs after the Federal Reserve meeting. Is the tide turning for gold or is it another bull trap? Read More
Gold is trading just above flat leading into the European open
Gold is trading flat leading into the European open holding just below the $1800/oz level. Silver is -0.15% lower at $22.31/oz. In the rest of the commodities complex, copper is just over -1% lower and spot WTI has called -3.13%.
Risk sentiment in the Asia Pac area was poor overnight. The Nikkei 225 (-2.13%), ASX (-0.16%) and Shanghai Composite (-1.07%) all traded lower. Futures in Europe are pointing towards a lower cash open too.
In FX markets, the pound (-0.21%) has taken a hit while EUR/USD rose 0.14%. In the crypto space, Bitcoin is down half a percent. Read More
Ep.57 Live From The Vault: Robert Kiyosaki - The Collapse is Coming
In this week’s Live from the Vault, Andrew Maguire is joined by none other than, personal finance legend, Robert Kiyosaki. Pulling no punches, the best-selling economic author makes his case for the imminent collapse of the entire paper money system.
The two diehard gold bugs position precious metals within today’s unprecedented economic environment and back up a bullish outlook for gold and silver with a lifetime’s evidence. The two diehard gold bugs position precious metals within today’s unprecedented economic environment and back up a bullish outlook for gold and silver with a lifetime’s evidence.
Gold & Silver Market Analysis for Monday 20th December
Kinesis Money Gold Analysis - Despite the Federal Reserve doubling the tapering from $15bn per month to $30bn, the gold price recovered from $1,760 to $1,814.
The rebound lost strength in the last few hours of Friday’s trading session. During this time, gold pulled back to its former resistance zone, resting at the support zone of $1,800 per ounce.
This morning, while we are seeing growing volatility for the stock market index, and oil, gold remains stable, dancing around the $1,800 area.
From a technical point of view, gold has regained momentum, although the challenge between bulls and bears has not yet found a clear directionality.
A confirmation above the $1,800 mark would reinforce the bullish impulse, opening space for new rallies at $1,830. A new test in the region of $1,870-1,880 now seems less likely, considering the strength of the greenback. 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.
