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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.
Kinesis Money Silver Analysis - Read More
Gold unable to find traction despite sour mood in equities as Build Back Better dealt death blow
The gold market is unable to find any upside traction as some economists look to downgrade their 2022 economic forecasts after President Joe Biden's Build Back Better legislation was dealt what appears to be a death blow by West Virginia Senator Joe Manchin.
Banking giant Goldman Sachs is leading the way. It downgraded its economic projections for next year after Manchin said that he could not continue to support the legislation in an interview with Fox News Sunday.
In a report published Monday, Goldman's chief economist Jan Hatzius said that the investment firm now expects the U.S. economy to grow 2% in the first quarter of 2022, down from its initial forecast of 3%. Read More
Unpredictable silver market extra challenging for traders, investors
Veteran traders of commodity futures markets know well the old trading adage: "Markets can and will do anything and everything imaginable to frustrate the largest number of traders." Silver is especially good at such. Reason: It has the luxury of acting like a safe-haven asset on some occasions, and acting like a risk-off industrial metal on other occasions, with nobody able to predict which personality the metal will exhibit at any given time. That's why it' extra important for silver traders and investors to examine charts for clues on future price direction.
The weekly continuation chart for nearby Comex silver futures favors the bearish camp. Prices have been trending down for 11 months, from the February 2021 high of $30.35 an ounce. It will take a price move in nearby silver futures back above major psychological resistance at $25.00 to get the bulls charged up, from a longer-term technical basis. Read More
Gold can't catch safe-haven bid, beholden to crude's big drop
Gold and silver prices are lower in midday U.S. trading Monday, as the safe-haven metals were unable to benefit from a risk-off trader and investor mentality in the marketplace to start the holiday-shortened trading week. A big drop in crude oil prices today apparently trumped the safe-haven trade in the metals. February gold was last down $9.90 at $1,795.00 and March Comex silver was last down $0.213 at $22.325 an ounce. Read more
Hedge funds increasing bearish bets in gold as Fed hawks take flight
The gold market faces further headwinds as hedge funds increase their bearish bets in the precious metal, anticipating hawkish comments from Federal Reserve Chair Jerome Powell.
The latest trade data from the Commodity Futures Trading Commission showed that along with further long-liquidation, hedge funds are increasing their short positions in the marketplace.
The CFTC disaggregated Commitments of Traders report for the week ending Nov.14 showed money managers dropped their speculative gross long positions in Comex gold futures by 3,575 contracts to 121,492. At the same time, short positions increased by 13,749 contracts to 58,075.
Gold's net length now stands at 63,417 contracts, down more than 21% compared to the previous week. Gold's net length remains at its lowest point since mid-October. Gold prices were reasonably stable during the survey period, trading between $1,750 and $1,800 an ounce. Read More
Gold trades under pressure back below $1800 as investors focus on Fed
As of 4:10 PM EST gold futures basis, the most active February 2021 Comex contract is currently fixed at $1789.80 after factoring in today’s net decline of $15.10 (-0.84%). Gold opened at $1800.20, traded to a high of $1804.60, and is currently trading $0.90 off the intraday low of $1789. Read More
Dollar on back foot but Omicron keeps markets on edge
The dollar softened a little on Tuesday in the wake of improving market appetite for risk assets and currencies, extending its overnight losses following a blow to Democratic spending plans in Washington.
But moves were muted with a surge of cases of the Omicron variant of the new coronavirus, which has caused some countries to reimpose restrictions, deterring traders from moving too aggressively. The dollar index, which measures the currency against six major peers, dropped to as low as 96.450, down marginally on the day after losing 0.12% overnight. Read More
Gold price to drop 16% to $1,500 in 2022, 2023 doesn't look any better - ABN AMRO
Gold's price action through 2021 has been a disappointment as the precious metal has seen lackluster investor demand; however, according to AMB AMRO, 2022 could be a disaster as they see gold prices falling 16%.
In her 2022 gold price forecast, Georgette Boele, senior FX & precious metals strategist for the Dutch bank, said that she sees gold prices falling to $1,500 an ounce by the end of next year and dropping to $1,300 an ounce by the end of 2023.
The bearish outlook comes as the gold price has been unable to hold gains above $1,800 an ounce. February gold futures last traded at $1,795.10 an ounce, down nearly 6% on the year. Read More
Has gold found a bottom?
Gold Bugs want to know if the bottoms are in; of course, they never think the yellow metal goes down. The answer is not an easy one. Based on the chart and price action, the simple answer is no. Last week’s action from the FED announcement was solid, but not enough to reverse the downtrend.
Silver looks very similar to gold, while platinum continues to struggle. The FED news was not bullish for the metals; however, we must understand that the news may have already been priced in, leaving a short-covering rally. This week could go a long way in determining if the bottoms are in, but it is a short holiday week, and the action could be thin. Read More
Gold and silver trade higher leading into the European open
Gold and silver started the session higher this morning. Gold is just keeping its head above water at $1791/oz but silver is 0.60% higher trading at $22.39/oz. In the rest of the commodities complex, copper has moved up nearly 1% and spot WTI is 0.23% in the black.
Risk sentiment was positive overnight as the Nikkei 225 (2.08%), Shanghai Composite (0.88%), and ASX (0.86%) all pushed higher. Futures in Europe are pointing towards a positive open.
In FX markets, NZD/USD was the biggest mover pushed 0.26% higher while the dollar index was marginally down. In the crypto space, BTC/USD is 3.32% higher trading at $48,474. 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.
