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Gold price holding above $1,800 as Fed's preferred inflation measure core PCE jumps 4.7% in November
The gold market continues to hold steady gains above $1,800 an ounce as inflation pressures continue to rise.
On a monthly basis, the core PCE price index was up 0.5% last month, the U.S. Department of Commerce said on Thursday. The inflation data was hotter than expected as consensus forecasts were calling for a 0.4% rise.
On an annual basis, core PCE jumped 4.7%, up from last month’s reading at 4.2%.
The core inflation strips out volatile food and energy prices and is the U.S. central bank's preferred inflation measure.
The gold market has been able to hold critical gains above $1,800 through what has been a busy morning for economic data. December gold futures last traded at $1,810.80 an ounce, up 0.48% on the day. Read More
Silver will go 'crazy' in 2022, gold to break $2k again, speculation will end - E.B. Tucker
2022 is the year speculative money recedes from the markets, said E.B. Tucker, director of Metalla Royalty.
"Everybody is a speculator, and so next year, I expect this speculation runs out of gas. There's no more stimulus check coming. There's more liquidity coming into the average person's pocket. They got a raise this year, but everything they're buying is going up in price. Sales are slowing down. The refinance boom is slowing down," Tucker told David Lin, anchor for Kitco News. "Next year, you're going to see a rotation out of [stocks] and you're going to see a move into something real." Read More
Expect silver price to fall in 2022, but gold to rally, here's why - Jeff Christian
2022 will see silver and gold prices diverge once again, with silver falling by 2% while gold climbs in value, said Jeff Christian, managing partner of CPM Group.
“We think that gold prices will probably be flat or slightly higher, maybe 2% higher on an annual average basis next year, and silver prices might be 2% lower on an annual average basis next year. We do think that investors will continue to be buying large amounts of gold and relatively large amounts of silver, but not as much as they have in 2020 and 2021,” Christian told David Lin, anchor for Kitco News. Read More
Gold modestly up amid friendly technical posture
Gold prices are modestly up in quieter midday U.S. trading Thursday, as the near-term chart posture for the yellow metal favors the bulls, which is inviting the technical-based traders to the long side. However, gains are being limited by a keener risk appetite in the marketplace late this week. February gold was last up $5.20 at $1,807.40 and March Comex silver was last up $0.086 at $22.90 an ounce.
The U.S. data point of the week was today's report on personal income and outlays for November. The closely watched PCE price index component of the report was up 0.6% from October and up 5.7%, year-on-year. These numbers were close to being in line with market expectations and the markets saw no significant reactions. Read More
Seasonally gold price looks strong, but analysts ask if it can hold above $1,800 through the new year?
Sentiment remains bullish on gold as prices head into the Christmas holidays above $1,800 an ounce; however, the advice from markets analysts is: if you don't have to trade next week, don't.
Most Wall Street analysts note that gold is starting a strong season period; however, the next two weeks will see high volatility on extremely low trading volume. Many firms have already closed their books for the year ahead of the holidays.
The low-volume environment was also reflected in the participation rate of this week's gold survey.
This week 13 Wall Street analysts participated in Kitco News' gold survey. Among the participants, nine analysts, or 69%, called for gold prices to rise next week. At the same time, bearish and neutral views garnered two votes or 15% each.
Meanwhile, a total of 638 votes were cast in online Main Street polls. Of these, 343 respondents, or 54%, looked for gold to rise next week. Another 134, or 21%, said lower, while 161 voters, or 25%, were neutral. Read More
Silver price 2022: Here's how silver can outperform gold as it plays catch-up next year
There have been many questions surrounding gold and silver's performance in 2021. But analysts remain optimistic, stating that silver can outperform gold once the bull market kicks off in 2022.
Both silver and gold had an uneventful year – silver last trading down 13.5% year-to-date and gold down 4.8%.
"Silver had no life of its own this year, fluctuating merely in gold's slipstream. On balance, it suffered disproportionately high losses as compared with gold. As a result, the gold/silver ratio has climbed from a good 70 at the beginning of the year to over 80 now," said Commerzbank analyst Daniel Briesemann. Read More
The bullish season for gold price begins, can gold tackle $1,850?
Gold price is looking to get a boost from a seasonably favorable time that began in mid-December. And analysts are eyeing whether the momentum will be strong enough to take gold above $1,850 an ounce — the next hurdle in the price trend.
"From a seasonal perspective, demand for physical gold is a big aid in driving prices higher from mid-December to Valentine's Day. In the next 6-8 weeks, gold and silver could thrive," Walsh Trading co-director Sean Lusk told Kitco News. "With the new variant coming in, easy money policies will remain. Granted, the Fed signaled that they would start rate hikes. But there is still a lot of uncertainty out there — global economic recovery and new geopolitical tensions."
This is why gold held the $1,780-$1,800 range, Lusk noted. At the time of writing, February Comex gold futures were ending the week at $1,809.50. Read More
This will be 2022's best-performing asset and rise 50% - Gareth Soloway gives outlook
2022 will be an inflection point year, in which capital rotates from the winners of 2021 into the laggards, Gareth Soloway, chief market strategist of InTheMoneyStocks.com told David Lin, anchor for Kitco News. 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.
