x
Image Source: Unsplash
Gold and silver demand in India sees strong recovery in H2 2021; next year will be even better - report
Gold and silver demand in India recovered sharply in the second half of 2021 as jewelry purchases and investment in physical metal surged following a downturn caused by COVID-19 restrictions and uncertainty.
This was reported by Metals Focus, a leading independent precious metals consultancy, on the heels of a trip by its local team to more than ten cities in India to assess the situation on the ground, which revealed robust demand for gold and silver.
Looking first at gold, Metals Focus said that the strong recovery has been led by festive and wedding buying.
Importantly, apart from notable pent-up demand, as many weddings had been postponed in 2020 and H1 2021, the consultancy noted that lower gold prices have also supported higher consumer purchases. 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
Credit Suisse sees gold price around $1,850 in 2022, but long term around $1,400
The gold market is starting the last trading week of 2021 above $1,800 an ounce, and according to an analyst from Credit Suisse, the precious metal could see further bullish momentum in the new year.
In a recent report, Fahad Tariq, precious metals analyst at the Swiss bank, said that he remains optimistic on gold prices even as the Federal Reserve prepares to raise interest rates in 2022.
However, the bank does not expect gold prices to hold above pre-pandemic levels in the long term.
According To Tariq, Credit Suisse looks for gold prices to average around $1,850 an ounce. Looking to 2023, the bank expects gold prices to fall to $1,600 an ounce and it sees long-term prices hovering around $1,400 an ounce. Read More
S&P 500 set to open at record high as rally sustains
The S&P 500 was on track to open at all-time highs on Tuesday, building on a record-setting rally amid thin trading volumes, with investors unshaken by Omicron-driven travel disruptions and store closures.
The S&P 500 and Nasdaq on Monday posted their best four-day rally since November 2020, with the S&P 500 scaling a peak as an upbeat outlook on the U.S. economy helped investors look past thousands of flight cancellations and Apple Inc (AAPL.O) shutting its New York stores due to surging cases. Read More
The Libor era nears its end
Libor, or the London Interbank Offered Rate, will no longer be used for new derivatives and loans as of Jan. 1. The benchmark and reference rate, which had $265 trillion linked to it globally at the start of 2021, is being scrapped in the biggest shake-up to markets since the introduction of the euro in 1999.
Libor, once dubbed the world's most important number, is a rate based on quotes from banks on how much it would cost to borrow short-term funds from one another. Although it dates to 1969, it was formalized in 1986 and has been used as a reference rate for a vast array of financial products, including student loans, credit cards, corporate loans, and mortgages.
Libor was discredited after the 2008 financial crisis when authorities found traders had manipulated it, prompting calls to reform and eventually replace the tarnished rate. Several global banks were fined. Read More
Gold looks ready to reverse
Monday, gold churned around the mean, attempting to reverse the trend, and failed to do so. This morning gold is higher and once again will try to sustain the rally to reverse.
We must remember that the technical trade, which is all we watch, must confirm a reversal. Think of the chart as a GPS system or an old-fashioned map; it continues to spit out instructions that you must follow. Don’t be that stubborn guy who won’t stop and ask for directions.
Silver and platinum are perking up and are in uptrends. Although platinum was down hard early Monday, by the end of the day, it had pared most of its losses and is higher this morning. Silver looks to be targeting its next level of $24. For today we are long silver, short gold, and would be long platinum if it was liquid enough. Read More
Gold, silver slightly up as near-term chart postures improving
Gold and silver prices are a bit higher near midday Tuesday, with gold notching a five-week high and silver a four-week high in the early going. The two precious metals markets are seeing the bullish traders working on near-term price uptrends for both. Sharp gains in crude oil futures recently are also supporting the precious metals markets. February gold was last up $3.60 at $1,812.40 and March Comex silver was last up $0.151 at $23.14 an ounce.
Technically, February gold futures bulls have the overall near-term technical advantage and are working on a near-term price uptrend. Bulls’ next upside price objective is to produce a close above solid resistance at $1,840.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today’s high of $1,821.60 and then at $1,825.00. First support is seen at $1,800.00 and then at last week’s low of $1,785.00. Wyckoff's Market Rating: 6.5. Read More
Global economy to grow at least 4% in 2022 but risk remain
Economists and market analysts are describing 2022 as an inflection year as the global economy continues to recover from the ongoing COVID-19 pandemic.
While down from the historic rise in 2021, global economic growth is still expected to be well above trend and support central banks as they look to tighten their ultra-accommodative monetary policies.
The shift in monetary policy is expected to reduce some liquidity in the marketplace. Still, economists don't expect that it will have a significant impact on economic activity. Most economists expect global economic activity to rise by at least 4% next year, driven by solid consumption as consumers start to deploy cash hoarded during the worst pandemic.
Douglas Porter, chief economist and managing director of economics at BMO Financial Group, said that he expects the global economy to grow 4.5% in 2023 and 4.0% by 2023. Read More
Demand for this metal is about to grow by 1,000% - Gianni Kovacevic
The electrification of the economy will rapidly transform the modes of transportation; the need for electric vehicles will bring higher demand for both copper and lithium, the latter of which is used in batteries.
Gianni Kovacevic, director of CopperBank, that the copper price, currently at $4.43 a pound, is going to grow to over $6 a pound, or what he calls the “inflation-adjusted all-time high.”
With the growth of copper, demand comes the growth of lithium in equal if not greater rates. 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.
