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Barclay's Bank's Moser is looking for more upside in gold
Gerald Moser, chief market strategist at Barclays Bank, said that the price of gold could go up by as much as 20 percent over the next 12 months but warned that the gold retail sector will take time to recover from pandemic.
He said "I wouldn't be surprised if, over the next 12 months, you see the gold price going up by another ten to 20 percent," he told Arabian Business.
According to the World Gold Council (WGC), gold jewelry demand in the UAE slumped 86 percent in the second quarter of the year to just 1.3 tonnes, compared to 9.3 tonnes in the same period last year, largely as a result of the restrictions introduced to curb the spread of coronavirus.
Moser said: "I think we probably need a vaccine and basically the world going back to what it was before, or something close to what it was before, for the demand for gold in retail to meaningfully pick-up." Read More
Gold prices holding gains as U.S. ADP shows 534K jobs gains in November
The gold market is holding on to modest gains Wednesday even as the private sector labor market continues to improve, according to the latest report from private-sector payrolls processor ADP.
Wednesday, ADP said that 534,000 jobs were created this past month, slightly beating expectations; consensus forecasts were calling for job growth of around 525,000.
The gold market was trading in positive territory ahead of the data and is holding firm in initial reaction to the labor market data. February gold futures last traded at $1,786.50 an ounce, up 0.56% on the day. Read More
As investors flee U.S. stocks, stay away from cash, says Ray Dalio
With markets plunging on a more hawkish Federal Reserve and omicron fears, Bridgewater Associates' Ray Dalio reminded investors to stay away from cash, stating that it will be eaten away by inflation.
"Cash is not a safe investment…because it will be taxed by inflation," the founder of the world's biggest hedge fund told CNBC on Tuesday.
Dalio explained that during periods of market volatility, the key is to have a well-balanced portfolio, stating that wealth is rotated.
"It's a fool's journey to time the way into the market and out of the market … Even if you were a great market timer, the things that are happening can change the world, so it changes what could be priced into the market," Dalio said. Read More
Yellen says stimulus only 'small contributor' to inflation, Powell sees Fed ready to adapt policy to higher price pressures
U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell were grilled on inflation by the U.S. lawmakers during their second day of testimonies before the U.S. Congress.
The questions poured in after Powell retired the phrase that "inflation is transitory." U.S. lawmakers dove in trying to identify some of the main causes behind this problematic inflation.
When asked if U.S. President Joe Biden's $1.9 trillion American Rescue Plan stimulus package was the reason behind higher-than-expected inflation, Yellen replied that it was only a small contributor. Read More
Gold up on weaker USDX, firmer crude oil, mild safe-haven buying
Gold prices are moderately higher in midday U.S. trading Wednesday. The key outside markets are in a daily bullish posture for the metals at mid-week, as the U.S. dollar index is a bit weaker and crude oil prices are up, but well down from their daily highs. There also remains a bit of safe-haven demand for the precious metal as there is still some uncertainty and anxiety in the marketplace. Silver prices could not catch a bid today and are solidly lower and hit a six-week low. February gold was last up $9.00 at $1,785.50 and March Comex silver was last down $0.38 at $22.435 an ounce. Read More
Gold price at $10k, silver at $500 due to 'a decade of shortage', says Goehring & Rozencwajg
This will be a "decade of shortage" defined by high inflation and a failed attempt to raise rates – the perfect combo to trigger a massive rally in gold, said Goehring & Rozencwajg Associates managing partner Leigh Goehring.
Next year, inflation could already be pushing 9%, and it could get a lot worse, Goehring told Kitco News in an interview.
"We're getting closer to the explosion of gold prices to the upside. I'm a big believer that inflation is not going away. It's going to continue to be a problem. We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock," Goehring said.
Federal Reserve Chair Jerome Powell already shocked the markets this week by dropping the phrase that "inflation is transitory" and stating that the U.S. central bank will be discussing accelerating the pace of tapering at the upcoming December meeting. Read More
Inflation drives global gold production costs to their highest level since 2013 - report
According to the latest data from Metals Focus, a leading independent precious metals consultancy, in Q3 2021, the global average gold all-in sustaining cost (AISC) rose by 3.6% q/q to $1,123/oz, its highest level since mid-2013.
While the global average gold head grade improved by 0.5% q/q in Q3 2021, which - coupled with weaker local producer currencies to the dollar - put downward pressure on unit operating costs, this was not enough to counter inflation, Metals Focus said.
“Inflation in local costs pushed global average total cash costs (TCC) higher by 5.3% to $825/oz, the highest since the start of Metals Focus’ dataset in 2012. It is this increase which has underpinned the rise in AISC,” the authors of the report noted. Read More
Gold and silver are mixed heading into the European open
Gold (-0.31%) and silver (0.52%) are mixed this morning heading into the European open. The yellow metal is trading at $1775/oz while silver has retraced after a tough session on Wednesday ($22.38/oz). In the rest of the commodities complex, copper is 0.50% higher and spot WTI is 1.22% in the black.
In terms of risk sentiment, the markets were weaker in the Asia Pac session. The Nikkei 225 (-0.65%), ASX (-0.16%) and Shanghai Composite (-0.09%) all closed lower. Futures in Europe are also indicating a negative cash open. 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.
