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Commerzbank await more detail to help determine the future direction of gold
Commerzbank's Daniel Briesemann has said in his latest note that gold is lacking any firm direction at the moment. Gold has not really recovered since the Fed-inspired drop. It was some U.S. central bankers who said that the taper from emergency pandemic QE should happen quickly and that this could give the Fed more space to raise rates if needed. Since then the price has consolidated just below $1800/oz and price action has continued to be lackluster. Now the omicron variant is around it might just derail the plan but more information is needed. 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. Read More
Gold prices remain in negative territory following as U.S. weekly jobless claims beat expectations
The U.S. labor market continues to improve as fewer workers than expected applied for first-time unemployment benefits.
The gold market remains under pressure in negative territory following the better-than-expected economic data.
Thursday, the U.S. Labor Department said that weekly jobless claims rose by 28,000 to 222,000. The previous week's estimate was revised down to 194,000 claims. Read More
Gold down, hits 4-week low on chart selling, long liquidation
Gold prices are down and hit a four-week low in midday U.S. trading Thursday. The near-term chart posture for the gold market is deteriorating now, and that has invited some technical-based sellers into the market. Also, weak-handed longs in the gold futures markets are being forced to liquidate their positions amid the recent sell-off. A slumping crude oil market this week is also a negative for the metals markets. February gold was last down $17.20 at $1,767.30 and March Comex silver was last up $0.036 at $22.375 an ounce. Read More
Ireland buys gold for the first time in 12 years
The Irish central bank is adding gold to its reserves after a 12-year hiatus, and inflation worries could be the reason why.
The Central Bank of Ireland purchased two tons of gold over the last few months, marking the first addition since 2009, Bloomberg reported.
Why would it buy gold now, especially considering the central bank's gold holdings stood unchanged for a whole decade? One possibility is inflation risk, according to media reports.
At the end of November, Ireland's central bank Governor Gabriel Makhlouf said he was "worried" about inflation.
"I am very, very conscious that inflation today is impacting on households across the country," Makhlouf said. "It's not so much a question of how long will this go on before I start to worry. It's more that if I see evidence that the blockages are not being fixed, or that different things aren't happening, then I will start to worry. But I am worried today." Read More
Powell is just stalling for time, gold and silver look attractive as inflation spiral starts - Degussa
Physical gold and silver will continue to be attractive assets as investors look to protect their wealth and purchasing power as one precious metals firm sees signs of an inflation spiral.
In his latest market report, Thorsten Polleit, chief economist of Degussa, said not only are consumer prices at multi-decade highs around the world but growing economic data points to elevated inflation pressure for years to come. Read More
The first half of 2022 will be the best time for gold price next year, says TD Securities
The 2022 gold outlook looks promising, with the first half of next year offering the best environment for the gold bulls, according to TD Securities' commodities outlook.
"Positive gold story in play for [the] first half of next year," wrote TD Securities commodity strategists.
The precious metal could be looking at a rally towards $1,900 an ounce during the first six months of the year as markets focus on economic growth, inflation and political risks.
"Political risks associated with the pending U.S. mid-term elections, U.S. fiscal drag, fairly steadfast central banks gold purchases, and a significantly slower pace of U.S. and global recovery are additional factors which may see investor rekindle their interest in gold," said TD Securities global head of commodity markets strategy Bart Melek. "These factors should help lift gold into $1,900/oz territory in the first half of 2022, as per our projections." Read More
Gold and silver are flat leading into the European open
After another tough day on Thursday gold (0.18%) is starting the session marginally higher. Silver is currently trading flat at $22.35/oz. In the rest of the commodities complex, copper is 0.43% higher and spot WTI has risen 0.78%.
In the Asia Pac session risk sentiment was positive. The Nikkei 225 (1.00%), ASX (0.22%), and the Shanghai Composite (0.94%) all performed well. Futures in Europe are pointing towards a positive 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.
