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Silver: How low is too low?
That was the question many Crude Oil investors asked themselves before prices plunged to $-40.00/barrel in April of 2020. The structural problem with Crude Oil remained with a lack of places to store 1000 barrels resulting in a frantic "bid for storage" as the product is non-deliverable to investors while only being kept at approved locations. Silver, on the other hand, is a "whole nother ball game," meaning that the delivery process of the Silver futures contract results "When futures buyers take delivery of metal warrant, they can choose what to do with it. For example, they can choose to leave it on warrant in the depository, take it off warrant and sell the metal privately or ask for its removal from the depository for use or storage elsewhere, a process known as load out." Read More
Gold market is ugly with no clear price direction
Hawkish comments from Federal Reserve Chair Jerome Powell are taking a toll on sentiment in the gold market, according to the latest Kitco News Weekly Gold Survey.
The latest survey shows no clear short-term direction for the gold market as prices hold critical support levels but remain below $1,800 an ounce. Wall Street Analysts are stuck in a three-way-tie on gold's short-term price outlook for the second consecutive week.
At the same time, sentiment among retail investors dropped this past week sharply. Market analysts note that gold is struggling to attract new bullish momentum. They said that rising inflation fears are being met with expectations that the Federal Reserve could tighten monetary policy faster than expected. Read More
Gold price wants clarity after Powell's hawkish stance - analysts
As markets come to grips with a more hawkish Federal Reserve and omicron fears, can gold find its safe-haven appeal next week? The focus in December will be the Federal Reserve's monetary policy meeting, according to analysts.
After a turbulent week in gold and the U.S. equities, the markets were hit with a mixed employment report from November. Despite the big miss in the headline number, the details were quite optimistic. The latest data showed the U.S. economy only adding 210,000 jobs last month versus the expected 535,000.
"Algorithms first saw the big headline miss, and gold popped. But as analysts read the report, it was fairly positive. Minority employment rose, and the participation rate increased. That showed labor market recovery heading in the right direction. Overall, the report was still in line with the Fed's goal to accelerate tapering," OANDA senior market analyst Edward Moya told Kitco News. Read More
The struggle continues
Once again, the gold market is fighting for relevancy within financial markets as investors react to more hawkish rhetoric from Federal Reserve Chair Jerome Powell.
Just three weeks ago, gold was in a bullish uptrend as investors looked to protect themselves from rising inflation pressures. Now the Federal Reserve appears to be taking the threat seriously, and expectations are rising that the central bank will be more aggressive in tightening its monetary policy. Markets expect that the Fed will reduce its monthly bond purchases at a faster pace in December. Markets are also starting to price in four rate hikes in 2022.
However, even as interest rate expectations begin to shift, the broader investment landscape remains the same. Despite Powell's new hawkish stance, most economists and market analysts expect the Federal Reserve to remain well behind the inflation curve. This means that the real interest rate will remain in negative territory, a strong environment for the gold price. Read More
Tepid jobs report and continued concerns about the new Covid variant move gold higher
For the first time since November 17 gold futures had substantial gains, and most importantly closed very near the highs of the day. As of 4:00 PM EST gold futures basis, the most active February 2021 contract is currently fixed at $1784.40 which is a net increase of $21.70, or a gain of +1.23%. Gold traded to a low of $1766 and a high of $1788. Since November 17 gold traded and closed at a lower price for eight consecutive days, up until Wednesday, December 1 when gold scored modest gains but closed well off the high achieved in trading that day. That was followed by yesterday's steep decline in which gold moved from $1784.80 and closed almost at the low of $1762.60. Read More
The Metals, Money, and Markets Weekly by Mickey Fulp - December 4, 2021
Gold at $10k, silver at $500 due to 'a decade of shortage', inflationary black swan event
Gold's safe-haven appeal is yet to kick in. The precious metal once again failed to hold the $1,800 an ounce level. And that's despite high volatility in the U.S. equity space triggered by omicron fears. Here's a look at Kitco's top three stories of the week: Read More
Gold starts the session flat heading into the European open
Gold is trading 0.08% higher leading into the European open at $1784/oz. On the contrary, silver has fallen 0.44% and starts the session at $22.44/oz. In the rest of the commodities complex, copper is trading just under flat, while spot WTI is up around 2%.
On the risk side, the Nikkei 225 (-0.36%) and Shanghai Composite (-0.50%) fell overnight, while the ASX (0.05%) managed to keep its head above water. Futures in Europe are initiating a positive cash open is on the cards. Read More
Ep.55 Live from the Vault: Wall Street exposed! Hollywood special
This week, Andrew Maguire sits down with ‘The Paradigm of Money’ director, Peter Antico, and narrator, Sean Stone, for a deep dive into the failings at the heart of the American financial system.
The trio takes aim at market manipulation at large, with Andrew’s special guests revealing the shocking findings of their feature documentary on Wall Street corruption. Watch on YouTube
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.
