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Gold and silver struggles continue
The struggles for gold and silver continue with their inability to sustain any rally. None of this should be a surprise to anyone. We never know exactly when a market can turn, but we can certainly observe and understand the price action that they bring.
For the past few weeks, the metals have been anything but precious. They have been weak and ugly. Too many traders like to look for the reasons basing their decisions on fundamental hogwash. Price action reads the information long before the news reports it. Fundamentals are worthless to traders; however, too many try to read into the market while tying in their opinions. Read More
Silver is the only precious metal likely to achieve persistent deficit over 2021-22 - Metals Focus
Metals Focus, one of the world's leading precious metals consultancies, expects silver to benefit from an improving gold price in early 2022.
This was reported in Metals Focus' recent release of "Precious Metals Investment Focus 2021/2022", its flagship annual report on investment in gold, silver, platinum, and palladium.
"Silver's innate high volatility means that it may well outperform gold early next year," said Neil Meader, Director of Gold and Silver at Metals Focus. Read More
Gold market sees inflows into ETF for first time in four months - WGC
U.S. inflation hitting its highest level in 31 years drove investors, looking for an inflation hedge, into the gold market last month. However, the momentum didn't last as prices have been unable to hold above $1,800, according to the latest data from the World Gold Council.
In its latest market report, the WGC said that global gold-backed exchange-traded products saw inflows totaling 13.6 tonnes in November. This was the first month of inflows the gold ETF market has seen since July.
"Both North American and European gold ETFs contributed to November's inflows, a reversal from the headwinds faced by larger funds in these regions for much of this year," analysts said in the report. Read More
Gold market to remain in major surplus next year as production grows - report
Strong economic recovery, rising nominal yields, and the potential for rate hikes have all hurt institutional investors' appetite for gold, which has affected other precious metals as well, according to the latest report from Metals Focus.
On the other hand, the consultancy said that the threat of new virus variants, fears of stagflation, and negative real rates have all supported holding precious metals. In the near-term, growing uncertainties should be the main driver of precious metals investor activity, especially for gold.
"However, the investment case for gold will turn bearish from mid-2022 onwards when a US policy rate high looks increasingly likely," said Neil Meader, Director of Gold and Silver at Metals Focus. Read More
Do Investors Really Care about ESG?
Environmental, Social, and Governance (ESG) has come to the forefront for the mining industry by investors demanding increased attention to ESG matters and data. "Doors are closing for companies that are not disclosing ESG in a fashion that is acceptable to the underlying investors," emphasized Jamie Strauss, CEO, and Founder of Digbee. Digbee is an ESG disclosure and data platform for the mining industry.
"At the same time, if we begin to disclose ESG in a standardized form that investors can credibly track, then pools of capital and green money will become available. The green money is vast and most of those groups are allowed to invest in mining, but they choose not to," Strauss told Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, on the sidelines of the Mines and Money London conference. Read More
Ask the experts - Joe Mazumdar's and Brent Cook's LIVE Q&A on picking junior stocks
Want to pull the trigger on a junior resource stock? Ask the experts first!
Hosted by Michael McCrae, viewers have the opportunity to interact with Joe Mazumdar, Editor, and Analyst of Exploration Insights, and Brent Cook, an economic geologist and senior advisor to Exploration Insights. The two experts will provide analysis of the junior mining space for the sophisticated speculator. Read More
Gold, silver gain as crude oil continues big rebound
Gold and silver prices are moderately higher in midday U.S. trading Tuesday. A strong rally in raw commodity sector leader crude oil so far this week is keeping a floor under the metals markets. However, the safe-haven metals' gains are being limited as trader/investor risk appetite has significantly improved this week. February gold was last up $5.90 at $1,785.40 and March Comex silver was last up $0.272 at $22.535 an ounce.
Global stock markets were higher in overnight trading. U.S. stock indexes are sharply higher at midday. The worst fears of the Omicron variant are not materializing, so far, and risk appetite is back on the table for the marketplace. Oil prices are also rallying and U.S. Treasury bond yields are rising on ideas U.S. and global economic growth will not be seriously impacted by Omicron. Read More
Will it be gold or U.S. dollar at new record highs in 2022? 'I'm bullish on gold,' says NDR's chief global investment strategist
Gold and the U.S. dollar are well known for their inverse correlation. But will 2022 be the year of gold or the U.S. dollar? Ned Davis Research's (NDR) chief global investment strategist Tim Hayes weighs in.
With the Federal Reserve looking at a more aggressive tapering schedule next year and potentially two rate hikes, the U.S. dollar index has been holding up quite well at the 96 level, which has been weighing on gold.
But will the inflation narrative change the outlook for gold next year?
"The dollar made a high right after the COVID-19 crisis in March. And on the question of which one is more likely to make a new high — gold or the dollar — I'd say gold. I'm currently neutral on the dollar, which sort of implies that it stays in its trading range. But I'm bullish on gold," Hayes told Kitco News in an interview. 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.
