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Gold starts the year under pressure
Monday was the first trading day of the year. Gold, Silver, and Platinum got hammered. The selling started early and never relented. The pressure on Gold was enough to reverse our trading position back to the short side.
The price action brings that $1,450 Gold into play. That doesn't mean tomorrow; it means possibly this year. Much will depend on the world economy, which is still controlling the interest rate markets where most of the world's nominal rates are negative.
Silver got hammered as well but not to the extent of Gold. Someone asked about the crushing of Silver, .60-.80 is not even a bruise. In fact, the selloff in Silver wasn't even the biggest down day in the last three months. Those who understand the market may look at the selloff as a buying opportunity. Read More
State Street Global Advisors Head of Gold Strategy outlines the bullish case for gold
State Street Global Advisors Head of Gold Strategy George Milling-Stanley kicked off his recent interview by saying "I think that we're going to see better performance than we've seen in 2021. I think, to put 2021 in perspective, it's important to remember that gold was coming off two banner years. The price went up 18% in 2019. It went up another 24% in 2020.". George Milling-Stanley framed his case for a bull market in 2022.
When talking about the ETF GLD Miling-Stanley said "We've lost about $10 billion to redemptions from GLD in 2021 so far, but that comes after a year in 2020 when we were up $15 billion. So we're still running pretty well if you take the two years as an average."
The reason why Milling-Stanley is bullish on the yellow metal is that "As far as where investors see the gold in their portfolios, I think most people are still seeing it-- they still believe that gold is offering them some protection against the unexpected, whether the unexpected is macroeconomic or geopolitical. There's still plenty of potential for the unexpected to keep cropping up. We haven't seen, perhaps, as much in 2021 as we did in the previous couple of years, which was one of the reasons why gold was a little quiet this year, but I'm still expecting to see uncertainties, especially around equity markets." Read More
Gold price tanked last year, can Fed make metal even worse in 2022?
The Federal Reserve's monetary policy will be key in guiding gold's price action in 2022, especially after the hawkish shift at the end of the year. This leads to a key question — can gold handle a more aggressive central bank after an already lackluster year?
At the December meeting, the Fed announced that it would be doubling its tapering pace to $30 billion a month, which would conclude the Fed's asset-purchasing program in early 2022. The central bank cited problematic inflation and a strong economic recovery as the main reasons for the shift in policy.
When the Fed announced its accelerated schedule, gold ended up making unexpected gains as most of the information was already largely priced in.
It is "really appropriate" to make this monetary policy shift due to the current state of the U.S. economy, inflation, and wages, Fed Chair Jerome Powell told reporters in December. "Price increases have now spread to a broader range of goods and services," he said. Read More
Gold price rises after Monday’s selloff as ISM Manufacturing Index disappoints in December
Gold prices continued to advance after Monday's selloff as the headline manufacturing index from the Institute for Supply Management disappointed in December.
The ISM manufacturing index was at 58.7% last month, falling short of the consensus forecast of 60.0%. The monthly figure also marked a 2.4 percentage-point decline from November’s reading of 61.1%.
“This figure indicates expansion in the overall economy for the 19th month in a row after a contraction in April 2020,” the report said. Read More
U.S. Mint sees strongest gold coin sales in 12 years, sells 1.25 million ounces in 2021
Despite gold's uninspiring performance in 2021, the precious metal saw an impressive wave of physical demand throughout the year.
Updated sales data released from the U.S. Mint on Monday showed demand for physical gold hitting its highest level since 2009. The U.S. Mint said that in 2021 it sold more than 1.25 million ounces of gold in various denominations of its American Eagle gold coins, up more than 48% from last year.
According to the sales data, the mint's busiest month last year was in January when it sold 220,500 ounces of gold. Another memorial month for the mint included June when it sold 182,000 gold ounces as gold prices dropped more than $100 in the month as the Federal Reserve signaled that it was looking at reducing its monthly bond purchases before the end of the year. Read More
Gold and silver gain as bulls prove resilient
Gold and silver futures prices are higher in midday U.S. dealings Tuesday. Bulls are enjoying the near-term technical advantage as prices have been trending higher recently, and that is prompting mostly chart-based traders to step in to buy the recent dips. Bulls are also showing strength despite this week's sharply rising bond yields and a rally in the U.S. dollar index. February gold futures were last up $14.90 at $1,815.00 and March Comex silver was last up $0.26 at $23.07 an ounce. Read More
This ETF sees one of the largest outflows in 2021 as investors lose interest in gold
Gold wrapped up the year with the biggest loss in six years, and analysts point to a lack of investor interest as one of the key triggers behind the precious metal's underperformance in 2021.
LD saw its biggest annual outflow in nearly a decade, losing approximately $14.1 billion in assets in 2021, which translates to around 195 metric tons worth of bullion. Based on the numbers provided by the GLD, this is the biggest annual outflow since 2013, when more than $41 billion was lost as gold prices crashed from $1,700 an ounce to $1,180 an ounce.
As of December 31, 2021, GLD's total net asset value was at $57.1 billion, with the total net asset value in metric tons standing at 976. Read More
Gold finds support at $1798 and moves higher as Omicron variant surges
The surge in new infections coupled with a weaker than expected U.S. manufacturing report was the primary component that took gold higher today. The ISM manufacturing index was forecasted to come in at 60.0%. However, the actual number came in below that at 58.7%. The ISM report clearly showed that growth amongst U.S. manufacturers is slowing faster than expected. The concern is that inflationary pressures will continue to grow and stifle economic recovery.
As of 4:23 PM EST gold futures basis, the most active February contract is fixed at $1814.90 after factoring in today's gain of 0.82%, or $14.80. Silver also had strong advances today with the most active March 2022 contract currently up $0.28 and fixed at $23.09. Read More
Gold can surprise with a 20% gain in 2022, says Blackstone's Byron Wien
In an unexpected move, gold can surge 20% in the new year as it reclaims its inflation hedge status, according to Byron Wien, vice chairman of Blackstone's private wealth solutions business, and chief investment strategist Joe Zidle.
The statement was made in Blackstone's annual 'Ten Surprises of 2022' post and came as gold registered its worst annual performance since 2015, down 3.6%.
The 2022 surprise prediction sees investors fleeing to the yellow metal for protection against problematic and more persistent inflation.
"The price of gold rallies by 20% to a new record high. Despite strong growth in the U.S., investors seek the perceived safety and inflation hedge of gold amidst rising prices and volatility. Gold reclaims its title as a haven for newly minted billionaires, even as cryptocurrencies continue to gain market share," Wien and Zidle wrote. Read More
Gold is trading flat ahead of the European open
Gold is trading flat this morning but holds its head above the $1800/oz area. Silver has slumped -0.63% to trade at $22.88/oz. In the rest of the commodities complex, both WTI (-0.45%) and copper (-0.57%) struggled overnight.
Indices were mixed in the Asia Pac area. The Nikkei 225 rose 0.10% while the ASX (-0.32%) and Shanghai Composite (-1.02%) both struggled. Futures in Europe are also mixed ahead of the cash open.
In FX markets, there was not much movement overnight. EUR/USD rose 0.11% while USD/JPY moved the same amount in the opposite direction. Bitcoin pushed just over 1% higher to reach $46,340 this morning. Read More
Gold & Silver Market Analysis for Wednesday 5th January
Kinesis Money Gold Analysis
In 2021, the gold price started with a decline from $1,830 to $1,800, after the recovery of US bond yields. Within the support zone of $1,800, we have seen buyers being very active, and the price now recovering to $1,815.
From a technical point of view, a new positive signal would be highlighted with the surpassing of $1,830. However, a decline below $1,800 could bring the gold price back into the lateral channel of $1,760 and $1,800.
Analyzing the price in dollars per gram, bullion remains traded above $58. 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.
