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Silver Technical Analysis: Downside levels in focus
Silvers recovery has been cut short by some poor sentiment following the FOMC meeting minutes on Wednesday night. On the technical front, the 4-hour chart below shows a massive bank of resistance just below $23.50/oz. The last five candles have now been negative following the most recent test of the last wave high at $23.30/oz.
Now on the chart below, the price has made its first lower high lower low wave pattern since 15th December. In this bearishness, the price is currently at a support level of $22.38/oz. Below that the main support on the chart is the consolidation low just below $21.50/oz. Read More
Fed sticks it to gold once again
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.
Whether you are trading or investing, one day never makes a market. Selloffs of any size are just another part of the trading world. Traders must focus on the price action and ignore the news that they think is driving markets. Read More
Gold price edges up but remains under pressure as U.S. weekly jobless claims rise to 207,000
The initial weekly jobless claims rose by 7,000 to 207,000 in the week to Saturday, slightly disappointing market expectations.
Economists’ consensus calls projected for initial claims to come in at 197,000 following the revised level of 200,000 reported in the previous week.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – increased to 204,500. Last week’s four-week moving average was revised up to 199,750, the U.S. Labor Department said on Thursday. Read More
Gold price unable to trim Fed-related losses despite U.S. service sector falling short of expectations
Gold was trading near daily lows as momentum in the service sector was weaker than expected in December, according to the latest data from the Institute of Supply Management (ISM).
The Non-Manufacturing Purchasing Managers Index was at a reading of 62% last month, down from November’s all-time high of 69.1%. The 7.1 percentage-point drop surprised the markets, with the consensus forecasts calling for the index to come in at 66.9%.
Readings above 50 are seen as a sign of economic growth – the farther an indicator is above or below 50, the greater or smaller the rate of change. Read More
Gold, silver sell-off on bearish reaction to hawkish Fed
Gold and silver futures prices are sharply lower in midday U.S. trading Thursday. The metals are reeling after a surprisingly hawkish report from the Federal Reserve Wednesday afternoon. February gold futures were last down $36.50 at $1,788.50 and March Comex silver was last down $1.05 at $22.11 an ounce.
The Federal Reserve's FOMC minutes that were released Wednesday afternoon indicated a "very tight" U.S. job market and rising inflation might require the central bank to raise interest rates even sooner than many already expected, and begin reducing its overall asset balance sheet. The minutes suggested inflationary concerns outweigh the economic risks posed by the rampant Omicron variant of the coronavirus. The probability that the Fed will raise interest rates in March rose to greater than 70%, according to the Fed funds futures market.
Rising U.S. interest rates as evidenced by rising U.S. Treasury yields are bullish for the U.S. dollar. Gold and the greenback many times move in the opposite direction on a daily basis. However, the U.S. dollar index has shown little reaction to the Fed minutes. Gold and the U.S. dollar compete with each other as a safe-haven store of value. Keep in mind, however, that the longer-term implications of rising interest rates and problematic price inflation are historically bullish for hard assets like the precious metals. Read More
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U.S. stock markets to crash by 90% this year, followed by the best buying opportunity in your lifetime - Harry Dent
The greatest financial downturn ever will happen this year, and investors will be taking the "biggest risk of [their] life" if they don't sell now ahead of a complete market wipeout, said Harry Dent, founder of HS Dent Publishing.
Dent is an economist and the author of "Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage" and his latest book "What to Do When the Bubble Pops: Personal and Business Strategies For The Coming Economic Winter." He bases his economic forecasts on demographic changes. Read More
Gold has dipped below $1800/oz ahead of the European open
Gold dipped below $1800/oz and is trading flat heading into the European open. Silver is another half a percent in the red at $22/oz. In the rest of the commodities complex copper and spot WTI gained 0.20%.
Indices overnight were mixed with a negative tilt. The ASX rose 1.29% but the Shanghai Composite (-0.18%) and Nikkei 225 (-0.03%) both closed in negative territory. Futures in Europe are pointing towards a flat open.
In the FX markets, it was very quiet overnight with USD/JPY (0.11%) the biggest mover. In the crypto space, BTC/USD (-3.46%) took another dive to trade below $42,000. Read More
Gold & Silver Market Analysis for Friday 7th January
Kinesis Money Gold Analysis: Already, the bullion price has been hit by the hawkish tone of the FOMC minutes. The rally of the treasury yields generated a decline for gold, which lost the support zone of $1,800, hitting a low of $1,790.
From a technical point of view, the gold price has returned to the former lateral channel between $1,760 and $1,800, as investors await new catalysts. Any further hawkish indication from the Federal Reserve could trigger a negative impact on gold, while a slowdown of inflation growth (or any other suggestion of a push towards rate hikes) could be a positive market driver for gold. 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.
