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World at 'tipping point': if inflation becomes entrenched, it'll trigger 'major paradigm shift' – BIS
The top economies of the world are at a tipping point. If inflation becomes entrenched, it will trigger "a major paradigm shift," the Bank for International Settlements said in its annual report.
The BIS warned that a high-inflation environment would make swift price increases the new normal and extremely hard to reverse.
"We may be reaching a tipping point, beyond which an inflationary psychology spreads and becomes entrenched. This would mean a major paradigm shift," the Sunday report stated.
Many countries are already on that path, which is why the BIS sees the central banks as not doing enough despite aggressive rate hike cycles from many across the globe, including the Federal Reserve.
"The key for central banks is to act quickly and decisively before inflation becomes entrenched," BIS general manager Agustín Carstens said. Read More
$1,800 gold puts M&A projects ‘on the table,’ but gold’s price will go higher – Alastair Still
The price of gold will rise due to worries about inflation, said Alastair Still, CEO of GoldMining Inc. He added that even a price of $1,800 per ounce offers many opportunities for mergers and acquisitions.
“I think the gold price is going to go higher,” he said. “We are all talking about inflation. That’s on the tip of everyone’s tongues these days. And I think that as the markets get turbulent… we’ll seek out gold as a safe haven.”
Still spoke with David Lin, Anchor and Producer at Kitco News, at the PDAC 2022 Convention in Toronto. Read More
Gold SWOT: total gold held by etfs has risen 7.4% so far this year
The best performing precious metal for the week was palladium, up 3.41%, perhaps on news that Sibanye says its Stillwater Mine could be idle for up to six weeks after the Yellowstone flooding. Gold has largely held firm this week as the dollar and bond yields sank on growing concerns about an economic downturn, reports Bloomberg. This comes after Federal Reserve Chair Jerome Powell vowed to curb inflation and said that a recession could be a possibility. With markets still focusing on central bank tightening to contain price pressure and the impact of those actions on global growth, the yellow metal has been holding in a narrow range this week, the article continues. Read More
Gold, silver weaker as USDX rallies, bond yields rise
Gold and silver prices are weaker in midday U.S. trading Tuesday. The safe-haven metals are being pinched by a solid rally in the U.S. dollar index today and rising U.S. Treasury yields early this week. However, losses are being limited as the U.S. stock indexes are selling off and near session lows at midday today. August gold futures were last down $3.00 at $1,821.70. July Comex silver futures were last down $0.333 at $20.83 an ounce.
Technically, August gold futures bears have the overall near-term technical advantage. However, the recent sideways and choppy trading action at lower price levels is suggesting a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at the June high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,830.90 and then at this week’s high of $1,842.80. First support is seen at last week’s low of $1,817.70 and then at the June low of $1,806.10. Wyckoff's Market Rating: 3.5.
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July silver futures prices closed at a six-week-low close today. The silver bears have the solid overall near-term technical advantage and gained fresh power today. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at today’s high of $21.355 and then at this week’s high of $21.535. Next support is seen at the June low of $20.545 and then at $20.42. Wyckoff's Market Rating: 2.0. Read More
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Gold price to revert to tracking real yields for the rest of 2022 – Standard Chartered
Gold is stuck between an aggressive Federal Reserve and fears of entrenched inflation, said Standard Chartered, projecting that the precious metal will go back to tracking the real yields closely for the rest of 2022.
"Gold has been caught between sharper rate-hike expectations and concerns over prolonged high inflation if the monetary policy fails to soften economic activity and bring inflation lower," said Standard Chartered precious metals analyst Suki Cooper.
This inaction has led to gold being largely range-bound and steady despite heavy volatility witnessed across other assets. The big macro expectation for the rest of 2022 is for the focus to shift from inflation to slowing growth and recession risks, which is already happening, said Cooper.
"Gold continues to benefit from safe-haven demand given elevated geopolitical risk, as well as concerns over market volatility amid lower equity markets; however, the premium has been eroded," Cooper wrote in a recent report.
This is likely to lead to lower gold prices in the second half of the year, according to the analyst. "Rising recession risk is preventing outright short positions for now, but we expect gold to revert to tracking real yields for the rest of 2022, pressuring gold prices lower (albeit with a higher floor given the physical market response to lower prices)," she said. Read More
(Kitco News) - An examination of the monthly continuation chart for nearby Comex gold futures is a classic example of why it’s important to look at the longer-term charts, in order to gain a critical over-the-horizon perspective on where a market has been and where it may be heading.
The monthly gold chart shows prices are still not far below the record high of $2,078.80, basis nearby futures, scored in March of this year. Prices have pulled back from the record high, but not a lot, by longer-term historical standards. Technical analysts call this price action a “downside correction” in an overall longer-term price uptrend that remains in place. Gold market bulls still have the firm longer-term technical advantage. Read More
In this week’s Live from the Vault, Andrew Maguire is joined by none other than Gold Anti-Trust Action Committee (GATA) director, Bill ‘Midas’ Murphy, to go public about the shocking scale of silver price suppression.
The two gold bugs walk us through two decades of GATA exposing gold and silver market manipulation and bring a few inside secrets of the precious metals cartel out in the open.
Gold and silver fall ahead of the European open
Gold (-0.19%) and silver (-0.22%) are both trading lower heading into the European open. In the rest of the commodities complex, copper (-0.35) and spot WTI (-0.60%) are both trading in the red.
After the negative close on Wall Street, indices in the Asia Pac area also struggled. The Nikkei 225 (-0.91%), ASX (-0.94%) and Shanghai Composite (-1.25%) all closed lower. Futures in Europe are also pointing towards a negative cash open.
In FX markets, the dollar index is 0.17% higher. The biggest mover overnight was AUD/USD which fell 0.34%. Bitcoin is trading at $20,100.
News from overnight: Read More
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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.
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