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$3k gold, $50 silver price is next; Double-digit inflation next month 'wouldn't surprise me' - Briton Hill
As inflation continues to spiral up to the highest level in 40 years, investors are looking for hedges against rising consumer prices.
"Commodities are my go-to. Stocks are a good hedge for moderate inflation, but we are past that. I like gold because it is stable," emphasized Briton Hill, President of Weber Global Management. "Gold is easy to get in and out of, and you can buy it anywhere. Silver is also a good investment."
Hill discussed investment hedges in this inflationary environment with David Lin, Anchor at Kitco News. Read More
Inflation will stay at 6% to 9% until 2024, Fed's rate hikes won't stop that now - Steve Hanke
The U.S. Federal Reserve hiked the Fed Funds rate by 25 basis points on Wednesday, the first-rate hike since 2018.
While this move was largely anticipated, the markets still rallied on the news; both the stock markets and safe-haven assets like gold rose. The dollar fell slightly.
Steve Hanke, professor of Applied Economics at Johns Hopkins University told David Lin, anchor for Kitco News, that the stock markets interpreted this news as quite dovish. Read More
The Metals, Money, and Markets Weekly by Mickey Fulp - March 18, 2022
Sentiment in gold remains strong despite nearly 3% drop this week
Gold futures are seeing their worst week since November, but sentiment in the marketplace remains strong as the price continues to hold clear support above $1,900 in an environment of growing uncertainty and volatility.
The latest results of the Kitco News Weekly Gold Survey show broad-based bullish sentiment among Wall Street analysts and Main Street investors.
Sean Lusk, co-director of commercial hedging with Walsh Trading, said that while gold will remain volatile along with all financial markets, it still shines bright as an alternative asset. He added that he sees gold prices push back above $2,000 in the near term.
"There is uncertainty everywhere and the question remains where do funds put their money," he said. "Investors should be buying the dips."
Although Lusk is bullish on gold in the near term, he added that he likes playing gold through the options market because risks are defined. Read More
Gold's not afraid of the Fed or seven rate hikes
The humanitarian crisis caused by Russia's invasion of Ukraine continues to build. According to the United Nations, 816 civilians have been killed and 1,333 more have been wounded in the fighting.
It looks like, the war is not going to end anytime soon and people will continue to suffer. At the same time, the gold market is starting to lose its geopolitical safe-haven premium. Analysts have said that it looks like the conflict will be contained within the country.
At the same time, the impact of the war in Eastern Europe will be felt worldwide and will continue to roil commodity markets. At the start of the week, the International Monetary Fund warned that the war would lower global growth expectations and increase consumer prices.
"The war may fundamentally alter the global economic and geopolitical order should energy trade shift, supply chains reconfigure, payment networks fragment, and countries rethink reserve currency holdings. Increased geopolitical tension further raises risks of economic fragmentation, especially for trade and technology," the IMF warned. Read More
FOMC meeting
On Wednesday, when the Federal Reserve concluded its FOMC meeting gold hit its lowest value with the April futures contract trading to a low of $1895. Although gold recovered from its low, its closing price was the lowest value of closes this week. Thursday was the only day in which gold closed above its open and above the prior day's closing price.
Gold futures basis most active April 2022 Comex contract declined by $21.70 or 1.12% and is currently fixed at $1921.50. Today’s decline was a result of modest dollar strength in strong selling pressure. Spot gold is currently fixed at $1921.90 closing $20.50 lower on the day. According to the KGX (Kitco Gold Index), today’s decline was a result of strong selling pressure resulting in a price decline of $16.20 combined with dollar strength which took gold an additional $4.30 lower. Read More
Image Source: Kitco News
Volatile gold price action is here to stay as safe-haven interest 'reignited' - analysts
Gold could easily make another run at $2,000 an ounce next week as the geopolitical situation is not easing, but the volatile price action is here to stay, according to analysts.
After making a run for record highs last week, gold tumbled below $1,900 an ounce and managed to stabilize just below $1,930 an ounce on Friday. April Comex gold futures were last at $1,927.70, down 0.80% on the day.
Looking ahead, the market is still facing another uncertain weekend on the geopolitical front, with the war in Ukraine remaining the top driver for commodities. "We are watching what's going on in Ukraine. Frankly, nothing is more important to the market. It could shift the calculus on risk," said TD Securities head of global strategy Bart Melek.
Also, many in the gold space remain unconvinced that the Federal Reserve can raise rates six more times without significantly slowing down the economy.
"Gold prices continue to trade above $1,900/oz, despite the first Fed rate hike since 2018. The March meeting was hawkish but did not derail the positive sentiment towards gold," said Standard Chartered precious metals analyst Suki Cooper. "Current geopolitical risk has led to concerns that inflation could surge even higher for longer, reigniting longer-term interest in gold." Read More
Food prices are about to skyrocket even more; Prepare for a 'famine,' followed by housing crash, then equities wipeout - Michael Gayed
Food prices are about to go up by a considerable degree, to the point where a "famine" is going to hit parts of the world, according to Michael Gayed, portfolio manager of Toroso Investments. Read More
Gold price at $2,500, oil price at $50 in 9 months?
The war in Ukraine and inflation fears remain the top drivers for gold, which is up around 6% since the start of the year. Here's a look at Kitco's top three stories of the week: Read More
Gold and silver trade higher leading into the European open
Gold and silver are trading marginally higher leading into the European open. Gold is 0.15% higher trading at $1924/oz. After a decent last week, copper prices have slipped 0.90% on Monday, and spot WTI trades nearly 3% higher.
Risk sentiment was mixed overnight the Nikkei 225 (0.65%) and Shanghai Composite (0.08%) closed higher but the ASX fell 0.22%. Futures in Europe are pointing towards a negative open.
In FX markets, AUD/USD was the biggest mover overnight falling 0.30%. In the crypto space, BTC/USD fell 0.78% to trade at $40,963. 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.
