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Silver Drops Back to $25 But Underlying Support Should See It Gain Again Shortly
Silver, like gold, has been pulled down by a slight increase in risk appetite following words from Ukrainian President Volodymyr Zelensky that he is willing to consider neutral status for Ukraine in upcoming talks with his Russian counterparts.
Hope that peace can be achieved in the coming weeks has seen equities gain and haven assets such as silver decline. Added to that, a stronger dollar has also added pressure to dollar-priced assets with silver now trading just above $25 an ounce.
It will be interesting to see silver’s reaction if it does fall through the $25 threshold as on the three previous occasions it has dipped below recently, the price has quickly rebounded back above $25. Read More
Gold Drops Back on Hopes of Peace Ahead of Latest Talks Between Russia and Ukraine
With equities starting the week by making modest gains, gold is falling amid fragile optimism over peace talks between Ukraine and Russia with Ukrainian President Volodymyr Zelensky saying he is willing to discuss his country adopting a neutral status.
This positivity that an end can be found to the bloodshed in Ukraine has reduced gold’s appeal as a haven asset.
On top of this, inflation is likely to be in sharp focus this week with Germany, France, Italy, and the eurozone area all publishing their latest figures with high prints likely to increase the pressure on the European Central Bank to follow the lead of the US and UK and hike interest rates.
The macroeconomic outlook in which central banks across the world are expected to make a series of interest rate increases over the course of the year will be a perennial headwind to gold’s ability to climb any higher. Read More
Gold SWOT: Gold ETFs are one of this year's hottest investments, data says
The best performing precious metal for the week was silver, up 2.10% on the strong gold move. Gold advanced this week as bond yields eased after gaining on growing calls from Federal Reserve officials to raise interest rates faster. The yellow metal rose as much as 1.4% after dropping Tuesday when benchmark Treasury yields climbed to their highest since May 2019. Global bond markets have suffered as central banks, including the Fed, look to tighten policy, putting pressure on non-interest-bearing gold. Read More
Gold and silver head back to support
Over the past few days, gold and silver have attempted to break out to the upside but have failed. The next logical step is a return to support, $1,900 for gold and $25.5 for silver. The pattern suggests a test or a breakdown through those levels.
We know the market promises nothing; however, the price action and the map created by the charts suggest the next move will be lower. The lack of volume and trade is a concern that should lead to a continuation lower. Although equities have tried to push higher, the rallies are weak.
There are many concerns in all markets. The potential for an equity collapse is a real possibility. Although we are long now, a sell-off would be no surprise. We are witnessing a market that has gone relentlessly higher in the face of inflation, geopolitical issues, and an administration willing to give everything away. Read More
Bullion groups launch gold bar database to thwart fraud
Two gold industry associations are working with miners, refiners, traders, and shippers to create a database of gold bars in an effort to prevent trade in counterfeit metal and allow buyers of bullion to trace its origin, they said on Monday.
The scheme aims to exclude gold linked to violence and crime from the mainstream market. Gold worth billions of dollars is mined each year in illegal conditions and large amounts are sold by groups including warlords and drug traffickers.
Reuters reported in 2019 that gold bars fraudulently stamped with the logos of major refineries were being inserted into the market to launder smuggled or illegal metal.
The London Bullion Market Association (LBMA) and the World Gold Council (WGC) said companies including miners Barrick (ABX.TO) and Newmont (NEM.N), refiners Metalor and MKS PAMP and shippers Brinks (BCO.N) and Loomis (LOOMIS.ST) would submit data to a pilot scheme that should eventually extend worldwide.
"Over time, this will help consumers, investors and market participants to trust that their gold is genuine and has been responsibly and sustainably sourced," the LBMA and WGC said. Read More
Big drop in oil, rising bond yields sink gold, silver
Gold and silver prices are lower in midday U.S. trading Monday, as strong losses in crude oil and rising U.S. bond yields are pressuring the precious metals to start the trading week. Gold and silver market bulls can correctly argue that today’s losses were just routine downside price corrections in existing near-term uptrends. April gold futures were last down $15.90 at $1,938.20 and May Comex silver was last down $0.375 at $25.24 an ounce.
Image Source: Kitco News
Technically, April gold futures were bulls have the overall near-term technical advantage but trading has turned sideways and choppy again. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,895.20. First resistance is seen at $1,950.50 and then at last week’s high of $1,967.20. First support is seen at today’s low of $1,924.50 and then at last week’s low of $1,909.80. Wyckoff's Market Rating: 6.5. Read More
Hawkish Fed spooks hedge funds to take some profits in gold, but sentiment remains solidly bullish
Hedge funds continue to take profits in gold as the Federal Reserve ratches up its hawkish rhetoric and safe have demand continues to weaken, according to the latest data from the Commodity Futures Trading Commission.
Many analysts note that the latest trade data shows there is still a lot of bullish sentiment in the marketplace; some traders have said they see strategic opportunities to enter the gold market at lower price levels.
In a recent interview with Kitco News, David Madden, market analyst at Equiti Capital, said that although markets will remain volatile, gold has held up well even in the face of rising interest rates and bond yields.
"There is very little that could derail the rally to higher prices," he said. Read More
Russia sets fixed gold price as it restarts official bullion purchases
Russia's central bank resumed its gold purchases from local banks on Monday, but it set a fixed price on the precious metal.
Starting this week, the Russian central bank will pay a fixed price of 5,000 roubles ($52) per gram between March 28 and June 30, the bank said on Friday. This is below the current market value of around $68.
The central bank added that the resumption in buying will ensure supply and uninterrupted production of local gold.
Two weeks ago, Russia's central bank announced that it was halting its official gold purchases from local banks due to a surge in demand from regular consumers.
This is because Russians went on a gold buying spree in March to protect their savings as the ruble collapsed. Major banks in Russia reported a rush of consumers investing in bullion and coins.
Sberbank, Russia's largest financial institution, reported that demand for gold and palladium has quadrupled in the last few weeks. Meanwhile, Russia's Ministry of Finance also referred to gold as an "ideal alternative" to the U.S. dollar. Read More
If Russia continues its invasion, its likely inflation levels will not diminish
Ever since gold hit a high of $2078 on March 3 traders and investors, viewing the market as overbought reacted by selling the precious yellow metal taking it lower. By Wednesday, March 16 gold futures traded to a low of $1896 before moving up slightly and consolidating between $1946 on the high side and $1910 on the low side. On Thursday of last week, gold regained some strength, trading to a high of $1960. On Friday it traded with a lower low and to a lower high. However, the selling pressure accelerated overseas in Australia yesterday and carried over into New York trading.
As of 5:21 PM EDT the April futures contract is currently down by $32.10 and fixed at $1922.10, after factoring in today’s decline of 1.64%. Chart 1 is a 240-minute candlestick chart beginning at the end of January. This chart contains two distinctly different data sets used for Fibonacci retracements. The longest of the two sets begins at the end of January when gold was trading at $1776 and concludes at $2076 the high achieved during the second week of March.
Currently, gold prices are just below the 50% retracement from this long data set. The second data set is based upon the second leg of this rally which began during the third week of February when gold was at $1877 up to the highs achieved at $2076 during the first week of March. The 78% retracement level occurs at $1921 which is one dollar below current pricing. Because these two different data sets have important levels approximately five dollars apart, creating a Fibonacci harmonic. Simply defined a harmonic is when different time cycles contain levels that are close to each other as seen in chart 1. Read More
Image Source: Kitco News
Gold and silver are marginally higher ahead of the European open
Gold and silver are both hovering above flat after a tough session on Monday. In the rest of the commodities complex, copper is just under flat and spot WTI is 1.77% higher.
Risk sentiment was good overnight. The Nikkei 225 (1.10%) and ASX (0.70%) pushed higher but the Shanghai Composite fell 0.48%. Futures in Europe are indicating a positive cash open.
In FX markets, the biggest mover overnight was USD/JPY (-0.32%). In the crypto space, BTC/USD moved another 1% higher.
News from overnight: 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.
