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Silver Battles to Climb Above $25 Once Again Illustrating Underlying Strength of Support
Silver has once again strived to climb above $25 an ounce after briefly dipping below that threshold.
This is now the fifth time this month that silver has dropped below $25 and on each previous occasion, it has quickly rebounded, illustrating the strength of investor support at this level.
As long as the war in Ukraine continues silver is likely to remain well supported but even if a peaceful resolution can be found in the coming weeks, which seems overly optimistic at this point, silver’s medium to long-term prospects remains strong.
Demand for the metal is likely to increase as countries ramp up their adoption of solar energy, which uses silver in its photovoltaic cells, as they strive to meet net-zero goals and end their dependency on fossil fuels, particularly those sourced from Russia. Read More
Gold Benefits From Dip in Equities But Further Out Bearish Headwinds Are Circling
A slight dip on equities markets has been met with a small corresponding gain for gold.
Signs that the peace talks between Russia and Ukraine are making progress has been a driver for the recent partial recovery for equities but the situation remains very fragile with today’s small pullback a sign that investors remain unwilling to expose themselves fully to risk assets and continue to seek the succor of haven assets such as gold.
Already the US and UK central banks have made their first moves in hiking interest rates to try and bring inflation under control and it is surely only a matter of time until the European Central Bank follows suit.
So while gold has benefited from the rush to haven assets at the start of Russia’s invasion of Ukraine, any unwinding of those fear trades coupled with central banks' hiking rates is likely to see gold fall out of favor. Read More
Fed to raise rates by 1% in next 3 months, says ABN AMRO
With the Federal Reserve sending more aggressive signals, ABN AMRO is pricing in two 50-basis-point rate hikes at the next two monetary policy meetings.
"We now expect 50bp hikes in May and June," said ABN AMRO's senior U.S. economist Bill Diviney.
The Dutch bank pointed to Fed Chair Jerome Powell's hawkish comments around the "obvious need to move expeditiously" and "nothing" stopping the Fed from employing the 50bps rate hikes if they were judged as necessary.
"[These are] clear signals to us that the Committee is actively considering larger tightening steps than we previously thought," Diviney said. Read More
Gold, silver see gains on corrective rebounds, higher crude oil
Gold and silver prices are higher in midday U.S. trading Wednesday, on corrective bounces from recent selling pressure that pushed the metals to five-week lows on Tuesday. A strong bounce-back in crude oil prices from this week’s low of $98.44 in Nymex futures is also a bullish element for the metals markets, as well as the rest of the raw commodity sector. April gold futures were last up $20.00 at $1,932.40 and May Comex silver was last up $0.409 at $25.145 an ounce.
Image Source: Kitco News
Technically, April gold futures bulls have a slight overall near-term technical advantage. However, prices are in a three-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at last week’s high of $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,937.00 and then at $1,950.00. First support is seen at today’s low of $1,914.50 and then at $1,900.00. Wyckoff's Market Rating: 5.5. Read More
When gold's volatility calms down, prices will rally back to $2,000 - DeCarley's Garner
Gold investors might want to limit their exposure to the precious metal in the near term as volatility continues to dominate the marketplace, according to one market strategist.
"Right now, markets are moving so fast that less is more for us," said Carley Garner, co-founder of the brokerage firm DeCarley Trading.
Commodity markets across the board have been roiled due to Russia's ongoing war in Ukraine. On top of the war, investors are adjusting to shifting monetary policy from the Federal Reserve as inflation rises unabated at multi-decade highs.
The gold market has been no exception to the volatility this month as prices have pushed above $2,000 and recently fell below $1,900 an ounce. According to the CME's Volatility Index (CVOL), gold's volatility is at its highest since November 2020. Read More
A dire prediction by the Federal Reserve Bank of Cleveland for the first quarter of 2022
Gold pricing recovered today after trading to a low yesterday of approximately $1886.90. That price point corresponds to a critically Fibonacci retracement level of 61.8%. The data set used to create the Fibonacci retracement series begins at the end of January when gold was trading at $1779.10 and concludes at the most recent high which occurred on March 8, when gold traded to $2078, just $10 below the record high. The rally from the end of January to the first week of March resulted in gold gaining roughly $300.
Image Source: Kitco News
The fact that gold was able to gain $300 in light of an extremely aggressive Federal Reserve who is likely to combat the spiraling level of inflation.
Chairman Jerome Powell stated at the last press conference that the level of inflation necessitates an aggressive change in their current monetary policy on two fronts. First, they have committed to raising the Fed Funds rate at each of the six remaining FOMC meetings this year. Initially, it was believed that each rate hike would be ¼%. However, recent data suggests that inflationary pressures continue to spiral at a faster pace than anticipated, with no signs that inflation is going to abate anytime soon. Read More
Gold price could fall $100 as safe-haven premium weakens but prices won’t collapse – Natixis
The gold market could see a $100 drop as its geopolitical safe-haven premium weakens after Russia said it would scale back its war in Ukraine; however, don’t expect to see a collapse in gold or silver as the precious metals have some significant underlying support, according to one precious metals analyst.
In a telephone interview with Kitco News, Bernard Dahdah, precious metals analyst at Natixis, said that the gold market will remain volatile in the near term as the market continues to react to headlines surrounding Russia’s war with Ukraine.
“The market should ignore the words from Russia until the bombs stop,” he said.
However, he added that investors need to keep an eye on gold’s war premium. Read More
Gold and silver are both marginally lower ahead of the European open
Gold (-0.34%) and Silver (-0.75%) are trading lower ahead of the European open. In the rest of the commodities complex, spot WTI is down 4.5% and copper dropped half a percent.
Risk sentiment overnight was negative as the Nikkei 225 (-0.73%), ASX (-0.20%), and Shanghai Composite (-0.44%). Futures markets in Europe are indicating a positive cash open.
In FX markets, the biggest mover was AUD/USD which fell 0.44% overnight. In the crypto space, BTC/USD is 0.22% higher trading at $47,184.
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.
