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Is $1,850 gold now support?
As the dollar has weakened, gold has found support at $1,850. Although silver has yet to break out and stay above $22.10, a breach of that level looks increasingly probable. The USD continues to look set to retreat to the bottom trendline shown below (originally shown last week). Caution; the macro backdrop remains conducive to sudden volatility in all asset classes. Another close over $1,850 for gold would open the door to $1,885 and then $1,900. Read More
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Gold prices holding above $1,850 as U.S. new home sales fall 16% in April
The U.S. housing sector continues to lose momentum as fewer consumers bought new homes last month.
New home sales fell to a seasonally adjusted annualized rate of 591,000 homes in March down by 16.65, the U.S. Commerce Department said on Tuesday. February’s sales were revised to a rate of 709,000 units.
The gold market is not seeing much momentum following the disappointing housing data. June gold futures last traded at $1,861 an ounce, up 0.71% on the day. Read More
Gold, silver rally as stock markets, bond yields drop
Gold and silver prices are solidly up in midday U.S. trading Tuesday, boosted by another sell-off in the U.S. stock indexes, falling U.S. Treasury yields, and by the recent sharp losses in the U.S. dollar index that hit another four-week low today. Risk aversion is keener in the general marketplace early this week, and that’s inviting safe-haven demand for the precious metals. June gold futures were last up $19.10 at $1,866.90. July Comex silver futures were last up $0.392 at $22.12 an ounce.
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Technically, June gold futures prices hit a two-week high again today. A 2.5-month-old price downtrend is still in place on the daily bar chart. However, more price gains this week could negate the downtrend. Bears have the overall near-term technical advantage. However, bulls have momentum on their side. Bulls' next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,785.00. First resistance is seen at $1,875.00 and then at $1,883.00. First support is seen at $1,850.00 and then at this week’s low of $1,843.30. Wyckoff's Market Rating: 4.0.
Image Source: Kitco News
July silver futures see a price downtrend still in place on the daily bar chart. However, more price gains this week could negate the downtrend. The silver bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $23.00 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 $22.215 and then at $22.50. Next support is seen at today’s low of $21.645 and then at $21.50. Wyckoff's Market Rating: 3.0. Read More
The coming recession will be mild; the U.S. economy could boom if Republicans win elections - Mark Skousen
"We could have a Roaring Twenties again," said Mark Skousen, Editor of Forecasts & Strategies. He spoke with David Lin, anchor and producer at Kitco News at the Vancouver Resource Investment Conference.
Skousen speculated that the upcoming recession will be "mild." He also said that if Republicans win mid-term elections, this could benefit the economy. Read More
The S&P 500 is headed lower, which is good for gold
After a one-day reprieve, the S&P 500 is once again seeing some intense selling pressure, and the gold market continues to benefit from the market volatility as prices hold above another critical resistance level at $1,850 an ounce.
As the broad-equity market index continues to struggle and flirt with bear-market territory, the chorus of negative sentiment among economists and market analysts grows. Many analysts are looking for significantly lower price prices through the end of the year.
In a recent report, market strategists at Société Générale warned investors that equities could be prone to bouts of rallies; however, they added that the S&P faces a heavy uphill battle.
The French bank also warned that the U.S. economy faces growing stagflation risks as inflation remains stubbornly high and weighs on growth expectations.
"The most important leading indicators support our conviction to stay in a "de-risking' mindset (long USD, U.S. 10y, curve flatteners, defensives) and focus on the tail risks, especially that of "stagflation," the analysts said in their latest report. Read More
Gold price still on pace to push above $2,000 as stagflation, recession risks rise - In Gold We Trust
While the gold market remains off its highs from the first quarter, it is still on track to end the year above $2,000 an ounce and push close to $5,000 an ounce by the end of the decade, according to the latest In Gold We Trust Report.
In its annual gold outlook, analysts at Incrementum AG remain bullish on gold as rising inflation threatens to push the global economy into a recession and create a stagflationary environment. The European investment firm issued a warning, saying that normalizing monetary policies worldwide is started to expose major issues in the global economy that were papered over by loose monetary policies and massive amounts of liquidity.
"Just as in 2018, when we warned of the inevitable consequences of the attempted turning of the monetary tides, we are now issuing another explicit warning. In addition to wolfish inflation, a bearish recession now looms," the analysts said in the report.
Incrementum pointed out that of the Federal Reserve's last 20 tightening cycles, only three have not ended in a recession.
"The Federal Reserve runs the risk of overestimating the impact of rate hikes and balance sheet reductions on containing inflation, just as it has underestimated the impact of rate cuts on boosting inflation," the report said. 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.
