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Gold & Silver Market Analysis for Wednesday 10th November
Kinesis Money Gold Analysis: Even though the tapering has been announced, and is close to its beginning, there is a certain level of clarity that the Federal Reserve will be very cautious before raising rates. Moreover, the same approach – if not more dovish – will likely be adopted by the European Central Bank and the large majority of monetary institutions.
The only exception to this rule will appear with the central banks of emerging market economies (EMEs), since they are not likely – nor willing – to accept higher inflation rates. Therefore it is likely that their preference for adopting hawkish monetary policies will occur sooner.
On a broader scale, this represents a minority, while the main scenario will remain extremely dovish with real interest rates still negative, considering the growth in inflation. Therefore, investors’ interest in gold remains strong, leading to the bullion price reaching its highest levels seen since June. Gold surpassed the key resistance zone placed at $1,830 and rallied up to $1,835. Read More
Traders finally seeking gold, silver as inflation hedge amid hot price data
For many gold and silver market bulls, it took a while for their markets to catch fire due to rising and even problematic inflation around the globe. However, at mid-week, it appears traders are now seeking out hard assets in the form of precious metals, as an inflation hedge.
Gold prices hit a five-month high Wednesday and silver notched a three-month high. Both metals have seen their near-term technical postures improve markedly, suggesting there is more room on the upside for prices. Read More
Gold, silver power higher as investors seek inflation hedge
Gold and silver prices are solidly higher at midday Wednesday, with gold notching a five-month high and silver a three-month peak. Hot inflation numbers from the U.S. and China fueled buying interest in the precious metals markets today, as traders and investors are seeking out hard-asset hedges against rising prices. December gold was last up $26.70 at $1,857.60 and December Comex silver was last up $0.827 at $25.14 an ounce. Read More
Gold price has room to run to $1,900 after inflation rose to its highest level in three decades
The gold market is seeing new bullish momentum after U.S. inflation data rose to its highest level in more than three decades, and some analysts are looking for a move back to $1,900 an ounce in the near term.
According to some analysts, gold is catching a new bid as inflation pressures ramp up, raising concerns that the Federal Reserve will be behind the inflation curve.
"Inflation is here and it's only going to get worse," said Bob Haberkorn, senior commodities broker with RJO Futures. "There is a major concern that the Federal Reserve is limited to what it can do to stop inflation from rising. There is a real fear among investors that the Fed will lose control." Read More
Could gold be posed for a breakout? CPI numbers answered that question today
Yesterday's article addressed whether or not gold was positioned for a large upside breakout. We cited that the upcoming CPI (Consumer Price Index) numbers which were released today, would be a huge component to answer that question. Our technical studies indicated that a break in gold futures above $1835 would be a trigger for a strong breakout or price search. That is exactly what we saw today. However, the rise in inflation for October surpassed any of my expectations. Read More
Gold price jumps nearly $40 as U.S. inflation rate highest in 30 years, Yellen says Fed would prevent the 1970s-scenario
The market is no longer convinced that inflation might be as transitory as the Federal Reserve is letting on after U.S. consumer prices jumped 6.2% on an annual basis in October – the hottest reading since 1990.
In response to the data, gold jumped nearly $40 on the day, with December Comex futures last trading at $1,867.50, up 2% on Wednesday. Stocks, on the other hand, dipped as risk-off sentiment spread.
On a monthly basis, the consumer price index (CPI) was up at 0.9%, the largest gain in four months. Also, core CPI, which strips out food and energy costs, was up 4.6% year-over-year, marking the largest increase since August 1991. Read More
'Next year will be tough': Shocking inflation to create enormous disruption, commodities to rally – Almonty Industries CEO
Next year will be "a tough one" with inflation and supply chain bottlenecks getting worse, according to Almonty Industries CEO Lewis Black.
Things will only get worse before they get better as the inflation rate in the U.S. accelerated to a 30-year high of 6.2% in October.
"Inflation has been created because the solution to locking everyone down was to throw money at them. Ultimately, the money you put into circulation generates inflation," Black told Kitco News. "There's a vast amount of money floating around now. It's quite extraordinary. So that's going to fuel inflation for some time." Read More
The real reason inflation is transitory - Tim Ghriskey on 'technological deflation'
Headline CPI inflation surged to 6.2% in October, the highest level since 1990. However, prices are unlikely to stay elevated forever, as technological innovations will create a more cost-efficient economy, said Tim Ghriskey, senior portfolio strategist at Ingalls and Snyder.
"We're in this technological revolution. I think it’s greater than the industrial revolution from over a century ago. The innovation continues, and we’re going to just continue to see costs come out of companies, and companies being run more efficiently,” Ghriskey told David Lin, anchor for Kitco News. “I think that technological deflationary factor is huge and going to continue.” Read More
Inflation surges to highest level in 30 years, Biden is about to press ‘panic button’ – Steve Hanke
Steve Hanke, professor of applied economics at Johns Hopkins University, discusses with David Lin, anchor for Kitco News, the implications for investors of higher inflation. Read More
Gold and silver continue to climb leading into the European open
Gold has managed to keep some of its momentum going after the price rise during yesterday's U.S. session. The price is now hovering around $1854/oz at its highest level since 16th June. Silver is also trading well but remains under the $25/oz psychological level. Elsewhere in the commodities complex, both copper (1.15%) and spot WTI (0.22%) are trading higher in a good session for the commodities markets. Read More
Gold Technical Analysis points to higher levels
The gold price had an impressive break out after the U.S. CPI print yesterday. The good news for the bulls is that the resistance level broke off the back of some decent volume, which can be noted at the bottom of the chart. The price is now trading at its highest level since 16th June 2021.
On the technical front, now the $1836.9/oz level has been broken it could be used as support at some point in the future. For now, the next level on the way us is the orange line at $1875.2/oz. If the price does break beyond that zone, the green zone at $1919.2/oz is stronger. 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.
