x
Image Source: Unsplash
Gold, Silver take out key resistance
And they are off! Gold and silver have broken through the key resistance levels and could run a long way. Platinum looks prepped to do so today. Today is Veterans Day, which could slow market action because banks are closed. However, the patterns are solid and poised to reach the next big levels.
Platinum, which was the first to find the bottom, will be the last to break out from resistance. Platinum appears to be strong and a value play. Nothing is ever cheap because market participants are pricing the assets, but in comparison to Gold and Silver, Platinum looks like the best value on the board. 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
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
Gold is breaking out as investors fear Fed is losing control of inflation – Sprott’s Peter Grosskopf
Gold prices continue their upward climb, ending five months of consolidation after inflation pressure rose to their highest level in 31 years. According to Sprott CEO Peter Grosskopf, the precious metal is back on its way to all-time highs.
In a telephone interview with Kitco News, Grosskopf said that Wednesday's inflation data, showing annual inflation rising 6.2%, didn't add any new information regarding the state of the U.S. economy. He noted that consumers have seen the purchasing power of their fiat currencies decline for decades.
"The most recent federal government budget depends on enjoying record low-interest rates while robust inflation spurs growth and helps to boost receipts, all for an extended period of time. This is effectively a policy of financial repression". Read More
Watch this change in gold price narrative as it's still a cheap inflation hedge compared to crypto – MKS PAMP GROUP
Gold's narrative has shifted after the latest round of hot U.S. inflation data, according to MKS PAMP GROUP. And here's what to watch with the latest surge higher.
"There's a fundamental change from the previous 'thinking' (strong CPI = faster Fed tapering schedule = lower gold) to strong CPI = some fear, not an acceptance of inflation = higher gold," said MKS PAMP GROUP head of metals strategy Nicky Shiels.
The rally analysts have been waiting for is here — gold closed above $1,835 an ounce level on Wednesday. At the time of writing, December Comex gold futures were trading at $1,864.00, up 0.85% on the day after rising $35 this week. Read More
China’s industrial silver demand to exceed all-time high in 2021; gold consumption to jump 40% - report
Metals Focus, a leading independent precious metals research consultancy, reported yesterday that it expects over a 40% increase in gold demand in China this year, while domestic industrial silver demand to exceed all-time high in 2021.
Metals Focus said that gold jewellery sales in China remained encouraging during the week-long National Day holiday. This followed a strong Q3 performance when gold jewellery consumption grew (+32% y/y) for the third consecutive quarter to almost match the Q3.19 total. Read More
If inflationary pressures remain high where could gold pricing go to in 2022?
Market participants might have been numbed by the government's release of the October inflation rate which came in well above economists polled by the Wall Street Journal. However, the same market participants have seen prices rise dramatically over this last year especially energy and food costs.
The inflationary rate increased by 0.9%, well above the 0.6% prediction by economists. More alarming, last month’s dramatic inflationary rise amounted to a year-over-year rate of inflation of 6.2%. This is the first time since November 1990 that Americans have seen inflation spiral so out of control.
The Federal Reserve, as well as the current administration, are still toeing the line that the recent surge in inflation is transitory, temporary, and will decline over time. While the Fed has acknowledged that the current rate of inflation is much greater than anticipated and that it will persist for much longer than originally projected. Read More
'Huge explosive move' coming in 2022, this sector has 100% upside - Chris Vermeulen
Chris Vermeulen, chief market strategist at https://TheTechnicalTraders.com discusses with David Lin, anchor for Kitco News, the stock market sectors with the largest upside potential for the New Year, as well as the sectors investors should avoid.
“GDX and SLV were in a bear market just a week ago,” Vermeulen said. “They have moved to a recovery stage. Now they’re in yellow, which is accumulation. They’re starting to just get some momentum in them, and they’re starting to get into another bull market. Gold should rally to $2,600. Gold miners, I think, will have a huge, explosive move.” Read More
Gold price is heading back to $2,000 after playing 'second fiddle' to other assets – DailyFX
After playing "second fiddle" to other assets for most of the year, gold is on its way back towards the 2020 record highs of above $2,000 an ounce, said DailyFX analyst Warren Venketas.
There is a good upside to the price of gold as markets gear up for the Federal Reserve December monetary meeting, with the U.S. inflation and employment data at the forefront of everyone's minds.
"Inflation is a big one for me. If we see inflation expectations outperforming the move in yields. That's what I'm looking for at that year-end rally. And it is in the cards. I am very bullish at this point," Venketas told Kitco News. Read More
Gold consolidates at lofty levels leading into the European open
Gold is retracing slightly after six sessions of gains. The yellow metal is -0.17% lower leading into the European open trading at $1858/oz. Silver is trading 0.10% higher at $25.26/oz. Elsewhere in the commodities complex, copper is trading flat and spot WTI is down -0.29%. Read More
Goldman Sachs is looking for $2k for gold and talk crypto
Damian Courvalin, Head of Energy Research at Goldman Sachs was recently interviewed on Bloomberg television and he had some bullish comments on gold.
He kicked off the interview by saying, Over the last six months, gold didn't really belong in any portfolio as growth was good. Now because of the risk of persistent inflation, the value of gold in a portfolio makes a lot more sense.
When asked what could happen to gold if interest rates rocket Courvalin said, "long-dated rates and real interest rates matter most for gold". He added, "if breakevens widen it is a tailwind for gold". 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.
