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Gold, silver, and platinum pause before next move
We must remember that there are no promises of new highs, gold to $5,000, or silver to $50. There is no doubt that someday those levels will come; however, there are many stops along the way. We can only see one level at a time and the sooner you realize that the better you will trade it. Read More
Gold, silver see profit-taking as USDX surges
Gold prices are moderately lower in midday dealings Tuesday, after hitting a five-month high overnight. Silver pushed to a three-month high and also backed off. Both precious metals saw some routine profit-taking from the shorter-term futures traders, following recent good gains. A rally in the U.S. dollar index to a 15-month high today also worked against the metals market bulls. December gold was last down $10.20 at $1,856.70 and December Comex silver was last down $0.14 at $24.96 an ounce.
The U.S. economic data point of the day saw the October retail sales report come in just a bit hot at up 1.7% from September, compared to expectations of up 1.5%. Sales rose 0.7% in September from August. U.S. industrial production in October also came in higher than expected, at up 1.6% versus expectations of up 0.8%. Those reports had no big impact on the precious metals markets. Read More
Fed officials say high inflation weighing on consumers and needs to be controlled
Federal Reserve officials said on Tuesday they are vigilant of the ways that higher inflation can affect U.S. households and dampen consumer sentiment and want to get it under control.
While wages are rising for some workers, consumer sentiment is down to a "level that you might associate with a recession," said Richmond Fed President Thomas Barkin, citing the consumer sentiment survey from the University of Michigan.
"I think that's very much because of the impact that prices have on people," including those who spend a significant part of their pay on food and gas, Barkin said during a virtual panel organized by the Fed. Read More
Combination of gold, bitcoin, and bonds to beat inflation, deflation scenarios – Bloomberg Intelligence
The investment environment will be changing in 2022, and a combination of gold, bitcoin, and bonds could be the winning one, according to Bloomberg Intelligence.
The commodities space could be at risk of a reversal following an inflationary spike this year, said Bloomberg Intelligence senior commodity strategist Mike McGlone.
"Sustained inflation from commodities may be more elusive than ever. We expect 2022 to be a good test and a similar price cure as peaking grains in 2021. The propensity for money supply and the stock market to sustain about 40% appreciation since the end of 2019 is low. A Bitcoin, gold and long-bond combination may outperform in most scenarios," McGlone said in a report. "Commodity supply and demand elasticity are ripe in 2022 to regain pre-pandemic force." Read More
Hedge funds scrambling for gold as an inflation hedge
The growing inflation threat has shifted sentiment in the gold market, with hedge funds significantly increasing their bullish precious metals bets to protect their wealth, according to analysts after reviewing the latest data from the Commodity Futures Trading Commission (CFTC).
The CFTC disaggregated Commitments of Traders report for the week ending Nov. 9 showed money managers increased their speculative gross long positions in Comex gold futures by 31,189 contracts to 168,133. At the same time, short positions dropped by 9,182 contracts to 41,523.
Gold's net length now stands at 125,610 contracts, up more than 47% compared to the previous week. Gold's net length now stands at its highest level since early July 2020. Read More
Strong retail sales and dollar strength take gold lower in trading today
Gold futures traded to a high of $1879.50 overseas last night but then fell sharply off of these highs as the U.S. Census Bureau announced the advanced estimate of retail and food services sales for October 2021. Concurrently, the Federal Reserve released its industrial production data for October. Both reports indicated robust production and spending which was cited as the primary explanation for gold selling off so briskly. Read More
Gold is trading higher leading into the EU open
Gold had a positive session overnight moving 0.36% higher to reach $1855/oz. Silver is also trading well up 0.80% at the psychological $25/oz area once again. In the rest of the commodities complex, copper is flat and spot WTI fell after reports that the U.S. and China may release some more reserves. 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.
