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Gold & Silver Market Analysis for Wednesday 17th November
Kinesis Money Gold Analysis - Will the gold price be able to surpass the resistance placed at $1,900, continuing its bullish movement? It is possible, but not just yet.
For the time being, it seems that investors are betting on a healthy consolidation phase. After the recent rally, which pulled the price up to $1,875, bullion is resting in the trading region of $1,850/1,855. This is just 1% below gold’s recent high.
Following from the massive rebound of the greenback, the dollar index spike past 96, and the EUR/USD trading pair below 1.13, these three events have considerably slowed down gold recovery. Despite this, the graphical scenario remains unchanged. Read More
Gold price holding gains as U.S. housing starts fall 0.7% in October
The gold market is holding near session highs as momentum in U.S. home construction weakened last month.
The housing market was a pillar of strength for the U.S. economy during the COVID-19 pandemic last year; however, volatility appears to be creeping into the sector.
Housing starts dropped 0.7% to a seasonally adjusted annual rate of 1.52 million units last month, the Commerce Department said on Wednesday. The data was weaker than expected; according to consensus forecasts, economists expected relatively stable activity at 1.58 million units. Read More
NY Fed's Williams says Treasury market needs to be shored up for next big shock
The New York Federal Reserve took unprecedented action to stabilize the Treasury market after it was disrupted at the start of the pandemic, offering a stark reminder that markets need to be strengthened to prepare for the next big shock, New York Fed Bank President John Williams said on Wednesday.
"Severe disruptions to critical financial markets like we saw last spring should be rare," Williams said in remarks prepared for a virtual conference on the Treasury Market. But policymakers need to "think about how to shore up the Treasury market so it can better endure the next big shock," he said. Read More
Inflation is going to kill the American Dream, prices are not done surging - E.B. Tucker
Inflation is now at the highest level since 1990, but it doesn't stop here said E.B. Tucker, director of Metalla Royalty and author of "Why Gold, Why Now?"
"6% is only the beginning. It's going to go much higher, it's not transient. None of these people are going to lower prices, this is here to stay," Tucker told David Lin, anchor for Kitco News. Read More
Silver demand to surpass 1 billion ounces this year, hitting a 6-year high – Silver Institute
The global silver market will see demand reach 1.29 billion ounces this year, the first time it has breached 1 billion since 2015, according to the latest report from the Silver Institute.
Wednesday, in its interim market report, the Silver Institute said that silver demand had seen broad-based growth through 2021, with industrial demand leading the way.
"The recovery in silver industrial demand from the pandemic will see this segment achieve a new high of 524 million ounces (Moz). In terms of some of the key segments, we estimate that photovoltaic demand will rise by 13% to over 110 Moz, a new high and highlighting silver's key role in the green economy," said analysts at Metals Focus, who conducted the latest research on behalf of the Silver Institute. Read More
Stocks could drop 50% in a stagflation scenario – UBS simulation
If stagflation is in the cards for next year, stocks could drop up to 50%, according to a simulation run by UBS.
With inflation running hot globally and COVID-19 numbers still spiking across the globe, markets are starting to fear stagflation — a period described by high price pressures and slower economic growth.
Latest inflation data out of the U.S. showed the consumer price index hit a 31-year high in October as it accelerated to 6.2% on an annual basis. This is not a U.S.-only phenomenon. In Canada, inflation reached 18-year highs. And in the U.K., price pressures climbed to 10-year highs. Read More
Gold, silver gain as bulls buy the dips
Gold and silver prices are higher in midday U.S. trading Wednesday. Bulls stepped in to buy Tuesday's dips in the metals' prices, which is a sign of strong markets. Gold and silver as an inflation hedge remains the major bullish element in the marketplace at present. December gold was last up $14.20 at $1,868.20 and December Comex silver was last up $0.196 at $25.15 an ounce. Read More
Gold continues to attract market participants as a primary tool of wealth preservation
Market participants are once again focused upon the real threat that faces global economies, spiraling inflation. Today the United Kingdom reported that inflation has now hit a 10-year high. In the United States, the current level of inflation is at a 31-year high coming in at 6.2%. Mexico currently has an inflation rate of 6.24%, and many South American countries are running double-digit inflationary levels such as Argentina (52.1%), Brazil (10.67%). Read More
Gold and silver are trading marginally lower heading into the European open
Gold and silver are trading marginally lower leading into the European open. Both precious metals are 0.20% lower with gold trading at $1863/oz. Elsewhere, in the rest of the commodities complex, copper has pushed 0.63% higher and spot WTI has fallen over 1%. 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.
