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'Inflation is not over—it's getting worse' - Degussa economist
Inflation has been building for many months, said Thorsten Polleit, chief economist at Degussa.
In November Polleit spoke to Kitco at the Deutsche Goldmesse show in Frankfurt, Germany. Read More
Junior Gold Stock Trains are Leaving the Station
Last week was pivotal for the precious metal’s complex, with the gold price breaking through key resistance at $1840. Inside of a run that saw the safe-haven metal move higher on seven consecutive trading sessions, it was last Wednesday’s price action that finally broke this level, closing the session on a strong move higher with excellent volume.
After passing the $1,840, which was also downtrend line resistance from its $2089 all-time high reached in August of 2020, bullion has gained upward momentum. Gold futures continued to escalate due to hotter-than-predicted U.S. inflation data and despite the U.S dollar surging, which typically moves inversely to the safe-haven metal.
More importantly, with Gold Futures closing sharply above the critical resistance level of $1,840 per ounce on a weekly basis, this price now becomes a solid platform of support in the move higher. With the metal entering a seasonally strong period, which runs from November through February, more upside is expected with sharply rising inflation continuing to focus the minds of global central banks. Read More
Gold jewelry market in the US beats expectations in 2021, hitting a 12-year high
Metals Focus, a leading independent precious metals research consultancy, estimated that gold jewelry market in the United States has remained robust through 2021, despite the slump in consumer confidence since April of this year.
In its recent analytical paper, the consultancy reported that the domestic gold jewelry consumption to exceed 140t this year, which would equate to an increase of more than 10% on 2019, which itself was seen as a good year.
“If achieved, that would be the highest total basis our records going back to 2010. Such levels of course remain well down on historic highs of over 300t, following a decade or two of structural change (chiefly a shift to lower weight, higher margin pieces),” Metals Focus added. Read More
Gold closes under pressure following a statement by Fed Governor Waller
Gold is trading under pressure, which will certainly result in gold closing lower on the week. As of 5 PM EST gold futures basis, the most active December 2021 Comex contract is down $13.80 (0.74%) and fixed at $1847. What sparked today’s selling pressure came out of multiple components, but the majority stems directly from a speech by Federal Reserve Governor Christopher Waller. Read More
Global gold supply growth to slow over next two years - report
According to data by the Australian Government Department of Industry, Science, Energy and Resources (DISER), in 2021, world gold supply is forecast to increase by 2.7% to 4,840 tonnes, driven by higher gold mine production in Australia, the US, and Canada, but this supply growth will slow to an average annual rate of 1.1% between 2022 and 2023.
Gold production in Australia is forecast to rise by 3.2% to 338 tonnes in 2021, whereas production in Canada and the US is forecast to rise by 24% and 6.5% to 224 and 212 tonnes, respectively, driven by a production recovery from the disruption of the COVID-19 pandemic, DISER said.
At the same time, gold mine output in China is forecast to fall by 11% in 2021, to 335 tonnes, as stricter environmental and safety regulations lead to mine closures. Read More
Gold price needs to consolidate as sentiment falls among Wall Street analysts
Although many Wall Street analysts expect gold prices to remain above their breakout levels, sentiment has fallen from last week as the precious metal is likely to consolidate in the near term.
The gold prices didn't see much follow-through following the previous week's breakout rally. However, many analysts have said that they are encouraged because prices have held well above critical support levels, trading close to their recent five-month highs.
"I was looking for a pullback to $1,830 and we just haven't seen it," said Bill Baruch, president of Blue Line Futures. "As long as we hold above that level, the trend remains very bullish." Read More
Gold price is consolidating, when is a breakout happening? - Gary Wagner gives price targets
This upcoming Thanksgiving will be the most expensive ever, and inflation will continue to be a serious concern for investors, said Gary Wagner, editor of TheGoldForecast.com who advocates that gold is still the ultimate store of wealth.
On a technical basis, gold is still in its consolidating phase, Wagner told David Lin, anchor for Kitco News. Read More
Is Fed making a mistake? Big market risk ahead as gold looks to $1,900 – analysts
According to analysts, with all eyes on the U.S. President Joe Biden's Federal Reserve Chair pick, gold is waiting for its next catalyst to take it to $1,900 an ounce, with markets eyeing year-end volatility.
Gold is wrapping up this trading week down 1%, with December Comex gold futures last trading at $1,848.60, down 0.69% on the day.
One of the main events the market is watching very closely is Biden's Fed Chair pick, which could be announced as soon as this weekend. According to PredictIt.org, the current Fed Chair Jerome Powell is leading the race, with Federal Reserve Governor Lael Brainard in the second top spot. Read More
Gold and silver are mixed heading into the European open
Heading into the European open Gold (-0.16%) and Silver (0.54%) are trading mixed. The yellow metal is trading at $1841/oz while silver is at $24.74/oz. In the rest of the commodities complex, copper has fallen -0.63% and spot WTI is 0.36% higher. Read More
Gold & Silver Market Analysis for Monday 22nd November
Kinesis Money Macroeconomic Analysis
In the last few days, the greenback has strengthened, with the dollar index positioned just above 96.
The latest inflation data was recorded with the backdrop of climbing rates of Covid-19 which, in effect, has worsened the scenario. It is no surprise that there has been a pause in stock rallies, as investors begin to carefully monitor the situation as it evolves. Hence, the appetite for risk seen in the last 18 months could lessen if the overall outlook worsens significantly.
With the main focus of the agenda on inflation data, other events of interest in the macroeconomic calendar include the release of official US GDP (Gross Domestic Product) data and initial jobless claims. Both of these figures will be released on Wednesday, while Thursday will see the New York stock exchange (NYSE) closed for Thanksgiving.
Other items of interest include the meeting of the New Zealand Central Bank, with the release of their monetary policy statement, giving investors a clearer insight into the next steps that will be taken. The Reserve Bank of New Zealand is set to raise rates from 0.50% to 0.75%. Although, this is yet to be confirmed. 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.
