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Gold, silver frustrations mount
Once again, gold, silver, and platinum appear to be under pressure. The trend remains up, but the trading action has been miserable. This is always the type of action that creates traders to do the wrong thing because they become emotional.
If you remember the movie Trading Places, the Dukes talked about the trading action with the classic quote "that can't be right." I can tell you that the markets are always right, and the current action is precisely what the metals are doing. Too many put too much emphasis on economic conditions versus the fact of how markets trade. Read More
Gold SWOT: Artemis Gold received silver stream offer from Wheaton Precious Metals
The best performing precious metal for the week was spot gold, but still down 1.03%. Gold climbed to the highest since June as the dollar weakened ahead of a slate of speeches by Federal Reserve officials and economic data. Bullion is up more than 4% this month, set for its best since May, having broken through key technical barriers after U.S. consumer prices rose the fastest since 1990. The data has sparked growing pressure on the Fed to speed up the pace of monetary tightening amid fears it could lose control of inflation. Read More
Gold prices see steep drop as President Biden nominates Powell to remain Federal Reserve Chair
A steady-as-it-goes approach to monetary policy is creating new selling pressure for gold as President Joe Biden plans to keep Jerome Powell as head of the Federal Reserve.
The latest news from the White House puts to rest months of speculation as markets have been anxiously awaiting to see who would be the new Chair of the U.S. central bank after February.
The news has created some selling pressure in gold as the U.S. dollar rallies on the news. December gold futures last traded at $1,818.2. an ounce, down 1.80% on the day. Meanwhile, the U.S. dollar has pushed to its highest level since July 2020.
The news has pushed gold prices below initial support at $1,835. Many analysts have been watching that price area as that was the breakout level seen earlier this month that propelled prices to a 5-month high. Read More
Gold sells off sharply as Biden renominates Powell for Fed chair
Gold prices are under strong selling pressure and hit a two-week low in early U.S. dealings Monday. The yellow metal slumped as the U.S. dollar index rallied to a 15-month high when President Biden announced he has chosen current Fed Chair Jerome Powell to continue in his position for another term. Speculation had been that Biden might choose the more monetary-policy-dovish Lael Brainard as Fed chair.
With Powell remaining as chairman of the Federal Reserve, traders and investors reckon U.S. monetary policy will remain on its present course, compared to notions that Brainard as a new Fed chair would have leaned easier on U.S. money policies. Sell stop orders were triggered in gold futures when prices dropped below several key near-term technical support levels, which drove prices still lower. December gold futures were last down $34.50 at $1,817.80. Read More
Top 10 biggest gold mining companies reduced production 5% in Q3 2021 - report
Kitco ranked the top 10 largest gold mining companies based on their quarterly production figures reported in Q3 2021. Read More
Latest gold selloff could be a buying opportunity ahead of Q1 rally - Standard Chartered
The gold market's latest price drop could be a buying opportunity as the Federal Reserve is still expected to be in no hurry to raise interest rates despite who is sitting at the head of the table, according to one analyst.
In a report published Friday, Suki Cooper, precious metals analyst at Standard Chartered Bank, said that she sees higher prices for gold through the first quarter of 2022 as the market continues to focus on rising inflation pressures and lower real bond yields.
"We believe that many of gold's headwinds have been priced in – from USD strength to the Fed tapering timetable – and prices have held up well. While these headwinds could re-emerge, downside risks to growth, plus elevated inflation and our expectations for the USD to weaken and real yields to remain deeply negative, suggest price dips are likely to be viewed as good buying opportunities," Cooper said in the report. Read More
A 2.5% melt-down in gold after President Biden confirms Powell's second term
Gold prices fell sharply following an announcement by President Biden to nominate Chairman Jerome Powell to continue to be at the helm of the Federal Reserve for the next four years. This had a cascading effect on multiple markets that resulted in gold prices losing over 2 ½% in value today. As of 5 PM EST gold futures basis, the most active December 2021 contract is down $47 and fixed at $1804.60. The current price is only two dollars above today's low which came in at $1802.48.
This news also resulted in extreme dollar strength and a sharp rise in the yields of U.S. debt instruments. A combination of dollar strength and higher yields were the primary force moving gold lower. In a statement, the president said that "I have full confidence after their trial by fire over the last 20 months that Chair Powell and Dr. Brainard will provide the strong leadership our country needs." Read More
50% stock market crash 'wouldn't surprise me'; This is the biggest risk today - Ted Oakley
The biggest risk facing investors right now is the unsustainable stock market valuations that will eventually mean revert, said Ted Oakley, founder, and partner of Oxbow Advisors.
“From this level, if you look at your standard deviations of valuations relative to where the market is, and you just go back to an average of where it should be, that’s probably right now, somewhere between a 40% and 50% break,” Oakley told David Lin, anchor for Kitco News. Read More
Gold has moved slightly higher heading into the European open
After the drop in gold yesterday the price has retraced 0.21% this morning but it could be just a dead cat bounce. Silver is -0.38% lower this morning trading at $24/oz. In the rest of the commodities complex, copper is trading -0.15% lower and spot WTI is down -0.79%. 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.
