x
Image Source: Unsplash
Silver Price Technical Analysis: Support levels in focus
The price of silver didn't last long above $25/oz and has fallen to hit $2362/oz. Today the price has risen half a percent but this largely looks like a retracement from the move lower in recent sessions. The move has now stalled and this comes ahead of the next support at $23/oz.
Looking at the 4-hour chart below the price could come back to test the trendline. The trendline also confluences with the volume point of control (VPOC) which is marked by the red horizontal line. The aforementioned VPOC has been acting like a magnet for the price for a while now so it would not be a big surprise if the price did come back there. On the upside, if the price does break the VPOC the next level to watch out for is the blue resistance area at $24.75/oz. Check out the technical analysis
Commerzbank analyze the current pressure gold is facing
Commerzbank commodities analyst Daniel Briesemann has written an article pointing out that the yellow metal still remains under pressure. He noted, "Gold once again found itself under pressure for quite some time yesterday and dipped at its lowest point below $1,780 per troy ounce."
He added "In our opinion, the main factor weighing on its price was the persistently firm US dollar: for the first time since the middle of last year, the EUR-USD exchange rate slid below the 1.12 mark for a time. It was not until late trading that gold recouped its losses, and it is trading this morning at a good $1,790. Gold in euro terms is priced at around €1,600 per troy ounce again. The moderate fall in bond yields probably contributed to the slight recovery." Read More
There is enough money in the system to resolve the global supply crunch gold to remain stuck in neutral - USBWM
The gold market stuck between $1,750 and $1,800 could represent fair value for the precious metal through 2022 as inflation pressures ease through next year.
In a telephone interview with Kitco News, Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said that the global supply crunch is the most significant factor pushing inflation to levels not seen in 30 years. However, he added that these issues can be resolved as the global economy recovers from the COVID-19 pandemic.
He added that even with the Federal Reserve reducing its monthly bond purchase and looking to tighten interest rates next year, there is enough money in global financial markets to fix the current supply constraints.
"Looking at inflation, our base case is right is: 'This too shall pass,'" said Haworth. "There's incentives and profit to be made for people to resolve the supply constraints." Read More
Black Friday sales to reach record highs, gold remains a popular gift
Once the Thanksgiving dinner is put away and the dishes are cleared, American consumers will be ready for another holiday tradition, Black Friday Shopping. Continuing a trend from 2020, a little bit of bling is expected to go under the Christmas Tree.
As the busiest shopping period of the year kicks off, the National Retail Federation expects 2021 to be a record-breaker. The Federation projects consumers to spend between $843.4 billion and $859 billion this year, increasing 8.5% to 10.5%, respectively.
Not only is the 2021 holiday shopping season expected to reach new record highs, but the increase is well above the five-year growth average of 4.4%
In an interview with Quartz, Bart Kitner, president of Kitco Metals, said that his company saw a 50% increase in gold gifts in November 2020 compared to the previous. He added that he expects to see a slightly cooler demand for gifts as investment demand for bullion remains strong. Read More
Why it's an opportune time to enter the gold sector
The uptrend for gold is still intact, said Dr. Nicole Adshed-Bell, director at Cupel Advisory Group.
Earlier this month Adshead-Bell spoke to Kitco at the Deutsche Goldmesse show in Frankfurt, Germany.
"We're no longer at the very beginnings of a bull market," said Adshed-Bell, adding that the easy money has already been made. Read More
Gold price remains well supported above $1,800 an ounce in 2022 - Scotiabank
Gold prices continue to languish below $1,800 an ounce as investors interpret the re-nomination of Jerome Powell to remain the head of the Federal Reserve as a hawkish development for monetary policy.
However, commodity analysts at Scotiabank said in a report Wednesday that the selloff in gold could be overdone and the precious metal price looks well supported in 2022.
The Canadian bank looks for gold prices to average next year around $1,850 an ounce, representing a 3% gain from current prices. U.S. markets are closed for the Thanksgiving holiday, but gold's spot price last traded at $1,788.30 an ounce, roughly unchanged on the day. Read More
European open: Fear of new COVID variant grips risk sentiment
Gold is trading 0.80% higher overnight after fears of a new COVID-19 variant grip the markets. Silver is also trading 0.29% higher at $23.64/oz. In the rest of the commodities complex, copper has dropped -1.50% and spot WTI -3.62%.
Risk sentiment in the Asia Pac area was very weak. The Nikkei 225 (-2.53%), ASX (-1.73%), and Shanghai Composite (-0.56%) all dropped heavily overnight. Futures in Europe are also indicating a significant fall on the cash open. Read More
New COVID-19 variant send gold higher
The price of gold (1.33%) has pushed higher this morning after It was reported overnight that a new coronavirus variant. B.1.1.529 has been identified in South Africa. The stock markets have a setback too as the Nikkei 225 (-2.53%), ASX (-1.73%), and Shanghai Composite (-0.56%) all dropped heavily overnight.
Scientists are said to be worried about a high number of mutations in its spike protein. Those spikes play a big role in how the virus enters the body, and are also the feature targeted by vaccines. Scientists are trying to work out if it’s more infectious or deadly than other variants, but governments aren’t taking any chances. The U.K. has banned flights from six countries in southern Africa. Still, the variant has already been found in travelers arriving in Hong Kong. Read More
Gold & Silver Market Analysis for Friday 26th November
Kinesis Money Macroeconomic Analysis - This week, the markets are showing clear signs of anxiety tied up with the new Covid variant from South Africa; the reaction, particularly on the stock market, has been significant.
Indeed, the Nikkei, which is the main Japanese index, lost 3% in line with concerns about the new Covid strain. Meanwhile, European and American Futures contracts are posting losses between 2 and 4%. After a difficult week, gold and silver are, in fact, rebounding, as investors’ appetite for a safe haven increases.
However, the so-called ‘risk-on’ assets like oil or oceanic currencies, for example, are losing ground. West Texas Intermediate (WTI) is now being traded in the region of $75.5, having lost almost 4%. The competitor, North European Brent, has lost 3.2%, being traded at $.79.20 per barrel.
Before news about the new strain from South Africa hit the markets, the US dollar price was rising. Yesterday, the dollar index achieved a fresh-15-month high at 96.8. Earlier today, trading of the greenback partially slowed down, with the dollar index now at 96.6.
Analyzing next week’s economic calendar, it will be important to note that the Eurozone inflation data will be released on Thursday. Last month, the data regarding price growth was up +4.1%, although now, the forecast is 4.4%.
Next Friday, the US Government will publish the official US unemployment rate and the nonfarm payrolls, preceded on Wednesday by the ADP National Employment report. This series of data may be important when forecasting the upcoming decisions of central banks. Higher inflation in Europe could force the European Central Bank to curb its dovish mode, while strong data in the US could accelerate tapering procedures.
Kinesis Money Gold Analysis - 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.
