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COVID Fears, wage inflation will support prices next week
Sentiment in global financial markets started to shift late Thursday, as investors shed risk assets after news broke that a potentially dangerous variant of COVID-19 has emerged in South Africa.
"Risk assets are getting pummelled at the end of the week as a new Covid variant sparks fears of new restrictions and lockdowns," said Craig Erlam, senior market analyst at OANDA. "The most worrying thing about the new strain at the moment is how little we know about it, with early indications being that it could be more problematic than delta.
Gold prices briefly pushed back above $1,800 an ounce early Friday morning as the CBOE Volatility Index ($VIX) spiked to a two-month high due to the new COVID-19 fears. However, gold's gains have been short-lived. December gold futures last traded at $1,792.30 an ounce, down more than 3% since last Friday. Read More
The Metals, Money, and Markets Weekly by Mickey Fulp - November 27, 2021
It's anyone's game for gold next week as prices remain below $1,800
Gold investors should prepare for increased market volatility in the near term as sentiment is extremely mixed among Wall Street analysts, according to the latest Kitco News Weekly Gold survey.
While Wall Street is caught in a three-way tie for this week's survey, there is a silver lining for the precious metal. Retail investors remain extremely bullish and there is growing interest on Main Street.
This week 15 Wall Street analysts participated in Kitco News' gold survey. For only the second time on record, the survey showed a three-way tie. Each scenario garnered five votes. Read More
Gold is still the safe-haven to own
A few weeks ago, we noted that when gold shines the brightest when the chips are down, and once again, the precious metal proved its mettle as a safe-haven asset.
It is interesting to compare gold’s reaction to the latest COVID-19 news as the price bounced off a nearly three-week low, to Bitcoin, which is down more than 7% Friday, falling below $55,000 per token.
Fear of a new COVID-19 variant is prompting the latest bout of panic selling in risk assets. Although there is still not a lot known about the new variant out of South Africa, there are fears that global economic activity will be curtailed as governments implement new lockdown measures to stop the spread of this new version of COIVD-19. Already we have seen countries around the world, including Canada, impose travel bans on South African and six of its neighboring countries. Read More
The gold sector is relatively small, but that can be a positive
On Friday Marrone recorded Kitco Roundtable with Mining Audiences Manager Michael McCrae, Editor Neils Christensen, and Kitco correspondent Paul Harris.
The largest gold miner, Newmont, has a market capitalization of $44 billion, compared to Apple's $2.57 trillion valuation. Fractionally, Newmont is 1.7% the size of Apple.
Tech companies have also been attracting more investors. The Nasdaq Composite is up 22% year to date. The VanEck Junior Gold Miners ETF is down by nearly the same amount over the same period. Listen to the podcast
Gold price recovers, ASX tumbles
Australian markets opened lower after Friday's sell-off due to new pandemic concerns.
The Australian Stock Exchange is down as of 10:30 a.m. Sydney time with the S&P/ASX200 off 57.60 points or 0.79% to 7,221.70. The exchange set a new 20-day low, according to an update on the ASX homepage.
Spot gold dropped $10 at open to trade as low as $1,783 an ounce before recovering. Read More
This is 'horrible for the world economy' but also good for gold price - Todd Horwitz
The re-appointment of Jerome Powell as Fed Chair means a steer away from more radical, progressive monetary policies, which would simultaneously cause gold to rally and spell disaster for the world economy, said Todd "Bubba" Horwitz of BubbaTrading.com. Read More
Will rising interest rates crash the housing market? Briton Hill
Briton Hill, president of Weber Global Management, discusses the risks that higher interest rates play on the housing markets, as well as stocks and gold, with David Lin, anchor for Kitco News.
“I don’t think we’ll see a 2008-type correction in real estate. Mostly, that’s because one of the big contributing factors back then was the variable interest rates. Since then, variable interest rates aren’t as prevalent. You don’t see that as often, but there still is the risk that you could have a real estate pullback, and mostly it would be attributed to interest rates rising rapidly,” Hill said. Read More
PRECIOUS-Gold rises as Omicron fears offset strength in dollar
Gold could trade between $1,780/oz and $1,830/oz- analyst
Gold prices edged higher on Monday as concerns over the impact of the Omicron coronavirus variant offset a stronger dollar, with investors assessing whether the emergence of the variant could change the U.S. Federal Reserve's hawkish stance. Spot gold rose 0.2% to $1,794.87 per ounce by 0646 GMT, while U.S. gold futures advanced 0.5% to $1,794.20. Read More
Gold and silver move higher heading into the European open
Gold has started the week on the front foot rising 0.25% to trade at $1795/oz. Silver is also trading higher having risen 1.19%. In the rest of the commodities complex, copper is 1.24% higher and spot WTI has risen 4.95% but this comes after a big fall on Friday. Read More
Gold & Silver Market Analysis for Monday 29th November
Kinesis Money Macroeconomic Analysis
The markets are experiencing a rebound after the sell-off on Friday, as the South-African variant seems to pose a lesser risk than what was initially feared. In fact, investors do not appear worried, considering the virus is contagious and spreading fast. Vaccinations appear to be working in the fight against this variant, protecting individuals against severe symptoms.
Before diving into an analysis of the week ahead, we must unpack the events seen last Friday on the financial markets. Read More
In this week’s Live from the Vault, Andrew Maguire is joined by the former FED insider, bestselling author, and the CEO of Quill Intelligence, Danielle DiMartino Booth, to thoroughly examine the source of current nervousness in the market.
Distinguished by a career on both Wall Street and the Federal Reserve, Danielle offers her expertly stance on the Fed’s fumbled attempts to fix the economy since 2008 and the potential transition into a new, gold-based monetary system.
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.
