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Gold and silver continue in a funk
Gold, Silver, and Platinum continue to trade in a malaise. All three remain stuck in a range and show all the makings of a large move. For now, we assume that move to be up. However, we can expect eventually, either the bears or the bulls will take charge.
Consolidation is a war between the bulls and the bears. Bulls buy them until the bears fight back and sell. This rotation can last for an extended period before breaking out. Look at the Russell index, which has been consolidating for ten months.
The longer and the tighter consolidation churns, the bigger the eventual breakout will be. All signs point higher the price action to the economic data. Many investors will become impatient and make a hasty decision which tends to be wrong. Remember, markets don't announce themselves, and a move will just show up. Read More
Gold price at daily highs as ISM Manufacturing Index retreats but beats expectations in October
Gold prices ticked to daily highs as the headline manufacturing index from the Institute for Supply Management retreated in October but came in above expectations.
The ISM manufacturing index was at 60.8% last month, beating the consensus forecast of 60.5%. But the monthly figure marked a 0.3 percentage-point decline from September's reading of 61.1%.
"This figure indicates expansion in the overall economy for the 17th month in a row after a contraction in April 2020," the report said. Read More
Gold boosted by weaker USDX, falling U.S. bond yields
Gold prices are holding decent gains in midday U.S. dealings Monday. Support comes from a weaker U.S. dollar index, firmer crude oil prices and falling U.S. government bond yields on this first trading day of the week and of the month. December gold was last up $10.20 at $1,794.10 and December Comex silver was last up $0.116 at $24.065 an ounce. Read More
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Gold price and silver price to 'eclipse' record highs in 6 months, this is the trigger
It's been "a mad world" out there with record-high equities, real estate, and more. But the long-awaited surge in gold and silver is coming in the next six months, said Mike Larson, senior analyst at Weiss Ratings.
"If you're in a world where many assets are over-valued, where real estate is extremely highly valued, stocks are extremely highly valued, and so on. What hasn't run up and remains relatively cheap? The biggest, most obvious answer to me is precious metals. And of course, the shares of the companies that mine them," Larson told Michelle Makori, editor-in-chief of Kitco News, on the sidelines of the New Orleans Investment Conference.
What's been holding gold and silver back this year is the fear that the Federal Reserve will have to act aggressively and raise interest rates quickly in order to fight off inflation. Read More
A big week with the FOMC meeting and jobs report for October
Traders and investors are waiting for two key events this week that will shape the direction and price of gold. The first event will begin tomorrow and conclude on Wednesday when the Federal Reserve convenes and concludes its November FOMC meeting. This will be followed by the Fed’s monetary policy statement which will contain any changes, as well as a press conference by Chairman Powell approximately ½ hour after the conclusion of their November meeting.
It is highly expected that the Federal Reserve will announce the onset the tapering of their asset purchases of $120 billion monthly. During the last FOMC meeting, the Fed revealed that they will taper purchases by $15 billion each month. Read More
Gold and silver move higher ahead of the European open
Ahead of the European open gold and silver are both trading higher. The yellow metal is 0.13% higher still just under $1800/oz. Silver is roughly flat at $24/oz. In the rest of the commodities complex, copper fell -0.76% while spot WTI move half a percent into the black. 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.
