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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
Instant analysis: Gold, silver still longer-term bullish
See on the monthly continuation chart for nearby COMEX gold futures that prices are still in a longer-term uptrend and not too far below the record high of $2,063.00, basis nearby futures, hit in August of 2020. In fact, a bull flag pattern has developed on the monthly gold chart. The longer-term measuring implications for this bull flag suggest an upside price target of around $2,500 in the coming months or a bit longer.
The monthly Comex silver futures chart remains in an overall longer-term bullish technical posture—as long as prices stay above strong longer-term chart support at the $21.00 area. The next upside price objective for the silver bulls is to push prices above longer-term chart resistance at this year’s high of $30.21. A move above this year’s high would open the door to much bigger upside price potential. Read More
Gold, silver weaker amid bearish outside markets
Gold and silver prices are lower in midday U.S. trading Monday. The metals are being pressured by negative outside forces on this day, including a stronger U.S. dollar index, a bounce in the U.S. stock market, and rising bond yields. February gold was last down $3.40 at $1,784.70 and March Comex silver was last down $0.31 at $22.82 an ounce. Read More
If gold is a hedge, why is it under pressure?
As we approach the end of the year, gold, silver, and platinum have work to do on the downside. The dramatic drop last Friday, Monday, and Tuesday did a lot of technical damage to the charts. Gold broke down from congestion and is now below $1,800 based on March futures.
The next support level for gold is $1,750; if that fails, $1,700 is in play. If you have watched markets for any period of time, everything is based on probability and the most money is made trading with the trend. The break from congestion was a possibility even though the trend at the time was higher. Read More
China remains top gold producer as Aussi gold output drops in Q3 - Surbiton Associates
China is once again the world's number one gold-producing nation, beating out Australia for the top spot as production in the third quarter dropped.
According to the latest statistic from Australian gold mining consultants, Surbiton Associatest Australian gold mine production declined to 77 tonnes, a drop of 8% compared to the second quarter.
"With gold production figures now available for the first nine months of 2021, it appears that China has taken the lead again as the world's top gold-producing country," said Dr. Sandra Close, a director of Surbiton Associates. "Australia briefly became top producer for the first time, based on gold production figures for the first half of 2021." 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.
Investors should diversify away from bonds in 2022, hold 10% in commodities, including gold - WisdomTree
The gold market continues to struggle to attract new bullish momentum as some investors worry that the Federal Reserve will be more aggressive than first expected when it comes to monetary policy tightening in 2022.
The gold market continues to feel the effects of last week's sharp selloff after President Joe Biden nominated Jerome Powell to remain as head of the Federal Reserve for another four years. With the nomination in place, some investors are now expecting Powell to be a lot more hawkish in the future.
However, in a recent phone interview with Kitco News, Jeff Weniger, head of equity strategy at WisdomTree, said that investors should look to owning more real assets and fewer bonds in 2022 as rising inflation remains a threat. Weniger added that it doesn't matter who is at the helm of the Federal Reserve because interest rate hikes still won't keep up with inflation. Read More
Dollar strength and a U.S. stock rally results in gold closing lower as Omicron variant fears lessen
It was a combination of factors that led to gold futures closing fractionally lower on the day. After Friday’s 900-point decline in the Dow Jones Industrial Average, all three major indices staged strong comebacks in trading today. The S&P 500 gained 1.32%, or 60.65 points, and closed at 4655.27. The NASDAQ composite gained 1.88%, or 291 points, and closed at 15,782.8341. The smallest percentage gain was the Dow, gaining 236 points, or 0.68%, and closing at 35,135.94. The dollar index gained 0.10% and closed at 96.45. Read More
Singapore piles into gold for the first since 2000
The central bank of Singapore increased its gold reserves by 20% this year, buying gold for the first time in two decades.
The gold purchase was made between May and June, totaling 26.35 metric tons, according to the data from the Monetary Authority of Singapore's (MAS) International Reserves and Foreign Currency Liquidity report.
This boosted Singapore's total gold reserves to a reported 153.76 tons. Read More
Gold has moved higher leading into the European open
Gold has pushed 0.41% higher to trade at $1791/oz ahead of the European open. Silver is currently flat at $22.88/oz. In the rest of the commodities complex, copper (-0.69%) and spot WTI (-3.37%) are both trading lower.
Risk sentiment was mixed in the Asia Pac session as the ASX (0.22%) and Shanghai Composite (0.03%) pushed higher but the Nikkei fell -1.63%. Futures in Europe are pointing towards a negative cash open.
In FX markets, the dollar index fell -0.19% overnight and the biggest mover was USD/CAD which rose 0.47%. BTC/USD struggled overnight falling -2.23%. 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.
