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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. Read More
Gold, silver pull back ahead of FOMC conclusion Wed. PM
Gold and silver prices are down in midday U.S. trading Tuesday, with silver sharply lower. A higher U.S. dollar index and lower crude oil prices today are negative outside markets for the metals. Some position-evening in the futures markets ahead of Wednesday afternoon’s conclusion of the Fed’s FOMC meeting is also featured. Some speculative shorts may also have stepped in on the sell side today, reckoning the FOMC statement will favor the metals market bears. December gold was last down $6.80 at $1,789.10 and December Comex silver was last down $0.628 at $23.445 an ounce. Read More
Bank of America sees five interest rate hikes starting in 2022, but neutral rate will be capped at 2%
Gold prices have a chance to push back to $1,900 an ounce through most of 2022. Still, the precious metal will be caught between higher inflation and higher real interest rates, according to analysts at Bank of America.
In its latest global economic report, the bank noted that the Federal Reserve's monetary policy remains the biggest threat to the precious metal.
"Central banks are moving closer to policy normalization, with the U.S. economy leading. Rising real rates and a strong USD remain a key headwind to the yellow metal," the analysts said in the report. "Spiking oil prices are adding macro volatility too, but inflation is mostly perceived as transitory. And tightening output gaps should push central banks towards normalizing policy rates." Read More
Gold price is watching Fed's tapering, Powell's inflation comments
Gold's day-to-day gains are being capped at $1,800 an ounce as markets wait for the Federal Reserve highly anticipated tapering announcement on Wednesday. Close attention is also being paid to what Fed Chair Jerome Powell will say about inflation.
Prior to the central bank's meeting, gold has settled into a fairly narrow trading range between $1,780 and $1,800 an ounce. At the time of writing, December Comex gold futures were at $1,788.20, down 0.42% on the day. Read More
Gold set 'to steal the show in 2022' - Bloomberg Intelligence
After building support at the $1,700 an ounce level this year, gold could be the metal to follow in 2022, according to Bloomberg Intelligence.
"Next year will begin almost 24 months removed from the start of the pandemic, and we see the 2021 bounce in industrial metals vs. the decline in precious at greater risk of reversing," said Bloomberg Intelligence senior commodity analyst Mike McGlone.
The top performers of 2021 will not be the best choices for 2022 as the economy continues to normalize. Read More
Fed's digital dollar is 'scary,' it's all about control over currency and economy, says Brien Lundin
The Federal Reserve's digital dollar is a "scary" concept because it is all about having direct control over currency and economy, said Brien Lundin, executive editor of the Gold Newsletter and the New Orleans Investment Conference host.
As the Federal Reserve prepares to launch a review of a possible central bank digital currency (CBDC) shortly, U.S. citizens need to be aware of all the negative consequences that could come from a FedCoin.
"That's scary to me. You can already see the Federal Reserve beginning the PR campaign to soften the public up for a digital currency, a FedCoin. And they will talk about a lot of the advantages — transparencies of use, everything that you see from the blockchain technology. But behind all of that, there's control and the ability to control the economy, pull those levers more exactly and precisely than ever before," Lundin told Michelle Makori, editor-in-chief of Kitco News, on the sidelines of the New Orleans Investment Conference. Read More
Gold price is a cheap hedge as Fed can't control supply-side inflation pressures - abrdn
The Federal Reserve is on the cusp of shifting its monetary policies, but it won't be enough to stop the growing inflation pressures, and it is only a matter of time before investors return to gold to protect their wealth, according to one market strategist.
As the Federal Reserve starts its two-day monetary policy meeting, expectations are growing that the central bank will reduce its monthly bond purchases. At the same time, markets are pricing in a rate hike as early as June. However, Robert Minter, director of investment strategy at abrdn (formerly Aberdeen Standard Investments), said, in a recent telephone interview with Kitco News that the new hawkish tones in the Federal Reserve won't be able to stop inflation from rising. Read More
Gold & Silver Market Analysis for Wednesday 3rd November
Waiting for tapering – Are the markets ready to survive without the Federal Reserve?
In 2013, when the Fed announced the tapering, the so-called “Taper Tantrum” was witnessed. The financial markets panicked – a response that was mostly tied to bonds and gold.
This evening, there’s a very high chance that the Federal Reserve will announce the beginning of a new tapering. However, the possibility that the financial markets will react as they did in 2013 is small. In fact, the US Central Bank virtually “prepared” the financial markets for the process of reducing liquidity, in order to mitigate the potentially adverse effects of tapering.
In late July of 2021, members of the Federal Reserve were already starting to signal that they intended to reduce bond purchases before the end of the year. Despite this, the decline of stock investment was modest, while Treasury yields remained relatively low, in the 1.50% area. Read More
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Gold and silver move lower heading into the European open
Heading into the European session both gold and silver have moved lower. The yellow metal is currently -0.32% down and trades at $1781/oz, Looking at the rest of the commodities copper is 1.26% higher and spot WTI fell -0.57% overnight. 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.
