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Gold price falls to new session low following record high in ISM service-sector data
Gold prices remains deep in negative territory falling to a new session low following stronger than expected activity in the U.S. service sector.
Wednesday, the Institute for Supply Management (ISM) said its non-manufacturing index showed a reading of 66.7% for October, up from September’s reading of 61.9%. The data were much more robust than expected, as consensus forecasts were calling for an unchanged reading.
“In October, the Services PMI registered another all-time high of 66.7%, 4.8 percentage points above September’s reading of 61.9%. This figure exceeds the former all-time high of 64.1 percent in July,” the report said. Read More
The 'staggering' numbers needed for metal production to meet coming EV demand
To meet anticipated battery material demand, Sean Thijsse at Pallinghurst Group has seen multiples as high as 20-times current demand for graphite, nickel, and cobalt; and lithium with multiples as high as 40-times current demand.
Thijsse is Group Head of Corporate Finance at Pallinghurst Group. He spoke to Kitco on Monday. Pallinghurst Group invests in metals and mining with a focus on battery materials.
"When you compare that to today's production, that is pretty staggering and shows unprecedented demand," said Thijsse. Watch the video
Gold lower, shows little reaction as FOMC announces tapering
Gold prices are sharply down in afternoon U.S. dealings Wednesday. This afternoon’s FOMC statement from the Federal Reserve saw the U.S. central bank announce it will begin tapering its bond-buying program in November, by $15 billion. The FOMC statement said December and the following months will also likely see the paring back of bond-buying. The Fed said inflation remains elevated. Markets showed little reaction to the FOMC statement, as traders and investors had pretty much dialed in what the Fed would do today, and that the tenor would favor the hawkish camp. Now, traders are awaiting Fed Chairman Jay Powell’s press conference. December gold was last down $22.40 at $1,766.20 and December Comex silver was last down $0.197 at $23.315 an ounce.
Gold and silver markets fell to three-week lows today and their near-term price uptrends have been negated—giving the bears some momentum. Read More
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Gold prices remain in negative territory as Federal Reserve reduces its monthly bond purchases
Gold prices are holding steady but remain in negative territory as the Federal Reserve said it will reduce its monthly bond purchases.
Markets have widely expected the announcement.
"In light of the substantial further progress the economy has made toward the Committee's goals since last December, the Committee decided to begin reducing the monthly pace of its net asset purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities," the central bank said in its monetary policy statement. Read More
Gold price pares losses as Fed's Powell talks inflation uncertainty, stresses it's 'premature' to raise rates
Gold pared some of its losses, rising from daily lows as Federal Reserve Chair Jerome Powell talked about inflation uncertainty but stressed that it is "premature to raise rates today."
"Inflation has come in higher than expected. Bottlenecks have been more persistent and are on track to persist well into next year. I don't think we are behind the curve. The policy is well-positioned to address the range of plausible outcomes. It will be premature to raise rates today. We want to see the labor market heal more," Powell said at a conference that followed the Fed's interest rate announcement.
The Fed Chair admitted that high inflation is concerning and will likely last well into next year while still maintaining the word transitory. Read More
Why gold is 'stuck'
Investors are still weighing the risk of inflation, which has tapped the breaks on gold's rise, said Agnico Eagle (TSX:AEM) CEO, Sean Boyd.
Boyd spoke to Kitco on Tuesday. The company released its Q3 this week. In the spring gold traded above $1,900 oz but this fall is struggling to stay above $1,800 oz.
"Gold is stuck right now because investors are still trying to determine what inflation is going to look like. We are in that camp where 'inflation is not transitory.' We can see prices starting to go up. We see more permanent inflation down the road. That is a recipe for higher gold prices," said Boyd. Read More
The future of commodity trading will be digital on the blockchain, here's how - Atomyze CEO
With the advent of blockchain technology, it is now possible to "tokenize" assets and create digital trading vehicles that track the underlying asset.
Atomyze is one such company doing exactly that, and the first asset class they are tokenizing will be commodities, and in particular, metals.
Jeanine Hightower-Sellitto, CEO of Atoymze, discusses with David Lin, anchor for Kitco News, how tokenization works, and the benefits of using this technology over legacy trading vehicles, like futures contracts. Read More
The Federal Reserve announces that they will begin to taper asset purchases this month
As expected, today, after the November FOMC meeting, both the statement and press conference by Jerome Powell acknowledged that they will begin the process of tapering their monthly asset purchases this month. Starting this month, they will reduce their monthly purchases of U.S. debt by $10 billion each month and reduce their monthly purchases of MBS (mortgage-backed securities) by $5 billion monthly. This would mean that they will complete the tapering process in eight months, concluding in June 2022. The Federal Reserve instructed agents at New York Fed to begin executing the reducing bond purchases in mid-November. Read More
Fed begins tapering this month; Will gold price finally break out? Gary Wagner
The Fed announced Wednesday plans to begin tapering its asset purchase program later in November, with a $10 trillion reduction in Treasurys and a $5 billion reduction of mortgage-backed securities.
Gary Wagner, editor of TheGoldForecast.com, discusses with David Lin, anchor for Kitco News, the impact this decision will have on the gold price. Read More
Gold and silver trade higher heading into the European open
Gold and silver trade higher leading into the European open despite some weakness in the aftermath of the FOMC announcement. Gold is now trading at $1773/oz while silver resides at $23.50/oz. Copper is also 0.15% higher while spot WTI is half a percent in 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.
