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Gold & Silver Market Analysis for Monday 8th November
Kinesis Money Macroeconomic Analysis - Today, the financial markets are clearly in a “risk-on” setting. In support of this outlook, last week saw the US stock market indices achieve a new all-time high, after the nonfarm payrolls beat expectations. This did well to solidify progress made towards economic recovery in the US.
Investors seem to have appreciated the dovish stance taken by the central banks of late. With the tapering process being largely expected, and now fully instigated, by the Federal Reserve, the proceeding response from the financial markets has been moderate. Furthermore, the Fed made some particularly dovish comments about interest rates, with movement set to remain close to zero until the end of 2022.
As for the Bank of England, they recently confirmed the base interest rate at a historical low of 0.10%. In this scenario, the prospect for gold and silver is positive, paving the way for an outlook that features significant gains for the precious metals.
In other words, not only has a new “taper tantrum” – like the one in 2013 – been avoided but gold and silver have actually rebounded. On the other hand, the 10 Year Treasury yield has fallen below a return of 1.50% while stocks remain in the green zone. Read More
Gold SWOT: Biggest Gold-Buying Day of the Year Following the Festival of Diwali
The best performing precious metal for the week was spot gold, up 1.96%. Nomad Royalty Company has entered a gold stream with respect to Orion’s 40% interest in Greenstone Gold Mines, which operates the Greenstone Gold Project located in Canada. The company will make cash payments totaling $95 million for 5.9% of gold production attributed to Orion’s 40% interest in Greenstone until 120,333 ounces have been delivered, and 4.0% thereafter. Nomad will make ongoing payments equal to 20% of the spot gold price and, in addition, will make payments of $30 per ounce to fund mine-level ESG (Environmental, Social, and Governance) programs. Read More
Gold ETF demand drops for fourth straight month as prices eke out small gains in October
The gold market is holding on to gains at a two-month high and is within striking distance of retesting a major resistance point. Despite the latest rally, some market analysts have noted that the precious metal faces anemic investor interest.
Friday, the World Gold Council released its latest snapshot of the global holding of gold-backed exchange-traded products. For the fourth consecutive month, investors liquidated their positions in gold-backed ETFs. The report said that gold-backed ETFs saw outflows of 25.5 tonnes, with broad-based declines among North American and European-listed funds.
"Global gold ETF holdings fell to 3,567 tonnes (US$203bn) during the month – notching year-to-date low levels – as investor appetite for gold diminished in the ETF space following price declines in August and September," the analysts said in the report. Read More
Gold hits 2-mo. high, bulls seeking more on the upside
Gold and silver prices are moderately up in midday U.S. trading Monday, with gold scoring a two-month high and the bulls gaining momentum. It appears the metals traders have turned their focus from the bearish aspects of a tighter U.S. monetary policy to the bullish prospects of rising and even problematic price inflation in the coming months. A lower U.S. dollar index to start the trading week was also friendly for the metals market bulls. December gold was last up $8.30 at $1,824.90 and December Comex silver was last up $0.328 at $24.485 an ounce. Read More
Gold price at a two-month high but $1,835 is the major test – Saxo Bank
The gold market has found some new life as investors react to growing inflation pressures; however, one market analyst said that gold still needs to break through a critical level for momentum to pick up further.
In a telephone with Kitco News, Ole Hansen, head of commodity strategy at Saxo Bank, said that last week gold made some impressive gains. The market has seen some follow-through buying Monday; December gold futures last traded at $1,824 an ounce, up 0.40% on the day.
However, Hansen said that the market still needs to push above $1,835 before the market sees new capital inflows. Read More
Gold moves higher on inflationary concerns and accommodative central banks
Now for the third day in a row, gold has scored significant gains. As of 4:25 PM EST gold futures basis, the most active December contract is currently up $9.50, or 0.53%, and fixed at $1826.40. Silver has also shown significant gains today, with the most active December contract up $0.388, or 1.61%, and is currently fixed at $24.545. While dollar weakness is a definite contributor to today’s gains in the precious metals, it is inflationary concerns and central banks globally maintaining an extremely accommodative monetary policy that is the driving force behind gold’s recent moves. The dollar declined a total of 0.287 points, or 0.30%, with the dollar index currently fixed at 94.035. Read More
Major gold miner Newcrest to acquire Pretium for $2.8 billion
Newcrest Mining (ASX, TSX: NCM) announced today that it has entered into an agreement to acquire all of the issued and outstanding common shares of Pretium Resources (TSX, NYSE: PVG) that it does not already own by way of a Canadian Plan of Arrangement.
The company said that under the transaction, Pretivm shareholders will receive consideration of C$18.50 per share, which represents a 22.5% premium to Pretivm’s last closing price and a 24.2% premium to Pretivm’s 10 day VWAP on the Toronto Stock Exchange as of 8 November 2021. Read More
Gold is trading flat heading into the European open
Gold is trading pretty much flat leading into the Europen open. The yellow metal is trading at $1823/oz while silver (-0.20%) is holding at $24.37/oz. In the rest of the commodities complex, copper (-0.27%) and spot WTI (-0.37%) are trading lower 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.
