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Gold price outlook 'remains negative': get ready for $1,500 by end of 2022, says ABN AMRO
Gold's inability to move above $1,800 an ounce is taking its toll, with ABN AMRO now projecting for gold to end this year at $1,700 and next year at $1,500 an ounce.
"So far this year, gold prices have declined by 7.5%. The gold price outlook remains negative. We keep our year-end forecast at USD 1,700 per ounce and end of 2022 at USD 1,500 per ounce," ABN AMRO senior precious metals strategist Georgette Boele said in a report. Read More
Gold, silver continue to struggle
Another day, another mixed day in the metals. Gold and silver appear stuck as buyers don't have enough power to push them up, and the bears don't have enough to push them down. This is known as congestion and can last for an extended period. At the same time, platinum appears to have found a bottom.
Looking at gold this morning at 5:15 am EDT, we see higher prices. At the same time, silver is lower. Both must break above key levels, which are $1,780 December gold and $23 December silver. Until there is a close above those levels, gold and silver will be in a downtrend. Read More
Silver needs to break this level to confirm a bullish sign
Silver has in a bit of a consolidation phase on the 4-hour chart below. The price has now been stuck just below the red shaded resistance area for around 25 days. If the bulls are to get a hold of this market then the resistance they need to break is at the previous wave high near $23.22/oz. Read More
Gold price sees double-digit jump as IMF cuts global growth outlook, cites 'dangerous divergence in economic prospects'
The International Monetary Fund trimmed its global growth forecast, citing rising risks from supply chain bottlenecks, price pressures, and threats from the delta variant.
In its World Economic Outlook, the IMF said its 2021 global growth forecast is now at 5.9% from the previous July estimate of 6%. The forecast for 2022 remained unchanged at 4.9%.
"This modest headline revision, however, masks large downgrades for some countries," the IMF said in the report. "The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions." Read More
Modest gains for gold as stock markets still wobbly
Gold prices are a bit higher in midday U.S. trading Tuesday. It's been a choppy, two-sided trading session. The yellow metal is supported by some safe-haven demand amid world energy supply concerns, but has also seen pressure from a higher U.S. dollar index and recently elevated bond yields. December gold futures were last up $5.20 at $1,761.20. December Comex silver was last down $0.095 at $22.57 an ounce. Read More
Potential looming energy crisis could derail economy
Oil prices have surged this year, up more than 60 percent in 2021. For the first time since 2014, oil is trading at more than $80 a barrel. It's possible that oil prices could top $100 a barrel, John Burnett, Founder of 1 Empire Group said.
Speaking in a panel along with Michele Schneider, Managing Director of the Marketgauge Group hosted by Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, both Burnett and Schneider agreed that the energy sector is poised for further growth. Read More
These commodities are most affected by high energy prices – Capital Economics
With energy prices at multi-year highs, Capital Economics highlights the commodities most sensitive to these price fluctuations.
The commodities that are likely to be most affected by the looming energy crisis are the industrial metals, agriculture, and the precious metals sector, Capital Economics commodities economist Edward Gardner said in a report.
"Historically, energy prices have been most correlated with industrial metal prices, followed by agricultural prices, and precious metals prices. This is also evident from the annual correlations of different commodity prices with energy prices," the report said. Read More
Investor angst concerning inflationary pressures
Tomorrow the U.S. Bureau of Labor Statistics will release the most current inflationary data. Two primary metrics are used to reveal inflationary pressures. First is the CPI, or Consumer Price Index. According to Investopedia, "The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living." Read More
Gold & Silver Market Analysis for Wednesday 13th October
Today’s economic calendar is relatively busy, with significant macroeconomic data to consider from several countries.
Starting with the US, it’s important to first observe the US CPI and the minutes of the last Federal Open Market Committee (FOMC) meeting. The CPI, an acronym for the Consumer Price Index, will enlighten investors about the recent pressure of inflation on the economic system.
Any data above the forecast of 0.2% could be a driver that prompts the Federal Reserve to act rapidly with the beginning of tapering.
Alternatively, data below what was expected could cause increasing uncertainty about the timing of the Fed’s next movements. It should be noted that recent US labour data (nonfarm payrolls) already deviated from those expectations. Read More
Gold and silver trade higher leading into the European open
Gold in silver moved higher overnight as risk sentiment remained tepid. Gold pushed 0.17% higher while silver moved 0.71% into the black. In the rest of the commodities complex, copper jumped 1% while spot WTI lost -0.09%. 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 other advice.
