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Gold price trades just below $1,800 as U.S. weekly jobless claims decline to 293,000
The initial weekly jobless claims declined 36,000 to 293,000 in the week to Saturday, beating market expectations and marking a fresh pandemic low.
Economists’ consensus calls projected for initial claims to come in at 319,000 following the revised level of 329,000 reported in the previous week.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – decreased to 334,250. This also marked the lowest level since March 14, 2020. Last week’s four-week moving average was revised up to 344,750, the U.S. Labor Department said on Thursday. Read More
U.S. producer price growth rises to 8.6%, gold price near-daily highs
Gold was largely unchanged and trading near-daily highs after the U.S. Producer Price Index (PPI) rose to 8.6% on an annual basis in September versus the expected 8.7%.
This marked the largest year-over-year advance since November 2010.
The PPI slowed to 0.5% on a monthly basis in September from August’s 0.7%. Core PPI, which strips out volatile food and energy prices, came in at 0.2% month-on-month after August’s advance of 0.6%. And the annual core PPI rose 6.8% versus the expected 7.1%.
Market participants pay close attention to the PPI as a gauge for inflation at the wholesale level. It is seen as a leading indicator because, traditionally, producers pass on higher prices to their customers. Read More
Gold and silver: it's the bulls turn
The bulls have finally taken back control of Gold, Silver, and Platinum. All three have now managed to reverse the trend after their prolonged downtrend. We have seen them break above the resistance levels we wrote about last week, now we look to buy the dips.
The trends are now higher, which makes us double long. We always own physical and now long the futures. No one knows how long this trend will last, but we don't try to time markets. We use our algorithm for all decisions. When trading, all emotions, and opinions must be removed. Read More
'This is a game-changer for gold': Shift in Fed's rate hike expectations take gold price towards $1,800
The new U.S. inflation data release has triggered a rollercoaster ride in gold, with the latest move taking the precious metal nearly $40 higher on the day.
September's inflation numbers showed price pressures accelerating to 5.4% annually, slightly more than the market was expecting.
"We are starting to see the market growing nervous about the U.S. consumer. After digesting this report, it shows that the market is now anticipating sooner rate hikes. At the same time, we see the yield curve flattening, and that is good news for gold," OANDA senior market analyst Edward Moya told Kitco News. "Gold is entering a period where risks now outweigh the reopening trade, and we'll see more safe-haven flows into gold. This is a major reversal of trends and very positive for gold." Read More
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Weak economy, contracting production plus strong demand could push silver price to $40 by mid-2022
The price of silver could possibly surge to $40 an ounce by mid-2022, James Anderson, CEO and Chairman of Guanajuato Silver Company predicts. But Silver has continued to underperform 2021 estimates, currently hovering at about $23 an ounce.
Anderson explained why he is so bullish on silver. "If we have a weak economy coupled with a drive towards needing and using more silver, you're going to have base metal mines shutting down that produce silver as a by-product, just as an enormous demand for silver comes to the fore," he said. "In that environment, you could easily see silver go to the $40 price range. But it is more likely we will see silver at $30 before it hits $40. I can see it hitting $40 halfway through next year." Read More
Inflation returns to 13-year high, stocks overdue for 'fairly significant drawdown' - Ted Oakley
Headline CPI inflation is now back at 5.4%, up from 5.3% in August, according to data released Wednesday.
Ted Oakley, founder, and partner of Oxbow Advisors told David Lin, anchor, for Kitco News, that a diversity of hard assets is required to properly hedge against higher consumer prices. Read More
Long-term studies put current gold prices into perspective
For the first time in six weeks, gold has flirted with $1800 per ounce. The last time gold effectively challenged $1800 was during the week of August 23, when gold opened at $1780 and then closed at $1820. On the week of August, 30 gold traded to a high of $1837 and closed at $1820. On the following week, gold would break below $1800 per ounce with prices remaining below that key level for the next six consecutive weeks. Chart 1 is a weekly Japanese candlestick of gold futures and highlights the price points mentioned above. Read More
Gold, silver hit 4-week highs on improved charts, inflation worries
Gold and silver prices are higher in midday U.S. trading Thursday and hit four-week highs. The metals are being propelled up by improving near-term chart postures and lingering concerns about rising and even problematic price inflation. December gold futures were last up $4.30 at $1,798.80. December Comex silver was last up $0.34 at $23.51 an ounce. Read More
Gold and silver head into the EU session slightly lower
After two good sessions, gold is pausing for breath this morning. The yellow metal trades -0.22% lower while silver is down -0.18%. In the rest of the commodities complex, copper is 0.32% higher along with spot WTI which has risen 0.68%.
Risk sentiment was once again good overnight. The Nikkei 225 (1.82%), ASX (0.69%) and Shanghai Composite (0.44%) all closed higher. The Taiex managed to climb 2.40% after some good news on the semi-conductor front. Futures in Europe are pointing towards a slightly positive open. Read More
Perth Mint sales increased 22% in September
Figures from The Perth Mint show Demand for Australian bullion products surged in September. Sales of gold coins and bars are at their highest levels in five months and sales of silver coins and bars are the best in three months. The Mint’s minted bullion sales not only surpassed those from the prior month but those of a year ago. The Perth Mint’s level for gold bullion broke a streak of five straight monthly slowdowns which started following record sales in March. 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.
