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Gold price holding gains following 1.6% drop in U.S. housing starts, building permits down 7.7%
The gold market is holding on to solid gains but is seeing little new momentum following disappointing U.S. housing construction data.
The U.S. housing sector was a pillar of strength for the U.S. economy last year as it reeled from the effects of the COVID-19 pandemic. However, that strength continues to wain as commodity prices drag activity down, according to some analysts.
Housing starts dropped 1.6% to a seasonally adjusted annual rate of 1.55 million units last month, the Commerce Department said on Tuesday. The data was weaker than expected; according to consensus forecasts, economists expected relatively stable activity at 1.61 million units. Read More
Top 10 largest gold mines in Canada in Q2 2021 - report
Based on quarterly production results, Kitco estimates that in Q2 2021, gold production in Canada was 1,570 koz, 34% higher compared to 1,174 koz produced in Q2 2020.
Jointly owned by Yamana Gold and Agnico Eagle, Canadian Malartic was the largest gold mine in Canada in Q2 2021. Canadian Malartic had an exceptional second quarter, with production of 184.2 koz of gold reached all-time quarterly highs, exceeding plan due to higher grade and recoveries from the ore found deeper in the Malartic pit. Gold production in Q2 2021 increased by 62% when compared to the prior-year period primarily due to higher throughput levels and higher gold grades. Read More
Gold sees slight gains, silver solidly up and hits 5-wk high
Gold and silver prices are higher in midday U.S. trading Tuesday, with silver sharply up and notching a five-week high. Gold prices have backed well down from the session high on profit-taking by the shorter-term futures traders. A drop in the U.S. dollar index to a three-week low today and more bullish near-term chart postures for both metals invited buyers to step up. December gold futures were last up $3.00 at $1,768.70. December Comex silver was last up $0.601 at $23.865 an ounce. Read More
Weighing up the investment options on the financial market can present a dilemma when choosing between the safety of gold, as a traditionally stable asset, and the yield-bearing potential of bonds.
Both bonds and gold are widely considered to be low-risk investments.
When speaking of bonds, we are referring to fixed income instruments that represent a loan made by an investor to a borrower eg. government, or corporate bonds. They are often understood as an I.O.U (“I Owe You“- a signed informal notice of an unpaid debt) between a lender and borrower, including details such as the date when the loan will be paid back, and the terms of variable or fixed interest made by the borrower.
Of course, the risk is never completely absent from any investment, especially in the short term, where market volatility plays a significant role in manufacturing risk. Read More
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Gold will struggle as Fed's push to normalize monetary policy supports the US dollar - HSBC
Gold prices remain stuck in neutral below $1,800 an ounce. Commodity analysts at HSBC are warning investors that gold gains could be limited in the near term as the Federal Reserve's plan to normalize its monetary policies drives bond yields and the U.S. dollar higher.
The analysts at HSBC said that gold prices could struggle as central banks are on the cusp of shifting their monetary policies. Expectations are growing for the Federal Reserve to reduce its monthly bond purchases before the end of the year. Read More
This is how TD Securities is playing gold to hedge against stagflation
The gold market continues to tread water below $1,800, but commodity analysts at TD Securities are not ready to give up on the precious metal as they see rising stagflation effects.
In a report published last week, commodity analysts at TD Securities said they initiated a $1,850/$2,000 long call spread for April gold futures. With this trade, the Canadian bank expects gold prices to be significantly higher within four months.
The trade comes as the gold market appears to stagnate with lackluster investment demand unable to push prices sustainably above $1,800 an ounce. December gold futures last traded at $1,768.70 an ounce, up 0.23% on the day. Read More
Gold and silver both trade higher leading into the European open
Once again both gold and silver are heading into the European session higher. Gold is 0.43% higher trading at $177/oz while silver has risen nearly 1% at $23.87/oz. In the rest of the commodities complex, copper has retraced -0.83% after a good run and spot WTI has dropped -0.70%. 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.
