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Gold and silver survive selling pressure
Gold, Silver, and Platinum have been setting up for a much bigger move. The recent price action has been wild enough to make traders and investors want to pull out their hair. From last Friday's hard sell-off from up 30.00 to yesterday's whip around the unchanged line.
The metals look to go higher, possibly a significant move. We are long and can only see one level at a time. Making a dramatic prediction is ignorant and is only done to create reaction and action for prospective buyers of a service. All markets work the same and go through the same phases, currently trending higher. Read More
U.S. weekly jobless claims decline to 281,000
The initial weekly jobless claims declined 10,000 to 281,000 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 290,000 following the revised level of 291,000 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 299,250. This also marked the lowest level since March 14, 2020. Last week’s four-week moving average was revised up to 320,000, the U.S. Labor Department said on Thursday. Read More
Biden pushes $1.75 trillion spending plan, progressives push back
U.S. President Joe Biden said on Thursday he had secured a new $1.75 trillion framework for economic and climate change spending that could pass the Senate and expressed confidence it would win the backing of all wings of the Democratic Party.
"Today I’m pleased to announce after months of tough and thoughtful negotiations, I think we have, I know we have a historic economic framework," that will create millions of jobs and allow the United States to compete with China and other countries, Biden said after a last-minute trip to Congress to get reluctant progressives to support his spending plan. Read More
'Aggressively' hold gold & real estate as Fed's QE is a 'failed experiment,' says Danielle DiMartino Booth
The Federal Reserve has kept its monetary policy "inappropriately" too easy for too long, triggering inflation. And now the central bank could be forced to tighten aggressively, said Danielle DiMartino Booth, CEO of Quill Intelligence.
"Quantitative easing is a failed experiment," Booth told Michelle Makori, editor-in-chief of Kitco News. "We have much more going on here than supply chain disruptions. And there are much more problematic forms of inflation that I don't think [Fed Chair] Jerome Powell is prepared to acknowledge. But it is the sticky type of inflation that the Fed has to be most concerned with. And that is beginning to bleed through into housing and rental inflation."
With so much liquidity added to the monetary system, DiMartino Booth pointed out that the Fed is stuck between a rock and a hard place. Read More
Gold price ticks down from daily highs as U.S. Q3 GDP disappoints
The U.S. economy slowed sharply in the third quarter, the U.S. Bureau of Economic Analysis reported on Thursday.
The advance estimate showed that the U.S. Q3 GDP rose 2% versus the market’s expectations of a 2.7% increase. In the second quarter, the U.S. GDP came in at 6.7%.
“The increase in real GDP in the third quarter reflected increases in private inventory investment, personal consumption expenditures (PCE), state and local government spending, and nonresidential fixed investment that were partly offset by decreases in residential fixed investment, federal government spending, and exports. Imports, which are a subtraction in the calculation of GDP, increased,” the report said. Read More
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Gold modestly up in choppy trading, supported by big drop in USDX
Gold prices are mildly higher in midday trading Thursday, on a choppy and two-sided trading day. Solid losses in the U.S. dollar index today are prompting some buying interest in the precious metals markets. A U.S. GDP report that was downbeat and which fell into the camp of the U.S. monetary policy doves, who want the Federal Reserve to hold off on tapering its monetary policy stimulus, was also friendly for the metals markets today. December gold was last up $4.40 at $1,803.00 and December Comex silver was last down $0.046 at $24.15 an ounce. Read More
Remember the '70s? Watch the energy shock & look for gains in gold, silver, and copper, says Lobo Tiggre
Commodity supercycle or not, copper has one of the "most bullish cases" around, said Lobo Tiggre of The Independent Speculator.
No matter the general sentiment around commodities, the copper supply-side ensures price gains in the future.
"I like copper a lot. It is one of the most solid bull cases. And even if the commodity supercycle does roll over, I could see copper keep on going," Tiggre told Michelle Makori, editor-in-chief of Kitco News. Read More
Q3 GDP missed expectations; 'At some point, there will be a lot of turmoil' - Peter Berezin
Real gross domestic product (GDP) increased 2.0% on an annual basis in the third quarter. Stagflation should now be a risk on investors' minds, said Peter Berezin, chief global strategist at BCA Research.
“I wouldn’t bet on it being as bad as [the 1970s]. I think the Fed would try to cool down the economy by raising rates before we got to double-digit inflation. But having said that, I think the risk to inflation is on the upside and I think inflation will probably follow two steps up, one step down trajectory of higher highs, higher low. Right now, we’re probably at the top of those two steps,” Berezin told David Lin, anchor for Kitco News. “The next step for inflation will be to the downside because a lot of the inflation that we see today is concentrated in durable goods.” Read More
Gold and silver move lower heading into the European open
Gold (-0.20%) has once again moved back below $1800/oz overnight. Silver (-0.79%) is also weaker and trades at $23.85/oz. In the rest of the commodities complex, copper lost -0.69% while spot WTI dropped -0.28%. 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.
