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Gold & Silver Market Analysis for Wednesday 6th October
Kinesis Money Gold Analysis:
At present, the gold price is being traded just above $1,750, looking for a clearer directionality as investors await the U.S. labour data.
Today, the session started in red with the dollar remaining strong, and the fiat pair: EUR/USD, being traded below 1.16.
The bullion rebound, seen yesterday, after the test on the support zone of $1,750 was a positive signal. Once the price approaches this level, buyers appear to be active, resulting in price hikes. However, as long as the price remains above the aforementioned threshold, there could be space for further recovery, since gold is still down 7% this year to date (YTD).
As mentioned, investors are now focusing on nonfarm payrolls (NFP), with reports such as the ADP National Employment Report to be published later today and the NFP to be released on Friday.
What’s clear is that the gold price is holding, despite the oil rally. Although, the climbing oil prices are an inflationary driver, which could add pressure for the Federal Reserve to suddenly instigate the tapering process – resulting in a potential weakness for gold. Read More
Polish central bank to buy 100 tons of gold in 2022 to boost nation's 'financial security'
National Bank of Poland (NBP) plans to purchase 100 tons of gold next year to prepare for "the most unfavorable circumstances," according to the Bank's Governor Adam Glapinski.
The goal is to boost the country's financial stability, Glapinski said in an interview with the local Gazeta Wroclawska newspaper.
"Why does the central bank own gold? Because gold will retain its value even when someone cuts off the power to the global financial system," Glapinski told the newspaper. "Of course, we do not assume that this will happen. But as the saying goes - forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process." Read More
Gold pushes above unchanged as bulls buy the dip
Technically, December gold futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,771.50 and then at $1,775.00. First support is seen at today’s low of $1,745.40 and then at $1,737.50. Wyckoff's Market Rating: 3.5
December silver futures bears have a solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $22.805 and then at $23.00. Next support is seen at today’s low of $22.185 and then at $22.00. Wyckoff's Market Rating: 2.0. Read More
'It's really a gimmick': Yellen on minting the $1 trillion coin for debt ceiling
U.S. Treasury Secretary Janet Yellen rejected the idea of minting a $1 trillion platinum coin to avoid raising the debt ceiling via the usual bipartisan way.
Yellen referred to the idea as a "gimmick."
"I'm opposed to it, and I don't believe that we should consider it seriously. It's really a gimmick," Yellen told CNBC in an interview when asked about the $1 trillion platinum coin idea.
The U.S. Treasury Secretary equated mining the coin to "asking the Federal Reserve to print money to cover deficits that Congress is unwilling to cover by issuing debt." Read More
US Senate appears near temporary truce in debt-ceiling standoff
The US Senate appeared near to a temporary deal to avert a federal debt default in the next two weeks, after Democrats said on Wednesday (Oct 6) they might accept a Republican proposal to defuse the partisan standoff that threatens the broader economy. Read More
Gold futures remain down but holding support above $1,750 as ADP says 568K jobs created in September
Gold future prices are under pressure but they continue to hold the line around $1,750 an ounce, even as more American’s found jobs last month, according to private payrolls processor ADP.
Wednesday, ADP said that 568,000 jobs were created in September, handily beating expectations; consensus forecasts were calling for job growth of around 425000.
The gold market was trading in negative territory ahead of the report and has seen little reaction to the latest employment data. December gold futures last traded at $1,757.90 an ounce, down 0.17% on the day. Read More
Gold has fractional gains even with moderate dollar strength headwinds
Today both gold and silver gained fractional ground with gold as of 6:10 PM Eastern Standard Time fixed at $1763.90, after factoring in today’s gain of $1.90, or 0.11%. Silver gained $0.12 in trading today and basis the December futures contract is currently fixed at $22.65 which amounts to a percentage gain of 0.52%. The prices quoted are based upon the opening in Australia as the financial markets begin to trade overseas on Thursday morning. Read More
Gold price headed to $5,500 in the long term as central banks won't be able to exit unorthodox monetary policies - Jefferies
The Federal Reserve's potential plan to reduce its monthly bond purchase by the end of the year continues to weigh on the gold market as prices remain tethered to support around $1,750 an ounce. However, one investment firm continues to see gold prices pushing thousands of dollars higher in the long term.
In a report published Tuesday, investment bank Jefferies Group said that gold and Bitcoin remain essential hedges as the threat of stagflation – an environment of low growth and higher inflation – continues to grow.
Although the market continues to struggle in the near term, analysts at Jefferies said that their long-term forecast remains in place for gold prices to push to $5,500 an ounce. Read More
Gold and silver are mixed leading into the European open
Gold and silver are trading mixed this morning leading into the European cash open. Gold has moved just under flat to trade at $1761/oz while silver is 0.21% higher at $22/64/oz. In the rest of the commodities complex, copper has moved 0.22% higher and spot WTI is flat. 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.
