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Bearish sentiment rising in gold market as bond yields, U.S. dollar move higher
Rising bond yields and renewed strength in the U.S. dollar are adding to the investor apathy in the gold market and boosting bearish sentiment among Wall Street analysts and retail investors, according to the latest results of the Kitco News Weekly Gold survey.
Sean Lusk, co-director of commercial hedging with Walsh Trading, said that gold will continue to be stuck as there is a lack of conviction in the marketplace.
"Long-term, we are bullish on gold because U.S. debt levels are just growing out of control, but in the short-term, rallies will continue to be sold," he said. Read More
The Metals, Money, and Markets Weekly by Mickey Fulp - September 17, 2021
Join The Mercenary Geologist Mickey Fulp and Trevor Hall of Mining Stock Daily every Friday afternoon for a recap of metals, money, and markets. Each episode provides commentary on performances and a look ahead to next week's markets. You can listen to the weekly wrap exclusively at Kitco.com. We trust you will find our podcast of value and hope it becomes a part of your weekly due diligence and research. May all your trades be to the upside. Listen to the podcast
'Bears are in control' of gold price: will next week's Fed announcement be a shocker?
After falling $40 this week, gold bears are in control of the market with all eyes on what could be a hawkish Federal Reserve meeting next week, according to analysts.
Gold dropped to four-week lows on Thursday, falling from above $1,790 an ounce to $1,750 an ounce after much stronger U.S. retail numbers. This is big news ahead of the Fed's interest rate announcement on Wednesday because it could mean tapering sooner rather than later.
"Bears have control now. We had a complete flip in retail sales. This reinforces the idea that the Fed's hand is being forced to taper," RJO Futures senior market strategist Frank Cholly told Kitco News. "Right now, gold is in a new trading range. The short-term trend is down." Read More
Gold struggles as concerns about upcoming FOMC meeting mount
This has been an extremely difficult week for gold losing approximately $36. Gold futures basis the most active December 2021 contract opened on Monday at $1790 and is currently fixed at $1753.90. Today gold continued its decline, although only fractionally, declining $2.80 on the day. Read More
Gold price is in 'no man's land' after $40 drop as outlook on U.S. economy shifts
Gold dropped more than $40 in the aftermath of better-than-expected U.S. retail sales on Thursday. And analysts are now saying that prices are in "no man's land" as U.S. economic outlook shifts ahead of the Federal Reserve interest rate announcement.
The U.S. retail sales numbers beat expectations in August, rising 0.7% following a drop of 1.8% in July. Market consensus calls were projecting to see a drop of 0.8%.
"The big catalyst on gold selling off was the retail sales number. When you take the economy, and you slice it up into a pie, one part of measuring U.S. economic strength is the retail sector, which has been fairly non-existent for quite a while," Blue Line Futures chief market strategist Phil Streible told Kitco News. Read More
Gold's 'marginal project' problem
The gold sector suffers from a lack of quality projects, said Banyan Gold's CEO Tara Christie.
On Friday Christie recorded Kitco Roundtable with Mining Audiences Manager Michael McCrae, Kitco correspondent Paul Harris, and editor Neils Christensen.
Year-to-date the VanEck Junior Gold Miners ETF is off 30% to $17.57. Harris said too many gold companies make the sector harder for investors to navigate. Barrick Gold CEO Mark Bristow wants to see more sector consolidation, according to Reuters. Still, gold prices have been good, and producers are cashed-up for acquisitions. Read More
$10k gold, credit collapse, dollar devaluation: This is the "course of the empire" - Dan Oliver
The natural course of the U.S. "empire" is that of currency devaluation and an eventual credit collapse, said Dan Oliver, founder of Myrmikan Capital.
"What backs the dollar? The Fed's assets do, and if you look at the Fed's assets, what do they own? They own a bunch of Treasury bonds. They own the debt of an insolvent Congress," Oliver told David Lin, anchor for Kitco News. "If and when, I think when, the U.S. power starts to devolve, starts to fall apart, the market will say"what is behind that dollar?' and the answer is very little." Read More
Bears in control: Gold is in 'no man's land'
It was not a good week for gold. Prices hit four-week lows, and markets are now anticipating a far less dovish Federal Reserve at next week's monetary policy meeting. Here's a look at Kitco's top three stories of the week: Read More
Gold and silver are mixed heading into the European open
Gold heads into the European session slightly lower while silver is up 0.34%. The yellow metal suffered as the U.S. dollar strength persisted overnight. In the rest of the commodities complex, copper is nearly 2% and spot WTI is down -0.88%. Read More
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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.
