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Industrial use of silver could increase in the next 5 years - Mark Cruise
The industrial use of silver will likely increase in the next five years, especially as we move toward a low carbon economy, said Dr. Mark Cruise, CEO of New Pacific Metals.
"Silver has got its usual store of value against inflation, and we certainly see a lot of global headwinds and inflationary pressures for gold and silver," Cruise told David Lin, anchor, and producer of Kitco News at the Denver Gold Forum. "But what makes silver unique is its industrial end-use as well. It's a critical commodity in basically moving to a low carbon economy, in particular solar and wind power." Read More
Commodities need stock market stress test – Bloomberg Intelligence
In order to see which commodities can continue trading at elevated levels, the sector needs a stock market stress test, according to Bloomberg Intelligence.
There are signs that commodities rally might have peaked, and only a broad market selloff can determine which commodities will survive, said Bloomberg Intelligence senior commodity strategists Mike McGlone.
"Iterations for an enduring commodity peak are growing, and the stock market may be the final support pillar. U.S. Treasury bond yields topped out in March. Copper, corn, and lumber peaked in May. The dollar has recovered since June and crude oil may have reached its apex in July when China cut its required reserve ratio. Even gold is facing pressure from Bitcoin," said McGlone on Monday. Read More
Gold gains as global stock markets shudder on contagion fears
Gold prices are moderately up in midday U.S. trading Monday, on some safe-haven demand amid a rough start to the trading week for world stock markets. Still, gold bulls have to be disappointed their safe-haven metal did not perform better today, given the scope of losses in the U.S. stock indexes. Meantime, December silver futures hit a 14-month low today. If the selling pressure in the global stock markets persists this week, the two metals are likely to see better safe-haven demand. October gold futures were last up $9.20 at $1,758.60. December Comex silver was last down $0.167 at $22.17 an ounce Read More
Dollar holds gains, yuan under pressure as Evergrande risks grow
The offshore yuan wallowed near an almost one-month low on Tuesday while the safe-haven dollar and yen stood tall as investors sought shelter from a potential China Evergrande default.
The New Zealand dollar also sank after the central bank's assistant governor poured cold water on bets for a 50 basis point rate hike next month.
The yuan stood at 6.4805 per dollar after weakening as far as 6.4879 on Monday for the first time since Aug. 23. Mainland markets are shut for holidays until Wednesday.
"It feels like the market was waiting on something from the Chinese authorities over the weekend to calm the markets and ringfence the contagion worries from a looming Evergrande default, and that didn’t come," Chris Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a client note. Read More
Gold & Silver Market Analysis for Monday 20th of September
Kinesis Money Macroeconomic Analysis
The middle of this week, the 22nd of September is a date marked in bright colour on the investor’s calendar. The 2-day-meeting held by the Federal Market Open Committee (FOMC) – which has the duty of controlling the monetary tools of the Federal Reserve – will end on Wednesday evening.
The solid U.S. macroeconomic data of the last few weeks added pressure on the Fed and induced some restrictive actions. In late August Jerome Powell announced that tapering (the procedure of reducing liquidity in the system) will most likely begin before the end of this year. The main question is; how close are we are from the tapering start?
Over the past few days, we have seen a recovery of the U.S dollar. Was this reaction based on the correct expectation of some imminent, hawkish Fed’s decision? Or, contrarily, will the Fed postpone the tapering once again? The second option still seems quite likely. In this case, the sharp decline shown by gold and silver could probably be seen as an overreaction of the financial markets, opening space for some consolidation or rebounds. Read More
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Gold recovers as worldwide equities selloff
Gold truly acted as a safe haven asset today. Equities worldwide incurred a tremendously deep selloff as concerns about the Chinese property group Evergrande’s solvency. The worldwide equity selloff began overseas and then continued into the U.S. equities markets. At its low today, the Dow Jones industrial average was down 900 points before recovering. The Dow gave up 614 points in trading today and closed at 33,970.47, resulting in a net decline of 1.78%. The NASDAQ composite lost 2.19% and is currently fixed at 14,713.9030. The S&P 500 lost 1.70% and is currently fixed at 4357.73. Read More
Gold trades flat ahead of the European open
Gold is flat this morning after recovering from the lows of $1742.29/oz the yellow metal trades at $1762.69/oz this morning. Silver has risen 0.35% this is despite a negative close yesterday. Looking at the other commodities, copper is down -0.11% while spot WTI trades 0.85% higher just slightly above $71/bbl. 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.
