Today's Gold and Silver News - September 23rd

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Gold, Silver & Macroeconomic Market Analysis for Wednesday 22nd September

Kinesis Money Gold Analysis - The price of the precious metal has shown interesting signals of recovery. The support zone of $1,750 was not violated by gold and the price managed to rebound by almost $30, approaching $1,780.

Kinesis Money Silver Analysis - There is life for silver also, as the price has extended its gains, jumping to $22,65. Despite this, we can still see the current movement as a rebound (+2.5% from the bottom reached earlier this week) and not yet as a proper inversion. 

Silver could offer a first positive signal above $23,1, while the trend could return positive with a solid surpass of the $24 mark. Despite the weakness shown in the short term, the fundamental basis for the medium and long term remains brighter, with growing demand from the industrial sector and positive expectations from the jewellery sector as well. Read More

Gold market needs clarity from the Federal Reserve - Wilshire Phoenix

Gold is suffering because there is an information vacuum surrounding U.S. monetary policy. Investors are filling the void with unexpected worst-case scenarios for the precious metals market, according to one fund manager.

The gold market has suffered from anemic interest through most of the summer. Investors have been expected the Federal Reserve to shift its monetary policy, starting with a plan to reduce its monthly bond purchase. In an interview with Kitco News, Bill Herrmann, founder of Wilshire Phoenix, said that his firm's adaptive gold-backed exchange-traded fund (NYSE: WGLD) is 100% invested in the gold market. Read More

Silver, gold, palladium, or Bitcoin? This is Randy Smallwood's top pick

While industrial metals will continue to be in higher demand as the world shifts into a green energy paradigm, one metal stands above the others for Wheaton Precious Metals' CEO, Randy Smallwood.

"It is truly the metal of the future," Smallwood told Michelle Makori at the Denver Gold Forum, referring to silver.

Smallwood praised silver's industrial applications and noted the importance of using silver for storing and transporting energy. Read More

Looming debt ceiling crisis: will U.S. Treasury use the $1 trillion platinum coin option?

The U.S. will run out of money in October if the debt ceiling is not raised. But instead of relying on politicians to solve the problem, the Treasury Department has another surprising option – minting a $1 trillion platinum coin.

This idea gained popularity during the previous great debt ceiling debate a decade ago but was eventually rejected by the Obama administration.

There is a loophole in the law that dictates the mintage of coins, potentially allowing the Treasury Department to mint platinum coins of any denomination and deposit them at the Federal Reserve in exchange for the U.S. federal debt. Read More

Gold price rises as Fed delays tapering plans but pushes rate hike expectations to 2022

The gold market is struggling to find some direction with prices below $1,800 an ounce as the Federal Reserve holds back on releasing its plans to reduce its monthly bond purchase for at least another meeting.

"Last December, the Committee indicated that it would continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward its maximum employment and price stability goals. Since then, the economy has made progress toward these goals. If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted," the central bank said in its monetary policy statement. Read More

Gold loses post-FOMC price gains as Powell upbeat on U.S. economy

Gold prices are lower and near-daily lows in afternoon U.S. trading Wednesday. This afternoon’s statement from the Federal Reserve’s Open Market Committee (FOMC) was deemed mostly neutral on U.S. monetary policy and actually rallied the gold market, initially. However, Fed Chairman Jerome Powell’s upbeat remarks on the U.S. economy and jobs-growth prospects dented the gold bulls’ enthusiasm as the U.S. dollar index rallied to its daily high while Powell was giving his press conference. October gold futures were last down $6.60 at $1,769.50. December Comex silver was last up $0.054 at $22.665 an ounce. Read More

Gold price drops as Powell talks 'gradual' tapering, downplays Evergrande contagion concerns

The gold market saw its earlier gains reversed as Federal Reserve Chair Jerome Powell talked about "gradual" tapering while downplaying China's Evergrande contagion effect on the U.S. market.

On Wednesday, the Fed said it may soon start tapering its $120 billion in monthly asset purchases, with central bank officials showing growing support for raising interest rates in 2022. 

"If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses," the Fed said in a statement. Read More

Stocks rally, gold falls as the Fed signals next major moves - Thomas Hayes

The Federal Open Market Committee left interest rates unchanged today at their September meeting.

Thomas Hayes, managing partner of Great Hill Capital, told David Lin, anchor, for Kitco News, that "the earliest you're going to see a rate rise would be end of 2022, and more likely into 2023," he said. Read More

These ‘sound money’ assets will ‘come back with a vengeance’ – Lawrence Lepard

Several “sound money” assets are undervalued right now, and are long overdue for a major comeback, said Lawrence Lepard, managing general partner of Equity Management Associates.

In particular, mining stocks are grossly undervalued, Lepard noted. In fact, analysts are not using valuing mining stocks using $1,800 an ounce for gold; $1,650 is the norm for discounted cash flow models.

The day gold breaches $2,000 an ounce again is when these mining stocks will “come back with a vengeance,” Lepard told David Lin, anchor for Kitco News. Read More

Gold and silver both move lower ahead of the European open

Gold and silver are both trading lower this morning. The yellow metal is down -0.25% while silver has lost -0.23%. Copper is also down -0.43% despite a strong performance on Wednesday. Spot WTI (0.58%) joins platinum (0.54%) and Palladium (0.22%) in trading on the positive side ahead of the European open. 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.