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Gold SWOT: Australia poised to be the world's largest gold producer this year
The best performing precious metal for the week was silver, up 2.87%, outpacing gold on the sensitive jobs report update. Gold jumped after a key labor-market report showed the U.S. economy added fewer jobs than forecast, diminishing the possibility that the Federal Reserve will taper stimulus soon. Nonfarm payrolls data showed the U.S. added 235,000 jobs in August, well below economists' forecasts and far less than the gains seen last month, reports Bloomberg. The dollar sank after the report, boosting gold. Bullion has struggled this year amid a global economic rebound from the pandemic, which has raised the prospect of central banks reining in their monetary stimulus. Read More
Gold, silver sink despite a "risk-off" trading day Tuesday
Gold and silver prices are sharply lower in midday trading Tuesday. Heavy profit-taking and weak long liquidation from the shorter-term futures traders were featured today after both metals' prices hit around four-week highs last Friday. The key "outside markets" were also bearish for the metals today as the U.S. dollar index was solidly higher and crude oil prices were lower. The safe-haven metals bulls were sorely disappointed their markets could not catch a bid and in fact sold off sharply amid keener risk aversion in the marketplace to start the U.S. trading week. October gold futures were last down $36.40 at $1,795.10. December Comex silver was last down $0.427 at $24.38 an ounce. Read More
Afghanistan withdrawal has "emboldened" China; Markets not pricing in geopolitical risks - Mike Lee
The withdrawal of U.S. troops from Afghanistan has left a power void in the region, with some analysts saying that a weaker American presence overseas could signal a threat to the U.S. dollar as a global reserve currency.
Michael Lee, founder of Michael Lee Strategy, told Michelle Makori, editor-in-chief of Kitco News, that sooner or later the U.S. dollar would need to be replaced regardless of what happens in the Middle East, although there is no imminent threat to the dollar's reserve currency status yet. Read More
Gold tumbles after last week's dramatic rise
On Friday, September 3, gold prices moved dramatically higher after the U.S. Labor Department released its jobs report for the month of August. Economists polled by Dow Jones and Bloomberg were anticipating that there would be an additional 700,000 to 750,000 new jobs added last month. However, the actual numbers came in far below the estimates, with the U.S. adding only 374,000 nonfarm payroll jobs in August. Read More
Gold price is 'vulnerable' after $35 drop, last week's rally loses steam - analysts
Gold has lost its last week's gains as prices dropped below $1,800 an ounce on Tuesday as a stronger U.S. dollar and higher U.S. Treasury yields put pressure on the precious metal.
The market is anticipating that the Federal Reserve can continue to ignore rising inflation following a big miss on the U.S. employment front.
"Gold prices tumbled as Treasury yields soared higher on expectations a delayed recovery would allow the Fed to tolerate higher inflation in the short-term," said OANDA senior market analyst Edward Moya. "Wall Street is ever so slightly more concerned with inflation and with Fed tapering likely happening in December, the curve will steepen and that should prove short-term negative for gold." Read More
Gold and silver are marginally higher heading into the Europen open
Gold and silver are heading into the European open marginally higher this morning. On Tuesday the yellow metal suffered heavily and dropped back through $1800/oz while silver also fell 1.50%. Looking at the rest of the commodities complex, copper is 0.21% higher and spot WTI is trading 0.70% in the black. Read More
The Ultimate Guide to Gold-Backed Cryptocurrency
In its simplest form, a cryptocurrency backed by gold or silver is the modern evolution of the gold standard: that is, a monetary system where a currency is directly linked to physical precious metal. Coins or tokens issued that follow this system provide token holders with digital assets that have a value directly correlated to the physical assets they represent; gold or silver.
To go into more depth, gold or silver-backed crypto regulates its worth by having a direct, stable link with a trusted asset – gold – thus avoiding what many risk-averse experts see as one of crypto’s shortcomings – its lack of intrinsic value, which results in high price volatility. Stablecoins (cryptocurrencies whose value is tied to outside assets) that use these physical assets can therefore enjoy more tangibility and more predictable price swings, compared to their fully digital counterparts.
As a result, their price will never drop below the price of a precious metal that backs them, though the value of the token can increase in tandem with the underlying physical asset, providing both stability and the potential for profit. 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.
