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Gold & Silver Market Analysis for Wednesday 8th of September
Kinesis Gold Analysis:
Things are changing quickly in financial markets and investors require nerves of steel. After creating a solid bullish set-up, gold experienced its worst day of the entire month, losing over $30.
From a technical point of view, it is not a tragedy, but bullion is – once again – back in the lateral channel between $1,790 and $1,820. We should point out that the precious metal has broken down the 200-day moving average (which is currently located at around $1,810). Read More
Gold, silver weaker as U.S. dollar index rebounds
Gold and silver prices are lower in midday U.S. trading Wednesday, on some follow-through selling pressure from sharp losses seen Tuesday. A higher U.S. dollar index this week is a negative outside market force working against the metals. October gold futures were last down $4.70 at $1,791.60. December Comex silver was last down $0.298 at $24.075 an ounce. Read More
Yellen warns of "irreparable damage" if debt limit is not raised, extraordinary measures run out in October
U.S. Treasury Secretary Janet Yellen called on Congress to raise the debt limit, warning that the Treasury Department is on track to run out of cash and exhaust its "extraordinary" measures in October.
If the debt ceiling is not raised, U.S. could be looking at payments default, Yellen said in a letter to Congress on Wednesday. Read More
Gold trades lower for a second consecutive day but does this match up to the current events
As of 5:05 PM EDT gold futures basis, the most active December 2021 Comex contract is trading down $7.80 and fixed at $1790.70. This is the second consecutive day that we have seen a decline in pricing, although yesterday was a much more dramatic decline than today's modest selloff. Considering the major new stories of the day it seems a little peculiar that gold would continue to trade under pressure. The following are some of the key events that occurred today. Read More
The Ultimate Guide to Gold-Backed Cryptocurrency
What is gold-backed crypto?
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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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
Dubai gold exchange expands commodities trading business in Africa with MOU
Victoria Falls Stock Exchange signed a memorandum of understanding with the Dubai Gold and Commodities Exchange.
The deal was announced this week. Victoria Falls Stock Exchange is a subsidiary of the Zimbabwe Stock Exchange. According to a report by The Herald, the Dubai gold exchange is agreeing to extend its technical support, knowledge, and skills to Victoria Falls Stock Exchange, with the ultimate aim of establishing an international commodities exchange in Zimbabwe. Read More
Is China headed for civil war? How wealth redistribution will reshape markets - Chen Lin
China is currently making reforms to redistribute wealth. This will have an adverse effect on the economy as investors move capital and business away from the country, and worse, cause an outright civil war, said Chen Lin, president of Lin Asset Management.
"There is a historical precedent. I'm not saying that what happened 2,000 years ago in the Han Dynasty will happen today, but there is a decent chance that China can slowdown," Lin told David Lin, anchor for Kitco News. 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.
