x
.png)
Image Source: Unsplash
Silver Price News: Silver Lacks Clear Direction Ahead of Next Week’s Fed Meeting
Silver is pointing downward again with the price trading in the mid $23s an ounce as the precious metal struggles for a clear direction.
On the one hand, Friday’s buoyant US jobs report points to the world’s largest economy being in robust health and therefore supportive for silver’s industrial demand. On the other hand, with the US debt ceiling crisis seemingly now over and markets feeling more optimistic, silver’s safe-haven appeal and lack of counterparty risk is becoming less attractive.
Yet while silver may be lacking a clear direction in the short-term, its fundamental outlook remains very strong in the medium to long term as demand for the metal continues to outstrip supply. Read More
Gold Price News: Gold Holding Above $1,950 as Fed Looks Set to Pause Hikes
Gold is holding comfortably above $1,950 an ounce with the precious metal still finding support on a positive day for equities markets.
After Friday’s surprisingly strong US jobs figures, this week will be dominated by what course of action traders and investors anticipate the Federal Reserve taking when its interest rate committee meets next week. After initial consensus that a pause on further hikes was the likeliest choice, the outlook started to shift back towards the prospect of another increase before Patrick Harker’s comments last week once again made a pause the favourite.
Just as the consensus has oscillated, so has the price of gold and now after dropping about $100 from its early May peak, the precious metal looks to have found some stability above $1,950.
Assuming the Fed does indeed hold off on any further rate hikes next week, then gold would be a beneficiary, along with vast swathes of equities, as for gold it would reduce its negative appeal at times of rising interest rates while for equities it would put a cap on borrowing costs. Read More
Gold prices jump into positive territory as ISM Services PMI falls to 50.3 in May
The gold market has retraced its overnight losses and jumped into positive territory on the day as the precious metal sees renewed safe-haven demand as activity in the U.S. service sector falls more than expected in May, according to the latest data from the Institute for Supply Management (ISM).
Monday, the ISM said its Services Purchasing Managers Index fell to 50.3% last month, down from April's reading of 51.9%. According to consensus estimates, economists were looking for an increase of 52.6%.
Readings above 50% in such diffusion indexes signify economic growth and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
The gold market has seen a solid bounce off of support just above $1,950 an ounce, and the disappointing economic data is providing new momentum. August gold futures last traded at $1,976.50 an ounce, up 0.35% on the day.
Activity in the service sector has fallen to its lowest level since January. Read More
Gold gains as USDX slips, crude oil rallies
Gold prices are modestly up and silver a bit weaker in midday U.S. trading Monday. Both markets pushed well off their early session lows when the U.S. dollar index lost its good early gains and as crude oil prices rallied. August gold was last up $6.00 at $1,975.50 and July silver was down $0.092 at $23.655.
Asian and European stock markets were mixed today. U.S. stock indexes are mixed near midday. Gains in the metals were limited today in the aftermath of a stronger U.S. non-farm payrolls jobs rise in last Friday’s May employment report. That data reminded the marketplace that the Federal Reserve is likely to remain hawkish on its monetary policy for longer—even if it does do a pause in the rate-hike cycle at the June FOMC meeting.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at $1,985.00 and then at $2,000.00. First support is seen at today’s low of $1,953.80 and then at $1,949.60. Wyckoff's Market Rating: 6.5.
Image Source: Kitco News
July silver futures bulls and bears are on a level overall near-term technical playing field. Silver Bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at $24.00 and then at last week’s high of $24.12. Next support is seen at today’s low of $23.32 and then at $23.00. Wyckoff's Market Rating: 5.0. Read More
Image Source: Kitco News
To hike or not to hike? That is the question the Federal Reserve must answer
Market sentiment regarding the next step of the Federal Reserve has been changing as statements by Federal Reserve officials and reports are released. The sentiment had been predominantly in favour of a pause in interest rate hikes. However, that had reversed after a couple of Federal Reserve officials came out with exceedingly hawkish comments last week which questioned the resolve of the Fed to pivot from an extremely aggressive monetary policy in which they have raised interest rates at every consecutive FOMC meeting for over a year.
Image Source: Kitco News
Gold futures traded to the lowest low of $1953.80 since hitting $2000 per ounce last week. As of 5:42 PM EDT, gold futures basis most active August 2023 contract is up $8.50 or 0.43% and fixed at $1978.10. The dollar was in essence neutral today trading fractionally lower currently down 0.02% and fixed at 103.935.
However, today the Institute for Supply Management released the ISM report for May. The report revealed that the ISM services index came in lower than expected at 50.3 for the month. The report also revealed that the service sector in the United States hardly expanded last month resulting in a contraction of new orders falling from 51.9 in April. Expectations and forecasts predicted that today’s report would come in above April’s reading of 51.9 with a forecast of 52.2. Read More
Fiscal risks will take center stage after debt ceiling, and Treasury could cause a ‘breakage' - Lyn Alden
While all the attention has been going to the debt ceiling and the Fed’s interest rate decisions, the real story will be what happens afterwards and how the Treasury manages to replenish its reserves, according to Lyn Alden, Founder of Lyn Alden Strategy.
“I think that there's maybe too much market focus on what Powell is going to do, and not enough focus on what's going to happen in the fiscal environment,” Alden said. “What I am focused on is what happens after the debt ceiling.”
Alden spoke with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News at Bitcoin Miami earlier this month. She said recent comments by Jerome Powell, who said that the Fed might not need to be as aggressive with its rate hikes because the banking crisis contributed to tightened credit, can be interpreted more than one way.
“I think there's two sides of it,” she said. “I think what he's saying is correct, it's not just about rates, it's also about the rate of money creation, and if banks are liquidity-constrained, if they're risk-off, they're less likely to make loans and that actually slows the economy.” Read More
Live From The Vault - Episode:125
China's Gold Rush - Xi Prepares for “Worst Case Scenarios”
In this week’s episode of Live from the Vault, Andrew Maguire discusses the latest market catalysts that are capable of triggering a global gold reevaluation event, as a result of the ongoing paper versus physical gold showdown.
The precious metals expert delves into the underreported decision of the People’s Bank of China to start preparing its 1.4 billion citizens for opting out of the dollar and into gold, explaining how this will impact the gold’s supply, demand and price.
.png)
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
