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Gold Price News: Gold Still Holding Up Well Despite Near Bull Stock Market
Gold is continuing to hold up well even in the face of an ever more optimistic equities outlook with the S&P 500 Index close to entering a bull market.
Gold’s ability to keep trading comfortably above $1,950 an ounce suggests that while investors and traders may be feeling more confident now than they have been for much of the year, there remains a lingering concern that the economy isn’t fully out of the woods yet.
So much is riding on the Federal Reserve’s meeting next week where a much-anticipated pause on interest rate hikes would provide markets with the confirmation needed that the central bank policy will become more accommodative over the second half of the year. Read More
Silver Price News: Silver Building Up Momentum on Improving Economic Outlook
Silver looks to be picking up some momentum again as the price climbs towards $24 an ounce on the prospect of the Federal Reserve pausing interest rate hikes when it meets next week as well as recent positive economic data.
Silver’s significant industrial exposure will see it benefit from a healthy US economy with demand from silver-using sectors such as solar energy and electric vehicles set to keep on rising.
Add in the single biggest headwind for silver in the last year, the Fed’s aggressive interest rate policy, looking like it has come to an end and the medium-term outlook for the metal suggests the price could soon challenge the high of this year at around $26 an ounce. Indeed so strong is the fundamental case for silver that if the price does start to get on a roll, it could conceivably rise as high as $30 an ounce before the year’s end. Read More
Gold ETF demand turns positive in May as investors look for safe-haven assets
Investor sentiment continued to improve in the gold market even as prices fell below $2,000 an ounce last month, according to the latest research from the World Gold Council.
In a report Wednesday, the WGC said that 19 tonnes of gold, valued at $1.7 billion, flowed into global gold-backed exchange-traded products in May. This is the third consecutive month that investment demand for gold has increased.
Analysts noted that after substantial outflows in January and February, the gold market is now net positive for the year.
"Strong price momentum earlier in the month incited investors' interests in gold ETFs before giving some back towards the end of May as the gold price pulled back," the analysts said in the report. "In addition, we believe that U.S. debt ceiling negotiations and looming banking industry concerns also led investors to seek safe-haven assets, contributing to the positive trend in May."
The WGC said collectively, global gold ETFs held 3,478 of the precious metal as of the end of May; however, total assets under management fell slightly by 0.4% to $220 billion due to a lower gold price, which fell 0.9% compared to the average price in April. Read More
Gold down on weak China data, rise in U.S. bond yields
Gold prices are lower in midday U.S. trading Wednesday, following some weak economic data out of China that hints of a slowing global economy that could crimp demand for the precious metals. A rise in U.S. Treasury yields is also a negative for the safe-haven metals. August gold was last down $10.00 at $1,971.50 and July silver was up $0.085 at $23.75.
China's exports fell more than expected in May, it was reported Wednesday. Exports declined 7.5% in U.S. dollar terms from a year earlier, missing consensus for a 1.8% drop. Imports fell a less-than-expected 4.5% in May, year-on-year, after being forecast down 8.1%. Reads a Wall Street Journal headline today: "China's trade slowdown points to global woes." The story said China's post-Covid economy is sputtering and global trade is "cooling rapidly" amid major central banks tightening their monetary policies. That has potentially negative demand implications for the raw commodity sector, including the metals.
Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. 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 today's high of $1,986.50 and then at $2,000.00. First support is seen at 1,960.00 and then at this week's low of $1,953.80. Wyckoff's Market Rating: 6.0.
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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 today's high of $24.165. Next support is seen at today's low of $23.48 and then at week's low of $23.32. Wyckoff's Market Rating: 5.0. Read More
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Gold demand to drop 9% in 2023 as central banks slow purchases: Metals Focus
Gold demand is expected to drop by 9% in 2023 as central banks slow their official purchases of the precious metal after a record year, with prices also facing downward pressure in the second half of 2023, according to Metals Focus.
"The projected 9% drop in demand is almost entirely down to a fall in net official sector purchases from last year's all-time high; most other demand sectors will see modest growth," Metals Focus said in its Gold Focus 2023 report published Wednesday.
While demand drops, the total gold supply is forecasted to grow by 2% this year, driven by higher mine production and recycling, resulting in the gold market returning to a market surplus of a little over 500 tonnes this year.
The gold price outlook is mixed for the rest of 2023. While the annual average price is estimated to rise by 5% to a new all-time high of $1,890, prices will come under pressure in the second half of this year, said the research consultancy firm. Read More
For gold investors, a temporary solution to U.S. debt ceiling is the gift they wish would stop giving
To avoid a financial crisis in the United States the government passed legislation to leave the U.S. debt ceiling uncapped for two years avoiding a financial government default. However, the fallout from the U.S. Treasury having to service financial obligations between January when the debt ceiling limit was hit and also having to refill the government coffers will create a unique set of problems.
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On June 1st gold futures basis the most active August 2023 was priced at $1995.50. The result of a relief rally that occurred when bipartisan legislation went to Congress where it was passed in a vote of 314 to 117. A far cry from today’s $26 decline taking gold futures to $1957 per ounce.
Next week the Federal Reserve will hold the next FOMC meeting in which it is highly anticipated that they initiate the first interest rate hike pause after 10 consecutive FOMC meetings resulted in higher rates. Inflation continues to remain elevated and is moved higher as seen through the last PCE report. Also, the jobs report for May showed that the U.S. economy gained 339,000 new jobs with the unemployment level rising to 3.7%. Read More
Billionaire investor Jeffrey Gundlach likes gold as 'real money' despite its failure to stay above $2k
DoubleLine Capital CEO and billionaire bond investor Jeffrey Gundlach doubled down on his recession call and said he still liked gold as 'real money' despite the precious metal's trouble staying above $2,000 an ounce.
Looking at the U.S. economic leading indicators, as measured by the Conference Board, the outlook seems "absolutely full-on recessionary," Gundlach said during a webcast titled 'Dust in the Crevices.'
"The momentum of leading indicators has not improved," Gundlach said Tuesday. "It's pretty clear that we have the look of soon to be at the front end of a recession."
Gundlach noted that 30% of his portfolio is in stocks, 60% in bonds, and 10% in real assets.
"The real asset I like is gold, which has gone up this year, but has a very hard time staying above $2,000," Gundlach said.
After testing record highs and rising to $2,085 an ounce in May, gold has sold off and is now testing support at $1,960 an ounce.
"I like gold just because it is real money," Gundlach said. "But I don't like commodities. I haven't liked them for a year just because the economy is weakening, and we are probably heading into a recession sooner rather than later, and commodity prices won't go up during a recession." 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 any other advice.
