Blog posts of '2023' 'October'

Gold and silver prices continue to rise as this week's early financial market trends have extended into another session with higher equities, a weaker dollar, and most importantly sharp declines in implied US treasury yields.

We mention strength in the equity markets as we have detected bullish sensitivity in gold and silver to positive economic developments recently as if a portion of the trade is anticipating improved physical and investment demand from improved global economic sentiment.

Not surprisingly, the bull camp should be emboldened by the extensions down in treasury yields and the dollar as that removes significant headwinds and could become a very significant bullish theme if that action continues...[MORE]

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Oct 11 (Reuters) - Gold prices rose to a near two-week high on Wednesday, as U.S. Treasury yields extended their retreat after dovish comments from Federal Reserve officials indicated that interest rates may have peaked.

Spot gold was up 0.6% at $1,871.90 per ounce by 1132 GMT, its highest level since Sept. 29. U.S. gold futures rose 0.6% to $1,886.30...[LINK]

Despite news that Country Garden failed to make an international debt payment overnight the US dollar forged a downside extension and posted the lowest trade since September 29th thereby underpinning gold around yesterday's highs.

Furthermore, uncertainty in the Middle East has fostered further short covering in US treasuries removing another outside market pressure from the gold and silver trade.

Unfortunately for the bull camp, tonight China will release its new loan tally for September, and with expectations calling for a significant jump over August, that news could lift the Chinese currency and in turn moderate Chinese domestic flight to quality buying of gold...[MORE]

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Oct 10 (Reuters) - Gold prices edged down on Tuesday after clocking a sharp rise in the last session as risk sentiment improved and bond yields rebounded, while investors awaited the U.S. inflation data due later this week.

Spot gold climbed to $1,865.19 per ounce, its highest since Sept. 29, earlier in the day and was last down 0.3% at $1,855.10 by 1217 GMT...[LINK]

Not surprisingly, gold and silver are benefiting from the uncertainty created by the attack on Israel by Hamas.

Fear of hostilities throughout the Middle East usually results in a knee-jerk reaction rally in gold, especially with respect to events involving Iran.

However, many gold traders are rightly suspicious of the rally and are likely to step into fresh short positions once it becomes clear other countries/parties are not entering the conflict...[MORE]

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Oct 9 (Reuters) - Gold prices rose more than 1% on Monday as the military conflict between Israeli forces and Palestinian Islamist group Hamas raised political uncertainty in the Middle East, prompting safe-haven buying of investments like bullion.

Israel pounded the Palestinian enclave of Gaza on Sunday, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when gunmen from Hamas rampaged through Israeli towns on Saturday...[LINK]

While the dollar is bordering on a lower low early in the session today and the index might continue to see some light long liquidation ahead of the key monthly US nonfarm payroll report, it could be difficult to shut off the uptrend in the dollar in place since July.

In retrospect, jobs-related data this week and in the previous two weeks (from declines in initial claims) suggests the number should be positive to growth views thereby rekindling strength in the dollar and likely sending US interest rates to higher levels.

Estimates for this month's nonfarm payroll gain are 168,000 which compares to last month's reading of 187,000...[MORE]

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