Blog posts of '2023' 'October'

Oct 6 (Reuters) - Gold prices were stuck in a tight range on Friday, hovering near seven-month lows, as investors held back from making big bets ahead of U.S. non-farm payrolls data that could influence the Federal Reserve interest rate path.

Spot gold was flat at $1,820.60 per ounce by 0940 GMT, but was on track for its second straight week of decline, down 1.5% so far this week, as elevated Treasury yields and a firm dollar dented bullion's appeal...[LINK]

Good morning. The precious metals are mostly higher in early U.S. trading.

U.S. calendar features Nonfarm Payrolls (+165k exp), Consumer Credit, FedSpeak from Waller.

While gold and silver are oversold both markets lack fundamental justification to withstand constant bearish pressure flowing from treasury and currency market action.

Certainly, short-term technical indicators in gold and silver are dramatically oversold with declines of $37 in gold in eight trading sessions and declines of three dollars in silver in just three trading sessions.

However, the breath of the bearishness toward gold is justified with the market potentially (according to Reuters) poised to post the longest consecutive daily losing streak in seven years today...[MORE]

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Oct 5 (Reuters) -Gold prices held steady on Thursday as Treasury yields pulled back from 16-year highs and investors awaited U.S. jobs data for more clarity on the Federal Reserve’s interest rate path.

Spot gold was steady at $1,822.14 per ounce by 1020 GMT. U.S. gold futures gained 0.1% to $1,836.30...[LINK]

While the gold and silver markets have managed to respect yesterday's spike low, classic fundamentals remain bearish with the best hope of bottoming action coming from significantly oversold technical conditions.

However, given the largest month-over-month jump in US job openings since July 2021, the trade is anticipating positive US jobs sector news again today which in turn is expected to produce even higher US treasury yields and even higher US dollar exchange rates.

In fact, Fed dialogue regarding the potential for sharp gains in long-term interest rates suggests the Fed sees ongoing normalization of the yield curve as a sign their tightening policies are working...[MORE]

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Oct 4 (Reuters) -Gold held near a seven-month low on Wednesday, while palladium slipped to its weakest level since late 2018, as a sell-off in the U.S. bond markets lifted yields after economic data raised worries that interest rates will likely remain high.

Spot gold was steady at $1,822.20 per ounce by 0948 GMT, while U.S. gold futures dropped 0.2% to $1,838.40...[LINK]

With a fresh higher high in the dollar overnight outside market pressure looks to have extended into another session for gold and silver.

However, continuing dollar strength is no surprise after Fed speeches yesterday confirmed unanimity among Fed members of the need to keep policy restricted for some time to bring #inflation down to the Fed's 2% targeted rate.

In fact, the Fed has definitively stressed the potential long duration of tight policy to achieve their goal...[MORE]

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Oct 3 (Reuters) - Gold extended losses on Tuesday, hitting a seven-month low as expectations around the Federal Reserve keeping interest rates high boosted the dollar and bond yields, while focus turned to U.S. job openings data due later in the day.

Spot gold was down 0.1% at $1,825.70 per ounce at 1207 GMT, dropping to its lowest since March 9. Bullion was down for a seventh consecutive session...[LINK]