Blog posts of '2023' 'December'

The early corrective action in gold and silver this morning is very surprising, especially with the dollar breaking out and posting the lowest trade since the second half of July.

Certainly, a slight uptick in implied treasury yields suggests the rate-cut mentality is at least temporarily overplayed.

On the other hand, today's US initial and ongoing claims data will likely revive the rate cut watch with the probability of Fed easing rising incrementally with each soft US data point...[MORE]

Please subscribe to receive the full report via email by clicking here.

Dec 28 (Reuters) - Gold prices steadied after hitting a more than three-week high on Thursday, deriving support from a weaker U.S. dollar and lower bond yields as markets bet on rate cuts by the Federal Reserve early next year.

Spot gold was steady at $2,072.09 per ounce at 1206 GMT after earlier rising as high as 2,088.29, the most since Dec. 4. U.S. gold futures were down 0.5% at $2,082.20...[LINK]

With a new low for the move in the dollar early today and slightly weaker treasury rates, gold and silver bulls look to extend their recent control.

In addition to the constant lift from the fully entrenched expectation of lower global rates gold and silver are likely to benefit from favorable Chinese industrial profit results as China remains the number one consumer of gold.

Apparently, the Chinese central bank has predicted China will achieve its 5% growth target next year and that combined with signs of continued cash infusions from the Bank of India provides a very solid demand base...[MORE]

Please subscribe to receive the full report via email by clicking here.

Gold prices steadied on Wednesday as trading was muted in the last week of the year, but bullion was headed for its best year in three on expectations the Federal Reserve will cut rates in the first quarter of 2024.

Spot gold was flat at $2,067.14 per ounce, not far from an over two-week high of $2070.39 hit on Friday. Bullion was on track to mark an over 10% gain this year — its best since 2020...[LINK]

Gold prices rose on Tuesday, helped by a weaker U.S. dollar and lower Treasury yields on expectations that the Federal Reserve will lower interest rates next year.

Spot gold was up 0.4% at $2,062.63 an ounce near 7:30 a.m. ET after hitting a more than two-week high of $2,070.39 in the previous session. U.S. gold futures rose 0.2% to $2,073.20...[LINK]

Contrasted with historic inflation/gold price patterns, further evidence of "sharply falling" global inflation provides gold and silver with ongoing fundamental cushion.

In other words, "significant" declines in UK, eurozone, and Italian inflation (Italian year-over-year producer prices declined by a startling 12.6%) directly or indirectly provide the US Fed with evidence that US inflation is also poised to fall.

While the CME Fed funds watch tool has not registered a significant increase in the probability of a March US rate cut this week, it is possible that reality is catching up with what the Feds Goolsbee earlier this week indicated was market expectations for cuts running ahead of the Fed's internal dialogue...[MORE]

Please subscribe to receive the full report via email by clicking here.

Dec 21 (Reuters) - Gold prices crept higher on Thursday, but traded in a relatively tight range as investors looked to U.S. economic data for further clarity on the Federal Reserve's next monetary move.

Spot gold was up 0.3% at $2,034.79 per ounce, as of 1217 GMT, trading in a narrow $10 range in the session so far. U.S. gold futures fell 0.1% to $2,046.30...[LINK]