Blog posts of '2023' 'December'

With some global inflation readings plummeting overnight and others coming in below expectations, the prospect of rate cuts next year has improved again.

In fact, the CME Fed watch tool raised prospects of a January 31st cut by 4% to 12.4% and increased its March rate cut prospect to 71%.

However, despite renewed rate cut chatter and a downward bias in the dollar both gold and silver are trading lower signaling a lack of bullish sensitivity today...[MORE]

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Gold prices held steady above the key $2,000 level on Wednesday, supported by prospects of interest rate cuts from the Federal Reserve next year, while investors awaited U.S. inflation numbers later this week.

Spot gold was little changed at $2,032.60 per ounce, as of 0131 GMT. U.S. gold futures fell 0.2% at $2,046.10...[LINK]

The path of least resistance in gold is down with hawkish dialogue from the Chicago Fed President yesterday, November Swiss gold exports dropping 28% (mostly because the world's second-largest consumer India imported 67% less gold from Switzerland), and a lack of corrective action in the dollar following last weeks compacted rally.

However, an offset to the negative demand signals from declining Swiss gold exports is the fact that Chinese purchases from Switzerland increased by ten percent on 25 tons in sales versus the lower 16.4-tonne sales to India.

With both volume and open interest falling off and given the reversal from last week's highs, we suspect the bullish bias from last week has run its course...[MORE]

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Gold prices were subdued on Tuesday as a slight uptick in the dollar countered support from falling Treasury yields, while investors await U.S. economic data due this week that could further illuminate the Federal Reserve’s interest rate path.

Spot gold was steady at $2,026.30 per ounce. U.S. gold futures were also flat at $2,041.20...[MORE]

Despite a lack of direction in the dollar in the early going today, the gold market remains vulnerable on its charts but supported by global central bank dovishness.

While we suspect gold and silver will take a huge amount of direction from the dollar and from US treasuries there is a developing physical demand threat from ongoing malaise in the Chinese economy.

The struggling Chinese economy is partially verified by ongoing weakness in Chinese equity markets relative to the very impressive gains in global equity markets...[MORE]

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Gold prices climbed on Monday, buoyed by a weaker dollar and bond yields as markets awaited U.S. inflation data due this week to ascertain the Federal Reserve’s policy path after a dovish spin last week.

Spot gold was up 0.3% at $2,025.49 per ounce. U.S. gold futures were higher by 0.2% at $2,039.40...[LINK]