Blog posts of '2023' 'December'

Despite a building overbought condition in gold and silver, prices continue to extend on the upside this morning in what we consider long-term fundamental-based investment trading.

Evidence of the bulls piling on the trade was seen overnight from Commerzbank predicting gold to reach $2150 in the second half of next year and silver to reach $30 per ounce by the end of next year.

As we have indicated in financial market coverage all week the magnitude of the anticipated pivot by the Fed, after a historic rate hike cycle obviously justifies a significant and sustained reaction in precious metal prices...[MORE]

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Gold prices were on track for a weekly jump, driven by a weaker U.S. dollar and lower Treasury yields, after the Federal Reserve indicated lower borrowing costs next year.

Spot gold, which edged up 0.3% at $2,041.70 per ounce, has risen 1.9% so far this week. U.S. gold futures gained 0.6% to $2,056.40...[LINK]

The gold and silver trade is euphoric over what the trade is calling an official pivot by the US Fed toward cutting interest rates as the rallies from yesterday's lows are quite profound and appear to have momentum.

As in other markets, near-term overbought technical signals in gold and silver should be ignored by the markets today, as traders continue to embrace euphoria which is likely to extend through today's session.

Obviously, the sharp slide in the dollar and the precipitous drop in interest rates combined with a dovish Fed is a perfect bullish storm that is likely to be capable of attracting buying fuel despite a quickly expanding and overdone net spec and fund long positioning...[MORE]

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Gold prices extended gains on Thursday, after the U.S. Federal Reserve signaled an end to its tightening cycle and lower borrowing costs in 2024, which sent the dollar and Treasury yields lower.

Spot gold was 0.4% higher at $2,034.35 per ounce, after surging 2.4% on Wednesday. U.S. gold futures jumped 2.6% to $2,049...[LINK]

Downtrends in gold and silver are likely to extend with initial US inflation readings soft but the dollar does not show definitive weakness from that news.

In fact, further evidence of the negative bias toward gold and silver is the lack of support from a resumption of a falling US interest rate environment.

The bear camp should also be emboldened by the prospects of slumping Chinese physical demand as troubles in the Chinese economy (verified by continued weakness in Chinese equity markets and a disappointing new loan report) should crimp Chinese gold imports...[MORE]

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Dec 13 (Reuters) - Gold prices edged up on Wednesday, buoyed by weaker Treasury yields, but bullion was still near its lowest in over three weeks as the dollar inched higher ahead of the U.S. Federal Reserve's interest rate decision and policy outlook.

Spot gold gained 0.1% at $1,981.30 per ounce, as of 1157 GMT. U.S. gold futures rose 0.2% to $1,997.60...[LINK]

The precious metals have stayed within a fairly tight trading range and are holding onto a mild positive tone coming into this morning's action.

A pullback in the dollar has provided gold and silver with early support in front of this morning's critical US inflation data after gold and silver moved below their 200-day moving averages yesterday.

Expectations for a soft US CPI report later today should strengthen the bull case if the report matches expectations of a gain of 0.1%...[MORE]

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