Blog posts of '2023' 'August'

With a fresh lower low for the move the path of least resistance looks to remain down with today's US PPI report likely to result in the same price reaction as was seen following the US CPI report yesterday.

Certainly, seeing ETFs push money into gold is a positive but we do not detect a full shift in market sentiment in favor of the bull camp.

However, gold and silver might benefit from a generally weaker dollar which partially offsets negative spillover from overnight declines in global equities...[MORE]

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Aug 11 (Reuters) - Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest U.S. inflation numbers and awaited for more economic data later in the day.

Spot gold rose 0.3% to $1,917.73 per ounce by 1037 GMT, after touching its lowest level since July 7 earlier. U.S. gold futures edged up 0.1% to $1,950.20...[LINK]

Aug 10 (Reuters) - Gold firmed on Thursday buoyed by a softer dollar but was hemmed into a relatively tight range as traders positioned for U.S. inflation readings that could steer the Federal Reserve’s monetary policy.

Spot gold rose 0.4% to $1,921.32 per ounce by 1125 GMT, bouncing up slightly after touching its lowest level since July 10 on Wednesday. U.S. gold futures edged up 0.2% to $1,954.60...[LINK]

While yesterday was a very discouraging day for gold and silver bulls, today does not look to be an improvement.

In fact, with the world largely accepting the likelihood of Chinese deflation and the Chinese economy capable of exporting deflation, (overnight Chinese producer prices declined by 4.4% following a 5.4% decline in the previous month) should leave physical commodities out of favor.

Not surprisingly gold ETF holdings fell again yesterday for the 12th straight session while silver ETF holdings dropped for a 5th straight session...[MORE]

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Aug 9 (Reuters) - Gold steadied on Wednesday, buoyed by weakness in the dollar, although caution prevailed in the run-up to U.S. inflation readings that could set the tone for future monetary policy.

Spot gold was up 0.1% at $1,925.85 per ounce by 1145 GMT, having dropped to its lowest since July 10 at $1,922 on Tuesday. U.S. gold futures remained mostly unchanged at $1,959.80...[LINK]

Italy surprised the markets with a 40% windfall profits tax on banks, while Moody's downgraded several small to midsized US banks.

Other minimally bearish developments include Turkey placing a 20% levy on some forms of gold imports and news that gold ETF holdings yesterday fell for the 11th straight day!

Much weaker than expected Chinese import and export data undermines physical and investment demand hope for gold and silver which will also be facing slightly negative spillover from strength in the US dollar...[MORE]

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