Not surprisingly, the gold market started off under noted pressure today with a six-day low largely because of the upside breakout in the dollar to the highest level since mid-November and from a slight increase in US treasury yields following a hawkish overnight speech from the US Fed chairman.
With the gold market adding to the January recovery rally last week before failing and reversing the market was giving off technical signs of an intermediate top last week.
Unfortunately for the bull camp, outside market impacts of the dollar and treasuries shifted patently bearishly after the much stronger-than-expected US nonfarm payroll reading...[MORE]
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Clearly, the gold and silver markets are not benefiting from flight to quality interest early today as the fear of financial contagion in China continues to rise with Chinese equities plunging sharply this week. This is beginning to create "margin calls" which can prompt a chain reaction of problems for banks, investors, and eventually the government.
Sentiment toward gold early today is disappointing to the bull camp as a downside breakout in the dollar has not produced a wave of fresh buying yet.
In fact, it should be noted that the March dollar index fell below its 200-day moving average and posted a seven-day low in the early trade...[MORE]
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Gold prices steadied on Friday as investors braced for U.S. non-farm payrolls data later in the day that could give hints on when the Federal Reserve might start cutting rates, but bullion was still headed for its biggest weekly rise since December.
Spot gold was down 0.1% to $2,054.29 per ounce. U.S. gold futures were up 0.1% to $2,071.40...[LINK]
With the dollar posting a technical breakout on the upside this morning, gold and silver bulls are fortunate treasury yields have remained low overnight.
Global economic news overnight was mixed to slightly softer, which might be considered a negative to gold but more so to silver given its industrial focus.
However, the overriding weight on the back of gold prices this morning is clear sentiment from the US Fed chairman that a rate cut in their next meeting in March is not their base case...[MORE]
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Jan 31 (Reuters) - Gold prices reversed course and edged lower on Wednesday after the Federal Reserve Chair Jerome Powell pushed back strongly against expectations of a U.S. rate cut by March.
Spot gold eased 0.1% at $2,034.37 per ounce by 03:10 p.m. ET (2010 GMT) after rising as much as 1% earlier in the session. Bullion was down 1.3% this month but have held above the $2,000 per ounce psychological level so far this year...[LINK]