Blog posts tagged with 'copper'

Gold prices rose slightly overnight, even as the dollar index managed to rebound off of its 200-day moving average. This support level for the dollar gives the gold bears something to get excited about.

Gold is still digesting yesterday's FOMC Minutes as it shows the Fed is weary of worsening financial conditions. But with the bond yields failing to fall further overnight, we might expect gold bulls to take a break.

Today's focus will be on this morning's Durable Goods release, where the market is expecting a rather large drop from last month...[MORE]

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In the early going today the charts favor the bull camp with December gold showing respect for support at the 200-day moving average of $1981.50. The market is also supported fundamentally by a downside extension in the dollar and evidence of significant expansion in Swiss gold exports.

In our opinion, the gold and silver are primarily focused on action in the dollar. With the dollar (and many non-dollar currencies) sitting on 200-day moving averages, several trend signals could be in the offing.

Part of the bullishness from the 53% jump in Swiss gold exports last month was factored in following news last week that Indian gold imports had jumped sharply...[MORE]

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We see the action in gold and silver this morning as very discouraging and defeating for the bull camp, especially in gold given the sharp range down extension of the US dollar.

In fact, with the Indian government pegging October gold imports jumped by 60% over year-ago levels (the highest in 31 months), a surging bear case in the dollar, and expectations the FOMC meeting minutes will again confirm the US rate hike cycle is done, the gold market should be up $11 instead of down $11.

In addition to the strong jump in Indian gold imports, the Reserve Bank of India added 9 tons of gold in the third quarter which should revitalize hopes of ongoing global central bank gold purchases...[MORE]

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Gold and silver face a critical "focus" junction today with action in the dollar likely to support, while US data and misguided/overstated disinflation predictions undermine sentiment.

However, we favor the downward tilt with the euphoria from the end of the historic US interest rate hike cycle fully injected into gold and silver prices with the rallies earlier this week.

We think the focus will be primarily on US continuing claims this morning which will be followed by what is expected to be soft US heavy industry/manufacturing data...[MORE]

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The technical path of least resistance is down in gold with a series of lower highs and lower lows presenting bearish charts.

We also see the fundamental bias pointing down in gold and silver as a muted US CPI reading fosters a thin measure of long liquidation from long-suffering gold inflation bulls.

However, the bull camp hopes that muted inflation will spark talk of the end of the rate hike cycle and potentially provide a measure of misguided buying off talk of rate "cuts" next year...[MORE]

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Unfortunately for the bull camp, the gold trade continues to embrace the bearish bias from last week with expectations the dollar will continue to climb, and the charts remain bearish.

With the last day of Diwali tomorrow the opportunity for Indian festival demand is past.

While there will be an avalanche of global inflation readings this week, we do not see that information playing a determining role for gold and silver prices, and most readings are expected to show only incremental changes it is unlikely there will be a definitive opinion on the direction of upcoming central bank policy changes.

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The gold market simply remains fundamentally out of favor and has bearish charts again this morning.

While the selling yesterday was reportedly from the hawkish Fed chairman dialogue, that is unlikely the source of today's noted weakness as the gold market recovered and closed in positive territory yesterday after the Fed news yesterday.

Even though the gold market has not shown consistent interest in flight to quality issues, we see a major financial and economic market decision in the coming seven days...[MORE]

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Nov 10 (Reuters) -Gold fell on Friday and was bound for a second straight weekly drop on cooling safe-haven demand and hawkish cues from Federal Reserve Chair Powell.

Autocatalyst palladium, meanwhile, extended its slump en route to its worst week in over 15 months, hurt by excess stocks amid wider adoption of electric vehicles while automakers switch to cheaper platinum...[LINK]

While the net takeaway from several US Federal Reserve speeches yesterday was not patently dovish, strength in treasury bond prices and signs the dollar rally is fizzling suggest some markets interpreted Fed news yesterday as dovish.

However, generally dovish chatter in the market has not provided gold with any support which clearly points to a bearish preference by the trade.

With an avalanche of global central banker speeches this morning and the Fed chairman yesterday indicating he thinks Fed economic forecasters need to be open-minded and consider inputs beyond typical indicators gold isn't even looking for bullish prospects...[MORE]

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Nov 9 (Reuters) -Gold was on track for a fourth straight day of decline on Thursday as safe-haven demand cooled, while the spotlight shifted to U.S. Federal Reserve Chair Jerome Powell’s speech for cues on interest rates.

Spot gold was down 0.1% at $1,948.39 per ounce by 1141 GMT after hitting its lowest since Oct. 18. U.S. gold futures fell 0.2% to $1,953.30...[LINK]