Blog posts tagged with 'copper'

With the dollar posting a three-day high early today, gold lingering near yesterday's lows and holding below the 200-day moving average at $1982.90, the bear camp has extended control.

In fact, a notable Gold ETF holdings inflow yesterday of 136,494 ounces and news that the UK government is sanctioning two of Russia's largest gold producers (Nord Gold and Highland Gold) have been largely discounted by the financial Press this morning. In fact, the UK government indicated they are especially cracking down on Russian gold and oil networks that are providing funding for the Russian war economy!

Unfortunately for the bull camp typical bearish dollar developments are being discounted in the currency trade and perhaps more importantly the prospect of further declines in US treasury yields has been pushed to the sidelines by Dollar traders...[MORE]

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Gold has been a one-way bearish trade the entire overnight session as traders seem to be unwinding long positions on the back of weaker-than-expected Chinese data and an ongoing bounce in the dollar.

Some of the normal bullish gold catalysts have been completely discounted. Furthermore, Benjamin Netanyahu announced that Israel will now take 'indefinite' control over Gaza, and that has failed to give support to gold prices.

On the bullish side, China recorded a record gold holding this month with 71.2Mn ounces. What makes this data unique is the fact that Chinese FX reserves dropped sharply over the past three months, which normally signals weaker gold demand, as they dollar-cost-average their holdings...[MORE]

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Gold was down overnight as it tried to hold onto its October gains. As expected, Anthony Blinken left the Holy Land with no solutions or real support. But this political and military lull in the Middle East conflict has created a dull to slightly bearish trading environment for gold.

With the war lacking flight to quality type anxiety, traders will now start to turn their focus back to the Fed Chairman speech on Wednesday.

Despite two-sided volatility in the dollar last week and a range of 220 points, ultimately a downside breakout to the lowest level since September 20th is a major technical signal of a top in the dollar...[MORE]

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The gold market has held steady overnight as the world awaits this morning's US non-farm payrolls data.

On the political front Asian nations are now asking Iran to go get their foreign nationals from Hamas, while Anthony Blinken arrives in Israel to try and negotiate a "humanitarian pause".

This comes after the IDF started to demolish houses belonging to terrorists in Gaza. Israeli defense forces were reported to have cut Gaza into two, wedging their forces from the Mediterranean coast to isolate the Hamas-rich northern part of Gaza...[MORE]

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The technical and fundamental bias has shifted up for gold and silver following the latest update on the status of US Fed policy.

Obviously, the idea that the Fed will be on hold in the December 13th meeting, the downside breakout in US treasury yields today, and the definitive reversal/gap downslide in the dollar early this morning gives the edge to the bull camps in gold and silver.

However, the initial gains are somewhat disappointing given the noted favorable shift in market psychology, especially with the potential for the war to provide out-of-nowhere buying...[MORE]

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After starting the week with a gap-up opening, gold prices are now back to where they started, despite the Middle East conflict continuing to get messier. Yesterday saw the Israelis blow up a refugee camp where a Hamas commander was hiding.

Of more importance today is the Federal Reserve's interest rate decision and, more importantly, wording from the statement and Fed press conference.

While the gold market has displayed some bullish resiliency throughout October, a lack of incendiary developments in the Middle East and renewed strength in the US dollar initially stalled December gold again around the $2,017.70 level and ultimately prompted a wave of long profit-taking yesterday...[MORE]

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The early action in gold this morning is disappointing with an expansion of tensions in the Middle East overnight with Yemeni Huthis attacking Israel and Saudi Arabia launching an attack against Yemen.

This comes as the Israelis clinched the key thoroughfare that connects northern Gaza with the south.

The bull camp should be further deflated from the lack of gains this morning following declines in the dollar and a surprising and massive single-day gold ETF inflow of 690,904 ounces yesterday...[MORE]

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Gold futures gapped higher this morning to a new post-Hamas attack high of $2,004.

Gold positioning in the Commitments of Traders for the week ending October 24th showed Managed Money traders net bought 48,815 contracts and are now net long 90,682 contracts. Non-commercial & non-reportable traders were net long 169,754 contracts after increasing their already long position by 43,725 contracts.

With the December gold contract into the high Friday sitting $37 above the level where the last positioning report was measured, the net spec and fund long is only the highest since July...[MORE]

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In retrospect, action in gold this week has been very impressive as the market has held its ground in the face of periodic and significant outside market headwinds from the flow of periodic higher treasury yields and a consistently strong dollar which might have shifted back into an uptrend.

However, the Middle East flight to quality factor remains in place, and with US airstrikes in Syria, residual fear of the launch of a ground war, possible terrorist attacks inside Israel, or signs that the Palestinians get military aid from Arabs.

Estimates for the core month-over-month PCE report call for an uptick from the prior month which should provide the dollar with support to finish the trading week in conclusion in a vacuum of financial market influences gold and silver could be formal to liquidation...[MORE]

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Gold and silver are showing bullish resiliency this morning as the upside breakout extension in the dollar has not thrown prices into negative territory.

While the action in the treasury markets is not distinct this morning, gold and silver traders appear to have shifted some of their focus back to currency action.

On the other hand, the markets are betting heavily on a top in US treasury Note yields at 5% and a breakout above that could compound the negative impact from the surging dollar...[MORE]

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