Blog posts tagged with 'copper'

In addition to a lack of classic bullish fundamental themes, gold, and silver have seen sellers emerge off a rekindling of US rate hike prospects given yesterday's very positive sweep of US scheduled data in the form of durable goods and new-home sales.

Adding to the bearish tilt this morning is a wave of hawkish commentary from a European Central Bank forum in Portugal where a long list of central bank leaders have echoed the need to "fight inflation" with further rate hikes...[MORE]

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With promises of Chinese stimulus from the Chinese premier overnight gold and silver prices are showing little in the way of positive action.

While gold, silver, platinum, and palladium appeared to see flight to quality lift yesterday from the uncertainty of the military turmoil in Russia, that potential has dissipated quickly.

Certainly, if the coup attempt had gained traction and not ended so quickly, there might have been destabilization in Russia...[MORE]

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While the gold and silver are trading higher this morning from a weaker dollar, both markets enter this week's trade without an unwavering bullish fundamental force.

However, at the end of last week gold at times showed signs of flight to quality buying interest off increased global economic uncertainty and that could extend into the new trading week.

In fact, global growth was revised downward by two separate entities while a senior Chinese economic official has indicated China must act quickly to support its recovery...[MORE]

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While the ebb and flow of action in the US #dollar has been buffeting the #gold and #silver trade this week, minimal weakness in the dollar this morning has not provided visible support.

Clearly, reiterated hawkish commentary from the US Federal Reserve Chairman to a US congressional committee prompted the initial washout in gold prices yesterday.

We should note that the Fed chairman yesterday indicated the Fed was sticking with its 2% inflation target which probably increases the likelihood of more than two 25 basis point rate hikes this year...[MORE]

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From a technical perspective, we give the edge to the bear camp with August #gold near the middle of the last month's consolidation zone and probing lower in a fashion that could target $1950.

From a fundamental perspective, the bear camp also has an edge with the #dollar initially making a 3-day high and extending the recovery off last week's spike-down move.

Even investors have turned cool toward gold with Friday presenting a 15th straight day of outflows from gold ETF holdings...[MORE]

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With the Wednesday and Thursday trade in August gold producing wide ranges and ultimately producing a 180-degree sentiment change, support just above $1950 is given added respect.

However, gold appears short-term overbought from the surprise bounce yesterday which was largely attributable to the sharp decline in the dollar and because of softer-than-expected US jobs data.

Even though surveys earlier in the week showed only a 1 in 3 chance the US Fed would hike rates next week, yesterday's 18-month high in US initial claims provided gold with a significant wave of buying which reached $30 per ounce from the low...[MORE]

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With the dollar continuing to trade in a range without signs of clear direction and August gold finding minimal support at yesterday's low of $1955.40, the selloff has been temporarily slowed or arrested.

However, the developing pattern on the dollar charts with 4 consecutive lower highs and 3 consecutive lower lows should provide hope for gold and silver bulls ahead especially if today's US jobs-related data points to a soft economy.

Unfortunately for the bull camp investment signals for gold remain bearish with ETF holdings yesterday declining 30,840 ounces and, in the process, declining for the 7th straight session...[MORE]

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