Blog posts tagged with 'copper'

With gold and silver prices significantly higher overnight in the face of a very significant upward thrust in the US dollar, it is possible the markets are beginning to aggressively embrace flight to quality buying from rising economic concerns toward China.

In fact, overnight Chinese import, and export readings came in significantly below expectations which facilitates more anxiety toward an economy thought to have serious problems.

It is also likely that rising concerns of financial pressures on developing countries are fostering flight to quality buying of gold and silver in anticipation of a financial crisis in the emerging market sector...[MORE]

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With the dollar this morning forging another higher high and reaching the highest level since early November, the currency impact on gold, silver, and copper remains negative.

Likewise, US treasury yields remain a burden with yields reaching the highest levels since last November with another higher high overnight.

While it is not clear what the direct ramifications are on gold prices, a precipitous decline in Chinese Consumer Price Index readings for March overnight suggests the Chinese economy is doing very poorly which could be a double-edged sword...[MORE]

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While gold has not managed a new all-time high this morning, both gold and silver markets remain just under this week's highs.

We suspect the downgrade of China provides a measure of flight to quality buying. However, China is also the largest consumer of gold, and the last mainland China gold import tally showed a month-over-month reduction of almost 50% and therefore the downgrade could injure classic physical gold demand expectations.

In a sign of volatility potential in the current market, the Shanghai Futures Exchange implemented trading limits on gold and copper starting Friday...[MORE]

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The overnight action is a good example of how the gold and silver trade is tracking its own course, as interest rates, currency, bitcoin, and energy prices are not giving off notable influences and yet gold and silver prices have surged again with gold posting another new all-time high.

Therefore, it is unlikely gold is tracking a classic safe harbor issue with a broad global origin.

In a slightly negative signal, both gold and silver ETF holdings declined yesterday, with the gold extraction of 299,047 ounces the largest single-day exodus in three months...[MORE]

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While the gold and silver markets exhibited significant two-sided volatility at the end of last week, the bull trend has clearly prevailed and is managing that action despite adversity from the dollar and interest rates.

However, a small portion of the upside impetus is likely the failed Middle East peace talks undertaken by Egypt.

It appears that gold and silver ETF holdings have started to climb with the flat price of gold in a potential beginning of the end of the rally...[MORE]

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Clearly, gold and silver prices lost upside momentum in the wake of a very active US economic report slate this week that has presented a mixed outlook for the US economy and surprisingly failed to markedly increase expectations for a US June rate cut.

Certainly, the markets have been disappointed by Fed dialogue seemingly playing down and or pushing back the prospect of rate cuts!

However, the gold and silver trade will likely remain sensitive and perhaps poised to rally if today's key nonfarm payroll reading is softer and the takeaway from US data shifts sentiment toward economic risk...[MORE]

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With a downside extension in the dollar, another new all-time high in June gold was to be expected this morning.

Apparently, the latest surge was ignited by a bullish interpretation of Fed commentary yesterday reiterating the likely prospects of rate cuts "this year". Surprisingly, the Fed's vagueness on timing for a cut and even less guidance on the number of potential cuts has not deterred gold buyers or dollar sellers.

Seeing gold ETF holdings rise by 78,610 ounces yesterday and silver ETF holdings jumping by 2.8 million ounces, the record run in gold appears to have finally gotten the attention of small investors...[MORE]

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Another day and another new all-time high in gold prices with the market managing the rally in the face of adversity from the dollar and US treasury yields.

According to overnight press coverage from Asia, gold prices are being lifted by inflationary pressures resulting in the purchasing of gold as a hedge.

However, we are suspicious of that argument as inflation data has softened and delays in cutting interest rates should reduce inflationary expectations...[MORE]

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The record run in gold prices continues and has pulled silver prices up seemingly against headwinds.

Utilizing typical market interactions, the gold run seems to be unfolding in a virtual vacuum. In fact, the gains in gold and silver prices yesterday took place in the face of heavy headwinds from a strong dollar and rising US interest rates.

While the reduced probability of three rate cuts may create economic uncertainty and a measure of anxiety, thereby providing flight to quality interest in gold, that theory is squashed by the lack of anxiety in equities and the lack of upside action in Bitcoin...[MORE]

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The views that gold prices are being pulled higher by Bitcoin are dealt a blow this morning with gold at times trading nearly $40 an ounce higher and bitcoin at times trading $2000 lower.

Another potential myth regarding the record run in gold is talk that global central bankers are dumping the dollar in favor of long gold positions.

While we suspect central bankers have investment plans in motion to buy gold, the dollar has not suffered from a massive rotation.

On the other hand, hedge fund managers continue to build their long positions...[MORE]

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