Blog posts tagged with 'copper'

With the gold market sitting at levels that would create the first weekly loss of this year, the dollar minimally higher, treasury yields minimally higher and US producer price index report for January scheduled for release this morning, gold is likely to experience a flare of volatility which will likely dissipate quickly.

While we see the current fundamental and technical trend pointing down, as expected or softer than expected PPI readings (expectations of +0.1%) could dramatically increase respect for the $2000 level and prompt a short covering wave capable of sending April gold up to $2026.

However, the trade will be presented with a second wave of US inflation information in the form of the University of Michigan five-year consumer inflation expectations report for the month of February...[MORE]

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While April gold is tracking in positive territory early today and has established a key pivot point around $2005, the onus is on the bull camp to prove the market can respect even number consolidation support at $2000.

Unfortunately for the bull camp, gold ETF holdings continue to slide with year-to-date outflows of 2.8% taking place in less than 50 days.

While Indian gold imports in January increased to $1.9 billion that is probably a function of the recovery in gold prices and not necessarily from increased volume...[MORE]

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While the magnitude of yesterday's US CPI upside surprise was not significant, the markets were clearly undermined by another US data point which appears to push back US rate cut timing.

Today the markets will have a pause from US inflation news with several Fed speeches potentially providing some fireworks.

However, the US dollar is sitting right on the spike-up highs from yesterday early today leaving the currency influence on gold and silver bearish...[MORE]

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There has been notable divergence in precious metals with gold holding within its 2024 consolidation zone while silver is still within striking distance of a new 4-month low.

The gold/silver ratio was just above 92 at yesterday's close and approaching the 17-month high reached in mid-January.

The dollar remains well below Monday's 2 1/2-month high which has underpinned metals prices early today.

Fed speakers gave mixed comments on upcoming Fed policy yesterday, and the market's disappointment that there was not an overall dovish tone has weighed on gold and silver prices...[MORE]

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After a rough start to February, the tide may have turned for gold prices as they remain well clear of Monday's low.

Silver prices have reached a 2-week low while platinum and palladium are also under moderate early pressure.

The Dollar has extended its pullback after a surprise downtick from a private survey of US economic optimism, which carried more weight with the market than usual on Tuesday as there were no top-tier US economic numbers to digest...[MORE]

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The sharp rally in the dollar has clearly undermined support for the precious metals, along with the break in Treasury prices.

Fed Chair Powell's comments on 60 Minutes put to rest any ideas that the Fed would consider cutting rates in March, and this sparked a breakout rally in the dollar to its highest level since November 14.

Comments from other Fed officials reinforced this stance, with Fed Governor Michele Bowman saying it is too soon to consider lowering interest rates and Chicago Fed President Austin Goolsby saying he wants to see more inflation progress...[MORE]

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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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