Blog posts tagged with 'gold'

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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Good morning. Gold is higher in early U.S. trading, while the other metals are modestly lower.

The U.S. calendar features Manufacturing PMI & ISM, Construction Spending, FedSpeak from Cook.

European and UK markets are closed for the Easter Monday holiday.