Blog posts tagged with 'gold'

Apparently, expectations for a June US interest rate cut have returned which in turn fueled the most significant gold and silver rallies since early December.

However, the CME Fed Watch tool did not show a significant increase in the probability of a June rate cut from just below 50% early last week to only 52.8% after the close Friday.

Therefore, the gold and silver markets are anticipating the continuation of soft US and international data which has already resulted in widespread talk of eurozone, Japanese, and Canadian rate cuts in June...[MORE]

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Good morning. The precious metals are mixed in early U.S. trading.

U.S. calendar features FedSpeak from Harker.

In retrospect, the action in gold and silver this week has been nothing short of stellar given periodic adversity from strength in the dollar.

Furthermore, gold managed to shrug off headwinds from signs of slowing in the US and European economies especially with gold at times over the last several weeks seemingly benefiting from "hope" of a recovery in physical/industrial gold demand following a global macroeconomic euphoria wave.

Apparently, the gold trade interpreted yesterday's US PCE report result as a sign inflation was slowing which apparently keeps US rate cut hopes alive...[MORE]

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Not surprisingly, the markets expected to be impacted by today's critical US inflation reading (PCE) and they have forged tight trading ranges again overnight as many traders avoid implementing fresh positions in front of what could be a critical trend-deciding report in the form of US PCE later today.

Fortunately for the bull camp, open interest in gold has come down significantly since the middle of last month, potentially suggesting the market found solid value earlier this month around $2,000.

Unfortunately for the bull camp, a US PCE reading above +0.3% will likely relaunch the dollar sharply higher and set the stage for a return to $2,000 in April gold in the coming sessions...[MORE]

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Good morning. The precious metals are lower in early U.S. trading.

U.S. calendar features Personal Income, PCE, Initial Jobless Claims, Chicago PMI, Pending Home Sales Index, Ag Prices.

FedSpeak dues from Bostic, Goolsbee, Mester & Williams.

With an upside breakout in the US dollar overnight surprisingly forged in the wake of a series of soft US data points over the last 5 sessions, the markets are expecting today's US GDP report to partially right the ship of the US economy.

However, it is also possible the dollar is feeding higher off persistent hawkish views from Federal Reserve members which could be expected to reach a fever pitch just before midsession today with the Fed's Bostic, Collins, and Williams speaking just ahead of midsession.

Expectations for US GDP call for no revision in a previous growth rate of 3.3%. While not a definitive bullish impact, a Russian gold mining group indicated last year's gold production declined by 6.8% on a base output of 412,500 Troy ounces...[MORE]

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