Blog posts tagged with 'precious metals'

With a new low for the move in the dollar early today and slightly weaker treasury rates, gold and silver bulls look to extend their recent control.

In addition to the constant lift from the fully entrenched expectation of lower global rates gold and silver are likely to benefit from favorable Chinese industrial profit results as China remains the number one consumer of gold.

Apparently, the Chinese central bank has predicted China will achieve its 5% growth target next year and that combined with signs of continued cash infusions from the Bank of India provides a very solid demand base...[MORE]

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Gold prices rose on Tuesday, helped by a weaker U.S. dollar and lower Treasury yields on expectations that the Federal Reserve will lower interest rates next year.

Spot gold was up 0.4% at $2,062.63 an ounce near 7:30 a.m. ET after hitting a more than two-week high of $2,070.39 in the previous session. U.S. gold futures rose 0.2% to $2,073.20...[LINK]

Contrasted with historic inflation/gold price patterns, further evidence of "sharply falling" global inflation provides gold and silver with ongoing fundamental cushion.

In other words, "significant" declines in UK, eurozone, and Italian inflation (Italian year-over-year producer prices declined by a startling 12.6%) directly or indirectly provide the US Fed with evidence that US inflation is also poised to fall.

While the CME Fed funds watch tool has not registered a significant increase in the probability of a March US rate cut this week, it is possible that reality is catching up with what the Feds Goolsbee earlier this week indicated was market expectations for cuts running ahead of the Fed's internal dialogue...[MORE]

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Dec 21 (Reuters) - Gold prices crept higher on Thursday, but traded in a relatively tight range as investors looked to U.S. economic data for further clarity on the Federal Reserve's next monetary move.

Spot gold was up 0.3% at $2,034.79 per ounce, as of 1217 GMT, trading in a narrow $10 range in the session so far. U.S. gold futures fell 0.1% to $2,046.30...[LINK]

With some global inflation readings plummeting overnight and others coming in below expectations, the prospect of rate cuts next year has improved again.

In fact, the CME Fed watch tool raised prospects of a January 31st cut by 4% to 12.4% and increased its March rate cut prospect to 71%.

However, despite renewed rate cut chatter and a downward bias in the dollar both gold and silver are trading lower signaling a lack of bullish sensitivity today...[MORE]

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Gold prices held steady above the key $2,000 level on Wednesday, supported by prospects of interest rate cuts from the Federal Reserve next year, while investors awaited U.S. inflation numbers later this week.

Spot gold was little changed at $2,032.60 per ounce, as of 0131 GMT. U.S. gold futures fell 0.2% at $2,046.10...[LINK]

The path of least resistance in gold is down with hawkish dialogue from the Chicago Fed President yesterday, November Swiss gold exports dropping 28% (mostly because the world's second-largest consumer India imported 67% less gold from Switzerland), and a lack of corrective action in the dollar following last weeks compacted rally.

However, an offset to the negative demand signals from declining Swiss gold exports is the fact that Chinese purchases from Switzerland increased by ten percent on 25 tons in sales versus the lower 16.4-tonne sales to India.

With both volume and open interest falling off and given the reversal from last week's highs, we suspect the bullish bias from last week has run its course...[MORE]

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Gold prices were subdued on Tuesday as a slight uptick in the dollar countered support from falling Treasury yields, while investors await U.S. economic data due this week that could further illuminate the Federal Reserve’s interest rate path.

Spot gold was steady at $2,026.30 per ounce. U.S. gold futures were also flat at $2,041.20...[MORE]