Dec 6 (Reuters) - Gold prices inched higher on Wednesday buoyed by lower bond yields, while investors awaited for a crucial U.S. employment report that could set the tone for Federal Reserve's policy meeting next week.
Spot gold rose 0.2% to $2,023.62 per ounce by 1247 GMT. U.S. gold futures gained 0.3% to $2,041.60...[LINK]
Volatility is likely to continue in gold and silver as the trade continues to waffle back and forth from the ebb and flow of potential central bank policy bias changes.
In fact, today's US scheduled data window will likely add or subtract to the first quarter rate cut assumption (generally held by the trade), but we give the edge to the dollar bears/gold bulls from the potential for a softening US economy take away through this morning's US reports.
We must note the lack of a flight to quality surge in gold overnight following Moody's downgrade of Chinese credit especially with a lack of gold buying following a noted uptick in Chinese credit default swap rates...[MORE]
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Dec 5 (Reuters) - Gold prices edged lower on Tuesday, trading $100 below the record high level hit in the last session, as the dollar held firm and investors awaited more U.S. economic data this week that could influence the Federal Reserve's rate outlook.
Spot gold was down 0.3% at $2,024.30 per ounce by 1200 GMT. Bullion had climbed to an all-time high of $2,135.40 on Monday, before dropping more than $100 in a single day to close 2% lower...[LINK]
While the February gold contract exploded to all-time highs overnight the market recoiled aggressively and at times this morning gold was trading $79 off its high!
With the dollar showing early strength and US treasuries showing slightly higher yields, the gold and silver markets obviously received buying from something other than their recent focus.
It appears the markets garnered flight to quality buying from two separate issues related to military events. Flight to quality issues thought to be lifting precious metal prices overnight were the ballistic missile attack of two Israeli ships and Chinese accusations that the US Navy "seriously violated" their sovereignty after sailing into the South China Sea...[MORE]
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Gold prices notched a new record on Monday for a second day in a row — with spot prices touching $2,100 as the global rush for bullion appears set to continue.
Gold prices are on course to hit fresh highs next year and could remain above $2,000 levels, analysts said, citing geopolitical uncertainty, a likely weaker U.S. dollar and possible interest rate cuts...[LINK]
While spot gold prices are nearing record highs with a resumption of fighting in Gaza, the twin bullish forces for gold and silver have shifted slightly negatively over the last 24 hours.
Furthermore, support from flight to quality issues has been inconsistent and largely absent this year, thereby discounting residual lift from the war.
Furthermore, gold and silver have recoiled sharply from initial strength overnight, short-term technical signals are in sell mode and the trade failed to fully embrace recent rumors that October and November gains were the result of consistent central bank buying...[MORE]
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As goes the dollar, so goes gold in the opposite direction! In fact, with yesterday's dollar reversal and today's upside $ extension gold is facing a critical junction and perhaps a failure of key support following today's early US scheduled data.
However, the jury is out on the impact of today's PCE and initial claims readings, with soft PCE and higher initial claims data still capable of resurrecting the bull case in gold and silver.
Therefore, further evidence of a US Fed pivot early next year to lower rates has been heavily factored with the November low-to-high rally of $127 and it now needs fresh bullish fuel...[MORE]
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Despite gold being overbought, the bulls are still in the driver's seat with the Feds Waller yesterday giving dovish statements ahead of the Feds blackout period.
It should also be noted that several prominent fund/money managers have predicted US rate cuts in the first quarter of 2024 and that combined with a developing pattern of softer US data should leave the dollar in a downward track and in turn leave gold and silver in upward tracks.
Along those lines, today's scheduled data could present a temporary dip in gold if US GDP readings match expectations of a minimal improvement...[MORE]
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Nov 28 (Reuters) - Gold rose for a fourth consecutive session on Tuesday and hit a more than six-month high, driven by a retreating dollar and expectations that the U.S. Federal Reserve has finished hiking interest rates.
Spot gold gained 1.4% at $2,041.55 per ounce by 3:00 p.m. ET (2000 GMT), highest since May 10...[LINK]
With a fresh new low for the move in the dollar this morning (the lowest trade since September 1st) and February gold prices sitting just under yesterday's new high for the move, the bull camp extends its control into another session.
However, the trade will face another US note auction today (seven-year notes), and we caution traders against assuming somewhat positive auction results today as was noted from the short-end auction yesterday.
In conclusion, another average auction result and/or a soft auction will thicken resistance over gold and weaken support under gold...[MORE]
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