Blog posts tagged with 'precious metals'

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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Nov 28 (Reuters) - Gold held its ground on Tuesday after touching a six-month peak, buoyed by expectations the U.S. Federal Reserve has concluded its interest rate hikes, ahead of the release of key economic data.

Spot gold was steady at $2,013.59 per ounce by 1306 GMT, after hitting its highest since May 16 earlier in the session...[LINK]

Clearly, the gold market has seen the bull camp revitalized by signs of a resumption of the dollar downtrend and has managed the rally despite evidence of a decline in Chinese October net mainland gold imports through Hong Kong.

Therefore, the gold trade continues to focus on dollar and interest rate action at the expense of classic internal supply and demand developments.

In fact, while the story should be regarded as "old" the trade continues to pound the drum on an on-hold global central bank theme...[MORE]

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Nov 27 (Reuters) - Gold prices hit a more than six-month high on Monday, firming above the $2,000 per ounce level, as a weaker dollar and expectations of an end to U.S. interest rate hikes lifted demand.

Spot gold was up 0.5% at $2,012.33 per ounce by 1147 GMT, after reaching its highest since May 16 at $2,017.82. U.S. gold futures also rose 0.5% to $2,013.10...[LINK]

Gold prices rose slightly overnight, even as the dollar index managed to rebound off of its 200-day moving average. This support level for the dollar gives the gold bears something to get excited about.

Gold is still digesting yesterday's FOMC Minutes as it shows the Fed is weary of worsening financial conditions. But with the bond yields failing to fall further overnight, we might expect gold bulls to take a break.

Today's focus will be on this morning's Durable Goods release, where the market is expecting a rather large drop from last month...[MORE]

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Nov 22 (Reuters) - Gold prices hovered near the key $2,000 level on Wednesday, as expectations of an end to the U.S. Federal Reserve's rate hike cycle kept the dollar and U.S. bond yields subdued.

Spot gold was up 0.1% at $2,000.38 per ounce as of 1201 GMT, after rising as high as $2006.19 earlier in the session. Bullion scaled a three-week high of $2,007.29 on Tuesday...[LINK]