Blog posts tagged with 'silver'

Gold and silver extended their downside moves overnight.

Fed Governor Michelle Bowman stated that the F#ed will probably need to raise interest rates further if inflation stays high, adding that key data so far this month has not convinced her that price pressures are receding.

This further diminished any optimism remaining from the lower-than-expected PPI data yesterday.

The next meeting between President Biden and Congressional leaders regarding the debt ceiling has been postponed until next week, and this news could provide some safe-haven support to gold...[MORE]

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May 12 (Reuters) - Gold fell for a third session on Friday, weighed down by higher yields and a steady dollar, but stayed above the key $2,000 level on expectations of rate cuts towards the end the year.

Spot gold was down 0.6% to $2,004.15 per ounce, as of 1149 GMT, shedding 0.6% so far in the week. U.S. gold futures also fell 0.6%, to $2,006.60...[LINK]

In retrospect, the #gold market has held up better than we anticipated following the major reversal action last week.

While gold spent nearly the entire Monday trade in positive territory, it forged a much tighter trading range relative to the action last week, perhaps because the trade is looking ahead to the uncertainty of the US CPI report on Wednesday morning.

However, a portion of the trade sees the US #CPI report as potentially supportive of the idea that consumer #inflation will remain elevated...[MORE]

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

U.S. calendar features NFIB Small Business Optimism Index, IBD/TIPP Economic Optimism Index, FedSpeak from Williams.

While today's economic report slate is benign, data in subsequent sessions will likely produce significant reactions in gold and silver with China releasing import and export figures tonight and the US releasing key inflation readings later in the week.

Overnight China apparently raised its gold holdings by 8.09 tons last month, resulting in October through April gold reserve additions of 120 tons. The overall Chinese gold reserves are pegged at 2,076 tons, but we suggest that number is an unsubstantiated figure likely to be strategically understated by the Chinese central bank.

Last week gold ETF holdings increased by 138,847 ounces but remained down 0.2% on the year. On the other hand, silver ETFs reduced their holdings by 1.2 million ounces last week with year-to-date gains in silver holdings of 0.2%...[MORE]

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Apparently, an avalanche of very disappointing global economic data overnight has not provided economic uncertainty flight to quality buying of gold early on and perhaps more importantly has not sparked long interest in the US dollar.

Perhaps the gold and silver trade is seeing growing #recession fear and expectations of further slowing of physical demand.

Yesterday's bearishness is also accentuated by World Gold Council predictions of softening Indian gold demand in both the June and September quarters...[MORE]

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May 5 (Reuters) - Gold prices fell from near-record highs on Friday as investors waited for more economic cues, but banking woes and hopes for a pause in U.S. rate hikes kept safe-haven bullion on course for its best week in nearly two months.

Spot gold fell 0.7% to $2,036.74 per ounce by 1138 GMT, which some analysts termed a "consolidation", but was up 2.3% for the week. U.S. gold futures shed 0.5% to $2,045.90...[LINK]

In our opinion, the gold market has probably forged an intermediate top with a major blowoff range-up reversal overnight. In other words, optimism about the potential for an end to the US rate hike cycle has been embraced and perhaps overdone.

From a fundamental perspective, Indian gold prices posted a record high overnight and in the past Indians have been very price conscious which in turn could result in a near-term demand void.

However, the gold market should be supported by another inflow to gold ETF holdings of 24,688 ounces yesterday as that narrows the year-to-date decline in holdings to only 0.2%...[MORE]

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