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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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Nov 30 (Reuters) - Gold prices eased on Thursday as the dollar staged a rebound ahead of U.S. inflation data, although bullion was heading for its second monthly rise boosted by hopes that the Federal Reserve would cut interest rates soon.

Spot gold eased 0.3% to $2,038.59 per ounce by 1207 GMT. Bullion is up 2.8% so far this month after rising 7.3% in October...[LINK]

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]