Archive

Gold breaks the key level of $2,000 in its first unsuccessful attempt The combination of exceedingly high inflation and the geopolitical crisis in Ukraine were strong enough forces to run gold prices back above $2000. The focus of my articles throughout last week dealt with how the Federal Reserve and global central banks were faced with a near impossible task to reduce rising inflation. Dramatic measures would need to be taken including raising rates to at least half of the…

The gold/silver ratio moves back into familiar territory The gold/silver ratio has moved back into familiar territory. The price has moved back into a wedge-type formation on the daily chart below. The trendlines have acted as clear support and resistance levels with both being tested and respected around three times each. More recently the price has moved to the lower bound of the pattern and bounced back up. In terms of support levels, the yellow line at 75.90 is the…

U.S. dollar is gold's main obstacle in breaching $2k – analysts Gold tested a critical level this week on its way to $2,000, but one of its main obstacles remains a strong U.S. dollar, according to analysts. Despite a selloff during the week's last trading day, gold is still up 1.5%, with June Comex gold futures last trading at $1,974.6 after rising above $1,985 an ounce a day earlier. After seeing renewed safe-haven appeal amid significant geopolitical tensions, the U.S.…

Global inflation concerns result in aggressive action by central banks Inflation is not limited to the United States. It is a global phenomenon prompting central banks worldwide to take action. Central banks worldwide are quickly moving to a more aggressive monetary policy in an attempt to stave off the spiraling international level of inflation. The president of the Federal Reserve Bank of New York, John Williams, spoke to Bloomberg Television saying that ½ a percent hike in interest rates is…

Gold moves higher as inflation and Ukraine fears dwarf concerns over hawkish Fed Market participants continue to be extremely focused on the spiralling level of inflation and war in Ukraine more than their apprehensions about future actions by the Federal Reserve to aggressively raise interest rates this year. Yesterday's release of the CPI for March which came in at 8.5% underscores concerns about a ½ a percent hike in interest rates by the Federal Reserve next month. Gold prices have…

Inflation spirals to 8.5%, no surprise according to the Federal Reserve Bank of Cleveland Today the BLS (Bureau of Labor Statistics) released its CPI inflation report for March 2022. The report showed that inflation had risen to 8.5% when compared to the inflation level in March 2021. When compared to month-over-month levels, inflation rose 0.6% as February's level of inflation came in at 7.9%. However, this news was no surprise as it had been released by the Federal Reserve Bank…

What effect has Ukraine, inflation, and the Fed had on gold prices? Gold prices have been affected by three primary factors, inflation, the war in Ukraine, and lastly, statements and actions by the Federal Reserve. Overwhelmingly, market participants are focused on the effects of spiraling inflation levels and the war on Ukraine providing bullish market sentiment for the precious yellow metal. While statements and actions by the Federal Reserve have curtailed any sustained upside movement gold continues to gain value…

Silver prices are stuck, but future shines bright as industrial demand grows – Bank of America Silver prices are stuck in a wide range finding little momentum from subdued investor interest; however, commodity analysts at Bank of America expect the precious metals industrial demand to keep the market well supported. In a report published Friday, the analysts said that demand from the solar power sector and growing importance in the auto sector will be two critical factors driving silver prices…