David

Gold shows little reaction to widely expected 0.25% Fed rate hike Gold prices are moderately higher in afternoon U.S. trading Wednesday and have shown little initial reaction to the U.S. central bank raising its main interest rate by a small amount, which was fully expected by the marketplace. August gold was last up $8.70 at $1,972.40 and September silver was up $0.181 at $25.005. The just-released U.S. data point of the week, if not the month, saw the Federal Reserve's…

Last week gold jumped close to the psychological threshold of $2,000 before slowing down on Thursday and Friday, while the US dollar showed recovery signals. Despite this time, the price of bullion remained above $1,950. Overall, the trend for the gold price still appears positive. Investors are, once again, in a wait-and-see mode. Indeed, we have just entered a week with a very busy macroeconomic agenda that could break the recent low volatility scenario. The focus will be on central…

Gold, silver weaker as USDX continues its rebound Gold and silver prices are moderately lower in midday U.S. trading Monday, pressured by the U.S. dollar index continuing its recovery after hitting a 15-month low last week. Focus of the marketplace is on a key central bank decision at mid-week. August gold was last down $4.50 at $1,962.00 and September silver was down $0.245 at $24.61. The U.S. data point of the week is the Federal Reserve's Open Market Committee (FOMC)…

Eyes on the Fed, the ECB, and the BOJ Next week, markets will be digesting the Federal Reserve, the European Central Bank, and the Bank of Japan's monetary policy statements. There was a lot of optimism this week that the Fed was close to being done with its tightening cycle despite Powell's promises of at least two more rate hikes this year. "The Fed is almost certain to hike its policy rate by 25bp to between 5.25% and 5.50% at…

Market participants brace for the potential of more hikes after next week Members of the Federal Reserve tend to keep their future actions close to their chest revealing little insight as to any upcoming revisions to their aggressive monetary policy that has been in play since March 2022. While they have announced that they plan to implement two more quarter-percent rate hikes by the end of the year, many investors, economists, and analysts believe that next week’s rate hike will…

Gold encounters technical and fundamental resistance at $1980 Gold futures are definitely under pressure today, with the most active August 2023 contract down $8.70 or 0.44% and fixed at $1972.10. The root cause is dollar strength that overcame fractional buying and still was able to take gold prices moderately lower. While gold futures declined by 0.44% the dollar gained 0.56% with the differential indicating that market participants were lightly bidding the precious yellow metal higher. Currently, the dollar index has…

There is a reasonable probability the Fed will conclude its rate hikes this month The CME Fed watch tool is predicting that there is a 99.8% probability that the Federal Reserve will implement a ¼% rate hike on July 26 when the next FOMC meeting concludes. It is also likely that this month's rate hike will conclude the series of hikes by the Federal Reserve that began in March 2022. The latest CPI (Consumer Price Index) and PPI (Producer Price…

Gold rallies as empowered bulls set sights on $2,000 Gold prices are sharply up and hit a 2.5-month high in midday U.S. trading Tuesday. Silver prices are also sharply up and hit a nine-week high. The charts have recently turned more bullish for both precious metals, which is inviting the technically based speculators to the long side of those markets. A weaker-than-expected U.S. retail sales report this morning is also supporting ideas the Federal Reserve can take its foot of…