David

Gold prices are trading not far from unchanged and near this week’s 11-month low in early U.S. trading Friday. Silver prices are firmer on short covering after hitting a two-year low this week. Bullish outside market forces on this day are friendly for the metals, as the U.S. dollar index is lower, crude oil prices are firmer and bond yields have backed off a bit. However, the overall postures of those three key elements still lean bearish for the metals…

Gold price holding support at $1,700 as U.S. retail sales rise 1% in June The gold market is holding support at $1,700 as U.S. consumers appear to be on solid footing, buying more than expected in June. U.S. retail sales advanced 1.0% last month following a upwardly revised drop of 0.1% in May, according to the latest data from the U.S. Commerce Department. Economists were expecting to see a rise of 0.9% in last month’s headline number. Core sales, which…

Will $1700 become a sustainable support level for gold? Over the two trading days gold futures have traded below $1700 (marked X) and, on both occasions, recovered closing above that case psychological level. So, it is not illogical to wonder whether or not this price point will become a sustainable level of support or simply a pause before gold heads to lower prices. Historically speaking the last time gold traded below $1700 occurred on August 9, 2021, the day of…

British Royal Mint sees gold bullion sales increase 8% in Q2, silver sales jump 47% The paper gold market has struggled to find consistent bullish momentum as prices dropped nearly 7% between April and June. However, the physical market saw solid growth, according to the latest report from the Royal Mint. Thursday, the British mint said that sales of its gold bullion coins increased by 8% quarter-over-quarter. At the same time, silver bullion sales increased 47% compared to the sales…

Gold's year-end target is $2,050 and here's why 17% price surge still possible – Wells Fargo The strong U.S. dollar has been hurting gold's price, dragging the precious metal down to 8.5-month lows as it steals its safe-haven appeal. But this is not a game-changer for gold, which can still end the year above $2,000 an ounce, according to Wells Fargo. The U.S. dollar index rose to another 20-year high Tuesday, while the U.S. 10-year Treasury yield was at 2.921%.…

Is gold about to go mainstream? Every week Merrill Lynch publishes a Capital Market Outlook Letter. The letters provide market commentary, research and analysis, and the occasional investment idea. Merrill Lynch (together with parent Bank of America) is the third largest brokerage firm, managing over $3 Trillion in client assets. When a firm of that size speaks up, you should listen. Starting around March of this year, they disclosed an investment thesis called FAANG 2.0. It's a fascinating idea and…

June headline inflation to exceed 8.6%, the annual inflation rate in May Economists, analysts, and market participants are laser-focused on the Labor Department's CPI (Consumer Price Index) report for June which will be released on Wednesday, July 13. The advanced forecasts released have a common theme or consensus and that is that inflation will continue to run exceedingly hot. Expectations are that headline inflation which includes changes in food and energy costs rose 1.4% compared to the previous month and…

Gold price could see '2000 flashback' as most commodities reverse in second half of 2022 – Bloomberg Intelligence Despite gold kicking off the second half of the year with a drop below $1,800 an ounce, Bloomberg Intelligence sees the precious metal moving higher versus broader commodities, which are at risk of a reversal. Crude oil is the commodity facing the biggest reversion risk in the second half of 2022, while gold is among the few that could benefit and see…

Has gold found a bottom or is it a momentary lull of selling pressure? For the time in the last seven trading sessions, gold closed above its daily opening price and higher than the previous day’s closing price. However, there was no strong upside move, no higher high than the previous day, and no clear indication that the recent selling pressure has concluded. Rather it seems that market participants are waiting to see what the next two key reports will…