David

'Gold hasn't changed, the price of gold has changed'; What the gold price reveals about the macro-tuesday, gold shaved $50 off its market value, falling to nearly $1,760. The 2 percent fall in price reveals that the "perception of the macro environment" has changed, and that "speculators" have sold some of their holdings, suggested Axel Merk, CIO and Founder of Merk Investments. "Gold hasn't changed, the price of gold has changed," he said. "Policymakers don't have many good options, so…

U.S. dollar weakens against euro, sterling in U.S. holiday trading The euro and sterling rose on Monday against the dollar in a quiet trading session amid a holiday in the U.S., while global risk sentiment has improved. With the U.S. markets closed for Independence Day, markets expected a light trading day, with major currencies gaining some ground against the U.S. dollar, which had climbed to a two-week high on Friday. The euro rose 0.3% to $1.0457, but stayed barely above…

Gold/Silver -How to trade this bloodbath The broad-based selling continued in the commodity markets this week, where "inflation worries" have shifted to "recession fears." Looking back through several trading journals of mine, I can tell you that volatility operates at its highest in a deflationary/recession-type environment. Financial conditions will continue to deteriorate until the Fed pauses/pivots dovish, with corporate profits, growth, and liquidity all strained simultaneously. The spillover effect will cause cryptocurrency, real estate, and tech companies to accelerate layoffs…

Fed to err on the side of too many rate hikes – Why is gold at $1,800? Markets are anticipating the Federal Reserve to err on the side of tightening, with Chair Jerome Powell admitting this week that the real mistake would be failing to get inflation under control. Recession fears and the hawkish Federal Reserve triggered bouts of volatility this year – the S&P 500 had its worst half of the year since 1970, while Bitcoin saw its largest…

Other potential outcomes from quantitative tightening by the Federal Reserve The Federal Reserve’s monetary policy composed of aggressive rate hikes in tandem with a balance sheet reduction is intended to achieve price stability through lower inflation. The Federal Reserve is assuming that it can effectively reduce inflation without creating a recession. While this is one possible outcome, at best achieving this goal will be exceedingly difficult, and at worst impossible to accomplish. Russia’s invasion of Ukraine has had a profound…

Gold, silver down as chart-based bears pressing their case Gold and silver prices are lower at midday today, in a choppy, two-sided trading session. The significantly bearish near-term technical postures for both metals are inviting the speculators to play the short sides of the futures markets at present. Gold hit a six-week low and silver a two-year low today. August gold futures were last down $6.80 at $1,810.60. Gold prices are close to key chart support levels ($1,800.00 and $1,792.00)…

Gold, silver bulls squelched by firmer U.S. dollar Gold and silver prices are steady to slightly lower in midday U.S. trading Wednesday. A rally in the U.S. dollar index at mid-week kept the precious metals bulls at bay. August gold futures were last down $1.20 at $1,819.90. July Comex silver futures were last down $0.136 at $20.67 an ounce. The marketplace was closely watching a central bankers’ forum in Portugal that began earlier today. Speakers included Fed Chairman Powell, ECB…

An important bigger-picture perspective on gold Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! (Kitco News) – An examination of the monthly continuation chart for nearby Comex gold futures is a classic example of why it’s important to look at the longer-term charts, in order to gain a critical over-the-horizon perspective on where a market has…

Market participant wait for two key reports this week; GDP and PCE Analysts and investors are waiting for two critical government reports due out on Wednesday and Thursday of this week. On Wednesday the Bureau of Economic Analysis (BEA) will release its latest numbers on real GDP which will be followed on Thursday by the PCE for May 2022. Concerns over a potential recession which will either be confirmed or negated by Wednesday’s GDP report. These concerns took both the…