Gold/Silver – Where is the bottom? It was another volatile week in the markets, both for the longs and the shorts, with the technical backdrop continuing to deteriorate. Rampant inflation reaffirms the Federal Reserve will continue to reverse the loose monetary policy after CPI on an annualized basis came in at 8.2% versus expectations of 8.1%. The latest CME Fedwatch tool is pricing in a 97.8% chance of a 75 bps rate hike at the November 2 meeting and now…
Gold price drops nearly $90 from October highs, Wall Street turns exceedingly bearish on precious metals The short-term outlook on gold remains bleak, with analysts turning overwhelmingly bearish on the precious metal as the $1,650 an ounce level breaks. The precious metal is down nearly $90 from its October highs of $1,737 an ounce, with December Comex gold futures last trading at $1,648.70, down 1.69% on the day. The technical picture is also quite bearish as the selloff opens the…
Gold, silver recover most of sharp, early losses Gold and silver prices are modestly lower in midday U.S. trading Thursday but have made a solid rebound from early-morning losses following another hot U.S. inflation report. Strong losses in the U.S. dollar index and higher crude oil prices today are working in favor of the precious metals market bulls. However, rising U.S. Treasury yields are still keeping buyers in gold and silver timid. December gold was last down $4.30 at $1,673.30…
Gold prices remain down as Fed stays committed to reducing inflation even as economy slows – FOMC minutes The gold market remains under pressure but is not seeing any new price action as the Federal Reserve remains committed to tightening its monetary policy to cool down the growing inflation threat. Although the U.S. central bank sees growing downside risks to the economy, the minutes of the September monetary policy meeting show that the committee remains focus on brining inflation down…
Gold gains on short covering, bargain buying, pullback in USDX Gold prices are higher in midday U.S. trading Tuesday, on short covering in the futures market and some bargain hunting and/or safe-haven demand in the cash market. A weaker U.S. dollar index and pullback in U.S. Treasury yields on this day is also working in favor of the metals market bulls. December gold was last up $9.70 at $1,684.70 and December silver was down $0.10 at $19.52. U.S. stock indexes…
Strong USDX, rising U.S. Treasury yields, stingy Fed punish gold, silver prices Gold and silver prices are sharply lower near midday Monday. The safe-haven metals are being hit hard by a higher U.S. dollar index, rising U.S. Treasury yields and weaker crude oil prices to start the trading week. An aggressively tight monetary policy from the U.S. Federal Reserve is also serving as an anchor on the precious metals markets. December gold was last down $34.30 at $1,675.00 and December…
Gold and silver need more than a short squeeze Precious metal analysts have been warning investors for a few weeks now that a sharp downtrend through the summer pushed gold and silver into oversold territory. Bearish sentiment in the marketplace is at its highest level in years, and both precious metals were ripe for a short squeeze. Those forecasts proved to be correct, with silver seeing, at its peak, a 12% gain this week, as prices pushed above $21 an…
How to interpret today’s jobs report, and what does it mean fo price of gold ? Today’s jobs report for September showed a decrease in monthly gains, with 263,000 new jobs added last month, a decline from the prior month in which 315,000 new jobs were added. The deep impact it had on almost every asset class in the financial markets was not because of the tepid numbers but rather hopes by the Federal Reserve that these numbers would be even…
The short-term future of gold’s price is tied to two upcoming reports There is an adage when investigating a crime that says to “follow the money”. In the same way, when investigating where gold prices will be headed short-term it is wise to follow the upcoming reports. Two key reports will shape the short-term direction and price of gold. The first report is tomorrow’s jobs report, and the second report is the next CPI inflation report for September which will…
Gold, silver prices pull back as U.S. dollar, bond yields see strong rises Gold and silver prices are lower in midday U.S. trading Wednesday, on routine downside price corrections following solid gains posted on Monday and Tuesday. A strong rebound in the U.S. dollar index today, along with a significant rise in U.S. Treasury yields, are also bearish outside market elements working against the gold and silver markets at mid-week. December gold was last down $11.60 at $1,718.90 and December…