Gold News

Gold Price News: Gold Near 5-Month High as Markets Await Jobs Data

Gold has climbed above $1,800 an ounce to trade near its highest level in five months. The precious metal has benefited from a slightly weaker US dollar and expectations that the Federal Reserve will slow its rate of interest rate increases over the coming months. Today brings the latest jobs data out of the US and after yesterday’s huge gains, gold and indeed markets more broadly are fairly static awaiting these employment figures. Strong numbers that point to a healthy US economy will give the Fed more bandwidth to continue its aggressive stance against stubbornly high inflation while any downside surprises will increase fears that this Fed aggression will tip the world’s largest economy into recession. The fact that gold has been able to make significant gains in November and then carried that momentum into December illustrates the depth of support that has built up for the metal. The Fed is still after all almost certain to implement another interest rate hike later this month, which will increase the appeal of interest-paying assets to the detriment of gold. The correlation therefore between gold’s gains and the shockwaves pulsing through the crypto industry following the collapse of FTX points to investors seeking out the age-old haven asset. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

02/12/2022

Gold & Silver December Outlook – 2022

Gold Outlook Gold enters the final month of the year trying to hold onto the significant gains the precious metal achieved in November. The price climbed by $100 an ounce on the prospect of the Federal Reserve being less aggressive with its upcoming interest rate decisions. Upcoming December rate move As has been the case for the bulk of the year, all eyes will be on the US central bank with gold investors' festive cheer depending on the outcome of the Fed’s interest rate decision on December 14th. The hope is that after a series of 75 basis point increases, December’s meeting will bring a slightly softer 50 basis point hike and be the first step on the road to further increases petering out in the early part of 2023. By the time the Fed’s rate decision comes in the middle of the month, the bank officials will have a few more pieces of the economic jigsaw puzzle with the latest jobs and unemployment data at the start of the month, following the US inflation figure for November the day before the FOMC meeting. Positive numbers that show a resilient jobs market and inflation on a downward trajectory will give the Fed more breathing space to reduce the aggression of their hikes while any negative surprises are likely to spook markets that remain highly jittery. Gold Price Performance Gold has been hostage to the actions and words of the Fed and its officials with the precious metal’s price struggling under the weight of the US central bank’s series of significant rate hikes over the second half of 2022. Gold’s lack of yield has made it vulnerable during this period of rising interest rates and offset any potential gains the precious metal may otherwise have benefited from, given the highly inflationary environment as well as the ongoing war in Ukraine. While the macroeconomic picture has kept a cap on the gold price, the metal hasn’t been without support, with any significant dips in the price prompting fresh purchasing waves from Asian buyers in particular, with no sign of this trend disappearing any time soon. Crypto - a fresh driver In a year in which the Fed has been the dominant factor, November did bring a fresh driver into the mix with the collapse of crypto giant FTX. The huge losses endured by those companies and individuals exposed to the bankruptcy of the cryptocurrency firm prompted significant flows into gold, with investors seeking a haven in gold that has proven a store of value throughout the bursting of numerous stock market bubbles. Where does all this leave gold? The gains in the early part of November point to an investor mindset keen to support gold but still lacking the ideal macroeconomic conditions. With another hike expected by the Fed in December, it is hard to see gold making significant gains, but equally, the price looks to have built up a strong floor. As such, a stabilisation above $1,700 an ounce looks the likeliest outcome with gold priming itself for a stronger 2023 as and when the Fed’s much-anticipated pivot finally materialises. Of course, Kinesis has its own gold product, gold-backed KAU, which converts the age-old asset into a digital currency fit for modern times. With gold’s fortunes looking more favourable, KAU offers holders the chance to benefit from any rise in the price of the underlying asset, while also generating a yield from transactions carried out with the currency. Silver Outlook After a promising start to November, which saw the silver price climb from $19 an ounce to above $22 an ounce, the second half of the month disappointed those investors hoping to see silver continue on its upward trend with the price instead consolidating around $21 an ounce. Why is silver so undervalued? From a fundamental perspective, it remains truly remarkable that silver continues to languish at such low levels. The latest figures from Metals Focus point to the metal enjoying a record year of demand with every sector, from industry, investment and jewellery, through to coins and bars, all performing incredibly well. Global demand for silver is set to increase by 16% to 1.2 billion ounces, according to Metals Focus, leading to the largest supply deficit in decades with a shortfall of 194 million ounces, a scenario that is likely to continue well into 2023. Entering the energy transition A thirst for silver for photovoltaics as well as in batteries has made the metal far better placed than its precious peers (gold, platinum and palladium) to benefit from the global drive towards net zero and the electrification of transport and power. As well as a buoyant industrial outlook, Indian demand has surged on the back of weaker rupee prices for silver with buyers willing to pay a premium to have their metal flown in from the vaults in Europe rather than shipped. Yet despite all these bullish factors from the demand side, silver enters the final month of the year still way off its high for the year in March. This underlines how prone to the broader macroeconomic conditions silver is, rather than purely the metal’s fundamental supply and demand balance. With the Federal Reserve expected to implement another interest rate hike in the middle of December, albeit at a slightly smaller increase than in previous months, silver has found itself less attractive than other asset classes that provide a yield. One silver product that remains attractive is Kinesis’ Silver KAG, a digital currency backed by one ounce of physical silver. Not only does the currency track the price of its underlying precious metal, but holders also benefit from a monthly yield generated through the transactional velocity of silver spenders. Furthermore, continued lockdowns in China may dent economic growth in one of the key industrial hubs, while Europe looks set for a recession in 2023 as the continent battles with persistently high inflation. Yet despite these negative factors, the fact remains that silver is a metal in record demand and one whose fortunes look ideally placed for the energy transition that will dominate the agenda for years to come. So after the late November period of consolidation, silver once again looks hugely undervalued and ripe for buying in December. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

01/12/2022

Gold Price News – Bullion remains around $1,750 waiting for Jerome Powell’s speech

The bullion price is consolidating and remained trading at $1,750 as markets are in a wait-and-see mode. Investors are now waiting for key EU inflation data and for the speech of the Federal Reserve chairman, which are both due later today. Overall, we could say that after recent rebounds, gold is confirming its positive momentum. Indeed, in the last few weeks, bullion jumped by around $100 and recovered the $1,750 threshold. The main driver behind this came from the US, where inflation data indicates that price pressure is starting to slow down. Consequently, the greenback lost ground, with the EUR/USD pair returning to well above parity in the region of 1.03. Considering this, it is clear that the markets are awaiting the speech of The Fed’s Jerome Powell, which is scheduled this evening (18:30 GMT). Investors will be hoping for any further indication about the next steps of the Federal Reserve monetary policy, including when the peak of the Fed fund’s rate will be reached. Today’s macro-economic calendar is busy, and includes third quarter US GDP as well as the ADP labour data – an anticipator of the much more important non-farm payroll data that will be released later this week. This morning investors will also discover the latest figures related to the EU CPI. After last month's record level of 10.6%, it is expected the price rally should start to curb to 10.4%, according to analyst forecasts. Any confirmation of such a slowdown of the price growth could be a positive catalyst for the gold price. From a technical point of view, bullion shows resilience, with the first support zones being placed at $1,730 and $1,700, while a breach of the $1,790 resistance zone can open space for further recoveries. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.  As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

30/11/2022

Gold Price News: Gold Boosted by Haven Demand From Chinese Protests

Gold has been lifted by market jitters as a result of the protests in China about continuing lockdown restrictions. With equities down, gold has climbed back to around $1,760 an ounce as investors seek out the precious metal as a haven. Today’s boost underlines the support that remains for gold that has enabled it to sustain most of the gains made earlier in the month on the prospect of a pivot by the Federal Reserve. Later this week, we will get a test of the strength of that support when Fed Chair Jerome Powell speaks with gold investors hoping for a dovish tone to his comments after his fellow Fed officials have struck a more hawkish tone with talk of the need for interest rates needing to reach 5%.  Gold has found itself driven predominantly by the words and actions of the US central bank and the concern will be that this month’s largely sentiment-driven gains will face a swift turnaround if the Fed doesn’t prove as near to slowing down its aggressive rate hikes as initially expected. So for now, gold is enjoying its buoyancy above $1,750 and is likely to continue to do so until the Fed’s December interest rate announcement. But for how long gold’s buoyancy will last, remains to be seen. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience inwriting about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News. As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

28/11/2022

Gold Price News: Gold Stable Around $1,750 as New Trading Range Established

Gold is stabilising around $1,750 an ounce after a quieter week of macroeconomic and geopolitical news enabled investors and traders to assess the true value of the precious metal. While the Federal Reserve is still almost certain to raise interest rates again in December, this week’s publication of the Open Market Committee’s November minutes gives hope that there is less need for further 75 basis point hikes. As such, gold has been able to hold onto the bulk of this month’s gains and does now look to have established a new trading range. The potential contagion from the collapse of crypto exchange FTX so far looks to be contained but the prospect of more crypto companies failing is supportive for gold, with investors wary of investing money into an asset class that has shown itself to be anything but a safe haven. With this week’s chance to pause for breath, gold is now likely to continue trading sideways as investors position themselves for the middle week of December which will see first the latest US inflation figures followed by the Fed’s latest interest rate decision. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.  As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewableenergy and the challenges of avoiding greenwash while investing sustainably. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Rupert Rowling
Rupert Rowling

25/11/2022

Gold Price News: Gold Treads Water Ahead of Fed Meeting Minutes

Gold and the broader markets are treading water while investors and traders await the release of the November minutes of the Federal Open Market Committee later today. Since the Fed announced a further 75 basis point hike to its benchmark interest rates at the start of this month, sentiment has shifted to how quickly the US central bank will be able to slow the pace of future rate increases. Today’s publication of the minutes could serve as a reminder of the more dovish position at the time and prompt a fresh rally for equities and gold alike. Gold has found itself driven for much of the year by the actions of the Fed and the comments by its officials so investors will be poring over every word of these minutes to determine the likely trajectory of the Fed’s interest rate curve over the coming months. While another rate hike is near certain in December, the key question is whether it will be another 75 basis point hike or a more conservative 50 basis point move. While the majority of eyes are on the Fed today, gold investors will keep half an eye on the continued fallout from the collapse of crypto giant FTX. The breakdown in trust and credibility that FTX’s bankruptcy caused for the wider crypto community has benefited gold with investors moving their funds to the haven asset that has endured through centuries of stock market bubbles and crashes, as well as human conflict. In the current scenario, the prospect of further interest rate hikes will keep a ceiling on the price of gold, while the broader market jitters exacerbated by FTX are likely to keep prices supported above $1,700 on the downside. Rupert is a Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. He brings with him a breadth of experience in writing about energy and commodities having worked as an oil markets reporter and then precious metals reporter during the seven years he worked at Bloomberg News.  As well as market analysis, Rupert writes longer-form thought leadership pieces on topics ranging from carbon markets, the growth of renewable energy and the challenges of avoiding greenwash while investing sustainably.This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis

Rupert Rowling
Rupert Rowling

23/11/2022