Gold News

G-7’s Ban on Russian Gold Gives Traders Nudge Required to Claw Back Recent Losses

Gold has started the new trading week on the front foot and is regaining some of the losses it suffered last week. While some of the move is merely a slight rebalancing with equities also recovering slightly, the price of gold was given a further boost by the Group of Seven nations planning to announce a ban on new gold imports from Russia. Live Gold Price - $/oz Russia has already been effectively barred from selling its gold for a number of months since the London Bullion Market Association, which sets the standards for gold trading, removed Russian refiners from its Good Delivery list back in March. So while the G-7’s announcement is more symbolic than having a material impact on the availability of gold supplies, it gives traders a fresh motive to push the price of gold back upwards having drifted towards the bottom end of its trading range last week. Later this week there is a slew of speeches from key central bankers, including Christine Lagarde, Andrew Bailey and Jerome Powell, which should provide markets with a clearer indication of how hawkish the policies of their respective banks are likely to be over the coming months. With gold having seen its gains capped and the price forced down as a result of the series of interest rate hikes the Federal Reserve in particular has imposed, holders of the precious metal will be hoping the bankers give indicators that there is no need to increase the expected pace of the planned rate rises. 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 greenwashing 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

27/06/2022

Gold’s Small Gains Can’t Hide Weekly Drop Amid Prospect of More Fed Rate Hikes

Gold is making small gains on Friday but is still set for a considerable weekly loss after finding itself dragged down by the broader sell-off on equities.  With inflation running at levels not seen for 40 years on both sides of the Atlantic, central banks are being forced to keep on raising interest rates to try and reduce the rise in consumer prices. Federal Reserve Chair Jerome Powell reiterated earlier this week that the central bank is “strongly committed” to bringing down inflation, suggesting that further rate hikes are near certain with another 75 basis point increase in July the next step on the way to a benchmark rate of between 3% and 3.5%. Live Gold Price - $/oz  It is this likelihood of further significant interest hikes that has stalled gold’s potential to make any gains from the risk-off sentiment seen across markets that has seen equities suffer further bleeds to the stock prices. Indeed for the time being, gold is making similar moves to equity markets, rather than its usual inversely correlated relationship as the prospect of further tightening by central banks reduces the appeal of growth stocks and the non-yield bearing gold alike. 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 greenwashing 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

24/06/2022

Gold Isn’t Immune to Stock Market Plunge Amid Likelihood of More Rate Rises Needed

A bad day on equities has also seen gold fall too with the precious metal failing to benefit from haven-seeking investors. Concerns over a recession has triggered plunges in the price of oil and global equity markets yet while gold hasn’t suffered as steep a decline, the prospect of further tightening needed by central banks has dragged its price down too. Live Gold Price - $/oz Risk-off sentiment typically sees gold be one of the few beneficiaries but instead it has slipped below $1,830 an ounce. The latest figures from the UK confirmed that inflation continues to rise, with it now at a 40-year high, with Canadian data set to confirm that consumer prices are yet to peak there too. Already central banks, notably the Bank of England and the Federal Reserve, have been forced into a series of interest rate hikes and with inflation far from being tamed, the pressure to continue acting keeps on mounting. In this environment, the non-yield bearing asset of physical gold becomes less attractive with interest-paying assets favoured instead. However, the broader context of a market fearing a global recession is likely to cap how far gold will fall with the asset having endured through countless previous recessions and proven a reliable store of value over time. 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 greenwashing 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

22/06/2022

Gold Finds Sufficient Support from Flight to Haven Assets to Offset Aggressive Fed

Gold starts a new week hovering around the $1,840 an ounce mark, a level that feels like the precious metal’s natural territory right now. While ever rising interest rates are a strong negative driver for gold, the fact the price has rebounded back to its pre-Fed rate announcement just a few days later highlights the strength of the current major market mover: rising fears of a recession. Live Gold Price - $/oz At first glance, gold’s performance could be deemed unspectacular as this supposed haven asset has oscillated around $1,840 an ounce (admittedly in a fairly wide range) since the middle of May. However, given the sharp falls seen on other asset classes, standing still represents a good return. Certainly holders of gold will be much happier than owners of cryptocurrencies. Later this week we have the latest inflation data out from the UK and Canada, both of which are expected to show price pressures are continuing to rise, while everyone will be paying close attention to Federal Reserve Chair Jerome Powell when he speaks to try and predict the trajectory of the US central bank’s next rate moves following last week’s biggest rate hike in almost 30 years. For central banks, striking the right balance between sufficient action to curb inflation while not choking economic growth is proving an almost impossible job to get right.  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 greenwashing 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

20/06/2022

Gold Managing to Hold Above $1,800 Despite Pressure from Increasingly Hawkish Fed

After having for months called the growth of prices “transitory”, the Federal Reserve is now willing to fight inflation with “whatever it takes” with the US central bank forced to increase the speed of its interest rate hikes. The most recent U.S. inflation figures, which came in at an annualised rate of 8.6%, pushed the Fed to increase rates by 0.75% - the highest increase since 1994. Moreover, investors are now expecting another increase of 0.50-0.75% at the end of July, followed by a series of 0.5% hikes until the end of 2022, which could bring rates into the range of 3.50 - 4% by December. Live Gold Price - $/oz While the decline of the stock market seen in the last ten days is inextricably linked to the Fed’s decision, the bank is not the only one becoming more hawkish. Indeed, the ECB is ready to hike rates in July for the first time in a decade, while the Swiss National Bank surprised the markets by moving rates from -0.75 to -0.25%. The Bank of England, as expected, raised rates by 25 basis points, from 1% to 1.25%. This scenario, marked by a strong U.S. dollar and by rising rates, is of course not ideal for gold but despite this, bullion has managed to hold above $1,800. In fact, after a temporary slowdown, bullion has recovered to $1,850 in the last few hours, confirming its strength despite this challenging macro environment. Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent, Bloomberg, FX Empire and Reuters. With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week. 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.

Carlo Alberto De Casa
Carlo Alberto De Casa

17/06/2022

All Eyes on Fed for Gold Holders With Question Not If But How Much Bank Will Hike Rates

Today sees the Federal Reserve announce its latest interest rate decision with the US central bank expected to raise its benchmark rate for a third consecutive month. While another hike is near certain, the crucial question is by how much. Will they keep within the 50 basis point moves seen so far or will the Fed decide they need to act faster to tackle inflation and raise the rate by 75 basis points? Live Gold Price - $/oz The prospect and indeed reality of a series of interest rate increases by central banks on both sides of the Atlantic has been the major drag on the price of gold in recent months. Having initially looked to be trading in a narrow $1,840 to $1,860 an ounce, the price of gold sunk earlier in the week on fears central banks may have to move faster and harder with rate hikes to bring persistently high inflation under control. So far today gold is making tentative gains to be trading at around $1,820 an ounce and can be expected to hold onto those gains if the Fed keeps its hike within the 50 basis point move that has been priced in. Any move that exceeds that will cause gold to fall again while in the unlikely event of a smaller increase or indeed no hike at all, gold will be a beneficiary. Should a 75 basis point move land, then gold investors will be hoping that the psychologically important threshold of $1,800 an ounce holds firm as a failure to keep above that level would leave them looking frantically downwards fearing where the next support lies. 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 greenwashing 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

15/06/2022