Gold News

Gold Recovers Some of its Losses From Challenging Month on Signs of Less Aggressive Fed

On the last trading day of July, gold looks set to end a challenging month on a positive note as signs that the Federal Reserve may be less aggressive with its future interest rate hikes have allowed the precious metal to recover some of the month’s losses. While the US central bank did confirm market expectations with another 75 basis points increase in its benchmark rate earlier in the week, some of the rhetoric that supported the announcement was interpreted as the Fed being less likely to make such large moves going forward. The fact that gold has been able to gain so much since the Fed’s announcement, with the price gaining about $40 an ounce to around $1,760, shows there is still significant support for the haven asset as talk of a recession in the US and other countries intensifies. How much further gold can recover will largely be determined by the same two factors that pushed it down earlier in the month: the strength of the US dollar and the actions of the Fed, both in terms of comments by central bank officials and the actual interest rate moves themselves. With markets still remaining very jittery, it has often been words that have spooked or emboldened investors and traders, more so than the final action which has often been priced in by the time the move arrives. 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

29/07/2022

Gold Stable at Around $1,720 Ahead of Federal Reserve’s Latest Interest Rate Decision

Gold is holding around $1,720 an ounce, illustrating that this is the natural threshold for the precious metal having stabilised in the region after a brutal plunge earlier in the month. How long gold continues to hold around its current levels after this short-term stabilisation will be largely defined by the market reaction to the Federal Reserve’s latest interest rate decision later today. As the overwhelming expectation is for the Fed to implement a second consecutive 75-basis point hike, the likelihood that after an initial period of volatility immediately following the announcement, prices across the majority of markets will largely settle back to where they are now with the news long-since priced in. The concern for gold investors will be that a similar scenario was in play at the start of this month yet that didn’t prove sufficient to prevent a drop of $100 in a matter of days. The counter-argument is that with gold a natural hedge against inflation, the war in Ukraine showing no sign of easing and fears over a recession, there is a strong enough support at gold’s current price to ensure it holds above $1,700 later today. 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

27/07/2022

Gold Confirms Signs of Stabilisation but How Long That Lasts is Down to Fed’s Latest Move

Gold is starting a new week by confirming the signs of stabilisation seen at the end of last week with it continuing to trade in the mid $1,720s an ounce. How long this period of stabilisation lasts will be down to the market reaction to the Federal Reserve’s latest interest rate announcement on Wednesday. By now a 75 basis point hike seems all but certain so while there is bound to be an immediate price move following the release of the figure, the hope for gold investors will be that the move has already been priced in and that the gold price can hold around its current levels. Live Gold Price – $/oz July has proven to be a tough month for gold with the dual pressures of rising interest rates reducing gold’s appeal due to its lack of yield. In particular the hawkish policies of the Fed have resulted in the US dollar strengthening to near record levels which has increased the negative environment for gold given its typically inverse correlation with the greenback. The final week of July brings the prospect of further pain still with the Fed’s latest decision but if gold can survive the week largely intact, then the hope will be that inflation figures will finally show signs of having peaked and therefore the central banks can tone down the aggressiveness of their actions, giving gold breathing space over the course of the second half of the year 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

25/07/2022

Gold Looks to Be Stabilising Around $1,720 As Markets Look Ahead to Fed Hike Next Week

Gold is little changed so far on Friday as traders digest the week’s events and look ahead to next week’s interest rate decision by the Federal Reserve. Yesterday saw the European Central Bank finally join the hiking party by raising its benchmark rate by 50 basis points, which was double the anticipated move. This saw the euro strengthen against the dollar and provided slight relief for all those commodities priced in dollars, including gold. Live Gold Price – $/oz The fact the ECB was forced into a relatively large move highlights the size of the task central banks are facing as they try and bring ever-escalating inflation under control. Next week is likely to see the Federal Reserve implement its second successive hike of 75 basis points but with this now long-trailed, it would take a move that surpasses expectations to materially move markets. Having endured a difficult July in which its price has plunged from above $1,800 an ounce to now be languishing around $1,720 an ounce, gold looks to have settled into this new level. On the upside, it is hard to see gold making sizeable gains given the backdrop of ever-rising interest rates globally, while support remains for gold as a haven asset given the market jitters about a looming recession as well as the ongoing war in Ukraine. 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

22/07/2022

Gold Just About Holds Above $1,700 Despite Fresh Pain from UK Inflation Data

Gold is just about holding above $1,700 an ounce after the latest UK inflation data showed consumer prices are continuing to rise at their fastest pace in 40 years. This persistently high inflation across the world is forcing central banks to increase interest rates on a monthly basis with the Federal Reserve set to implement another 75 basis point move when it meets next week while the Bank of England is mulling a 50 basis point hike. This environment of rising interest rates puts gold under pressure as its lack of yield makes it less attractive than those assets paying interest such as bonds. Live Gold Price – $/oz It was only a few weeks ago that gold was looking to $1,800 an ounce as a key support but such has been its fall from grace that $1,800 looks a distant memory with investors now hoping that there is stronger resistance at $1,700 to prevent further slides. The hope will be that with the next moves by central banks now heavily expected and therefore priced in, the Fed’s likely 75 basis point hike next week won’t prove the negative catalyst to force gold below $1,700 and there remains sufficient support from factors such as rising inflation itself, concerns over economic growth and the continuing war in Ukraine to prevent further falls for gold. 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

20/07/2022

Dollar’s Dip From Record High Gives Gold Light Relief as Fed Hike Expectations Dim

A slight weakening in the dollar has given gold the opportunity to recover some of the ground it lost last week and be trading comfortably above $1,700 an ounce at around $1,720. More cautious comments from Federal Reserve officials have dialled back expectations that the US central bank will hike interest rates by 100 basis points when the committee meets at the end of this month. Some hawkish comments by other Fed committee members had proven the catalyst for gold to sink to its lowest level in 11 months as well as register its fifth consecutive week of declines.  Live Gold Price – $/oz However, with a 75 basis point move now looking likelier, the US dollar has weakened slightly from the record it hit last week, providing relief across equity and commodity markets. Nonetheless a strong dollar allied by central banks seeking to continue increasing interest rates presents a challenging environment for gold to make much headway and after the dramatic plunges of recent weeks, it is hard to see how the precious metal can gain sufficient momentum to climb back above $1,800 an ounce. 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

18/07/2022