Market Analysis

Keep up to date with the latest news in the global financial market, gold, silver and macroeconomic data analysis and information, prepared for Kinesis by leading precious metals market analysts. Your in-depth insight into the world of investing, trading and managing your gold and silver capital. Keep track of the current gold and silver price movements on the exchange, the short-term and long-term physical gold price predictions and most up-to-date price charts with explanation, updated every Monday, Wednesday and Friday. Save, trade and invest your gold and silver with Kinesis.

Silver Enjoys Rare Day of Optimism as Markets Rebalance After Last Week’s Sell-Off

Silver investors can for a change look at the charts with a hint of optimism with the metal trading in green territory above $21 an ounce. In fact, the bulk of equities and commodities are pointing upwards at the start of a new week of trading with the recent sell-offs deemed overly aggressive with some rebalancing of levels required. Live Silver Price - $/oz Silver’s slump has mainly been a result of central banks, in particular the Federal Reserve, tightening their monetary policies in recent months by winding in stimulus packages and increasing interest rates. Yet today’s brief pause for reflection on the true state of the markets is a reminder that silver has been meted some particularly harsh treatment by traders. Later this week the heads of the European Central Bank, the Bank of England and the Fed will all be speaking so silver holders will be fearful of any indication that even more aggressive policies may be required to curb runaway inflation. So while silver’s tentative gains today are long overdue given the medium-term outlook for the metal that still points to ever-increasing industrial demand, the heavy cloud of further interest rate hikes continues to overshadow the metal’s prospects. 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

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

Silver Struggles to Hold on to $21 as Likelihood of More Rate Hikes Diminishes Appeal

Silver is hovering around $21 an ounce having dipped under the threshold earlier in Friday’s trading session. The latest downward price pressure for silver came from Federal Reserve Chair’s Jerome Powell’s comments this week in which he made clear that the central bank is determined to bring runaway inflation back under control and will keep on raising interest rates in order to do so. Another 75 basis point move seems near-certain in July with further hikes expected over the coming months.  Live Silver Price - $/oz It was the prospect of central banks needing to adopt more hawkish monetary policies that sparked silver’s initial price plunge back in mid-April. From that point on the precious metal has struggled to find any support with the metal now trading close to its lowest in almost two years. Rising interest rates make non-yield-bearing assets such as physical silver less attractive with silver’s fall from grace exacerbated by concerns over inflation turning into a global recession, diminishing the metal’s industrial appeal. It has been a sorry ride for silver holders over the last two months and the pain may not be over yet.  For those brave enough to look over the short-term horizon however, the fundamental case still remains strong in the medium-term with physical demand for the metal likely to reach a fresh record high this 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 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

Silver Slips Close to $21 as Recession Fears Allied to Interest Rate Hikes Dwindle its Appeal

Silver has slipped closer to $21 an ounce amid another down day for stock markets as fears mount that runaway inflation will tip over into a global recession as central banks face the unenviable task of curbing rising prices without choking economic activity. The metal has fallen out of favour among investors with every negative driver leapt on to prompt often exacerbated declines for silver. Take today for example: risk-off sentiment typically sees haven assets such as gold and silver benefit, yet the broader concern that interest rates will need to keep on rising has denuded these potential gains. However, while gold is down about 0.4%, silver has been hit with a 1.8% plunge currently. Live Silver Price - $/oz While this reflects the reduced trading volumes of silver versus gold that do leave silver more prone to sharper and more volatile moves, it also demonstrates the willingness of investors to kick the boot in against the metal. The prospect, and indeed the reality, of rising interest rates are undoubtedly detrimental for the appeal of the non-yield bearing asset of silver while economic slowdown will also reduce the metal’s industrial appeal. However, given the metal derives a lot of its industrial demand from two of the key sectors of our time: batteries for electric vehicles and photovoltaics for solar energy; the negative case for silver looks to be overplayed and in the medium-term the metal has plenty of potential to return to the $27 an ounce level seen as recently as March. 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 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