Gold struggled to hold the $1,262-65 major support band yesterday, but overnight the stronger dollar proved enough to snap the two-month level. Selling accelerated on the break as technical traders jumped on board. We are under a week away from the Fed meeting in which a 0.25-point increase is baked into the market. The question is whether this weakness in gold is an image of the December 2015 and 2016 charts, where the metals began significant rallies after the rate-increase announcement, or if we are in a different paradigm this time around.

The $1,250 level is the next solid support line, with a break here suggesting a move as low as $1,237 initially. The gold price needs to recapture $1,262 on a close basis to stop the bleeding. The gold price has been unable to rally despite a downward-trending U.S. dollar, gold hasn’t mustered so much as a rally effort in over a week.

Although gold has held above its October low of $1,267 after posting its narrowest monthly range in 12 years in November, it broke lower and challenged that level on Tuesday. Bullion has risen 10 percent in the year to date, but its price momentum has stalled in the second half as global equities have commanded most of investors’ attention, along with alternative assets such as bitcoin. A diminution of geopolitical and U.S. economic uncertainties in recent months has also contributed to gold losing its luster

 

Source:

seekingalpha

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Last November, gold was on the verge of staging a major turnaround after Donald Trump won his bid for the U.S. presidency. During the Tuesday election night, gold spiked above $1,300 per ounce for the first time in eight months, while risk assets like stocks sold off. However, after that panicked reaction gold reversed course. By Friday of that same week, gold futures were down by 2.4%, or $30.90 an ounce, to $1,235.Read More

 

Gold prices rose Friday, finding support from some weakness in the U.S. dollar, but the precious metal posted a loss for the week as traders are still expecting a Federal Reserve interest-rate hike before the end of the year. Bullion steadied at $1,268.41 an ounce on Friday, after falling to a two-month low on Thursday.Prices have slumped 6% since early September

The jobs report, which included a mixed bag of revisions to recent months’ data and signs of rising wages, wasn’t seen derailing the Federal Reserve from a gold-negative interest-rate hike later this year, but Dallas Fed President Robert Kaplan said Friday that he remains undecided over whether to support a rate increase in December.

The U.S. economy lost 33,000 jobs in September, marking the first decline since 2010, as hiring and employment in September were stunted by hurricanes Harvey and Irma. The unemployment rate fell to 4.2% from 4.4% and hit the lowest level since December 2000.

The jobless rate wasn’t affected by the storms, the government said. Gold traders have been on the defensive as the dollar hit there highest level since mid-August. This development has been driven by the very robust U.S. economic data released in recent days, which have caused the Fed rate increase expectations to pick up, said Carsten Fritsch and the commodities analysts at Commerzbank in a commentary.

 

Sources:

Market Watch. .

Kitco

Gold Seek.

Gold prices where under pressure last week before Chair Yellen and ECB President Mario Draghi’s speeches in Jackson Hole. But as Chair Yellen began speaking, the Dollar started to drop again. The following Monday morning, shortly after the open of the U.S. session, Gold prices broke through $1,300 and didn’t pause until we set a fresh nine-month high around the $1,325-handle.

The dollar index slid as much as 0.49 per cent to 91.759, the lowest level since January 2015, according to Reuters data. Tuesday’s falls bring the index’s drop this year to 10.2 per cent.

 Gold markets gapped higher at the open on Tuesday, and then shot towards the $1325 level. We pulled back since then but it seems as if we are finding support, and believe is that the gold market is going to continue to the upside. There are far too many risks geopolitically at the moment to think that gold is going to start to pull back. The $1350 level above offers a psychological barrier, but it shouldn’t be as much trouble as the $1300 level was recently.

 

 

 

sources: Reuters

               MarketWatch

 

Gold is on pace for its best month since February, rising nearly 2 percent in July as the U.S. dollar weakens.

Gold prices on Monday held around their highest in nearly seven weeks as tensions on the Korean peninsula boosted safe-haven demand for the metal and as the US dollar hovered close to multi-month lows.

Spot gold hit its highest since June 14 at $1,270.98 in early trade, but was down 0.1 per cent at $1,267.93 per ounce. It gained about 1.1 per cent last week in its third consecutive weekly gain.

The dollar struggled on Monday, hitting near a 2-1/2-year low against the euro, weighed down by US political uncertainty and added doubts about whether there will be another Federal Reserve rate hike this year. Spot gold may break resistance at $1,271 per ounce and rise towards the next resistance level at $1,277, according to Reuters technical analyst Wang Tao.

 

sources : Economic times

                Reuters

                Gold Seek

 

 

 

Silver prices crashed Friday, following the better-than-expected U.S. jobs report. Prices fell to their lowest level in over a year with silver/SLV trading down by as much as 4% intraday, closing lower by more than 2.5%, bringing the total decline to 13.4% since the highs reached in early May.

Gold has been on a similar decline, falling in each of the last eight days. The commodity is down 2.51% over the last week and is currently trading around $1210.30.

Silver’s discount to gold has widened by the most in over a year. The gold/silver ratio used by investors to buy and sell precious metals closed at 78.63 on Friday. That represents a gain of 7.2% over the past 30 days.

Usually when there is blood in the streets, things always look scary and feel like the world you are trading in is falling apart. Nevertheless, those who buy at such times make money.

 

 

 

Base metals prices on the London Metal Exchange are split this morning, Monday June 12, with copper, aluminium, lead and zinc prices down between 0.2% and 0.5% – copper prices are off 0.5% at $5,801 per tonne – while tin and nickel prices are up 0.6% and 0.2%, respectivelyRead More

 

 

Gold has posted strong gains in the Wednesday session, as the metal trades at 2-week highs. Currently, spot gold is trading at $1256.32 in the North American session.

On Thursday, there are two key events – unemployment claims and the Philly Fed Manufacturing Index.

Weak US numbers since last week have also contributed to higher gold prices, as the US economy has slowed in 2017. On Tuesday, construction data was softer than expected. Building Permits dropped to 1.23 million, short of the forecast of 1.26 million. The news wasn’t any better from Housing Starts, which slipped to 1.17 million, compared to the estimate of 1.26 million. This marked the smallest number of housing starts since November 2016. Despite the weak numbers, demand for housing remains high, fueled by a labor market that is close to capacity and an unemployment of just 4.4 percent.

 

 

sources: dailyforex.com

Silver prices were trading near five-month lows Thursday after the Federal Reserve signaled gradual interest rate rises were par for the course despite an apparent slowdown in economic momentumRead More