Category: Gold

Expectations that the Federal Reserve will increase stimulus continue to grow, but that is a long-term bullish indicator. Gold futures are trading lower on Thursday as investors looking for safety, bid up the U.S. Dollar, driving down demand for the dollar-denominated asset. Traders are saying that the greenback regained last week’s upside momentum as optimism over a coronavirus vaccine eroded.

Fear that the surge in coronavirus cases in the United States would lead to more economic restrictions and threaten the recovery, also weighed on demand for gold. The biggest bearish influence on the metal, in my opinion, is the lack of progress toward a new fiscal stimulus package.

At 14:16 GMT, December gold futures are trading $1856.50, down $17.40 or -0.93%. The Dollar’s Safe-Haven Appeal

The dollar is up on Thursday against it rivals, benefiting from uncertainties over a spike in new coronavirus cases in the United States and resultant restrictions.Rising […]

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Several gold bars are shown being held in a hand. "The charts, as interpreted by Carolyn Boroden, suggest that gold prices could have a lot more room to run and that certainly fits with the current backdrop that we see in the news," CNBC’s Jim Cramer said.

Trading patterns in the gold futures are showing "exactly what you want to see in a chart," the "Mad Money" host said.

After reviewing chart analysis from Boroden, a commodities expert, he suggested that bullion, the SPDR Gold Shares, or GLD, exchange-traded fund and Barrick Gold are ripe for holding.

Investors may have an opportune time to start a position on gold or gold securities as the precious metal could be on an upswing, CNBC’s Jim Cramer said Tuesday.After reviewing chart analysis from Carolyn Boroden, a commodities expert and Fibonacci analyst, he suggested that bullion, the SPDR Gold Shares , or GLD, […]

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(Bloomberg) — Gold’s record-breaking bull market is facing an existential question after this month’s pharmaceutical breakthroughs: what happens to the rally once Covid-19 vaccines start rolling out?

Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation . And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.

For most of 2020, conditions could hardly have been better for gold, as the deluge of money printing, weaker dollar and global uncertainty spurred demand, driving up prices. Tumbling real U.S. Treasury rates sparked steeper gains in July and August, eventually sending spot gold to a record above […]

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Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here! ( Kitco News ) – Gold prices hit daily highs and are trading solidly higher in morning dealings Friday. The yellow metal started to move to higher levels on the day when U.S. Treasury Secretary Mnuchin was being interviewed on CNBC, trying to explain why the Trump administration would try to stop an emergency government lending program for American citizens, and not extend it into next year, even though there was funding for it. There are growing notions in the marketplace that Trump’s recent actions, including the aforementioned, are aimed at making life as miserable as possible for incoming President-Elect Joe Biden. Notions appear to be growing regarding just what Trump may do over the next two […]

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Summary

We are looking at a pretty dark winter in terms of any kind of economic activity.

One of the reasons we focus on gold is that gold is going to be a major beneficiary of the situation.

Governments are printing endless amounts of debt in terms of US dollars, thereby reducing the value of each dollar.This is a generational crisis, but it is also a generational opportunity. Looking for a portfolio of ideas like this one? Members of Mean Reversion Trading get exclusive access to our model portfolio. Get started today » Fundamentals We are looking at a pretty dark winter in terms of any kind of economic activity. Curfews are starting in California. New York schools are closed. It feels again like the first time in March when we were first hit by the pandemic. The markets reacted tremendously, dropping more than 1,000 points. The fundamentals appear to mirror […]

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Image: Bloomberg Gold’s record-breaking bull market is facing an existential question after this month’s pharmaceutical breakthroughs: what happens to the rally once Covid-19 vaccines start rolling out?

Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation. And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.

INSIDERGOLD

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.For most of 2020, conditions could hardly have been better for gold, as the deluge of money printing, weaker dollar and global uncertainty spurred demand, […]

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Summary

The mid-tier gold miners reported outstanding Q3 results. When adjusted for shufflings in GDXJ’s upper rankings, the mid-tiers’ gold output was stable despite ongoing challenges from COVID-19 mitigation.

They also held the line on production costs, doing far better than the majors. That combined with record-high average gold prices to make last quarter mid-tiers’ most profitable ever witnessed.

These sweet-spot gold miners have never been stronger fundamentally, with sales, profits, and operating-cash-flow generation soaring. And these super-bullish trends are continuing, as gold is staying high even while correcting.The mid-tier gold miners’ stocks are in this sector’s sweet spot for upside potential. After a spectacular run since March’s stock panic, they have been correcting since early August. That is doing its necessary work of rebalancing sentiment, paving the way for the next bull upleg. Higher prevailing gold prices have proven a huge fundamental windfall for mid-tiers, as their latest quarterly operating and […]

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The gold futures contract lost 0.66% on Thursday, as it further extended its short-term consolidation following last week’s Monday’s 5% sell-off. Gold sold off after global financial markets’ euphoria rally in reaction to Covid-19 Pfizer’s vaccine news release. The yellow metal has retraced all of its previous advance. It came back down to $1,850 price level, as we can see on the daily chart ( the chart includes today’s intraday data ):

Gold is 0.1% lower this morning, as it is trading along the bottom of a short-term consolidation. What about the other precious metals? Silver lost 1.64% on Thursday and today it is 0.4% higher. Platinum gained 0.06% and today it is 0.5% higher. Palladium lost 1.45% yesterday and today it’s 0.3% higher. So precious metals are mixed this morning .

Yesterday’s Unemployment Claims release has been worse than expected at 742,000. But the Philly Fed Manufacturing Index has been […]

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Gold futures are edging higher on Friday after counter-trend buyers came in to defend the low of its 10-day range. Nonetheless, the market is set to finish lower for a second consecutive week as promising COVID-19 vaccine trials and U.S. Treasury Secretary Steven Mnuchin’s call to end the Federal Reserve’s key pandemic lending program eroded the bullion’s safe-haven appeal to some.

At 12:31 GMT, December Comex gold futures are trading $1863.80, up $2.30 or +0.12%. COVID-19 Vaccine Pressure

Gold took a hit earlier in the week after Moderna became the second U.S. drugmaker to announce late-stage successful vaccine trials. This follows a similar announce from Pfizer early last week. In a follow-up move, the U.S. drugmaker said on Wednesday that it was set to apply for emergency U.S. authorization after final results from its vaccine trial showed a 95% success rate with two months of safety data. Federal Reserve Stands […]

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For most of 2020, conditions could hardly have been better for gold, as the deluge of money printing, weaker dollar and global uncertainty spurred demand, driving up prices. Credit: iStock Photo By Eddie Spence, Ranjeetha Pakiam and Yvonne Yue Li

Gold’s record-breaking bull market is facing an existential question after this month’s pharmaceutical breakthroughs: what happens to the rally once Covid-19 vaccines start rolling out?

Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a hedge against inflation. And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.

For most of 2020, conditions could hardly have been better for […]

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Gold faced a tough week as waves of liquidation occurred, with many participants from hedge funds to managed funds giving the precious metal the cold shoulder. Unfortunately, silver also saw the pressure while its sister metals copper and platinum took off like a rocket and left everyone else behind. The good news is that weakness coincides with a bullish seasonal trade setup in the second half of December that could spill over into a highly inflationary environment in 2021.

With 2021 around the corner, we are sending out a complimentary 2021 Futures Calendar & Reference Guide with a limited supply. The guide is your go-to resource for government & industry report dates, contract specifications, futures, and options expiration dates. *Available to U.S. residents only. You can request yours here: Blue Line Futures 2021 Pocket Calendar .

So why did so many people throw in the towel this week on gold and […]

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Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! (Kitco News) Is the gold market stuck in a zero-sum game as the positive vaccine news is balanced out by high levels of anxiety due to the surging coronavirus cases?

"Investors continue to reassess the risk of stricter containment measures against the optimistic prospects of a vaccine," said ING strategists. "This dichotomy may prove to be a zero-sum game for markets at the moment, and we could see risk sentiment face further stabilization as we head into Thursday’s Thanksgiving holiday in the U.S."

This week saw massive gold-backed ETF outflows, which weighed on the precious metal. But the market held its ground at the critical $1,850 an ounce level and managed to end the week on a slightly more positive note, […]

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Gold prices edged higher but remain rangebound. The US dollar moved higher along with US long-term yields but this did not impact the movement of the yellow metal. Gold implied volatility eased after rallying slightly on Thursday. JP Morgan is now forecasting that US growth will contract in the Q1 of 2021, as the virus continues to spread. Technical analysis

Gold prices edged higher but ran into resistance near the 10-day moving average at 1,875. For the week prices declined by 0.84%. Support is seen near the October lows at 1,850. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 17, below the oversold trigger level of 20, which could foreshadow a correction. Medium-term momentum is neutral to negative as the MACD (moving average convergence divergence) histogram prints in the red with a declining trajectory which […]

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Commodities in general, in fact…

JET REGRADE – the relative strength of jet fuel prices versus diesel – looks primed for a bull market in 2021 as flight demand continues to increase, according to Goldman Sachs, writes Frank Holmes at US Global Investor .

By next summer, jet fuel demand is expected to be higher by 3.9 million barrels per day than where it stands right now.

Among other commodities that could also surge next year, the investment bank says, are silver, copper, gold, natural gas and Brent crude oil.In a note to clients, Goldman analysts cited a weaker Dollar, inflation and additional monetary and fiscal stimulus as reasons for a potential rally in commodity prices. A 12-month return of 30% is forecast for the S&P GSCI, which tracks 24 commodities from all commodity sectors. Industrial metals, including copper, could increase 5.5%; precious metals, 18%; and energy, more than […]

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(Image via EnviroLeach Technologies Inc.) New technology is emerging as a potential standard to address two market sectors totaling $193 billion, through eco-friendly methods for the hydrometallurgical extraction of precious metals ….

Pioneered by EnviroLeach Technologies Inc. ( CSE: ETI , OTCQB: EVLLF , Forum ) , this innovation treats materials in the primary and secondary metals sectors. Using its proprietary non-cyanide, water-based, neutral pH treatment process, the Company extracts precious metals from ores, concentrates, and E-waste.

The Gold mining sector is dominated by the use of cyanide and smelting as the leading extraction methods.

Cyanide’s toxicity creates a significant environmental risk for mine operators and local communities. Smelting is predominantly used to process gold concentrates today but is an off-site process that delays payment for the miners and causes extensive CO2 emissions. EnviroLeach’s technology provides an effective and cost-competitive alternative to these methods in a world where attitudes to sustainability are […]

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Gold has had an amazing run in 2020, but as the year winds down, will those price increases crumble to dust? Or will they feed into gains for the bears via the Direxion Daily Gold Miners Index Bear 2X Shares (DUST) .

DUST seeks daily investment results before fees and expenses of 200% of the inverse of the daily performance of the NYSE Arca Gold Miners Index. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund’s net assets.

The index is a modified market capitalization weighted index comprised of publicly traded companies that operate globally in both developed and emerging markets, and are involved primarily in mining for gold and, to a lesser extent, silver.

The bulls have obviously been winning the majority of the war versus […]

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The phrase “the gold standard” means, in common parlance, the best available benchmark – as in double-blind randomized trials are the gold standard for determining the efficacy of a vaccine.

Its meaning likely comes from my world of economics and refers to what was once the centerpiece of the international monetary system , when the value of most major currencies, including the U.S. dollar, was based on the price of gold.

Some economists and others , including President Donald Trump and his Federal Reserve Board of Governors nominee Judy Shelton , favor a return to the gold standard because it would impose new rules and “discipline” on a central bank they view as too powerful and whose actions they consider flawed.

This is among several reasons Shelton’s nomination is controversial in the Senate, which voted against confirming her on Nov. 17 – though her Republican supporters may have an opportunity to […]

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Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here! (Kitco News) Gold’s path to new record highs is still intact despite November’s disappointing price action, said OANDA senior market analyst Edward Moya, who is looking towards the $2,300 an ounce price target during the first half of 2021.

Positive vaccine news triggered a selloff in the precious metals space as investors start to price in a stronger economic recovery, Moya told Kitco News on Wednesday.

"Gold has been a very difficult trade in the sense of explaining some of these daily moves. The main driver for people has been that safe haven play. We saw all these vaccine announcements these past two Mondays, which are just great news for the hope that we’re turning the corner," Moya said. "That really […]

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LONDON (Reuters) – Investors stormed into riskier assets last week, pumping $27 billion into equity funds as positive COVID-19 vaccine updates led to euphoric buying of shares in worst-hit sectors such as banks, travel and leisure, and oil, BofA said on Friday.

Citing data from EPFR, the bank said inflows into global stocks in the last two weeks soared to $71.4 billion, the biggest ever. The flows were led by U.S. and emerging market stocks.

Still, investors were not ready to pull the plug on high-flying technology stocks, which saw $2.4 billion inflows last week. BofA said the feedback was “we’re on it (the rotation to value stocks), but we ain’t selling tech”.

Value stocks, typically companies that are more sensitive to economic cycles, have been soaring since Pfizer’s announcement earlier this month of positive data from its vaccine trial, raising hopes of an economic recovery.BofA said it expected 2021 to be […]

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Gold takes a leg higher to end the week On Thursday, Senate Minority Leader Chuck Schumer, D-NY., said Majority Leader Mitch McConnell, R-Ky., had agreed to restart negotiations over a new coronavirus aid relief package. Up to now, Republicans and Democrats were disputing the size and scope of a potential aid bill.

It isn’t clear if discussions will restart in earnest but commodity investors may find the recent reports sufficient reason to buy gold on the back of more funds being expended by governments to limit the harm from the spread of the deadly pathogen.

“Gold pared losses following Schumer’s stimulus restart announcement. If stimulus negotiations continue to head in the right direction, gold should start to rally again,” wrote Edward Moya, senior market analyst at Oanda, in a research note.

Precious metals have been facing some headwinds, lately, as news on successful therapies and potential cures have served to undercut appetite […]

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A senior executive at BlockRock, the world’s largest asset manager, admits that Bitcoin ( BTC ) has become a permanent fixture in the global financial system, offering yet another tangible sign that the narrative surrounding digital currency has changed.

Rick Rieder, BlackRock’s CIO of Fixed Income, told CNBC on Friday that, “Bitcoin is here to stay.”

While conceding that he is not a Bitcoin bull, Rieder said the flagship currency “will take the place of gold to a large extent [because] it is so more functional than passing a bar of gold around.”

Bitcoin is sometimes referred to as “digital gold” for its unique store-of-value characteristics. Bitcoin’s most ardent proponents believe that it will eventually take a sizable portion of gold’s market cap as more investors realize its utility.Priced in gold, 1 Bitcoin is currently worth 9.961 ounces. Bitcoin priced in gold via buybitcoinworldwide.com 2020 could go down as the year that […]

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Summary

The role of insurance in dealing with the Covid-19 fallout has been underrated.

Not all nations have the same flexibility to take on debt, and that may turn to their advantage as inflation ramps up.

Some emerging economies have resorted to selling gold to help fund fiscal shortfalls.We should all look to gold as the ultimate way of self-insuring.Bailouts and stimulus are not the best solution to the Covid pandemic.What is? Insurance, perhaps.I know it’s far from perfect, but I think it could still be the best overall option.On some level, it’s surprising that the role of insurance has gotten so little attention in this crisis.After all, us and future generations will have to pay for all these massive bailouts.Of course, most of that responsibility has fallen on government so far.Some have resorted to printing, while others have turned to selling a portion of their gold reserves.In my view, that points […]

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watch now

It may soon be safe to buy gold .

That’s according to Mark Newton, founder of Newton Advisors, who says the precious metal could be a buy on a pullback.

“On the intermediate term basis, the charts look pretty compelling.” Newton said on CNBC’s “ Trading Nation ” on Thursday. “The weekly trend still looks quite bullish, and one would want to really buy into any sort of pullback we see over the next month.”Gold fell below $1,865 on Thursday despite a bullish note from Citi. Analysts forecast an average price of $2,500 next year as part of their bull case for gold. Newton says the time is coming to dip into the safe-haven asset.“We did move back to all-time high territory over the last two years. We moved from August of 2018 into August of this past year. … I’m looking at about $100 lower, $1,750 down to $1,650, […]

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Gold lacked any firm directional bias and was seen oscillating in a range around $1865 region.

This week’s sustained breakthrough an upward sloping trend-channel favours bearish traders.

Attempted recovery might be seen as a selling opportunity and remain capped near $1900 mark.

Gold extended its sideways consolidative price action through the mid-European session and remained confined in a narrow trading band, around the $1865 region.The precious metal’s inability to gain any meaningful traction comes on the back of this week’s break below a short-term ascending trend-channel, which constituted the formation of a bearish flag pattern. Meanwhile, technical indicators on the daily chart maintained their bearish bias and are still far from being in the oversold territory, adding credence to the negative set-up.That said, bearish traders might still wait for some follow-through selling below the $1850-48 strong horizontal support before positioning for any further depreciating move. The […]

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