Gold, silver weaker amid surging U S. Treasury yields

What does history’s tendency to rhyme tell us – gold investors – right now? That’s we should brace ourselves for more turmoil this year, as soaring USD Index and declining stocks don’t bode well for gold price’s outlook. And in particular, the above combination is likely to drive junior mining stocks lower. Speaking of stocks, please take a look at what happened in them yesterday and what’s happening in the S&P 500 futures in today’s pre-market trading. One of the things that indicated that decline was silver’s outperformance – this indication rarely fails to deliver.

Parry spoke to Kitco at the Rule Symposium Natural Resource Investing 2023 show held in Boca Raton, Florida. However, the London Gold Fix shut down in 2015 and the responsibility for maintaining the process fell to the LBMA, which created the LBMA Gold Price on March 2015. The association shifted the price matching mechanism from a physical auction to an open
electronic auction among its members.

WHAT MOVES THE GOLD MARKET?

The use of revolving credit decreased by $605.4 million, marking a 0.6% drop, the first monthly drop since April 2021. Despite this downturn in revolving credit usage, the report by the Federal Reserve noted that most consumers’ payments remained up to date. In the past year, the reduced water levels significantly affected the economy, with losses amounting to around $20 billion.

It’s surprising for those, who are new to the silver market, but it’s true – the white metal tends to fake strength relative to gold right before the entire sector turns south. Gold coins, by industry definition, are struck and guaranteed by a sovereign government gold mint. Having a good idea, beforehand, where the buy and sell stops are located can give an active trader a better idea regarding at what price level buying or selling pressure will become intensified in that market. Asian and European stock markets were mostly lower in overnight trading. The lone voice of pessimism among market analysts this week was Kitco’s own Jim Wyckoff, who said he sees enough evidence to expect gold prices to fall next week. Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, also expects gold to post gains in the coming days.

Why gold, silver and precious metals?

Lower imports meanwhile highlighted the lacklustre domestic Chinese picture. Aug 8 (Reuters) – China’s unexpectedly poor export performance as revealed on Tuesday is still largely down to wider economic headwinds. But underlying trade and investment trends point to an unmistakable long-term drift in commercial ties with the West. Some 80 House Democrats have urged the Securities and Exchange Commission (SEC) Chairman, Gary Gensler, to finalize a climate-reporting rule requiring public companies to disclose climate-related risks.

Eight of them, or 53%, said they expect to see higher prices for gold next week, while six analysts, or 40%, had a neutral outlook. Only one analyst predicted lower prices for the precious metal over the next seven days, representing 7% of the total. Virtually all 24k gold bar prices are influenced by the world’s fluctuating spot gold price. Credit ratings agency Moody’s has downgraded the credit ratings of numerous small and mid-sized U.S. banks due to mounting concerns regarding the U.S. banking sector. Major lenders, including Bank of New York Mellon, U.S. Bancorp, State Street, Truist Financial, Cullen/Frost Bankers, and Northern Trust, have also been placed under review with the potential for future downgrades.

Transactions for bullion coins are almost always priced using the spot price as a basis. The spot gold market is trading very close to 24 hours a day as there is almost always a location
somewhere in the world that is actively taking orders for gold transactions. New York, London, Sydney, Hong Kong, Tokyo, and Zurich are where most of the trading activity takes place. Whenever bullion dealers in any of these cities are active, we
indicate this on our website with the message “Spot Market is Open”. For the high and low values, we are showing the lowest bid and the highest ask of the day. Especially since the financial crisis of 2008, the trend of online gold dealers selling gold bars and gold bullion coins to the investing public has increased dramatically.

Gold Ratios

Gold futures are used both as a way for gold producers and market makers to
hedge their products against fluctuations in the market, and as a way for speculators to make money off of those same movements in the market. Kitco offers multiple non-bank gold vault options all of which are fully insured, segregated, and would have your allocated gold bars recorded as your direct property at all times. It has indeed become quite common for investors to buy gold bars in order to better diversify risks to their wealth and investment portfolios. For example the Royal Canadian Mint strikes all gold bar sizes ranging from small 1 oz Gold Bars, a handheld Kilo Gold Bar, and large low premium gold products like the lowest price gold bullion per ounce 400 oz Gold Bars. Official data showed a 14.5% drop in July exports amid weak consumer demand in the world markets served by China – the fastest decline since the pandemic hit in 2020.

Since the start of the 20th century, the U.S. dollar has been the
dominant reserve currency around the world. The Kitco Gold Index (KGX) is an exclusive feature that calculates the relative worth of one ounce of gold by removing the impact of the value of the U.S. dollar index. Dollars, but
rather in terms of the same weighted basket of currencies that determine the US Dollar Index®. The gold futures market is one of a number of commodity futures, wherein contracts are entered into, agreeing to buy or sell gold at a certain price at a specified future date.

Gold, Currency & Market Charts

China imported 4.49 MMT of meat in the first seven months of the year, up 9.5% from the same period last year. The Army Corps of Engineers has started regulating the water levels, and maintaining the depth of the waterway and ports. They’re conducting dredges to ensure that the water channels and harbors remain sufficiently deep to permit the smooth operation of transit.

• Adam Cochran of Cinneamhain Ventures related the selloff of the USDT stablecoin over the weekend to the news about Huobi.
• There has been a significant 21% increase in crude oil prices over the last six weeks.
• There is usually a difference between the spot price of gold and the future price.
• While gold is mostly quoted in ounces per U.S. dollar, OTC markets in other
  countries also offer other weight options.
• Kitco offers multiple non-bank gold vault options all of which are fully insured, segregated, and would have your allocated gold bars recorded as your direct property at all times.

Shortly afterward, a spokesperson for Huobi responded to Cochran’s post with denials of all the reports, leading to an awkward exchange for the exchange. As campaigning for elections next year in United States and Taiwan gets going, U.S. foreign policy could turn more hawkish, Oxford Economics’ Loo noted of a further development that could weigh further on China’s trading outlook. “That is more of a geopolitical story because of the regulatory environment, because of what is happening on the supply chain side,” she added of regulatory crackdowns on some sectors that have unnerved potential investors. But the longer-term direction of travel emerges more clearly as you pan out from the monthly trade headline. Ukrainian officials have reported thwarting an alleged attempt on President Volodymyr Zelenskyy’s life, contending that the potential assassination was orchestrated by Russia.

Live Palladium Price

The move lower in the USD Index just made this task harder for the Fed as the U.S.-produced good just got much cheaper for foreign buyers. “December gold is in position to complete a bullish key reversal on its daily chart, confirming the short-term trend has turned up,” Newsom said. It can be difficult kitco gold chart 3 day to predict the next major rally in gold as it is strongly driven by sentiment. Gold does well in period of high uncertainty, a shifting inflationary environment and during periods of currency debasement; however, historically, there
have been high and low seasonal period in the gold market.

The process was carried over to the British Empire where one pound sterling was worth one
troy pound of silver. Because there is no official closing or opening price for gold or silver, market participants rely on benchmark prices, set during different times of the day by different organizations. Hedgers use these contracts as a way to manage their price risk on an expected purchase or sale of the physical metal. They also provide speculators with an opportunity to participate in the markets by lodging exchange required margin.

QE has risks including increasing inflation if too much money is created to purchase assets, or can fail if the money provided by central bankers to commercial banks doesn’t trickle down to businesses or the average consumer. While you can buy gold in any currency in the world, it is important to realize that ultimately everything is based on the value of the U.S. dollar. Given that the U.S. is the world’s biggest economy and one of the most stable, the dollar has become a
reserve currency, meaning that it is held in significant quantities by other governments and major institutions.

Finding trusted local or online gold coin dealers who promptly deliver quality gold coins and bullion bars at fair and reasonable prices can be difficult. There is usually a difference between the spot price of gold and the future price. The future price, which we also display on this page, is used for futures contracts and represents the price to be paid on the date of a delivery of gold in the future. The difference is determined by the number of days to the delivery contract date, prevailing interest rates, and the strength of the market demand for immediate physical delivery.

Yes, the economic / geopolitical situation is not the same as it was in April 2023 or in mid-2022, but it doesn’t matter. This is the key part, because missed expectations trigger similar emotions regardless of the statistics themselves. Featuring views and opinions written by market professionals, not staff journalists. Stanley said this week was another bear trap, and he doesn’t see gold ready for a larger breakdown just yet. “USD was really strong and there was an open door for bears, but they didn’t walk through it so I have to think the breakdown theme isn’t here yet,” he said. “The 1980 area is still key, so if we see a lower-high inside of that next week, the bearish case will grow a bit more attractive.”

Some argue the Fitch news is just an excuse for the U.S. stock indexes to see downside corrections after recent good gains. As for rising bond yields this week, the Treasury yields have actually been trending higher (prices lower) since March. JP Morgan chief Jamie Dimon, when asked about the significance of the Fitch credit downgrade to the U.S., replied that it did not mean much and that the true judge of U.S. creditworthiness is the markets.

• This is the key part, because missed expectations trigger similar emotions regardless of the statistics themselves.
• China doesn’t break down meat imports by category, though the increase was driven by stronger pork arrivals.
• Since 1977, Kitco Metals Inc. has been a leader in the precious metals industry.
• The difference between the spot price and the future price, when expressed as an annual percentage rate is known as the “forward rate”.
• When the ratio is high, it is widely thought that silver is the favored metal.

That was also the case recently, and the current decline is in perfect tune with what we already saw. Because they moved lower substantially yesterday, while stocks moved lower just a little. So, if stocks are going to move lower in a really significant manner (and it’s likely to happen either very soon or soon, anyway), then miners are likely to truly plunge. Marc Chandler, Managing Director at Bannockburn Global Forex, also sees upside potential for the yellow metal. Craig Parry, co-founder of Inventa Capital, said the current malaise in the junior resource sector is comparable to the period right before the last boom in 2010. The trigger then was a spate of mergers and acquisitions (M&A) and he sees the same thing starting now.