Precious Metals market
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Gold analysis: Precious metals, stocks climb as yields and dollar drop
Gold was up nearly 1.3% by late afternoon trading in London, near $2040 while silver was closing in on the $25.00 level. The precious metals have been supported by two factors: Bond yields and US dollar, both falling.
Gold and silver analysis: Silver looks set to resume rally?
Gold and silver should remain supported on the dips amid peak interest rates narrative, with the latter likely to be more active given that we are in a positive market environment with stocks also rising.
Gold and silver analysis: US CPI sends dollar and yields sharply lower - Technical Tuesday
US inflation turned out to be weaker than expected on both the headline and core fronts, and the market’s response was a swift one. We saw gold and silver rise, as yields and the dollar dropped, while index futures jumped with the pace of the rally gaining further momentum once the cash markets opened on Wall Street.
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Gold analysis: Metal extends drop to test key support
Markets have been very quiet in the last couple of days, with the lack of any major data causing stocks to drift higher, extending their recent trend, while the dollar has drifted back higher following last week’s data-driven sell-off. As a result, gold and silver have weakened so far this week. But are we now going to see a recovery?
Gold analysis: Is silver about to outperform gold?
Precious metals prices have weakened over the last couple of weeks, following gold’s impressive +7% gains in October, and silver’s not-so-impressive 3% rise. Last month’s gains for gold were mostly driven by safe-haven demand as the flare up in the Middle East conflict saw investors rush out of risk-sensitive assets.
Gold falters around $2,000, although seasonality could be on its side
Gold enjoyed its best month in seven in October, with its 7.3% rise forming a clear bullish engulfing candle and was its third best month of the year. Whether it can extend its rally and make a run for a new record high remains to be seen, but we have seen gold failed around the $2075 highs three times since 2020. What would be so different this time?
Gold analysis: precious metals extend rally on Middle East jitters
Precious metals have stood out in the past two weeks and today saw gold hit levels last seen in May and silver reached its best level since September. The yellow metal was about $7 shy of the $2K mark at the time of writing. With gold breaking above the July high of $1987, the key question is can it hold above here, or do we quickly go back below it?
Gold outlook: Has the metal run too far too fast?
Gold and silver continued their fine form on Tuesday, with the yellow metal adding another 1.8% to its recent gains. At nearly $1960, gold is now at its best level since late August. But is the good run of form about to end?
Gold, Silver analysis: Metals extend recovery ahead of US CPI
Thanks to the recent drop in bond yields and the dollar, both gold and silver are continuing to make back lost ground. The metals have been further supported by raised geopolitical risks, highlighted by gold’s breakaway gap at this week’s Asian open. The focus will remain on the dollar and yields with the release of key US inflation data today.
Gold analysis: Has gold formed a low?
The return of firmer risk appetite meant that safe haven gold would lose some of its shine today. With stocks higher, gold has taken a back seat. But despite being flattish on the session, that weekend gap on gold remains open. In other words, gold is still comfortably higher than Friday’s close. More gains could be on the way for gold for as long as geopolitical risks remain elevated and if the upcoming US macro pointers trigger fresh selling in the dollar.
Gold analysis: Metal rises despite NFP beat
Gold initially fell in reaction to a stronger nonfarm payrolls data, but it then bounced off its lows equally sharply to trade in the positive territory at the time of writing. The dollar was also easing back down, after rising sharply across the board when the data was released.
Gold analysis: Metal poised for oversold bounce
For the first time in many weeks, gold is starting to look relatively attractive again. If you loved gold at $2K+, it is now on sale near $1.8K. But will it find buyers is the key question. The sharp $130 (6.7%) drop in the space of a couple of weeks (from its 21st September high) means gold prices are technically oversold and potentially due a short covering rally from these long-term support levels.
Gold outlook: Metal falls further as US dollar extends gains
Gold has fallen sharply again today, breaking below $1900 support level. The breakdown has given rise to fresh technical selling below this level, further exacerbating the sell-off. The metal has been coming under pressure from two main sources: Strong US dollar and rising global bond yields, both find strong support on any short-term dips.
Gold outlook: Metal not out of woods yet as FOMC decision looms
Gold was able to climb in the last two days of last week despite the US dollar and bond yields pushing higher. The precious metal gained ground on Friday as stocks reversed their earlier gains to close lower before falling further today. In other words, the metal has been supported by haven flows in the last few sessions. Gold was attempting to gain further ground today, but unsurprisingly was struggling to do so.
Gold outlook: Metal turns positive after ECB’s dovish hike
Gold was lower earlier, but after nearing the key $1900 level it has bounced back to turn positive. The gains are probably driven in part by short-side profit taking and after the ECB signalled it is done with rate hikes, earlier. XAUUSD was still below its 200-day average, which means it is at risk of suffering renewed falls should the US dollar extend its gains further, after rising for 8 consecutive weeks against a basket of foreign currencies.
Gold outlook dims as US inflation heats up again
So, the inflation battle continues for the Fed as we the latest CPI data come in stronger. This should keep the dollar supported against currencies where the central bank is expected to turn dovish. The likes of the euro and pound come to mind. Gold and possibly stocks may also struggle as the renewed surge in inflation may force the Fed to hike interest rates perhaps one more time before the end of the year.
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Gold analysis: Metal off highs as outlook remains bearish
Earlier, gold managed to recoup some of its weekly losses as it found support on the back of slight weakness for the dollar and bond yields. However, at the time of writing, it was coming noticeably off its earlier highs and threatening to turn red. It looks like the earlier recovery was driven by short-covering. Overall, the current market environment is not too supportive for gold, and not a lot has changed today.
Gold may be lower against the dollar, but it’s holding up elsewhere
Despite competing with the strength of the dollar, gold has been trading higher against all other major currencies since its low in August. This could suggest that gold is acting as a safe haven, even if it is not immediately obvious from the XAU/USD chart.
Gold analysis: Metal off lows but pressure remains
Gold hit its lowest level since June at just above $1900, before bouncing off its lows. The metal has been coming under pressure in recent months because of several reasons, but mainly due to long-dated bond yields remaining elevated is Europe and US, and the fact that the dollar has been trending higher in the last 4 weeks or so.
Gold outlook: Metal probes resistance as dollar, yields fall
The opportunity cost of holding gold over bonds fell slightly with yields declining, brightening the gold outlook a touch.
Gold outlook finely balanced
On Wednesday, the gold outlook dimmed further as investors assessed the main message coming from this week's Sintra conference – that more policy tightening is on the way – and decided to punish the metal further.
Gold outlook brightens as services activity dims
Our long-term bullish gold outlook received a boost today as fresh doubts were cast over a June Fed rate hike.