Gold Price Down As Risk Appetite Up
– Gold and silver prices are weaker in early U.S. trading Tuesday. The safe-haven metals are pressured by an improvement in trader and investor risk appetite on this day, as global stock markets rebounded from a two-session sell off. Negative near-term technicals and lower crude oil prices are also weighing on the precious metals. were last down $6.40 at $1,733.80. futures were last down $0.115 at $18.555 an ounce.
Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Risk appetite is a bit improved Tuesday but still not robust. Traders and investors are still concerned about Covid lockdowns in China that are crimping the worlds second-largest economy. The U.S. data point of the day is the consumer confidence index.
The U.S. data point of the week on this unofficial last week of summer is the August U.S. employment situation report from the Labor Department on Friday. The key non-farm payrolls growth number is forecast to come it up 325,000 in August versus the July report showing a gain of 528,000 non-farm jobs.
Why Is Silver Mostly Quoted In Us Dollars
While you can buy silver 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 worlds 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. Reserve currencies are used to settle international transactions. Since the start of the 20th century, the U.S. dollar has been the dominant reserve currency around the world.
The State Of Play In Gold And Silver Markets
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
CPM Groups Jeffrey Christian gives an update on Gold and Silver prices, focusing on the most recent recession, interest rates, inflation, the jobs report, and the broader overall economy. Jeff also recaps the Silver Symposium event, discussing some of the things he saw .
Disclaimer:Kitco Metals Inc.
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Gold Silver Feeling The Pressure From Hawkish Central Banks
– Gold and silver prices are modestly lower in midday U.S. trading Tuesday. Hawkish monetary policies from the U.S. Federal Reserve and other major central banks of the world have cast a pall over the stock and financial markets at present, but have boosted U.S. Treasury yields and the U.S. dollar indexboth of which are competing assets with the safe-haven metals. was last down $4.70 at $1,662.90 and was down $0.148 at $19.205.
Risk aversion remains elevated among traders and investors early this week. Marketplace focus is on the Federal Reserves FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is expected to remain aggressively hawkish and raise the key U.S. Fed funds rate by 0.75% in the Feds effort to tamp down problematic price inflation. Swedens central bank today raised its key interest rate by a full 1.0%. The Bank of England also holds its monetary policy meeting Thursday and is also expected to raise interest rates.
Global stock markets were mixed overnight, with European shares mostly lower and Asian shares mostly higher. U.S. stock indexes are lower at midday.
What Is Spot Silver
The spot silver price refers to the price of silver for immediate delivery. Transactions for bullion coins are almost always priced using the spot price as a basis. The spot silver 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 silver 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.
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Price Pressure On Gold Silver Following Hot Us Inflation Data
– Gold and silver prices are solidly lower in early U.S. trading Tuesday following a surprisingly hotter-than-expected inflation report that reinforces notions the Federal Reserve will keep its aggressive monetary policy tightening stance. was last down $20.10 at $1,710.90 and was down $0.22 at $19.63.
The August consumer price index was reported up 8.3%, year-on-year, compared to forecasts for up 8.0%. On a monthly basis, the August CPI rose 0.1% from July. The July CPI report showed an 8.5% rise, annually. The food and energy component of the CPI report was up 0.6% in August, which is double the expectations for a rise of 0.3%. There had been some signs in the economy that inflation in the U.S. is cooling off a bit, but todays data suggests inflation is still running hot and may get hotter. Todays CPI data pretty much assures the Federal Reserves FOMC next week will raise the main U.S. interest rate, the Fed funds rate, by at least 0.75%. Fed funds rate futures are suggesting a 20% chance the FOMC could rase the Fed funds rate by 1.0% at next weeks FOMC meeting.
|King dollar dominating gold, silver, but precious metals are ripe for a short squeeze|
What Is Quantitative Easing
Quantitative easing is a monetary policy tool used by central bankers in response to the 2008 financial crisis. The tool was first used in Japan but became a widely used term punned QE after former Federal Reserve chair Ben Bernanke introduced the concept in the U.S. in response to the fall of major investment bank Lehman Brothers. Bernanke purchased bad debt off other major commercial banks in order to prevent them from defaulting, while simultaneously increasing the money supply. Since then, other central banks have implemented this tool including the European Central Bank and the Bank of Japan.
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 doesnt trickle down to businesses or the average consumer.
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Gold And Silver Prices Are Falling Too Low Too Fast
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and Silver Prices saw a large sell-off at the end of June, culminating with a large price decline on July 1. CPM Group’s Jeffrey Christian explores some of the reasons behind the decline, including, reduced inflation expectations, lower than expected PCE Price Index, interest rates, a strong dollar, and the upcoming US holiday.
Jeff, then discusses CPM Group’s price projections and where CPM Group expects prices to move both over the next week and over the next few months
About The Kitco Gold And Precious Metals Fix
More than a century ago the first precious metals benchmarks were created. The fixing process involved a group of bankers sitting in a room haggling over the price of gold and silver. When demand matched with the supply the fixing price was set.
For a 100 years this was the process to establish the benchmark price for gold, silver, platinum and palladium. The room was eventually replaced with a telephone auction process. However, the financial marketplace has since become more and more digital.
The world is now in need of an inexpensive, reliable benchmark for gold, silver, platinum and palladium. Welcome to the Kitco Gold and Precious Metals Fix.
The worlds leader in precious metals information is establishing the new benchmark for all precious metals. Through the liquid and reliable over-the-counter cash market, Kitco Metals is able to calculate a reliable fixing price for gold, silver, platinum and palladium.
The fixing price will be released every day at 10 am and made available for free to Kitco users.
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Why Are Silver And Gold Prices So Different
The reason gold and silver prices vary widely boils down to one simple fact: rarity. The less supply there is of a metal, the higher the price. Therefore, gold prices tend to be much higher than silver prices because it is much harder to get. The reason supply is much larger for silver is because it is an easier metal to mine and it is often mined as a by-product to other metals mining. The average occurrence of gold in igneous rock is 0.004 parts per million. Silver shows up at a rate of 0.07 parts per million.
Gold Silver See Corrective Price Rebounds Short Covering
– Gold and silver prices are firmer in early U.S. trading Thursday, on modest corrective and short-covering bounces after recent selling pressure. were last up $8.30 at $1,774.70. futures were last down $0.104 at $19.84 an ounce.
The marketplace has quickly digested Wednesday afternoons minutes from the last FOMC meeting of the Federal Reserve. Traders deemed the minutes neutral to just slightly dovish and markets showed no significant reactions to them.
Global stock markets were mixed overnight, with Asian indexes mostly down and European indexes mostly up. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes have been enjoying price uptrends on the daily charts since early June. Corporate earnings reports are in focus this week.
In overnight news, the Euro zone consumer price index for July came in hot, at up 8.9%, year-on-year.
The key outside markets today see Nymex crude oil prices higher and trading around $89.25 a barrel. The U.S. dollar index is modestly higher in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.89%.
|Gold will play a big role in the coming global ‘monetary reset’ as U.S dollar loses its dominance – Maxime Bernier|
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Gold Silver Modestly Up As Federal Reserve Decision Looms
– Gold and silver prices are just modestly higher in early U.S. trading Wednesday morning, as heightened geopolitical concerns did prompted mild safe-haven demand. The marketplace is awaiting this afternoon’s FOMC statement and press conference from Fed Chairman Powell. was last up $4.90 at $1,665.90 and was up $0.267 at $19.455.
Risk aversion remains elevated at mid-week following news that Russian President Putin will partially mobilize more Russian troops to fight in his war with Ukraine, including implying in a speech that he could use nuclear weapons if Russia’s integrity is threatened. One analyst said the longer the war drags on and with Russia making little if any further progress, the more threatened Putin will become, which could prompt the dictator to take more drastic measures to ensure his own survival.
Global stock markets were mixed overnight, with Asian shares mostly down and European shares mostly up. U.S. stock indexes are firmer when the New York day session begins.
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Is There A Silver Benchmark
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. These benchmarks are also referred to as fixings.
The London Bullion Market Association is the leading organization that is responsible for maintaining benchmarks for all precious metals. The LBMA Silver Price, The LBMA Gold Price, and the LBMA PGM Price are the widely accepted benchmarks in the precious metals space. Kitco.com also provides a variety of benchmark prices for gold and silver.
The silver benchmark price is determined daily in an electronic auction between participating banks with the LBMA, which is administered by ICE Benchmark Administration.
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How Is The Live Spot Silver Price Calculated
Every precious metals market has a corresponding benchmark price that is set on a daily basis. These benchmarks are used mostly for commercial contracts and producer agreements. These benchmarks are calculated partly from trading activity in the spot market.
The spot price is determined from trading activity on Over-The-Counter decentralized markets. An OTC is not a formal exchange and prices are negotiated directly between participants with most of the transaction taking place electronically. Although these arent regulated, financial institutions play an important role, acting as market makers, providing a bid and ask price in the spot market.
What Is The Difference Between An Ounce And A Troy Ounce When Looking At A Silver Chart
A troy ounce is used specifically in the weighing and pricing of precious metals and its use dates back to the Roman Empire when currencies were valued in weight. The process was carried over to the British Empire where one pound sterling was worth one troy pound of silver. The U.S. Mint adopted the troy ounce system in 1828.
A troy ounce is slightly heavier than an imperial ounce by about 10%. An imperial ounce equals 28.35 grams, while a troy ounce is equal to 31.1 grams.
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Kitco Makes It Easy To Buy And Sell Gold Coins Silver Bars And Other Precious Metals
Kitco is world renowned and trusted since 1977, as a source of gold news, gold prices, and expert commentary on the gold market, as well as a secure source to buy gold bars, buy silver coins, and other precious metals in several formats… Learn More!
Gold and silver investors know the value of Kitco’s live charts for gold prices, silver prices and other precious metals and commodities prices, both current and historic. Want to know the price of gold per oz yesterday or last week? Kitco is the most reputable source for the price of gold today, as well as precious metals prices over time. Investors may not know that Kitco also offers you the flexibility to find gold coins for sale online, as well as silver barsfor sale and other precious metals for sale through our convenient and secure website. Kitco will also buy gold and buy silver from our customers, offering competitive gold prices and silver prices. If you sell gold coins, sell silver bars or sell other precious metals to Kitco, you’ll have peace of mind, as we help you ship your goods in complete security. We even offer courier pickup in many areas of Canada and the USA.
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What Is The Lbma
Based in London, the London Bullion Market Association is an international trade association, which represents the precious metals markets including gold, silver, platinum and palladium. It is not an exchange. Its current members include 140 companies made up of refiners, fabricator, traders, etc. The LBMA is responsible for setting the benchmark prices for gold and silver as well as for the PGMs. For the refining industry, the LBMA is also responsible for publishing the Good Delivery List, which is widely recognized as the benchmark standard for the quality of gold and silver bars around the world.
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Spot Silver Price Vs Silver Futures Price
There is usually a difference between the spot price of silver 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 silver in the future. In normal markets, the futures price for silver is higher than the spot. 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. The difference between the spot price and the future price, when expressed as an annual percentage rate is known as the forward rate.
What Are The Most Popular Silver Coins
Every major mint produces their own silver bullion coins and are extremely popular for investors who want to hold physical metal. While only government mints can produce silver dollars, there are a variety of private mints that produce similar products referred to as silver rounds. Here are a list of the most popular silver coins available.
- American Eagle one-ounce coin
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