Gold continues to pullback from new historic highs Wednesday as the latest economic numbers out of the US suggests the economy remains resilient and set for a soft landing, i.e. no need for the Fed to ease aggressively. While it may be too early to argue that Gold has topped off we would note that…
The idea of an easy monetary policy in the US continues to drive sentiment for gold with the latest CPI from the US at 3.0% annualized against a 3.1% consensus and the headline month-on-month rate contracting at -0.1%. With the PBoC absent from the market however we have doubts on the idea of pushing historical…
Gold rallied Friday after a very tight consolidation following its triangle breakout Wednesday. Given the push past our SHS Right Shoulder we have now invalidated the bearish reversal pattern. That said note that demand wise we may be seeing suggestions of a top still with the PBoC apparently absent from the market for the last…
Gold saw demand kick in early in European trade buoyed by demand from buy on dippers and the persistent geopolitcal tension. Poor releases out of the US merely served to underscore this bullish tone as it argues the potential for an early rate cut. Still the Fed is not known for reacting to single data…
Gold’s attempts at a rally has repeatedly faltered with geopolitics having limited impact absent any actual shooting among major powers. Hope’s that an easing cycle would provide a further lift has also been dashed as the Fed continue to sound hawkish bucking the trend among other central banks. Absent anything new to ignite demand we…
Geopolitics has once again reared its head in global markets benefiting Gold the most among the different asset classes. In the middle-east Hezbollah is warning of a wider regional conflict warning Cyprus that it could be a target if it provides any assistance to Israel as the Lebanon based terror group and the IDF continue…
With central banks recognizing the easing of inflation pressures across the globe we question just how much upside there is for Gold. Consider that the push for historical highs was driven by Central Banks buying the yellow metal and investors hedging for inflation. Who else is there to buy particularly if the whales are already…
Gold initially spiked up following the release of slightly weaker than expected CPI data encouraging dollar bears and inflation watchers to call foe an easing. Eventually though Fed Chairman Jerome Powell in his press conference sighted the release as a single data point not necessarily signalling a shift in trends. Note that expectations are now…
Already easing an hour before US Jobs data Friday, Gold may have defined a medium term high with the SHS break out from Friday as the premise for its move to historic levels may be over. Note that Gold has rallied from the 1600 levels in September 2022 largely as a hedge to inflation and…
Gold saw early demand from Asia, retreated then jumped back up again on the back of the ECB’s decision to cut rates. This could be a chicken or egg question but this mostly underscores the role of Gold as a hedge for inflation. The logic being lower interest rates could boost consumption that leads to…