This weeks roundup of Gold bullion prices, news & products.
–Core Bullion Traders Desk.
Read on for your snapshot of this weeks markets with a roundup of Gold Bullion Prices, Products and News.
Gold Prices This Week:
Monday saw Gold prices holding a relatively neutral line above support at $1,960/oz (in Euro terms: €1,770/oz) as preliminary PMI (Purchase Managers Index) data shows a mixed picture of the U.S. economic activity. The mixed economic data is not providing any bullish momentum for the gold market. However, prices are managing to hold support above $1,960 an ounce. August gold futures last traded at $1,961.90 an ounce, down 0.26% on the day.
On Tuesday, Gold prices were slightly up in early trading, as the U.S. Federal Reserve began its two-day policy-setting meeting. Technically, the gold futures ‘bulls’ have the slight overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. ‘Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.
Wednesday saw a nice upswing in the gold price with the market holding on to solid gains as the Federal Reserve said that future monetary policy will continue to depend on data. In the press conference following the central bank’s decision to raise interest rates by 25 basis points, Powell said that at this point, the committee is just as likely to raise interest rates in September as it would be to keep them unchanged.
On Thursday Gold prices were solidly lower and hit a two-week low in midday U.S. trading that day. Silver was down sharply, too. Modest overnight gains in both metals were erased after the release of upbeat U.S. economic data on Thursday morning that beat market expectations.
Friday, and Gold prices have pushed back above the important psychological barrier of $1,950/oz as U.S. inflation drops in line with expectations. Meanwhile, headline inflation for the last 12 months rose 3.0%, compared to May’s increase of 3.8%. If there was to be a halt to the central bank’s tightening, this would continue to support gold prices. Analysts note that growing cracks in consumption also support gold prices. The report noted that personal income is not keeping up with consumption.
Gold Price Summary….The Low-down:
Gold is up 2.2% in USD, and 2% in Euros for the month however – following strong gains earlier in July. Further gains are expected for gold when/if the Fed pivots to rate cuts, and forecasts suggest gold could hit a new all-time high in 2024.
General Markets Summary:
•The European Central Bank have raised interest rates to record highs, stating that inflation is expected to be “too high for too long”.
•Inflation in the Eurozone is still at 5.5% (6.1% in Ireland), and food inflation is expected to increase as wheat and rice prices have both risen in recent weeks.
•In the US, gold prices dropped yesterday following strong GDP figures from America. Despite another rate hike from the Federal Reserve, the US economy is proving to be resilient.
The wider outlook for Gold:
JPMorgan Chase sees gold prices at record highs in 12 to 18 months
In his latest research note, Greg Shearer, executive director of global commodities research for JPMorgan Chase, said that he expects the Federal Reserve to start cutting interest rates by the second quarter of 2024 and falling real U.S. yields will be a “significant driver” for gold.
According to JPMorgan’s mid-year forecast, analysts are looking for gold prices to average the second half of the year around $2,012 an ounce.
Shearer said that he sees gold prices averaging around $2,175 an ounce by the fourth quarter of 2024, with further upside risks if the U.S. economy does fall into a recession.
He also noted that the deeper the recession is, the more aggressive the Federal Reserve will have to be in cutting interest rates, which would be supportive of gold.
“We’re in a very prime place where we think gold ownership and long allocation to gold and silver is something that acts as both a late cycle diversifier and something that will perform as we look to the next sort of 12, 18 months,” Shearer said.
Some economists and analysts have said that gold in the near term will be sensitive to a hawkish bias from the Federal Reserve as it looks to keep inflation expectations in line.
However, along with retail demand, JPMorgan also sees solid institutional demand as central banks continue to buy gold and nations diversify further away from the U.S. dollar and hedge against heightened geopolitical risks.
THIS WEEKS PRODUCT FOCUS:
The U.S. Buffalo Gold Coin
The 1oz Gold Buffalo coin is a stunning and prestigious bullion coin produced by the United States Mint. Introduced in 2006, it quickly gained popularity for its captivating design and high gold purity.
The obverse (front) of the Gold Buffalo showcases a striking portrayal of a Native American chief, inspired by James Earle Fraser’s classic design from the early 20th century. The chief’s noble profile symbolizes the spirit of the American West, while the intricate details in the headdress and facial features exemplify the craftsmanship of the coin.
On the reverse (back) side, the majestic American buffalo, or bison, is depicted, paying homage to the country’s vast wilderness and the significance of this iconic animal in Native American culture. The buffalo stands boldly on a mound, further reinforcing the coin’s connection to the American landscape.
A notable feature of the 1oz Gold Buffalo is its exceptional purity, containing 1 troy ounce (31.1035 grams) of .9999 fine gold. This level of purity ensures that the coin contains a high percentage of pure gold, making it a valuable asset for investment purposes.
As an official U.S. government-issued coin, the 1oz Gold Buffalo carries the full backing of the U.S. Treasury, providing reassurance to investors and collectors about its authenticity and quality.
The 1oz Gold Buffalo coin is a prized possession for those who appreciate both the historical significance and aesthetic beauty of American coinage. It has become a symbol of excellence in the world of precious metals, making it a sought-after addition to any investment portfolio or numismatic collection.
Nigel Doolin is Head of Trading at Core Bullion Traders – A gold trading company based in Dublin, Ireland – he can be contacted directly at: nigel@corebulliontraders.ie or Tel: +353 (0)1 447 5975
Disclaimer & Copyright 2023
Although every effort has been made to undertake this work with care and diligence, Core Bullion Traders do not guarantee the accuracy of any forecasts or assumptions. Nothing contained in this editorial constitutes an offer to buy or sell securities or commodities and nor does it constitute advice in relation to the buying or selling of investments. It is published only for informational purposes. Core Bullion Traders does not accept responsibility for any losses or damages arising directly or indirectly from the use of this information or data.
