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:
On Monday both Gold and silver prices were lower in midday U.S. trading, with silver prices sharply down and hitting a four-week low. Precious metals are seeing a lot of selling action, based on rising U.S. Treasury yields, hawkish comments from a Federal Reserve official, and as the near-term technical outlook for both markets have turned slightly bearish.
Tuesday, and the gold market continues to hold its own as bond yields and the U.S. dollar remain elevated. However, the market continues to struggle, seeing further liquidations in gold-backed exchange-traded products. Some analysts noted that the Federal Reserve is expected to be nearing the end of its tightening cycle, thus providing some support for gold on the horizon.
On Wednesday Gold and silver prices were slightly lower in early U.S. trading on Wednesday. The precious metals bulls are timid at mid-week after another economic report out of China that suggests less consumer demand for goods and services, which includes metals. U.S. inflation reports this week are also in focus for the marketplace. The July U.S. consumer price index is out Thursday and the producer price index is out Friday. Both the CPI and PPI are expected to uptick just a bit from the June reports.
Thursday Gold spiked at $1,926/oz this morning, but finished in a dip at $1,912. CPI and PPI figures not pushing the market as much as was thought they would.
Friday, although the gold price gained slightly on Thursday’s closing dip, the gold market as a whole continues to spin its wheels, with prices trading just below $1,920/€1,750 per ounce as line consumer sentiment and unchanged inflation expectations provide investors and traders with little guidance.
Gold Price Summary….The Low-down:
A less than impressive week for gold and precious metals in general, as the CPI and PPI data did not seem to have the punch required to lift the metals. August strength has been less than consistent so far, showing some statistical significance but with higher variation. The price ended down on the start of the week but recovered well from a mid-week dip. Markets saw some smart investors taking advantage of the lull in price with buy-orders.
General Markets Summary:
• US Inflation continues to trend in the right direction: This week, investors digested key inflation reports, including U.S. CPI (consumer price index) inflation for the month of July. CPI inflation was largely in line with the expectations, with headline CPI at 3.2% year-over-year, versus expectations of 3.3%*. Inflation did move higher from last month’s 3.0% reading, but this was largely expected given higher energy prices last month.
• UK economic growth stronger than expected – but housing market weakens further: UK gross domestic product (GDP) grew 0.5% sequentially in June, exceeding a consensus forecast for a 0.2% expansion. Strong increases in manufacturing and construction were important drivers. Second-quarter GDP surprised to the upside, growing 0.2% versus the previous three months, thanks, in part, to better-than-expected private consumption. Business investment rose strongly as well, defying forecasts for a modest contraction.
• ECB highlights weak eurozone economy delivering uncertainty – The European Central Bank (ECB) said in its latest Economic Bulletin that, since the June interest rate hike, developments have supported the expectation that inflation should moderate in 2023 but still stay above the 2% target for an extended period.
• The Fed seems likely to remain on hold for now: After the relatively benign inflation data last week, markets continue to expect the Fed to remain on hold through 2023.
The wider outlook for Gold:
The Road Ahead for Gold.
Commentators believe that due to macro uncertainty and with central banks also increasing their gold reserves, it is important for market participants to diversify their allocation and invest in gold.
“We have seen CPI easing off significantly, but the Fed’s benchmark PCE is still steady on the higher side, which is why we have not seen much change in rate hike probabilities. Any change in Fed officials’ stance or weak economic data points could lend some support to gold on the lower end,” Manav Modi, a commodity and currency analyst said earlier this week.
“We believe gains for gold could be capped as it has some more room on the lower end. It could consolidate in a range on a quarterly basis, on the higher side, we stick to our annual report and maintain a target on a medium to longer-term period. Similarly, on the Comex, strong supports are at $1,830-1,850; and on the higher side, $2,100 looks likely,” said Modi.
THIS WEEKS PRODUCT FOCUS:
The 1oz South African Krugerrand Gold Coin
A 1oz Gold Krugerrand coin is a renowned and historic bullion coin that originated in South Africa. Introduced in 1967, the Krugerrand was the world’s first modern gold bullion coin, setting a standard for other countries to follow.
The obverse (front) of the Gold Krugerrand features a portrait of Paul Kruger, a prominent South African political leader and president of the early 20th century. Kruger’s image is surrounded by the inscriptions “South Africa” and “SUID-AFRIKA” in both English and Afrikaans, along with the coin’s year of issue.
On the reverse (back) side, a depiction of the national animal of South Africa, the springbok antelope, is portrayed. This design is a tribute to the country’s diverse wildlife and natural beauty. The reverse also bears the coin’s weight, purity, and a face value in South African currency, although the true value of the Krugerrand is primarily determined by its gold content.
The 1oz Gold Krugerrand coin is minted in 22 karat gold (91.67% pure), with a total weight of 1 troy ounce (31.1035 grams). This alloy, which includes a small amount of copper for durability, gives the coin its distinctive reddish color and makes it more resistant to scratches and wear.
One unique aspect of the Krugerrand is that it was primarily introduced as an investment vehicle, making it legal for private ownership in South Africa during a time when many other gold coins were restricted to government ownership. This contributed to its global popularity among gold investors and collectors.
The 1oz Gold Krugerrand is not only a valuable bullion coin but also a significant piece of South African history and a representation of the country’s economic importance in the global gold market. It remains a popular choice for those seeking a reliable and iconic gold investment.
Gold Krugerrand coins and all other gold coins and bars are available to order from Core Bullion Traders today.
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.
