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 and copper prices fall almost to their lowest levels in a month, coming under pressure from a stronger dollar as rising U.S. inflation pushed up concerns over higher interest rates.
On Tuesday, Seasonal weakness in gold prices, mixed with a stronger U.S. dollar, and higher real yields are expected to weigh on gold prices in the near future. Prices have some initial support at the €1,760 level, but could potentially decline toward €1,755 for the remainder of the month.
On Wednesday The gold market was holding the line at session lows as the U.S. housing market construction numbers look to stabilize. However, analysts at the Australian-based bank ANZ said that despite short-term selling pressure, they are maintaining their bullish medium to long-term outlook on the precious metal with predicted record highs pushed out to Q1 2024.
Thursday Gold prices steadied in Asian trade on Thursday, and were coming off the back of three days of losses as hawkish signals from the Federal Reserve boosted the dollar and heralded more near-term pain for the metal.
On Friday, Gold saw a slight recovery but this was ultimately short-lived as the metal finished the day down on the week. Although prospects for next week do not indicate a full-blown reversal in the precious yellow metal, a price reversal looks likely but we will have to wait to see if there is follow-through bullish market sentiment moving gold off its recent lows.
Gold Price Summary….The Low-down:
A mixed week again for gold and precious metals in general. Gold regained some composure at the end of the week as the dollar and bond yields eased but remained on course for a third straight weekly dip as strong U.S. economic data reinforced bets that the Federal Reserve will keep interest rates elevated. Ultimately, the medium-term outlook for gold is set to be influenced by Powell’s highly anticipated speech at Jackson Hole next week. In the meantime, $1,900 remains a key level of interest. Starting the week on €1,747/oz and ending on €1,736/oz is not the greatest of weeks – but also not the worst – when you consider that this ‘bad’ week still only means a fall of just over half-%.
General Markets Summary:
• Stocks retreat for third consecutive week: Stocks were broadly lower as sentiment appeared to take a blow from a sharp increase in longer-term bond yields and fears of a sharp slowdown in China. The S&P 500 Index ended the week down 5.15% from its July 26 intraday peak.
• European Stocks: In local currency terms, the pan-European STOXX Europe 600 Index fell 2.34% on intensifying concerns about the outlook for China’s economy and the prospect of a prolonged period of higher European interest rates. Major stock indexes also weakened. France’s CAC 40 Index slid 2.40%, Germany’s DAX lost 1.62%, and Italy’s FTSE MIB gave up 1.81%. The UK’s FTSE 100 Index dropped 3.48%.
• UK wage growth surprisingly strong, and core inflation quickens: UK wage growth accelerated, increasing the pressure on the Bank of England (BoE) to raise interest rates further. Average weekly earnings (excluding bonuses) climbed 7.8% in the three months through June—up from 7.4% in the three months through May. Signs of cooling in the labour market also emerged. The unemployment rate rose more than expected to 4.2% sequentially from 3.9% in the previous three months.
• China – Home Prices Fall for First Time in 2023: More evidence of a property market downturn weighed on the outlook for a key sector of China’s economy. New home prices in 70 of China’s largest cities fell 0.23% in July from June, when they declined for the first time this year.
The wider outlook for Gold:
What is Next for The Gold Price?
Gold prices initially surged to €1,860+ between March and May this year due to concerns about the US banking industry’s meltdown. However, these fears were not fully realized, and the crisis was contained before major damage occurred.
The Current Focus: Currently, gold traders are primarily concerned with the Federal Reserve’s actions regarding interest rates, given the successful containment of inflation. Despite worries about rising US inflation due to increased oil prices, a recent US Consumer Price Index (CPI) reading came in below expectations. This unexpected result bolstered trader optimism and suggested that the Fed’s stance on monetary policy may remain unchanged. Market sentiment leans towards a single, potential rate hike in November of this year. While we feel that the Fed is likely to keep interest rates steady, particularly if inflation doesn’t surpass market predictions, this could lead to a decrease in the dollar index, benefiting the price of gold.
Price Analysis: Analysing the price movements, gold traders are closely monitoring the critical level of $1,900. As the gold price nears this threshold, concerns arise that breaching it could trigger a significant sell-off. There’s a possibility that the price might dip below the support level of $1,900, leading to a new support level at $1,850. The upcoming release of the Fed Minutes this week adopted a somewhat dovish tone, as certain members of the Fed have already suggested that US interest rates have peaked. Any comments that continue to be dovish or less hawkish could provide price support. Therefore, if the price does drop below the $1,900 mark, many traders could view it as an opportunity to acquire gold at discounted prices.
THIS WEEKS PRODUCT FOCUS:
The 1oz Australian Kangaroo or “Nugget” Gold Coin
The 1oz Gold Australian Kangaroo coin is a prestigious bullion coin produced by the Perth Mint in Australia. This coin series, formerly known as the “Gold Nugget”, was first introduced in 1986 and later renamed the Gold Australian Kangaroo in 1990 to reflect its iconic design.
The obverse (front) of the Gold Australian Kangaroo features an effigy of Queen Elizabeth II, which is updated periodically to reflect the Queen’s changing age. The current portrait, designed by Jody Clark, presents a more contemporary representation of Her Majesty.
On the reverse (back) side, a kangaroo is depicted in its natural habitat. This side of the coin highlights the kangaroo, an iconic Australian marsupial, and showcases the country’s unique wildlife. The design is meticulously detailed, capturing the kangaroo in motion against the backdrop of the vast Australian outback. Pre-1990 designs featured the design of a traditional gold nugget.
The 1oz Gold Australian Kangaroo coin contains 1 troy ounce (31.1035 grams) of .9999 fine gold, making it one of the purest gold coins available on the market. The high gold purity enhances its appeal to investors and collectors alike.
The Gold Australian Kangaroo is known for its quality craftsmanship and impeccable minting standards, reflecting the Perth Mint’s commitment to producing exceptional bullion coins.
Each year, the Gold Australian Kangaroo undergoes design changes on the reverse side, adding an element of collectability to the series. This diversity in design captures the essence of Australia’s natural beauty and wildlife, making each coin a unique piece of art.
The 1oz Gold Australian Kangaroo is not only a reliable investment in precious metals but also a representation of Australia’s rich biodiversity and numismatic heritage. It appeals to individuals who appreciate both the aesthetic value and the potential for long-term value appreciation in their investment portfolios.
Australian Gold Kangaroo 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.
