Gold is hovering at $1890/oz leading into the European open

Gold is trading flat heading into the European session. The yellow metal is hovering at around $1890/oz and silver has moved -0.12% lower to trade at $27.57/oz. Copper has once again had a tough session falling -0.62% while spot WTI trades 0.43% in the black past $70/bbl.

Indices were mixed overnight as the Shanghai Composite traded 0.16% higher and the Nikkei 225 (-0.35%) and ASX (-0.31%) both lost ground. European index futures are pointing towards a mixed open.

The dollar index is trading marginally lower but all of the major FX pairs have traded within their ranges. In the crypto space, BTC/USD recovered from its lows to trade at $33,800.

Looking at some of the news stories, it was reported that China is considering price controls on coal prices.

Chinese (May) CPI 1.3% y/y (vs. exp 1.6%). PPI saw its highest pace in factory gate prices since 2008 and surged to hit 9.0% vs exp 8.5% prev 6.8%

Germany's April trade balance printed at €15.5 billion vs €16.3 billion expected.

It was also said that U.S. Republican senators said made “a lot of progress” in infrastructure talks.

Sticking with the U.S. administration, US Senate members vote to approve a bill to help the U.S. compete with China.

NZ business survey (preliminary, June): Confidence -0.4% (prior +1.8%) & Activity outlook +29.1% (prior +27.1%).

RBA's Kent says expectations do not point to inflation rising above targets in a sustainable way.

Looking ahead to the rest of the session highlights include the BoC rate decision and weekly DoE's.

By Rajan Dhall

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold flirts with $1900/oz ahead of the European open

Gold is flat this morning heading into the European open while live is trading marginally lower. After yesterday's 0.47% rise the yellow metal is now flirting with $1900/oz again this morning while silver is yet to break $28/oz. In the rest of the commodities markets copper (-0.45%) and spot WTI (-0.69%) both trade in the red.

After a mixed close in the U.S., it was much of the same in the Asia Pac area. The Nikkei 225 finished flat while the ASX moved 0.15% higher. The Shanghai Composite struggled and dropped -0.69%. Over in the EU, futures are pointing towards a slightly negative open.

In the FX markets, the dollar index trades 0.10% higher and the biggest mover overnight was USD/JPY which moved 0.19% higher and this was closely followed by GBP/USD which fell -018%. In the crypto space, BTC/USD has taken another dive and now trades at $32,812 leaving traders wondering if $30k will be broken at some point.

Looking at the news from overnight, China state media advise Australia to diversify its iron ore exports away from China. The state media agency says PBOC may also inject liquidity.

China is said to be moving ahead and making progress on legislation to counter U.S. sanctions against them.

Australia NAB business confidence for May hit 20 (prior 26) and business conditions printed at 37 (prior 32).

Japan GDP final for Q1 2021 -1.0% q/q (prior +2.8%).

Germany April industrial production -1.0% vs +0.4% m/m expected.

El Salvador confirms USD will continue as legal tender in the country.

US President Biden to discuss crypto’s role in ransomware attacks at G7.

US senator says no plans for a further Republican counteroffer on infrastructure. U.S. Capito was said to be sounding not too optimistic ahead of today's meeting with the President.

Lawrence Livermore National Laboratory in the U.S. says the theory that the COVID-19 virus leaked from a Chinese lab in Wuhan is plausible.

There are reports this morning that the easing of all lockdown restrictions in the U.K. could be delayed by up to two weeks.

Looking ahead to the rest of the session highlights include German ZEW, EU GDP, EIA report (oil), U.S. trade balance, Jolts Job openings and comments from BoE's Haldane and BOJ Deputy Governor Amamiya.

By Rajan Dhall

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold slips on firm dollar as focus shifts to U.S. inflation data

* Medium to longer term outlook for gold positive- analysts (Recasts, adds comments, updates prices)

June 7 (Reuters) – Gold retreated on Monday as the U.S. dollar firmed slightly, with investors' focus switching to U.S. inflation readings later this week that might give some clue to how long the Federal Reserve will hold off from tapering monetary support.

The dollar index strengthened 0.1%, making gold more expensive for holders of other currencies.

Spot gold was down 0.3% to $1,883.50 per ounce by 0929 GMT. U.S. gold futures eased 0.3% to $1,885.40.

Prices rose more than 1% in the previous session after a weaker-than-expected U.S. monthly jobs report calmed investor fears about the Fed reining in monetary stimulus soon.

While a firmer U.S. dollar and U.S. bond yields are both weighing on prices, gold has very good chances of coming back above $1,900 an ounce because the environment continues to be very constructive for the metal, said Commerzbank analyst Eugen Weinberg.

Longer to medium term, ";we might see more volatility on equity markets which will be increasing the value of gold as a safe haven as inflation protection," Weinberg added.

Bullish fundamentals remain in place and ";only a sharp steepening of the U.S. yield curve is likely to change that," said Jeffrey Halley, OANDA senior market analyst.

Lower interest rates decrease the opportunity cost of holding non-yielding gold, also considered a hedge against inflation that could follow stimulus measures.

And market attention has switched to the next U.S. consumer price index report, and a European Central Bank policy meeting due on Thursday. The ECB is widely expected to maintain its stimulus measures with tapering a distant prospect.

Silver dipped 0.9% to $27.53 per ounce, palladium was down 0.2% to $2,840.05, while platinum fell 0.2% to $1,159.60. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Simon Cameron-Moore)

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold price makes a comeback – Russia ditches U.S. dollar, gold stocks best buy since 1980s

After dropping more than $40, gold is making a comeback following another disappointing jobs report out of the U.S.

Here's a look at Kitco's top three stories of the week:

1. Bitcoin is a substitute for copper, not gold – Goldman's top commodity analyst

Cryptocurrencies are risk-on assets, which is why they are more closely aligned to commodities like copper and oil.

"There is good inflation, and there is bad inflation. Good inflation is when demand pulls it. That's what bitcoin, copper and oil hedge. Gold hedges bad inflation where supply is being curtailed," Goldman said.

2. Russia's wealth fund to ditch all U.S. dollar assets for gold, euros, and yuan this month

The decision means selling $40 billion of U.S. dollar assets. The fund holds Russia's oil revenues with a total value of more than $185 billion.

3. 'Gold stocks best buy since 1980s': Gold price to double, but gold stocks could see 10X gains in next 3 years

The one ratio to monitor is the XAU-gold ratio, Timothy Ord, president and editor of The Ord Oracle, tells Kitco News.

"Gold stocks are a way better buy right now than gold itself … Right now, the XAU-gold ratio is around point-zero-nine, which is cheap compared to historical standards and its previous high of above point-three-five," Ord said.

By Anna Golubova

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold, silver dinged by heavy profit taking; Friday’s trade now key Gold and silver prices are sharply lower in midday U.S. trading Thursday, on heavy profit-taking pressure and weak long liquidation in the futures markets. Gold prices hit a two-week low t

Gold, silver dinged by heavy profit taking; Friday's trade now key

Gold and silver prices are sharply lower in midday U.S. trading Thursday, on heavy profit-taking pressure and weak long liquidation in the futures markets. Gold prices hit a two-week low today and silver prices a three-week low. Strong gains in the U.S. dollar index today played a part in the metals markets’ sell off. Bulls can still argue today’s price action was normal corrective pullbacks in existing price uptrends for gold and silver. Gold hit a five-month high Tuesday. However, good follow-through selling pressure on Friday and technically bearish weekly low closes would produce chart damage to suggest near-term market tops are in place. Thus, Friday’s price action will be extra important for gold and silver traders. Bulls need to step up. August gold futures were last down $38.30 at $1,870.40 and July Comex silver was last down $0.814 at $27.39 an ounce.

U.S. stock indexes were mixed to slightly weaker at midday. The U.S. indexes are trading not far below their recent record highs. Concerns about rising inflation are still lingering after the Federal Reserve’s beige book Wednesday afternoon said supply chain bottlenecks are causing some product shortages and leading to higher prices, and such could continue the rest of this year.

Traders are gearing up for what is arguably the most important U.S. economic report of the month, Friday morning’s Employment Situation Report for May from the Labor Department. The key non-farm payrolls number is forecast to come in up around 675,000 after paltry rise of 266,000 in April. The unemployment rate for May is seen at 5.9% versus 6.1% in April.

The key outside markets today see the U.S. dollar index solidly higher on a corrective bounce from recent selling pressure. Nymex crude oil prices are a bit weaker after hitting a 2.5-year high overnight, and are trading around $68.65 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.627%.

Technically, August gold futures bulls still have the overall near-term technical advantage but faded a bit today. A two-month-old price uptrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $1,919.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at $1,884.30 and then at $1,900.00. First support is seen at today’s low of $1,866.70 and then at $1,850.00. Wyckoff's Market Rating: 6.5

July silver futures prices hit a three-week low today. The silver bulls still have the overall near-term technical advantage. However, a two-month-old uptrend on the daily bar chart is now in jeopardy. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $28.90 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at $28.00 and then at today’s high of $28.37. Next support is seen at today’s low of $27.09 and then at $27.00. Wyckoff's Market Rating: 6.0.

July N.Y. copper closed down 1,330 points at 445.85 cents today. Prices closed nearer the session low today and hit a five-week low. The copper bulls still have the firm overall near-term technical advantage but are fading now. A near-term price uptrend on the daily bar chart has now been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at this week’s high of 470.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at 450.00 cents and then at 455.00 cents. First support is seen at today’s low of 442.95 cents and then at 440.00 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold and silver move lower leading into the European session

Gold and silver have both moved lower overnight heading into the European session. Gold is trading half a percent lower at $1898.39/oz while silver has lost -0.88% to trade at $27.87/oz. Copper has also fallen -0.30% and spot WTI is the only major commodity to hold its head above water to trade 0.63% in the black.

Risk sentiment overnight was pretty decent as the Nikkei 225 (0.39%) and ASX (0.59%) closed higher but the Shanghai Composite bucked the trend and moved -0.14% in the red. Futures in Europe are pointing to a mixed open.

In FX markets, the greenback has made a slight comback as the dollar index trades 0.18% higher. The antipodeans performed badly overnight as AUD/USD (-0.32%) and NZD/USD (-0.35%) both lost ground. BTC/USD has traded higher moving to $38,743 up just over 3%.

Looking at the news, the Federal Reserve says it plans to wind down its coronavirus pandemic Corporate Credit Facility.

Sticking with the U.S., US President Biden is likely to further tighten rules on US investment in Chinese military-linked companies.

Senator Capito says she is encouraged that negotiations on infrastructure have continued and will brief other members of the Republican negotiating team.

Japan media says PM Suga likely to call a snap election in (northern) autumn (fall).

BHP's Escondida copper production fell -16.5% year on year. This comes as workers at the world's largest copper mine continue to strike.

Australian Retail Sales (MoM) (Apr) 1.1% vs expected 1.1%. Japanese Services PMI (May) 46.5 vs prior 49.5. Chinese Caixin Services PMI (May) 55.1 vs prior 56.3.

Looking ahead to today highlights include services and composite PMI's from the major nations, U.S. ADP NFP, U.S. initial jobless claims, weekly DoE's and comments from BoE's Bailey, Fed's Bostic, Kaplan, Harker and Quarles.

By Rajan Dhall

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver

David

Gold triumphs as fiat dies

For citizens of the world, is the death of fiat currency becoming… the new normal?

Double-click to enlarge what is obviously the most important chart for currency investors… the long-term dollar versus gold chart.

The relentless decline of US liberty correlates perfectly with America's refusal to reverse the policy that replaced real gold money with unlimited supply government fiat.

Both US political parties embrace this vile fiat monetary system… a system that exists to empower the elite.

For the elite, it comes with the "fringe benefit" of encouraging citizens to worship government and central banks instead of working diligently to get more gold.

At "World Fiat Headquarters" (America), the democrats are currently in power, although the republicans could do well in the mid-term elections. The bottom line:

Ride, fiat cowboys, ride.

Several years ago, I began detailing the rough roadmap for a transition from deflation to inflation. I suggested that America's refusal to abandon fiat money had brought it to a point in time somewhat like 1966.

What lies ahead though is likely to be a hideous hybrid of 1966 and 1929.

While most mainstream analysts missed the transition, back in 2017 Deutsche Bank's Jim Reid appeared to understand the magnitude of the coming horror. He also realises that the end of fiat is a multi-decade process, not a short 1979-style firecracker event.

It is likely only a matter of time (and perhaps not much) before citizens of the world will be able to use gold tokens to purchase products from major retailers.

The failure of fiat is obvious. Over the next decade, the failure is destined to become exponentially more obvious.

Gold, crypto, or both? Well, since the inception of bitcoin, my view has been that crypto is awesome, and gold… even more so. The big question is, can these two private monies function in harmony?

For one possible answer to this question. The PAXG gold token is one way for gold bugs to get into the crypto market, while staying invested in gold rather than in something new that they don't fully understand.

The Paxos team is reputable and arbitrage opportunities do arise. Double-click to enlarge this short-term gold token chart. At times, the token price seems to "disconnect" and surge $100/ounce higher than the COMEX price.

Interestingly, the disconnect is mainly to the upside, giving the investors opportunities to grab $100/ounce in extra profits!

If investors have the will to get more gold, clearly, it can be done. To view another one of the key charts I use to get this job accomplished. Double-click to enlarge this "junior-intermediates" GDXJ chart. GDXJ can give gold and silver stock investors a bit more action than GDX or GOAU, but not as much as buying a portfolio of CDNX miners.

When investors buy these ETFs or some of the component stocks at my key gold bullion buys zones (like $1671 most recently), the intermediate-term profits are typically in the 20%-30% range, and often higher.

The substantial profits are garnered in a just a few months of time, and sometimes just a few weeks.

Investors who want to call a top rather than just book great profits can give back gains, if they are not diligent about systematically selling a portion of what they buy.

In the big picture, gold is likely beginning an advance towards $3000. As that happens, global fiat will experience another significant loss of confidence event. US citizens are relying on fiat-oriented politicians to fix what fiat broke. In a nutshell, the people have become rats running on a sinking wheel.

Double-click to enlarge. Gold is likely to experience a pullback from the $2089 area, but note the action of my important 5,15 moving averages; until there's a sell signal crossover (which is not even on the technical horizon right now), a significant reaction is unlikely.

The green shoots I highlighted back around $1671 (including record physical buying by the citizens of India) are beginning to look like the rise of an oak tree forest.

Fiat is forlorn, and a gold bull era is born!

By Stewart Thomson

Contributing to kitco.com

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold price to hit $4,000 in 3 years, real inflation is at 12 % – Frank Holmes

Inflation is rising out of control and investors should hold cryptocurrencies, gold and real estate to protect their wealth, said Frank Holmes, CEO and CIO of U.S. Global Investors, and executive chairman of Hive Blockchain Technologies.

In an interview with Kitco News' Editor-in-Chief Michelle Makori, Holmes, whose firm manages more than $4 billion in assets under management, said that inflation is significantly understated. He added that if inflation was calculated by traditional methods, it would be up 12%.

Holmes said that the U.S. government and the Federal Reserve is trying to talk down inflation because the economic recovery is still fragile.

"The federal government here is very concerned about that. They're, trying to tiptoe around this issue, but they can stop this. Big inflation coming and, and real assets are the place to be," he said.

With price pressures rising significantly. Holmes' reiterated his call for gold prices to push to $4,000 an ounce within three years. Along with holding precious metals, Holmes said that he is also interested in income-producing real estate.

"Hopefully, you don't have much development to do because it's going to be very expensive," he said.

Another essential asset in a portfolio is cryptocurrency. Holmes said that digital currencies are not going anywhere as an entire generation is using them.

"The idea of Bitcoin, Ethereum, it's in their blood. It's not foreign to them," he said.

By Kitco News

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold and silver edge higher leading into the European open

Gold and silver are trading higher after both mtals had a good Asian session. The yellow metal is 0.20% up trading at $1906/oz while silver trades at $27.94/oz. In the rest of the commodities complex, copper has moved 0.14% in the black along with spot WTI which trades 0.27% higher.

The risk sentiment was pretty poor as the Nikkei 225 fell -0.99% and the ASX dropped -0.25% but the Shanghai Composite (0.14%) bucked the trend to stay positive.

In FX markets, most of the pairs traded in tight ranges and AUD/USD was the main movers rising 0.15%. BTC/USD is down 2.37% trading at $34,834.

Looking at the news from over the weekend, RBNZ's Hawkesby said the market is getting too far ahead on rate hikes, remember these are conditional.

China official PMIs for May show that manufacturing hit 51.0 (estimate was 51.1). Anything above 50 shows the sector is still in expansionary territory. The non-manufacturing PMI reading for May reached 55.2 vs previous 54.9.

Japan Industrial Production for April +2.5% m/m (expected +3.9%).

Chinese think-tank says while US tariffs on China are likely to remain in place a middle ground might be found

The UK is abandoning COVID-19 vaccine passport plans. Previously this was going to be a legal requirement for entering a large gathering event.

WSJ on Biden's infrastructure discussions extending into June. Biden administration says talks over infrastructure would need to show a "clear direction" toward agreement by the time Congress returns from recess on June 7 signaling that Democrats might be preparing to go it alone.

On the coronavirus front, Vietnam has reportedly found a new COVID-19 variant, combines UK and Indian strains.

The China regulator says will further crackdown on market manipulation. Mainly focusing on the commodities markets.

New Zealand says it is supporting Australia in the trade dispute with China.

Looking ahead to the rest of the session markets could be quiet as the U.S. and U.K. are both off for a public holiday. Elsewhere we are due to get German CPI and comments from German Buba Vice President Buch.

By Rajan Dhall

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David

Gold’s big strides and its ultimate $10K price target

Gold's big strides and its ultimate $10K price target

Gold is making some big strides, rising above $1,900 an ounce for the first time since January. And gold bulls now want to see the $2,000 an ounce gold price target happen.

Some of the main triggers behind the move are a weaker U.S. dollar and crypto volatility. Here's a look at Kitco's top three stories:

3. Central banks’ interest in gold is heating up. The International Monetary Fund data show that the Bank of Thailand bought 43.5 tonnes of gold in April.

2. Ray Dalio, founder of Bridgewater Associates, said he prefers to own bitcoin over bonds, adding that he now owns some bitcoin. Dalio did not specify how much he owns. But he did say that bitcoin’s biggest risk is its success.

1. Gold’s ultimate price target is between $5,000 and $10,000 an ounce, says Guggenheim's CIO Scott Minerd. According to him: “As money leaves crypto and people are still looking for inflation hedges, gold and silver are going to be much better places to go.”

By Anna Golubova

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David