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 and Gold had a day of extremes with no less than 4 steep dips and gains of close to .5% throughout the day with stocks facing pressure during the morning trading session.
On Tuesday, Gold prices were firmer again in early U.S. trading. More short covering and perceived bargain hunting are featured in the precious metal, after it recently hit five-month lows.
On Wednesday a definitive recovery began as the gold market was trading at session highs, seeing some modest safe-haven flows as activity in both the U.S. manufacturing and service sectors contracted more than expected.The S&P Global Flash U.S. manufacturing PMI data dropped to 47.0%, down from July’s reading of 49. According to estimates, economists were looking for a relatively unchanged reading at 48.9. Activity in the U.S. manufacturing sector has fallen to a two-month low.
Thursday with the gold price continuing to rise, traders are awaiting the marketplace event of the week, if not the month: the annual U.S. Federal Reserve symposium held in Jackson Hole, Wyoming.
On Friday,the gold price started the day above the key breakout price of $1,900/oz. Thursday’s triumphant upside move in both gold and silver was based on a sharp and decisive drop in yields of U.S. long-term treasuries. This upwards motion continued for Friday trading.
Gold Price Week-Summary….The Low-down:
Starting the week at €1,737/oz and finishing the week on €1,774/oz this was a steadily strong week for gold. A 2% upward-swing is always a good week for gold and with all of the elements at play this week the price could have easily gone either way. PMI data in the US as well as a drop in the yields of long-term treasuries all played their part. BRICS announcements (yet to be finalised) as well as Jackson Hole all played their part in moving gold upwards this week.
General Markets Summary:
• Mixed results. The S&P 500 and the NASDAQ posted overall gains for the first time in four weeks but the Dow finished in negative territory again, if only slightly. The NASDAQ outperformed its peers by a wide margin, despite sustaining a nearly 2% decline on Thursday.
• U.S. Housing market slump. Amid a recent spike in mortgage rates, U.S. sales of existing homes in July fell to the lowest level for that month since 2010. Sales fell 2.2% versus June 2023 and slid 16.6% relative to July 2022, according to the National Association of Realtors.
• Oil slick? The price of U.S. crude oil fell for the second week in a row, losing some of the ground from a seven-week string of gains that preceded the latest downturn. Oil was trading on Friday for about $80 per barrel, down from around $84 as recently as August 9, when oil climbed to a year-to-date high.
• Eurozone bond yields fall, with 10-year German sovereign yields ending lower. Economic data pointed to a weakening European economy, prompting financial markets to pare expectations on future interest rate increases.
The wider outlook for Gold:
Investors should hold more than 5% in gold as a recession is inevitable – Adrian Day.
In a recent interview with Kitco News, Adrian Day, the President of Adrian Day Asset Management, expressed his view that some economists are overestimating both the current robustness of the economy and the enduring strength of consumer behaviour.
“We always seem to forget that recessions don’t happen overnight,” he said. “Investors keep expecting things to happen immediately, but it takes time for economic conditions to change.”
Although consumer spending has bolstered economic activity for a significant portion of this year, Day pointed out that consumers have depleted their savings accumulated during the COVID era, as evidenced by a substantial rise in credit card debt during the second quarter.
According to the New York Federal Reserve’s report earlier this month, consumer debt escalated to $1 trillion between April and June.
Day also noted that consumers are not only resorting to debt for covering their expenditures, but they are also now confronting elevated interest rates due to the Federal Reserve’s aggressive tightening policies. He emphasized that such signals are not indicative of a healthy economy.
Day projected that it’s merely a matter of time before consumers, unable to manage their debt burdens, begin defaulting on the $1 trillion, thereby posing a substantial risk to the economy.
“We haven’t escaped a recession, in my mind, by any means,” he said. “You can’t raise rates from zero to five without doing serious damage.”
Day added that the longer the Federal Reserve maintains these elevated interest rates, the bigger the risk they will pose to the economy.
In this prevailing scenario, Day anticipates that investors will inevitably turn to gold as a safeguard for their wealth, as the economy takes a downturn. However, he appended that the catalyst for an increase in gold’s value still hinges on the Federal Reserve’s monetary policies.
“When the Fed stops tightening before inflation is controlled, then I think gold will go up,” he said.
As to how much gold investors should hold, while some analysts recommend holding about 5% of their portfolio in the precious metal, Day said that with a recession looming, investors should look at increasing that amount.
“Gold remains an important insurance policy to protect your portfolio, and when risks are high, your need for more insurance increases,” he said.
THIS WEEKS PRODUCT FOCUS:
The 1oz Canadian Maple Gold Coin
The 1oz Gold Maple Coin is a highly regarded and internationally recognized bullion coin known for its exquisite craftsmanship and intrinsic value. Issued by the Royal Canadian Mint, this coin is an emblem of precision and quality, reflecting Canada’s reputation for producing top-tier precious metal products.
Composed of 1 troy ounce of .9999 fine gold, the coin carries a significant amount of pure gold, making it a sought-after investment option for collectors, investors, and enthusiasts alike. Its diameter of approximately 30 millimeters and thickness of around 2.8 millimeters give it a substantial feel in the hand, further accentuating its value.
The obverse side of the coin features the iconic effigy of Queen Elizabeth II, Canada’s reigning monarch, meticulously engraved to capture intricate details such as her regal profile, the fine texture of her attire, and the tiara atop her head. The denomination, “50 DOLLARS,” is inscribed on this side as well, indicating the legal tender value of the coin in Canada, although its market value primarily derives from its gold content.
The reverse side proudly displays Canada’s national symbol, the maple leaf, which is recognized around the world as a representation of the country’s natural beauty and abundant resources. The maple leaf is rendered with exceptional attention to detail, showcasing the delicate veins of the leaf and creating a lifelike appearance. The use of advanced minting techniques imparts a sense of depth and brilliance to the design.
One of the distinguishing features of the Gold Maple Coin is its state-of-the-art security features, aimed at preventing counterfeiting. These include micro-engraved radial lines and a small, intricately designed maple leaf privy mark. These security elements not only serve as a testament to the Royal Canadian Mint’s commitment to authenticity but also add a touch of sophistication to the coin’s aesthetics.
Overall, the 1oz Gold Maple Coin stands as a testament to both the mastery of the Royal Canadian Mint’s artisans and the enduring allure of precious metals. Whether acquired as a tangible investment, a collector’s item, or a symbol of national pride, this coin encapsulates the rich heritage of Canada’s minting excellence and its connection to the global market for gold.
Canadian Maple 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.
