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, Gold edged higher on Monday, propped-up by a slight pullback in the U.S. dollar as market participants grew more confident that the Fed may have finished raising interest rates.
On Tuesday, The Gold market saw renewed selling as rising inflation pressure from higher oil prices continued to support the Fed’s hawkish monetary policy bias, boosting the U.S. dollar and pushing bond yields higher
On Wednesday, Gold and silver prices were lower in midday U.S. trading, as technical selling was featured amongst the lack of fresh fundamental figures or news to drive the prices. Spot price hit its lowest price since last month.
Thursday, the gold price recovered from it’s previous days drop as news broke that China’s central bank added more of the precious metal to its foreign reserves for the tenth consecutive month in August – Buying 29 Tonnes of gold in the month of August.
On Friday, the gold price range marks the first time that gold has gained on the day (although fractional) this week. Gold will finish fractionally higher on the day but lower on the week.
Gold Price Week-Summary….The Low-down:
Opening the week at €1,799/oz and closing the week at €1,794/oz – A relatively good week for gold all-in-all, with the exception of one dip midweek – the price and trading were strong all week. Gold’s short-term corrective cycle began after a high of $1980 was reached on Friday of last week and then traded lower for three consecutive days on Tuesday, Wednesday, and Thursday. The weekly low at approximately $1940 occurred on Wednesday, and although gold has traded to a higher low on Friday it remains close to the weekly lows at the end of the week.
General Markets Summary:
U.S. Jobless claims fall to lowest level since February – Thursday’s weekly jobless claims report in the U.S. came in lower than expected, indicating continued strength in labour demand despite August’s solid increase in the unemployment rate (from 3.5% to 3.8%). The number of Americans applying for unemployment in the previous week fell to 216,000, the lowest level in six months. Continuing claims fell to 1.68 million, the lowest level since mid-July.
Eurozone growth revised lower; German industrial output falls again – A string of economic data provided more signals that the eurozone economy continues to stumble. Gross domestic product (GDP) in the bloc grew 0.1% in the second quarter, as a drop in exports contributed to Eurostat’s downward revision of its initial estimate of a 0.3% expansion. Retail sales volumes in the eurozone fell 0.2% sequentially in July, reflecting weaker automotive fuel purchases. The year-over-year decline was 1.0%.
BoE’s Bailey signals rate peak may be near – Bank of England (BoE) Governor Andrew Bailey cast doubt on a possible hike in UK interest rates at the upcoming September 21 policy meeting. He told a parliamentary committee: “I think we are much nearer now to the top of the [interest rate] cycle.” Referring to the decision, he said: “The judgments now are much finer [than before].”
China – Chinese stocks retreated as the latest economic indicators reinforced concerns about the country’s weakening outlook. The Shanghai Composite Index fell 0.53% while the blue chip CSI 300 Index gave up 1.36%. In Hong Kong, the benchmark Hang Seng Index declined for the week ended Thursday after financial markets were closed Friday due to a heavy rainstorm that flooded the city.
Poland Shocks! – On Wednesday, September 6, Poland’s central bank shocked investors by cutting its key policy rate, the reference rate, from 6.75% to 6.00%. This rate cut was much larger than expected—especially considering that the inflation rate, while it has been declining, remains well above the reference rate—and it prompted a sharp drop in the zloty versus the euro.
The wider outlook for Gold:
The gold market could hit $2,600 as U.S. dollar index falls below 104 – says DeCarley Trading’s Carley Garner.
The U.S. dollar’s supremacy in the gold market persists; nonetheless, there are indications that the greenback’s vigor may wane as the Federal Reserve is unlikely to sustain its assertive monetary policy approach until the end of the year, as per insights from a market strategist.
In a recent interview with Kitco News, Carley Garner, co-founder of DeCarley Trading, a brokerage firm, expressed optimism about gold’s potential to reach record highs once the momentum of the U.S. dollar loses steam, given that gold maintains crucial support levels. Garner anticipates that the U.S. dollar index will encounter resistance below the 105-point mark, and she envisions the greenback eventually revisiting support levels around 99 points.
“If we break below that support level, we are probably going back towards the mid-nineties and if that’s the case, that’s a game changer for gold,” she said. “Suddenly, we are not looking at $2,000 gold but new all-time highs.”
Garner said a breakdown in the U.S. dollar could eventually push gold prices to $2,600 an ounce.
Garner said that one of the reasons why she sees so much potential in gold is because of how resilient it has been in the last few months. While bond yields in the U.S. remain near 15-year highs above 4%, gold has held critical support around its 20-day moving average.
A peak in long-term yields would remove another headwind for gold, she said.
“We are basically sitting on the biggest net short in bonds on record and at some point, that is going to unwind itself,” Garner said. “This trade will be unwound and that is going to push interest rates lower. When positioning is this extreme, it’s just a matter of time.”
One factor that could spark a selloff is if the Federal Reserve shifts to a more neutral monetary policy stance, leaving interest rates unchanged through year-end. According to the CME FedWatch Tool, markets see a more than 90% chance of no rate hike later this month and only a 50/50 chance of a rate hike in November.
While Garner is bullish on gold, she added that the market could remain volatile in the near term, with prices potentially retesting support around $1,900 an ounce. She said that if bearish momentum picks up, she would not be surprised to see prices fall to $1,980 an ounce.
“I wouldn’t give up on it unless maybe we broke below, let’s say $1,800,” she said.
Although Garner is bullish on gold, she does not have the same enthusiasm for silver. She said that she would rather play a breakout in the precious metals through gold.
“Eventually, silver will outperform gold, but I don’t think it’s going to happen now,” she said. “I think the only thing I can say is that on a shorter time frame, silver is usually a buy around $20.”
THIS WEEKS PRODUCT FOCUS:
The Mexican Peso Gold Coin
Mexican gold peso coins have a rich history and come in various denominations, each with its own unique design and characteristics. One of the most iconic Mexican gold peso coins is the Centenario, which is a 50 peso gold coin. Here is a description of the Mexican Gold Centenario:
Obverse (Front):
- Date: The date of issue is usually located on this side, typically at the bottom.
- Winged Victory: The central design features the Angel of Independence, a statue commonly known as “Winged Victory” or “El Ángel.” This statue is an iconic symbol of Mexico and represents freedom and victory.
- Volcano Popocatépetl and Iztaccíhuatl: Behind the Angel of Independence, you’ll often see two prominent Mexican volcanoes, Popocatépetl and Iztaccíhuatl, which are significant landmarks in Mexican culture and history.
- Legend: Around the edge of the coin, there is usually an inscription. It may read “Estados Unidos Mexicanos” (United Mexican States) or “50 Pesos,” denoting the denomination.
Reverse (Back):
- Mexican Coat of Arms: The reverse side typically displays the Mexican national coat of arms, featuring an eagle perched on a cactus with a snake in its beak. This emblem has deep historical significance and is derived from the legend of the founding of Mexico-Tenochtitlan, the ancient Aztec capital.
Specifications:
- Weight: The Centenario contains 37.5 grams (approximately 1.2057 troy ounces) of pure gold.
- Fineness: Mexican gold pesos, including the Centenario, are typically 90% pure gold, with a fineness of 0.900.
- Diameter: The diameter of the Centenario is about 37 mm.
Please note that Mexican gold pesos have been minted in various designs and denominations over the years, and while the Centenario is one of the most well-known, there are other gold pesos with different designs and historical figures. The specific design and details of a Mexican gold peso coin can vary based on the year of issue and the specific edition.
Mexican Peso Gold 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.
