18 unusual split tests that increase sales

18 unusual split tests that increase sales

split tests

Introduction

No matter what you sell, you can make a small change to your site and increase your sales. Split testing is one of the best ways to learn which changes work and which don't. It's easy to test out small changes at first but as you get more comfortable with it, you can move on up to bigger tests like A/B testing.

 

 

1. Color of the button

  • The color of the button can affect the click-through rate (CTR).

  • The color of the button can affect the conversion rate.

  • The color of the button can affect the bounce rate—if you increase this metric, then users are more likely to leave your site without completing any action.

  • Additionally, if your time on site increases as a result of changing your button color, then this means that users are spending more time engaged with your product or service; this is another positive indicator for increasing sales.

2. Appealing to the visitor's brain

If you want to increase your sales, use brain science to your advantage. The brain is the most powerful tool we have, so use it!

Brain science is a great way to improve conversion rates because when someone is exposed to something new, their brain will create an association between that object and whatever emotion they’re experiencing at the moment. This concept can be used in many ways:

  • If a visitor sees a picture of food on a landing page or website, they will associate hunger with whatever product they're looking at and be more likely to buy it.

  • Visitors who see a picture of money are more likely to purchase items than those who don't see any money images.

3. E-book cover

Just as the cover of a book is an important part of the overall impression, so is a split test. If you have decided to create or redesign your e-book cover, then it's time for a split test.

The most successful covers are eye-catching and relevant to their content; they also have a relevant title and good description.

4. Movement of elements on the page

  • Animation. You can use animation to attract the user’s attention, make it easier for them to read content and make it more appealing in general. A simple example would be a bouncing ball at the end of a text block or a logo that moves every few seconds; more complex animations can also be used here.

  • Movement of elements on the page. Moving elements on your website can positively influence users by making them feel like they are part of the action and helping them better understand what is going on with your brand. This can be done by moving an element across your site (such as an arrow), rotating another element (like an arrow), or simply animating an image so it appears to move around in 3D space as if coming toward or away from a user when they hover over certain areas of your website.

5. Background image on the page

This is a popular technique that can be used to create a mood or atmosphere, emphasize important elements on the page, and even highlight specific products. The background image should be relevant to the product or service you are selling. For example, if you're selling clothes for children then choose an image of kids playing with each other or having fun in the park. You can also use this method as an attention-grabber by using images that stand out from everything else on your site.

 

6. Headline of a page

One of the most important parts of any website is the headline. Headlines should be short and attention-grabbing, but they also need to relate to what you're trying to sell. Make sure that your headline is relevant and easy to read—grammatical errors are a major turnoff for visitors. If it can't be easily understood by someone who doesn't know anything about your product or service, then it's not worth using!

7. Visuals and text in a headline about results

Headlines are important, and you should use them to their full capacity. When writing a headline that includes visuals and text, it's important to keep the following in mind:

  • Make your headline interesting. Your audience will be looking at this first thing on the page, so make sure it catches their attention!

  • Make it relevant to the product or service being advertised. This is where some creativity can come into play—you'll want to tailor each ad toward its specific audience.

  • Include a call-to-action (CTA). This ensures that customers know what they need to do next in order for them get started with your product or service. The CTA should also be relevant to what you're advertising—so if you're selling dog food through Facebook ads, don't include "Buy Now" as your CTA unless it's something else like "Try It Free." You might also consider including "Learn More" instead of just directing people straight from the ad into buying something; this gives them more information about what they'd be purchasing first before making such an important decision.

  • Focus on results rather than features!

8. Simplifying a sales page for a product considered complex

When you're selling a complex product or service, you'll want to simplify your sales page. This can be done in several ways:

  • Make it easier to understand by using fewer words, less jargon and more visuals. If a customer has questions about what they're buying, they should be able to find answers quickly on the website rather than calling or emailing.

  • Make the site load faster. Nothing will frustrate visitors more than waiting for pages to load—they'll get bored, distracted and leave without buying anything (or worse yet, never come back).

  • Take out unnecessary elements like videos that don't help explain what your business does well enough already (and might even confuse customers).

9. Direction of the video play button

When it comes to video marketing, the direction you place your play button can have a big impact on conversions. The first thing you should ask yourself is: "What direction is my video moving?" If your content is going up and down or left to right, then make sure your play button is placed in those directions as well. It doesn't matter if this isn't intuitive—it just needs to look natural.

Next, think about what kind of sound (if any) you hear throughout the video. If there's no sound at all and/or nothing important happening visually (i.e., no action), then maybe a clickable area would be distracting from what's actually happening on screen—especially if it's flashing red like an emergency warning sign that says "Click me!" In these cases, consider putting text above or below the visual element instead of making it into a button that people would want to click on by itself.

Finally, think about how viewers feel while watching your content; do they feel relaxed? Excited? Motivated? This will help determine where exactly within the frame you should place your call-to-action so that it doesn't distract from their emotional experience with what they're watching but still gives them an opportunity for interaction after viewing (e., purchasing).

 

10. Landing page type (single step vs multi-step)

The landing page type (single step vs multi-step) can have a big impact on your conversions.

  • Multi-Step Landing Pages: As the name indicates, these are more complex and require more time for the user to complete the conversion process. The multi-step process also requires additional information from the user, which could be confusing and may lead them to abandon their purchase.

  • Single Step Landing Pages: Single step pages are simpler to convert and easier for users to remember. They only require one action from you, making it more persuasive and actionable than a multi-step page would be.

11. Split payment into smaller chunks

One way to increase sales is by splitting the payment into smaller chunks. This is particularly useful if you're selling a product that costs more than $500, or if you have customers with low credit scores who may not be able to afford the full price at once.

The idea behind this technique is that it breaks up the cost of your product or service into smaller payments over time, which can make it easier for customers to purchase what you're offering them.

Why does this work? It's all about psychology: when people pay in installments, they feel less stressed about spending so much money at once, which encourages them to buy more products from your store than they would otherwise (and less stress means higher customer satisfaction).

12. Changing the color of text explaining the reason behind a statement

If you're trying to motivate customers, highlight the benefits of your service or product. Use color to draw attention to these statements in order to emphasize them.

In a study conducted by researchers from the University of Pennsylvania and Singapore Management University, 1,000 participants were asked to look at two versions of a web page for an online watch retailer: one with green text on a white background and another with black text on a yellow background. In the first version, green was used as an indicator for bargains while in the second one it indicated newly added products. After browsing through each version of the website, participants were asked how much they would be willing to pay for either version of these watches if they were actually interested in buying one. Those who saw green-colored text were willing to pay more than those who saw black text—even though both versions contained exactly same information (and had no images or visuals).

13. Changing the positioning of a form field within a signup form (higher on the page, lower on the page)

When a user has to scroll down to find a form field, it can be difficult for them to know what they're supposed to enter. (e.g., does "Full Name" go in the first box or the second?)

To avoid this confusion, you should position your form fields so that users don't have to scroll down at all. Instead, place them at the top of your page or just below your header image so they're easy for visitors to find and see what they need to enter into each box.

14. Adding social proof to a landing page

  • Social proof is a psychological phenomenon where people are influenced by the actions of others. We tend to make decisions based on what other people have done or said, and we often assume that if something is popular, it must be good.

  • Social proof can be used to increase trust in a sales page. Have you ever seen how many people liked a Facebook post? Or how many followers someone has? This kind of information makes you feel like your purchase was made at the right time because there’s no doubt about it—a lot of other people bought this before you did!

  • Here are some examples:

15. Removing extraneous color from an interface (like changing neutrals to black-and-white)

Removing extraneous color from an interface can help with usability.

Color is a powerful design element, but sometimes too much of it can be distracting. However, removing all color would be an extreme solution; without the right colors in place, many interfaces will look bland and unprofessional. To keep your site's branding intact while also simplifying the visual experience for users, you should consider reducing the number of colors used throughout your website or app by at least half—if not more!

You may also want to consider using a monochromatic theme for certain pages or components where extra contrast isn't necessary. For example: instead of red buttons on white backgrounds (which create quite a bit of contrast), try black-and-white buttons instead. They're easier on the eyes and allow other elements like text and images stand out more clearly."

16. The look and feel of a signup form and its copy

A good signup form should match the look and feel of the rest of your website. It should have a clear call-to-action that's placed prominently on the page, and persuasive copy that explains why customers should sign up.

 

The copy on your signup form should be persuasive in tone, not just informative. Don't tell people what you do in an uninspiring way—instead, show them how it will make their lives better.

17. Proving that more information is better? Not always!

You should also be wary of providing too much information. If a page has too many options, it's easy for users to get overwhelmed and abandon the site altogether.

The ideal amount of choice depends on your product and audience—but consider how often someone will go back to use your site again after making a decision. If they'll rarely come back, more choice isn't necessarily better: You’ll just end up driving them away by overwhelming them with options and information that isn't relevant to their purchase decision.

18. The "next step" button at checkout – should it be big or small?  red or gray?  blue? Or green? 😉 It depends on what you're selling! 😉

The "next step" button at checkout – should it be big or small? And red or gray? and blue? Or green? 😉 It depends on what you're selling! 😉

In a test by ExactTarget, they found that the size of a button affects how many people click on it. The bigger the button, the more people clicked:

  • Bigger buttons achieve higher click-through rates and conversions than smaller ones.

Testing can increase sales

Split testing is a great way to increase sales. It can be done in many ways, and with many different variables. Test your pricing page!  your landing page!  the color of your logo! Test the layout of your store!

Testing can be done in many ways, and with many different variables.

Conclusion

If you've read this far, it's safe to say that you know there is no one-size-fits-all solution. Every business operates in a unique environment and context. And when it comes down to it, there are so many different ways to split test that the possibilities are endless. We've only covered some of our favorites here but we'd love for you to get creative with your own experiments! The most important part is just getting started—and finding a way that works within your budget, time constraints, and resources available at this moment in time.

Submit Your Articles and Increase Website Traffic

Tim Moseley

Gold price sinks on strong greenback rising US Treasury yield

Gold price sinks on strong greenback, rising U.S. Treasury yield

Gold and silver prices are down in midday U.S. trading Wednesday. The precious metals are being punished by a strong U.S. dollar index and rising U.S. Treasury yields. These two bearish elements continue to supersede any other potentially bullish factors for the metals. December gold hit a three-week low today and was last down $19.40 at $1,636.60 and December silver was down $0.235 at $18.365.

U.S. stock indexes are mixed at midday. Risk appetite is a bit more upbeat so far this week. U.S. corporate earnings reports are so far coming in better than expectations despite recession fears.

The Crypto Winter will end once innovation and these other key developments reignite – Sean Mackay

The key outside markets today see the U.S. dollar index solidly higher and not too far below its recent 20-year high. Nymex crude oil prices are modestly up and trading around $83.60 a barrel. The U.S. Treasury 10-year note yield is presently fetching 4.065%.

Technically,the gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at today’s high of $1,659.50 and then at this week’s high of $1,674.30. First support is seen at $1,630.00 and then at $1,622.20. Wyckoff's Market Rating: 1.5

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at today’s high of $18.755 and then at $19.00. Next support is seen at this week’s low of $18.155 and then at $18.00. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 280 points at 333.35 cents today. Prices closed nearer the session low and hit a three-week low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at 340.00 cents and then at this week’s high of 346.75. First support is seen at 330.00 cents and then at the September low of 324.30 cents. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Advantages of Shopping Products from E-Commerce Platforms

Advantages of Shopping Products from E-Commerce Platforms

E-Commerce

Introduction

eCommerce is one of the fastest-growing industries in the world. In fact, it's even predicted that eCommerce will be a $4 trillion industry by 2023. The benefits of shopping online are numerous: free shipping, discounts and low prices, huge on variety, freedom to compare and research, 24/7 shopping and more! Here are some more advantages of shopping products from E-Commerce platforms:

Free Shipping

Free shipping is one of the best advantages of shopping online. When you go into a physical store, you have to pay for parking and sales tax. If you live in a rural area or are going out of town, the cost of gas can add up quickly. With online shopping, these costs are eliminated or at least reduced substantially. The cost savings from free shipping can really add up if you're buying multiple items at once!

Discounts and Low Prices

It should be noted that discounts and low prices are available on e-commerce sites. You can get the best price on your favorite items in no time at all. For example, if you purchase multiple products from a particular brand, there will be a discount coupon for each item. The same applies to bulk orders of large quantities of goods or services. Shopping online is definitely more convenient than going to a physical store because it saves you time and effort in finding what you need.

Puzzle Master

Huge on Variety

Because e-commerce platforms are not limited to physical store locations, they can offer a far greater variety of products than traditional retail outlets. In addition to this, the products available are not rigidly restricted by the space constraints of physical stores. This means that you will be able to find everything from high-end designer goods to cheap and cheerful low-quality items on these platforms.

Another benefit of shopping online is that because there are no limits on selection, it allows for more options for different types of customers. For example, if you have a tight budget but still want quality products, then an e-commerce platform would be perfect for you because they allow users to filter products according to price range and type.

Freedom to Compare and Research

  • You get to compare products and prices.

  • You can read reviews of the product before making your final decision.

  • You will be able to research more about the product before buying it.

24/7 Shopping

  • Can shop anytime

When you go to a physical store, the store is often open only during business hours. In most cases, these are only 8-5 or 10-6 and even then you may have to wait in line. Shopping is often a social activity, but if your friends work in different shifts from yours or live far away from where you do and prefer shopping at other times of day, it becomes less easy for you to shop together. Online stores are always open 24/7 which means that there is no need for any extra effort besides clicking on your computer screen or smartphone screen as long as there is internet connection available for both devices. So even if all of your friends are busy with their jobs at particular times of day when they would otherwise be able to meet up with each other and go out shopping together—or simply because one friend wants something urgent that another may not be able to help him get without getting off his shift early—he can still purchase what he needs through an online platform without leaving his home and waiting in line (if he's lucky enough).

Modern Artisans

  • Easily buy gifts for family members

If someone has important events coming up (such as birthdays), it can be difficult finding time within short notice just right after work ends at 7 PM until midnight when stores finally close again so she can pick up her gift before going home herself; however, if she knows exactly what she wants beforehand then ordering gifts online means all those difficulties disappear because she doesn't have much choice: either get them delivered within 24 hours after payment confirmation has been made or possibly sooner depending on how fast delivery services operate locally."

These are a few advantages of shopping products from E-Commerce platforms.

There are several advantages of shopping products from E-Commerce platforms. First, you can shop for anything at anytime and anywhere as long as you have internet connection. Second, these platforms provide free shipping for most items which is also a huge advantage. Thirdly, there are discounts and low prices offered by some e-commerce sites like Amazon which makes it even more affordable than other retail stores. Fourthly, these platforms offer huge variety of products to choose from so the consumer gets what he wants without having to go through too much trouble or research on finding the best product that suits his needs and budget. Fifthly, these online shops allow consumers to compare different prices of various brands in terms of quality and durability before buying any item so that they won't end up buying something expensive yet poor in quality. Lastly but not least: 24/7 shopping!

Conclusion

In conclusion, there are many advantages of shopping online. The most important advantage is that you can get much better deals and discounts on the products which are available at the E-Commerce platforms. You will also be able to save money on shipping charges by placing orders through these websites. Also, there is a huge variety of products available at these websites which makes it convenient for consumers as well as retailers to find what they need easily.

Tim Moseley

What is the easiest way to start making money Today online?

What is the easiest way to start making money Today online?

Introduction

Making money online can be a very confusing and overwhelming process. There are so many different ways to make money online, and it may seem like all of them require some sort of programming experience or knowledge. Fortunately, this isn't always the case! In this article, we'll discuss some of the easiest ways you can start making money right now with little to no investment beyond your time.

You can make extra money right from your couch with little or no investment beyond your time.

If you want to make money from home, you can do so with no investment other than your time. It's not as simple as clicking ads on Facebook or watching videos on YouTube – there are actually a few different ways that you can do this.

There are a number of websites that make it easy to sell directly to your customers.

There are a number of websites that make it easy to sell directly to your customers. Amazon, Etsy and eBay are the best-known marketplaces and they're great for selling physical products. Craigslist is a popular choice for selling both physical and digital products as well as services. Letgo is another good choice if you live in a big city, since it's designed specifically for mobile devices.

Bonanza, Poshmark and ThredUp are all good options if you're interested in selling clothing online (or just want to try on new clothes). Carousell is an app-based marketplace where people can buy and sell almost anything—including locally by using their smartphones—and Mercari offers fast cash for all kinds of items (like apparel) at nearby locations through their mobile app. DoteBuy does not require sellers to be registered businesses when listing items; instead they simply enter information such as quantity needed per package or size/color preferences so that shoppers can purchase exactly what they need without hassle!

Vendini makes it easy to create professional sales pages using templates from its library before uploading these pages onto any marketplace like Etsy or eBay with just one click!

First of all, you need to have good quality content.

First of all, you need to have good quality content. You can’t just write anything about any topic and expect it to sell. Content is king when it comes to online marketing.

People want information that will help them improve their lives in some way so they can make more money or become more successful in their careers. They don't want your opinion on these topics; they want facts and information on a variety of topics like health, finance and relationships (for example). If you're going to be an expert in something then you're going to have to do some homework before putting pen-to-paper (or fingers-to-keyboard) because there are thousands of people out there who will gladly take your readership if you don't deliver value with every article that you publish online

To check the number of visitors coming to your site, you can use Google Analytics.

To check the number of visitors coming to your site, you can use Google Analytics.

Google Analytics is an easy-to-use site that tracks the traffic that comes to your website and can tell you what people are reading, how long they stay on the page for and even where they are coming from. This is a great tool for anyone who wants to know more about their audience, as well as themselves as an author.

You need a Google Adsense account for this to work.

Google Adsense is an excellent way to monetize your website or blog. Google Adsense allows you to place ads on your website and make money from it. In order for this method to work, you will need a Google Adsense account which can be created for free by anyone with a valid email address. The best part about this method is that it doesn't require any technical skills or prior experience in making money online.

To get started, visit the website, and create an account by clicking on "sign up."

To get started, visit the website, and create an account by clicking on "sign up." You will be required to enter your name, email address and password. You will also need to choose the currency you would like to use on their website (USD, CAD or GBP). Once done with that you can then click on "create my account" at the bottom of this page.

 

A great thing about Udemy is that once you've made a course, it can continue to be sold for years.

A great thing about Udemy is that once you've made a course, it can continue to be sold for years. You can keep all of the profits from the student purchases and add new lectures as often as you like.

Course creation is very easy because there are no requirements or restrictions on what you teach. You could create a course on any topic where you have expertise and be sure that people will buy it!

Creating a successful digital product is not an easy task.

Creating a successful digital product is not an easy task. You must have a great idea, know your audience, know how to market it and create the product that people want to buy. Then once you've done all this, you'll need to know how to sell it.

The most common way people make money online is by creating digital products like ebooks or software programs that they sell on their own websites or through Amazon and other online retailers.

There are many ways to make money online from home and from the comfort of your own computer.

There are many ways to make money online from home and from the comfort of your own computer.

  • You can sell your own products. This is a great way to be able to make a profit on something that you know well and have an interest in, such as art or crafts or cooking. The key here is finding a product that people want, but which they don't necessarily want to pay top dollar for (meaning it's something they already buy somewhere else). Once you've found your niche audience, it's all about getting enough traffic to your site so that people will find out about it and buy what you're selling.
  • You can sell other people's products through affiliate marketing programs like Amazon Associates or ClickBank; this means that if someone buys one of these products using one of those links on your site (or blog), then Amazon pays you a small commission for bringing them new customers—in some cases up to 8% depending on how much trust has been built up between the seller/vendor and yourself over time!

Conclusion

I hope this post has given you some insight into how you can make money online. If you have any questions or comments, feel free to leave them below!

 

November Birthstone - 10% OFF Entire Store

Tim Moseley

silver stumGoldble as USDX US bond yields rise

Gold, silver stumble as USDX, U.S. bond yields rise

Gold and silver prices are lower in midday U.S. trading Tuesday, once again pressured by a higher-valued U.S. dollar on the foreign exchange market and by rising U.S. Treasury yields that see the benchmark 10-year note yield above 4.0%. December gold was last down $7.80 at $1,656.20 and December silver was down $0.124 at $18.595.

Global stock markets were mostly firmer overnight. U.S. stock indexes are higher at midday. Risk appetite is keener early this week, due in part to news the new U.K. Chancellor of the Exchequer Jeremy Hunt affirmed Britain will roll back nearly all of its previously announced tax-cut plans that had been roiling financial markets. Stock traders continue to focus on corporate earnings reports, with the companies’ results so far beating expectations despite recession fears.

Bitcoin could fall to $3.5K as recession intensifies and stocks collapse – Gareth Soloway

The key outside markets today see the U.S. dollar index firmer after suffering sharp losses Monday. Nymex crude oil prices are sharply lower and trading around $82.50 a barrel. The U.S. Treasury 10-year note yield is presently fetching 4.025%.

Technically,gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the October high of $1,738.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20. First resistance is seen at this week’s high of $1,674.30 and then at $1,688.90. First support is seen at the October low of $1,645.60 and then at $1,622.20. Wyckoff's Market Rating: 2.0

. ]

The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at $19.00 and then at $19.29. Next support is seen at this week’s low of $18.155 and then at $18.00. Wyckoff's Market Rating: 2.0.

December N.Y. copper closed down 600 points at 335.70 cents today. Prices closed nearer the session low and hit a two-week low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 369.25 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 315.55 cents. First resistance is seen at this week’s high of 346.75 and then at last week’s high of 350.10 cents. First support is seen at today’s low of 333.90 cents and then at 330.00 cents. Wyckoff's Market Rating: 3.0.

By Gary WagnerContributing to kitco.com.

Time to buy Gold and Silver on the dips

Tim Moseley

Gold struggles in light of weak dollar as rate hikes loom

Gold struggles in light of weak dollar as rate hikes loom

Gold continues to struggle even in light of a strong decline in the U.S. dollar. Gold had respectable gains in New York trading today, but gave up those gains in Globex trading. By the close of trading in New York today gold had added $15.10 of value and was fixed at $1664. As of 4:30 PM, EDT gold futures basis most active December contract is up only $5.80 or 0.35% and fixed at $1654.70. The December contract traded to a high of $1674.30 and a low of $1649.10 after opening just $0.80 above today’s low.

 

Dollar weakness was a major contributor in supporting gold prices from moving lower. Currently, the dollar is down 1.182 points or -1.04% and fixed at 112.025. As seen through the KGX (Kitco Gold Index) market participants were predominantly sellers with spot gold currently fixed at $1649. That is a net gain of $4.60 today. However, on closer inspection market participants were aggressive sellers taking physical gold lower by $12.80. If not for dollar weakness which added $17.40 gold’s gains would have been nonexistent.

Market participants witnessed a strong risk-on sentiment in U.S. equities. The Dow gained 1.86%, the S&P 500 gained 2.65%, and the NASDAQ composite gained 3.43%.

Market participants trading the precious metals are still genuinely concerned about the remaining two FOMC meetings in November and December. It is widely anticipated that there is a high probability that both Federal Reserve meetings will contain interest rate hikes of 75 basis points each.

According to the CME’s FedWatch tool, there is a 97.4% probability that the Federal Reserve will raise rates by ¾% at the November FOMC meeting and a 65.3% probability of a ¾% rate hike in December. This would take the fed funds rate from between 300 and 325 basis points currently to between 450 to 475 basis points by the end of 2022.

Last week market participants were active buyers of both 30-year bonds and 10-year Treasury Notes resulting in an inverted yield curve with yields in the 10-year Notes priced slightly above the 30-year bond. Today that inversion has been neutralized with both the 10-year note and the 30-year bond yielding 4.015%.

Inflation continues to run at a record level with the latest CPI core data revealing a slight uptick in inflationary pressures from 6.3% in August to 6.5% in September. However, the Eurozone is experiencing much higher levels of inflation than the United States with the CPI index registering at approximately 10%. As long as inflation remains extremely hot and persistent it is unlikely that the Federal Reserve will reduce the magnitude and frequency of rate hikes. It remains highly likely that the extremely aggressive monetary policy of the Federal Reserve will result in a recession in the first quarter of 2023. The question remains how deep of a recession will result from the Fed's aggressive rate hikes.

By Gary Wagner

Contributing to kitco.com.

Time to buy Gold and Silver on the dips

Tim Moseley

Gold prices drop sharply as US CPI rises 04 in September

Gold prices drop sharply as U.S. CPI rises 0.4% in September

Gold prices have dropped sharply into negative territory as U.S. consumer prices rose more than expected in September, raising prospects that the Federal Reserve will maintain its aggressive monetary policy stance through the rest of the year.

Thursday, the U.S. Labor Department said its much-anticipated Consumer Price Index rose 0.4% last month after a 0.1% rise in August. Economists were looking for an increase of 0.2%.

The report said that annual inflation rose 8.2% last month. Economists were expecting to see a rise of 8.1%.

Core CPI, which strips out volatile food and energy prices, rose sharply by 0.6% last month. According to consensus estimates, economists were looking for a 0.4% rise.

For the year, core inflation rose 6.6%.

The gold market has been unable to withstand solid momentum in the U.S. dollar and rising bond yields. December gold futures last traded at $1,666 an ounce, down 0.69% on the day.

The report noted that the inflation threat is growing and flowing through to the general economy as food, shelter and medical costs outpace falling energy prices. The report said gasoline prices fell 4.9% last month, with the overall energy index dropping 2.1%.

The hotter-than-expected inflation data came one day after the minutes from the Federal Reserve’s September monetary policy meeting showed that the central bank is committed to cooling down consumer prices even as the economy weakens.

In reaction to the CPI numbers, markets have fully priced in a 75-basis point move next month and see a small possibility of a full 1% move. Expectations for a 75-basis point hike also jumped sharply for December.

Analysts have said that rising interest rates, supporting the U.S. dollar at a 20-year high will continue to be strong headwinds for gold prices.

By Neils Christensen

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

GoldSilver – Where is the bottom?

Gold/Silver – Where is the bottom?

It was another volatile week in the markets, both for the longs and the shorts, with the technical backdrop continuing to deteriorate. Rampant inflation reaffirms the Federal Reserve will continue to reverse the loose monetary policy after CPI on an annualized basis came in at 8.2% versus expectations of 8.1%. The latest CME Fedwatch tool is pricing in a 97.8% chance of a 75 bps rate hike at the November 2 meeting and now a 2.2% of 100 bps. Meanwhile (as I am writing this), the U.K. Finance Minister was fired as they now attempt to reverse the proposed dovish economic plans previously outlined. It seems unwinding over a decade of quantitative easing and interest rates near zero will be very difficult, resulting in stocks, bonds, and housing crashing even from these levels.

When will the Federal Reserve pivot? Unemployment is hovering near multi-decade lows, and economic data continues to beat expectations, keeping the Fed's foot on the rate hike cycle until spring 2023. The first sign of a rate "cut" is not priced in until fall 2023, meaning this bear market is not even close to over. The Fed is attempting to remove all the excess leverage and irresponsible risk-taking in the market while crushing inflation at the same time. I say, "Good luck with that," and "operation break stuff" is underway.

Daily Gold Chart

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By Phillip Streible

Contributing to kitco.com

Time to buy Gold and Silver on the dips

Tim Moseley

Gold price drops nearly 90 from October highs Wall Street turns exceedingly bearish on precious metals

Gold price drops nearly $90 from October highs, Wall Street turns exceedingly bearish on precious metals

The short-term outlook on gold remains bleak, with analysts turning overwhelmingly bearish on the precious metal as the $1,650 an ounce level breaks.

The precious metal is down nearly $90 from its October highs of $1,737 an ounce, with December Comex gold futures last trading at $1,648.70, down 1.69% on the day.

The technical picture is also quite bearish as the selloff opens the door to $1,600 an ounce. "Near-term technicals remain bearish," Kitco's senior analyst Jim Wyckoff said Friday. "Gold and silver bulls remain perplexed by their metals' inability to catch a safe-haven bid amid heightened geopolitical and marketplace uncertainties."

The main culprit making things challenging for gold is the hotter-than-expected inflation forcing the market to re-price the aggressive Federal Reserve rate hike expectations. And that is giving the U.S. dollar an additional boost.

"Gold is still struggling. In the cash market, it has fallen seven of the past eight sessions. The momentum indicators are trending lower," said Bannockburn Global Forex managing director Marc Chandler. "A break of $1,642 may signal a retest on $1,615. The most bullish development would be a move above $1,685. A close above $1,672 could help stabilize the tone."

Survey results

Kitco's weekly gold survey results revealed that Wall Street is now exceedingly bearish on gold prices next week. Out of nine analysts participating in the survey, 78% said they expected lower prices next week, and only 22% were bullish. There were no votes expecting sideways action next week.

The Main Street side remained bullish for next week, but the bearish segment was growing. Out of 858 retail participants, 45% expected higher prices, 35% called for a move lower, and 20% remained neutral, Kitco's survey showed.Kitco Gol

Re-pricing of Fed's rate hike expectations

Keeping the U.S. dollar near 20-year highs are the expectations of a 99.7% chance of another 75-basis-point hike in November, a 74% chance of an additional 50-basis-point hike in December, and possibly a series of smaller rate hikes in February and in March, according to the CME FedWatch Tool.

Gold is a 2023 story, but these are the currencies to buy it in right now

As long this macro-environment exists, there will be more downside in gold.

"December gold has not finished off the short-term downtrend on its daily chart, with the target still down near $1,645. This past week got close as the contract hit a low of $1,648.30," said Darin Newsom Analysis president Darin Newsom. "The flip-side of the coin is the U.S. dollar index continues to indicate its intermediate-term trend has turned down, from a technical point of view."

And even those few analysts who remain bullish on the precious metal in the short-term are not ruling out a drop lower before the rally kicks in. "I am a bull on gold and silver, but I feel we will see the March 2020 lows (at least in the shares) taken out first," said VR Metals/Resource Letter publisher Mark Leibovit.

By Anna Golubova

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

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Tim Moseley

The Artist that came out of the Winter