Gold futures close above 2000 for the first time since March 2022

Gold futures close above $2000 for the first time since March 2022

It has been just a little over one year ago that gold futures traded and closed above $2000 per ounce. On March 8, 2022 gold futures opened above $2000 per ounce, traded to a high of $2078 and closed at approximately $2043. Even though gold futures were able to close well above $2000, that price point was unsustainable. On the following day, March 9, 2022, gold opened at approximately $2060 and strong selling pressure drove prices back below $2000 closing at $1988.

Two weeks ago, gold challenged the key psychological level of $2000 per ounce on three occasions, however, gold was unable to sustain gains above $2000 on each occasion.

Today, the most active June 2023 futures contract opened at $1990, traded to a high of $2008, and as of 5:40 PM EST is fixed at $2001.70. Gold futures gained $15.50 or 0.78%.

Bullish market sentiment for gold has been evident since November of last year after hitting a triple bottom at approximately $1620 (from September to November). November 3 marked the lowest value of the triple bottom and the end of a multi-month correction. The first leg of the current bull market moved gold from $1620 to approximately $1975 during the first week of February.

The chart above is a 480-minute bar chart of gold futures (June contract month). It highlights a Western technical chart pattern called a triangle. According to topstockresearch.com, Symmetric Triangles are another type of triangle chart pattern used by traders. Again, like ascending and descending triangles it takes a few weeks to a few months for this type of pattern to form.

This pattern is composed of a lower ascending trendline which acts as support, and an upper descending trendline which forms the current level of resistance. Prices in this pattern will oscillate between the upper-level resistance trendline and the lower-level support trendline. During a bullish market scenario, you look for pricing to break above resistance, this typically occurs after multiple attempts to breach either the low or the high occurs with a breakout to the upside.

The question as to whether or not gold will be able to sustain its pricing above $2000 per ounce can only be answered after it has held that price point on a closing basis for a number of days.
 

By

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

Gold price sees triple-digit gains in March but can it set record highs in April?

Gold price sees triple-digit gains in March, but can it set record highs in April?

Gold gained $150 in March — its best month since July 2020. And with analysts seeing markets contradicting the Fed's messaging, gold has a lot more upside, including testing and breaking record highs in April, according to analysts.

The gold market is wrapping up March just below $2,000 an ounce. This is up 7% on the month and 9% year-to-date — the best monthly performance since July 2020 and the best quarterly result since Q2 2020.

The collapse of Silicon Valley Bank three weeks ago triggered the banking crisis, which revised the markets' Federal Reserve outlook from more rate hikes to rate cuts.

"This could morph into a financial crisis. There's been a large decline in market values of assets on the books across the regional banking sector in a significantly tighter environment. Not only was there a loss of market value but also large outflows of deposits from less restrictive to more restrictive banks," TD Securities global head of commodity strategy Bart Melek told Kitco News. "The Fed is less likely to be overly hawkish as we move into 2023."

And even with turbulence subsiding, gold is still trading at higher levels. "Gold hasn't come back down very far even though banking fears are abating for the moment. This is a strong sign and is very encouraging for gold bulls," Gainesville Coins precious metals expert Everett Millman told Kitco News.

Even though the Fed has not signaled that it is debating a rate cut, markets are starting to price that in. "With the bank space turbulence and inflation pointing down, I suspect that the market is looking past a lot of the Fed's hawkish rhetoric and is calling for a pivot that is significantly ahead of the dot plots," Melek pointed out.

Investors should pay close attention to the incoming data as any weaker-than-expected number increases the chance of a rate cut this year.

"With the risk of a hard landing for the economy on the rise, this increases the chances that inflation will fall more quickly and allow the Fed to respond with interest rate cuts before the end of this year," said ING chief international economist James Knightley.

Next week, traders will be getting the March employment report. Market consensus calls are projecting for the U.S. economy to have added 240,000 jobs and for the unemployment rate to have remained at 3.6%.

Following March events, TD Securities is now projecting gold to average $1,975 in Q2, $2,050 in Q3, and $2,100 in Q4.

Gold's first week of April

The gold space could experience some losses in the short term, warned Millman. "There is some downside risk. A relief rally in equities can drive some money out of gold," he said.

A solid support level is around $1,900 and $1,850, and immediate resistance is at $2,000 an ounce and then $2,060-70, he said.

"When you look at the shorts vs. longs in gold futures, the sentiment is still fairly neutral. If you see some swing in public perception, what's happening with the dollar or the U.S. economy, it could swing sentiment, and gold would be the first to react to that," Millman noted.

Banking crisis

It is unclear whether the volatility in the banking sector is over. But all the extra lending overseen by the Fed is yet to slow down, said Bannockburn Global Forex chief market strategist Marc Chandler.

"The banking stress that roiled the markets this month has eased. However, the emergency lending by the Federal Reserve, via the discount window and the new Bank Term Funding Program hardly slowed in the past week ($152.6 bln vs. $163.9 bln)," Chandler said Friday.

Barclays warned that the banking crisis is likely far from over, as a "second wave" of deposit outflows is coming.

"We think the first wave of outflows may be nearly over … But the recent tumult regarding deposit safety may have awakened 'sleepy' depositors and started what we believe will be a second wave of deposit departures, with balances moving into money market funds," Barclays strategist Joseph Abate said in a note.

A second wave of outflows is likely to be triggered by "sleepy" depositors moving their savings from banks to money-market funds for better and safer returns, Abate clarified.

"It is too hard to shift balances or to establish a new relationship with another institution unless there is a large, convincing yield pickup. But some of it could reflect the fact that after 15 years of near-zero rates, depositors are not in the habit of paying much attention to the yield on their cash balances," Abate said.

 

Next week's data

Monday: ISM manufacturing PMI

Tuesday: U.S. factory orders

Wednesday: U.S. ADP nonfarm employment, ISM services PMI

Thursday: U.S. jobless claims

Friday: U.S. nonfarm payrolls

By

Anna Golubova

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

What Is Marketing Creation and How do you Define Value Creation from a Marketing Perspective

What Is Marketing Creation and How do you Define Value Creation from a Marketing Perspective

marketing

Market creation is a challenging process that requires a deep understanding of customer needs and the competitive landscape. It involves identifying unmet needs and developing products or services that are uniquely positioned to meet those needs. This requires a significant investment of time, resources, and expertise to develop and bring the product to market.

Value creation is a crucial aspect of marketing because it helps businesses differentiate themselves from competitors and create a loyal customer base. Value can be created through a variety of ways, including providing high-quality products, excellent customer service, competitive pricing, and unique features or benefits. By creating value for customers, businesses can develop a strong reputation and brand identity, which can lead to increased sales and revenue.

From a marketing perspective, value creation is also about understanding the customer's journey and developing products or services that solve their problems at every touchpoint. This requires businesses to invest in customer research and feedback to identify pain points and areas for improvement.

In addition to understanding customer needs, market creation also involves developing a comprehensive marketing strategy that includes market research, segmentation, targeting, positioning, and promotion. By understanding the competitive landscape and developing a unique value proposition, businesses can effectively launch their product or service and gain market share.

Overall, market creation and value creation are essential components of successful marketing and business growth. By identifying unmet needs and creating products or services that meet those needs, businesses can differentiate themselves from competitors and build a loyal customer base. With a comprehensive marketing strategy and a commitment to value creation, businesses can successfully launch new products and services and achieve long-term success in the market.

In summary, market creation is the process of identifying and developing a new market, while value creation refers to the process of creating value for customers through the development of products or services that meet their needs and desires. Together, market creation and value creation are essential for successful marketing and business growth.

markethive

Here are some ways to get better at market creation:

  1. Research and analyze the market: To create a new market, you need to have a deep understanding of the existing market and the potential opportunities for growth. This requires conducting thorough market research and analyzing the competition to identify unmet needs and areas for growth.

  2. Identify customer needs: The key to market creation is identifying customer needs that are not currently being met. Conducting market research and gathering customer feedback can help identify these unmet needs.

  3. Develop a unique value proposition: Once you have identified the customer needs, develop a unique value proposition that sets your product or service apart from the competition. This could be in the form of a unique feature, a better customer experience, or a more affordable price point.

  4. Create a comprehensive marketing strategy: A comprehensive marketing strategy is essential to successfully launch a new product or service. This should include market research, segmentation, targeting, positioning, and promotion.

  5. Test and iterate: Once you have developed your product or service and launched it into the market, you need to continuously test and iterate based on customer feedback. This will help you improve your product or service and stay ahead of the competition.

  6. Invest in talent: Market creation requires a team of talented individuals with diverse skill sets. Invest in talent by hiring people with expertise in marketing, product development, sales, and customer service.

  7. Stay agile and adaptable: The market is constantly changing, and businesses that are able to adapt quickly will have a competitive advantage. Stay agile and adaptable by monitoring market trends and adjusting your strategy as needed.

Tim Moseley

Gold’s most active contract switches to June which are flirting with 2000

Gold’s most active contract switches to June which are flirting with $2000

Gold traded higher by low double digits today. The gains are the result of two factors and tomorrow’s PCE inflation report. Currently, the April 2023 contract of gold futures is trading up $14.20 and fixed at $1981.10. Concurrently, the June 2023 contract of gold futures is fixed at $1998 up $13.50. Today the June contract hit an intraday high of $2002.40.

The volume is diminishing in the April contract with an open interest of 88,563. The volume in the June contract has an open interest of 145,716. Traders are switching from the April contract to the June contract which is next in line to be the most active.

The dollar is currently trading lower by 0.43% and the dollar index is fixed at 101.86. The dollar has had a strong decline since October of last year when the index traded to an intraday high of 114. It seems that the days of extreme dollar strength have greatly diminished and we anticipate that the dollar index could break below 100.

Yields on government bonds are also lower which has greatly enhanced the demand for gold as a haven asset. Gains in U.S. equities did little to diminish demand for the haven assets and did not seem to have any detrimental effect on Gold pricing today.

As we spoke about yesterday, market participants who are anticipating a Fed pivot from raising rates to cutting rates have been largely disappointed. It is accepted by analysts and economists that the Federal Reserve will continue to either raise rates or pause rates at some point soon.

The CME’s FedWatch tool indicates that professional traders are almost split between anticipating a ¼% rate hike or a pause in interest rate hikes at the next FOMC meeting which begins around a month from today and concludes on May 3. According to the CME’s probability indicator, there is a 43.6% probability that the Federal Reserve will pause its hawkish monetary policy of raising rates at each FOMC meeting, and a 56.4% probability that the Fed will raise rates by ¼%. Yesterday the CME’s FedWatch tool indicated that there was a 67.4% probability that the Fed would pause rates with a 37.6% probability of a ¼% rate hike. This is a pretty dramatic shift in the last 24 hours.

Lastly, the preferred inflation indicator of the Federal Reserve, the PCE (Personal Consumption Expenditures Price Index) will be released tomorrow, March 31. Currently, forecasters believe that inflation levels will remain elevated. If the PCE does remain elevated as currently predicted it could strengthen the resolve of the Federal Reserve to raise rates rather than take a pause.

By

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

Why You Should Use Press Releases to Market Your Business

Why You Should Use Press Releases to Market Your Business

Press releases can be an effective tool for marketing your business for several reasons:

  1. Increased visibility: A well-written press release can help your business gain exposure and visibility to a wider audience. When a press release is picked up by news outlets, it can reach a large number of potential customers.

  2. Credibility: Press releases are often viewed as more credible than traditional advertising because they are written in a news format and are typically distributed by news organizations.

  3. Cost-effective: Press releases can be a cost-effective way to market your business, especially if you are a small business with limited marketing budget. Compared to other advertising methods, press releases are relatively inexpensive to produce and distribute.

  4. Brand building: Press releases can help build your brand by highlighting your company's achievements, products, and services. By consistently issuing press releases, you can establish your business as an authority in your industry and increase brand awareness.

  5. SEO benefits: Press releases can also be beneficial for search engine optimization (SEO). By including relevant keywords and links in your press release, you can improve your search engine rankings and drive more traffic to your website.

 

ecosystem for entrepreneurs

Overall, using press releases to market your business can help you reach a larger audience, build credibility, and increase brand awareness in a cost-effective way.

  1. Reach targeted audiences: Press releases can be targeted to specific audiences, such as industry publications or local news outlets. By tailoring your press release to a particular audience, you can increase the chances of your story being picked up and reaching the right people.

  2. Opportunity for media coverage: A well-written press release can lead to media coverage, which can further increase your business's visibility and credibility. Journalists often rely on press releases as a source of news, and if your story is interesting and relevant, it may be picked up by a news outlet.

  3. Crisis management: Press releases can be used to address and manage crisis situations. If your business is facing a negative event or controversy, a well-crafted press release can help you communicate your side of the story and control the narrative.

  4. Establish relationships with media contacts: Consistently issuing press releases can help you establish relationships with journalists and media outlets. By providing relevant and interesting stories, you can become a trusted source of news and increase the chances of your future press releases being picked up.

  5. Measurable results: Press releases can provide measurable results in terms of website traffic, media coverage, and brand awareness. By tracking the results of your press releases, you can determine the effectiveness of your marketing strategy and adjust it accordingly.

In summary, press releases can be a valuable tool for marketing your business. By increasing visibility, building credibility, reaching targeted audiences, and providing measurable results, press releases can help you establish your brand, communicate with your audience, and achieve your marketing goals.

 

ecosystem for entrepreneurs

Tim Moseley

What Is Content Marketing?

What Is Content Marketing?

by contentmarketinginstitute

marketing

Useful content should be at the core of your marketing

Traditional marketing is becoming less and less effective by the minute; as a forward-thinking marketer, you know there has to be a better way.

Enter content marketing.

Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.

Instead of pitching your products or services, you are providing truly relevant and useful content to your prospects and customers to help them solve their issues.

Content marketing is used by leading brands

Our annual research shows the vast majority of marketers are using content marketing. In fact, it is used by many prominent organizations in the world, including P&G, Microsoft, Cisco Systems, and John Deere. It’s also developed and executed by small businesses and one-person shops around the globe. Why? Because it works.

Here is just one example of content marketing in action:

Looking for definitions of the key terms used in content marketing? You’ll find them in our Essential Content Marketing Glossary.

Content marketing is good for your bottom line — and your customers

Specifically, there are four key reasons – and benefits – for enterprises to use content marketing:

  • Increased sales
  • Cost savings
  • Better customers who have more loyalty
  • Content as a profit center

Content is the present – and future – of marketing

Go back and read the content marketing definition one more time, but this time remove the relevant and valuable. That’s the difference between content marketing and the other informational garbage you get from companies trying to sell you “stuff.” Companies send us information all the time – it’s just that most of the time it’s not very relevant or valuable (can you say spam?). That’s what makes content marketing so intriguing in today’s environment of thousands of marketing messages per person per day.

Marketing is impossible without great content

Regardless of what type of marketing tactics you use, content marketing should be part of your process, not something separate. Quality content is part of all forms of marketing:

  • Social media marketing: Content marketing strategy comes before your social media strategy.
  • SEO: Search engines reward businesses that publish quality, consistent content.
  • PR: Successful PR strategies should address issues readers care about, not their business.
  • PPC: For PPC to work, you need great content behind it.
  • Inbound marketing: Content is key to driving inbound traffic and leads.
  • Content strategy: Content strategy is part of most content marketing strategies.

Content Marketing vs. Inbound Marketing

To be effective at content marketing, it is essential to have a documented content marketing strategy. Download our 16-page guide to learn what questions to ask and how to develop your strategy.

What if your customers looked forward to receiving your marketing? What if when they received it, via print, email, website, they spent 15, 30, 45 minutes with it? What if they anticipated it and shared it with their peers?

If you are intrigued and ready to learn more, we can help. Here are a few popular ways to dig in:

  • New to content marketing? Check out our getting started guide, where you’ll learn the definition of content marketing, as well as basic steps for putting a content marketing plan in place.
  • Need a content strategy? Read the CMI Content Marketing Framework, which outlines the essential building blocks for a successful content marketing program.
  • Looking for some content marketing examples? Download this e-book: 40 Content Marketing Examples.
  • Are you in marketing leadership? Subscribe to our free magazine, Chief Content Officer, to stay on top of the latest industry trends.
  • Need advice specific to your organization? Contact our consulting group, led by strategist Robert Rose, to find out how they can help you meet your content marketing challenges.

If at any time you have questions about content marketing, don’t hesitate to reach out and ask us.

Tim Moseley

Gold remains solidly bullish even with today’s modest price decline

Gold remains solidly bullish even with today’s modest price decline

Although gold prices had a modest decline in trading today, the overall fundamental environment that had caused gold pricing to trade above $2000 last week remains solidly entrenched. Today’s modest single-digit decline in gold resulted from market participants once again focusing on risk-on assets with U.S. equities rising. Specifically, a major rise of 1.97% in the NASDAQ composite indicates solid interest in the tech-heavy index. The Dow Jones industrial average gained 1% and the S&P 500 increased by 1.42%.

Positive market sentiment for US equities coupled with minor dollar strength could have easily tipped traders to take profits on long positions in gold. As of 5:25 PM EST gold futures basis the most active April contract is down $7.30 or 0.37% and fixed at $1966.20.



However, June gold futures which will be the next most active contract is currently fixed at $1983.10 booking the same dollar decline of $7.30 but are priced almost $20 above the April contract. The large differential of almost $20 between the two contract months clearly illustrates market sentiment is exceedingly bullish long-term for gold.

Market participants who were anticipating a Fed pivot from raising rates to cutting rates have been largely disappointed. However, it must be noted that the CME’s FedWatch tool indicates that professional traders are anticipating a pause in rate hikes in 34 days when the Federal Reserve concludes its May FOMC meeting on May 3, 2023. According to the CME’s probability indicator, there is a 67.4% probability that the Federal Reserve will not raise rates and a 37.6% probability that they will implement another 25 bps rate hike.

Lastly, the preferred inflation indicator of the Federal Reserve, the PCE (Personal Consumption Expenditures Price Index) will be released this Friday, March 31. Currently forecasts believe that inflation levels will remain elevated. If the PCE remains elevated as currently predicted it could pressure the Federal Reserve to raise rates rather than take a pause at the May FOMC meeting.

By

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

Understanding Your Options: Is Investing in Bitcoin or the Bank a Wise Financial Move?

Understanding Your Options: Is Investing in Bitcoin or the Bank a Wise Financial Move?

 

Many people are concerned that the recent banking crisis may have precipitated a global financial crisis.

In fewer than a week, three banks have failed. In an effort to avert more panic, U.S. government authorities have stepped up to backstop losses. In addition to the possibility that other banks will fail, there are legitimate questions about whether it was the proper decision to bail out two poorly run institutions with serious irregularities while allowing the third to fail.

So, should you withdraw funds from your bank and hide them under your mattress or invest in cryptocurrency?

Crypto and traditional banking are two very different options for storing your money. While banks are a familiar and trusted option, crypto, such as bitcoin, is a decentralized and volatile digital currency. So, the question arises, should you keep your money in Bitcoin or a bank?

This article will help you consider the options of either keeping your savings balances in cryptocurrency or in the bank. We will start by looking at what Bitcoin is before moving on to why people choose to use it as an investment vehicle and how they can use it safely and securely.

Image source: https://bitcoinbriefly.com/21-million-bitcoin/

Why was Bitcoin Created?

As many have already stated, the early financial crisis of 2008, known as the great recession, gave rise to the creation of bitcoin. The very first block of the blockchain came with a message concerning bailouts for banks. In contrast to the tightly entwined public and private banking sectors, it was created to remove third parties as an intermediary from the internet money system by making users accountable for their own keys.

The 2008 financial crisis was a significant event that shook the global economy, causing widespread unemployment, foreclosures, and bank failures. It highlighted the shortcomings of the traditional financial system and the need for alternative systems that could provide excellent stability, security, and decentralization.

Bitcoin was created as a decentralized digital currency that operates outside the traditional financial system. Its underlying technology, blockchain, allows for peer-to-peer transactions without intermediaries like banks. This gives users more control over their money and eliminates many fees and delays associated with traditional banking.

While Bitcoin's creation was not a direct response to the financial crisis, it is often seen as a product of the growing dissatisfaction with the traditional financial system and the need for more transparent and secure alternatives. Bitcoin was initially created as a response to the flaws of the traditional financial system. Still, it has since grown into a global phenomenon with unique characteristics and potential benefits.

One of the key advantages of Bitcoin is its decentralized nature. Unlike traditional currencies, which governments and financial institutions control, Bitcoin is not controlled by any central authority. This makes it more resistant to government or institutional manipulation and potentially more secure from hacking or other types of cyber attacks.

Another advantage of Bitcoin is its potential for anonymity. While Bitcoin transactions are not completely anonymous, they offer privacy that is not always available with traditional banking. This can be particularly useful for individuals concerned about their financial privacy or living in countries with strict financial regulations, such as China or Russia.

Bitcoin's potential as a global currency has also been touted as a potential benefit. With Bitcoin, sending and receiving payments across borders is possible without currency conversions or other barriers. This could make it easier for people to conduct business internationally and help level the playing field for small businesses and individuals.

While Bitcoin was not explicitly created as a response to the 2008 financial crisis, it is viewed by many as a potential solution to some of the problems highlighted by the crisis. Its decentralized nature, the potential for anonymity, and global accessibility make it a unique and potentially valuable addition to the financial landscape.

Are We on the Verge of Another Global Financial Crisis?

A systemic banking crisis can be extremely damaging. They tend to push the affected economies into deep recessions and sharp current account reversals. Some situations were contagious and quickly spread to other countries with no apparent weaknesses.

The many causes of banking crises include unsustainable macroeconomic policies (including large current account deficits and unsustainable government debt), excessive credit booms, large capital inflows and weak balance sheets, and various political and economic requirements resulting in political paralysis.

In September 2008, a global financial crisis caused by the collapse of housing markets led to a worldwide recession. The United States has recovered, but the rest of the world is still in recovery. This global financial crisis is the second largest in history and is predicted to be even bigger than the first.

Experts are worried that the United States is heading towards another global financial crisis, but it will be much worse this time. Many factors lead experts to believe that it will be more challenging to recover from the economic recession this time. Some of the reasons are increased global debt, over-leveraged banks, low economic growth, and rising oil prices.

There are concerns that the recent bank collapse and other economic crises could lead to another global financial crisis, as noted by several news articles. According to a report by The Guardian, the global banking system is reeling from a series of shocks over the past week, prompted by the collapse of California's Silicon Valley Bank. This has stoked fears that this is the start of a more severe crisis.

Similarly, an article by ABC News states that the potential next phase is a global credit crunch, which could lead to another worldwide financial crisis. However, regulators and central banks are pulling out all stops to prevent that.

In addition, an article by The New York Times notes that the banking crisis hangs over the economy, rekindling recession fears, and even optimistic forecasters on Wall Street in recent months have said that the chances of a recession had risen ten percentage points to 35 percent.

However, it is important to note that the situation is still developing, and it is difficult to predict with certainty whether or not we are on the verge of another global financial crisis. It will depend on the effectiveness of the measures taken by regulators and central banks to mitigate the risks and prevent the crisis from spreading.
 

Which is Better: Bitcoin or Bank?

Money saved in a bank account is typically considered a safer option for storing the value as it is backed by government guarantees, such as deposit insurance, which can protect a certain amount of funds in case of a bank failure. Bank accounts also offer the convenience of easy access to funds, as well as potential interest earnings. However, these are currently quite low in many countries due to low-interest rates.

On the other hand, Bitcoin has shown the potential for significant gains over the long term, and it also carries the risk of substantial losses, particularly in the short term. Bitcoin is not backed by government guarantees, which means there is no protection for investors if the value of Bitcoin were to decline sharply or if their Bitcoin were to be lost or stolen.

Bitcoin's status as a safe haven asset during times of crisis varies depending on the situation. Cryptocurrencies acted as a store of value during the COVID-19 crisis and as a safe haven. Also, before the pandemic, Bitcoin served as a safe haven, a hedge, and a diversifier versus a range of international currencies.

However, Bitcoin's volatility remains a concern as it can experience massive price swings, making it a risky store of value asset in the short term. On the other hand, money saved in the bank may provide stability and security, but its value may be affected by inflation, changes in interest rates, and other economic factors.

Whether to use Bitcoin or money saved in the bank as a safer store of value is subjective and depends on an individual's risk tolerance and investment goals. However, it's important to note that Bitcoin's status as a safe haven asset during times of crisis is not guaranteed and may vary depending on the situation. It's essential to consider each option's potential benefits and risks carefully and to seek the advice of a financial professional before making any investment decisions.

Bottom Line

Today's bank failures are incredibly unusual and would likely result in a great deal of anxiety, as was the case with the collapse of Silvergate Bank, a free-floating entity cut off from the rest of the economy. How distinct can private and public interests truly be when SVB and Signature participated in both the ups and downs of the Fed policy-created tsunami of cheap money? 

Considering the previous and recent economic upheaval, should you retain your money in a bank if the U.S. government is formally bailing out banks, or should you seek a better alternative?

Ultimately, the decision of where to keep your money depends on your individual circumstances, risk tolerance, and financial goals. It may be helpful to speak with a financial advisor or conduct additional research to make an informed decision.

 

 

About: Prince Ibenne. (Nigeria) Rapid and sustainable human growth is my passion, and getting a life-changing opportunity into the hands of people is my calling. Empowering entrepreneurs provides me with enormous gratification. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

Gold silver gain on bargain hunting bullish outside mkts

Gold, silver gain on bargain hunting, bullish outside mkts

Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(Kitco News) – Gold and silver prices are up in midday U.S. trading Tuesday on some perceived bargain hunting, and amid a lower U.S. dollar index and higher crude oil prices on this day. April gold was last up $15.00 at $1,968.70 and May silver was up $0.21 at $23.355.

The key outside markets today see the U.S. dollar index lower and continuing to trend lower on the daily bar chart. Nymex crude oil futures prices are up and trading around $73.50 a barrel. Oil prices have made a good rebound from the March low and bulls are working on a price uptrend on the daily bar chart. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.558%.

Global stock markets were mixed overnight. U.S. stock indexes are mixed at midday. The U.S. and European banking crisis appears to have stabilized, at least for now. That’s allowing risk appetite to creep back into the marketplace. Continued easing worries about the banking crisis, and a continued uptick in risk appetite, would very likely cap gains in gold and silver prices for the near term.

  Fed's 'Emergency rate cut' by June to precede 'controlled implosion' of banking sector, only 6 banks left as CBDCs rolled out by 2025 – Edward Dowd

It’s a busy week for U.S. economic data, but the highlight is Friday’s personal consumption and expenditures (PCE) data that will provide fresh clues on inflation and whether the U.S. economy is headed toward recession. It’s been said the PCE data is a favorite gauge of inflation for the Federal Reserve.

Technically, April gold futures bulls have the solid overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the March high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at this week’s high of $1,984.00 and then at $2,000.00. First support is seen at this week’s low of $1,945.00 and then at last week’s low of $1,936.50. Wyckoff's Market Rating: 7.5

]

May silver futures bulls have the firm overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week’s high of $23.485 and then at last week’s high of $23.705. Next support is seen at today’s low of $22.96 and then at $22.50. Wyckoff's Market Rating: 7.0.

May N.Y. copper closed up 105 points at 408.90 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the January high of 435.90 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 382.20 cents. First resistance is seen at last week’s high of 414.85 cents and then at the March high of 417.85 cents. First support is seen at this week’s low of 402.35 cents and then at 400.00 cents. Wyckoff's Market Rating: 6.0.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Gold prices soften as concern subsides over banking meltdown

Gold prices soften as concern subsides over banking meltdown

For the second consecutive day gold futures have traded lower. Today gold traded to an intraday low of $1945 and a high of $1984 after opening at $1982.60. As of 4:15 PM EST gold futures basis the most active April contract is currently fixed at $1958.50 after factoring in today’s decline of $25.30 or -1.28%.

Today’s decline of approximately 1.3% was the direct result of traders bidding the precious yellow metal lower, with dollar weakness providing tailwinds that softened the decline today. Dollar weakness also provided some relief for spot gold which is currently fixed at $1956.90 after factoring in a decline today of $21.30. However, before factoring in dollar weakness spot gold was trading lower by $26.60 with dollar weakness adding back $5.30 per ounce.

The primary factor that had increased demand for the precious metal diminished over the weekend. The concern was centered around a banking crisis involving Silicon Valley Bank and Signature Bank of New York spreading to other banks.

Over the weekend it was announced that First Citizens Bank reached a deal to purchase the Silicon Valley Bank in Santa Clara. The SVB was closed by California authorities on Friday, March 10. On Sunday, March 26 the FDIC (Federal Deposit Insurance Corporation) announced that the First Citizens Bank & Trust Company of Raleigh, North Carolina had completed a purchase agreement from deposits and loans of the Silicon Valley Bridge Bank.

The purchase of SVB greatly alleviated the fears that the banking meltdown would have a contagion effect leading to more banks becoming insolvent. This diminished the demand for safe-haven assets as investors reallocated funds from haven assets to risk-on assets such as U.S. equities. The Dow Jones Industrial Average gained 0.60%, and the S&P 500 gained 0.16%. However, bearish market sentiment continues in the tech-heavy NASDAQ composite which declined by 0.47%.

The two-day decline witnessed in gold could be short-lived as market participants focus on statements made by the Federal Reserve last week. For the first time since the Federal Reserve began raising rates, it indicated that its forward monetary policy is about to begin pausing interest rate hikes. Currently, it is anticipated that the Fed will initiate one more ¼% rate hike in May and then begin to pause rate hikes and assess the long-term impacts on inflation from their flurry of rate hikes which began in March 2022.

The Fed continues to maintain that its current terminal rate will remain elevated but a pause in hikes is the next best thing to a rate cut. Rate cuts were something which Chairman Powell emphatically stated is not something the Federal Reserve will implement without substantial data confirming that inflation is on a sustained downward trajectory towards their 2% target.

Gary S. Wagner

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