Fed hikes may have concluded as central banks purchase gold at a record level

Fed hikes may have concluded, as central banks purchase gold at a record level

Gold had tremendously strong gains today of just over $20 per ounce in both physical gold as well as futures. As of 4:00 PM EST gold futures basis the December contract is currently up $20.80 or + 1.05%, and fixed at $2001. On its first day as the most active Comex contract, February gold (GC G24) gained $20.60 or + 1.03% and is currently fixed at $2021.10. Physical or spot gold is up $20.80 trading at $1998.40.

Today’s solid gains are the result of multiple factors. First, the release of economic reports indicates that the economy in the United States has been contracting as a result of recent rate hikes by the Federal Reserve. Secondly, the Federal Reserve released its minutes from the last FOMC meeting in which the Fed continued to maintain its current interest rate level.

Third, a report by the World Gold Council revealed intensified buying by central banks around the world resulting in a new record for purchases in the first nine months of the year. Lastly, except for the Federal Reserve, global central banks are beginning to cut interest rates.

It was a combination of all the events cited above that propelled gold futures above $2000 per ounce.

The World Gold Council has updated its list of gold reserves by countries revealing that many central banks aggressively added to their gold reserves. Collectively these purchases by global central banks are at a record pace for the first three quarters of 2023 which totals 800 tons, with China Poland, and Singapore being the primary buyers. This pace is well above the total purchases for the same period in 2022.

Will the Fed follow the pack and cut rates sooner than anticipated?

Today the Federal Reserve released its minutes for the most recent FOMC meeting. The minutes supported current expectations that the Federal Reserve’s pause not only will continue, but more importantly signals that the Fed might have concluded its aggressive interest rate hikes that began in March 2022. These hikes have effectively raised the Fed funds rate from between 0 and ¼% to between 5 ¼% and 5 ½%. Expectations by the CME’s FedWatch tool indicate the probability of a rate hike pause is 94.8% down from the probability of 99.8% a week ago.

Adding to these bullish developments that took gold futures above $2000 per ounce is the fact that multiple central banks have begun interest rate cuts.

In fact, for the first time since January 2021, the number of central banks that are cutting interest rates is greater than the number of central banks implementing rate hikes.

While the Federal Reserve’s monetary policy has not mentioned any imminent rate cuts the fact that many other central banks are cutting rates is positive. Although the ECB has not begun to cut its interest rate level, expectations are high that they have ended their cycle of rate hikes and could begin rate cuts as early as the second quarter of 2024.

Gary S. Wagner

By

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

Gold silver weaker amid better risk appetite in marketplace

Gold, silver weaker amid better risk appetite in marketplace

Gold and silver prices are moderately lower in midday U.S. trading Monday. The safe-haven metals bulls have lost momentum amid investor risk appetite that continues to improve heading into the holidays. There are solid clues the U.S. Federal Reserve is done raising interest rates amid falling inflation. And six weeks into the Israel-Hamas war there has been no major military escalation to involve other countries. December gold was last down $8.20 at $1,976.50. December silver was last down $0.262 at $23.59.

Asian and European markets were mixed in overnight trading. U.S. stock indexes are higher and at or near multi-week highs today. It will likely be a quieter trading week as the U.S. Thanksgiving holiday is on Thursday and Friday is typically one of the quietest U.S. trading days of the year.

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The key outside markets today see the U.S. dollar index solidly lower and hitting an 11-week low. Nymex crude oil prices are solidly higher and trading around $78.00 a barrel. Reports said OPEC is considering more oil-production cuts. The cartel will meet this coming weekend in Vienna. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.47%.

Technically, December gold futures bulls have the slight overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today's high of $1,987.80 and then at last week's high of $1,996.40. First support is seen at today's low of $1,967.20 and then at $1,959.00. Wyckoff's Market Rating: 5.5

December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. First resistance is seen at today's high of $23.87 and then at $24.00. Next support is seen at today's low of $23.30 and then at $23.00. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed up 630 points at 380.15 cents today. Prices closed near the session high today and hit a two-month high. The copper bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the September high of 390.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the November low of 358.00 cents. First resistance is seen at 385.15 cents and then at 390.85 cents. First support is seen at today's low of 372.55 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.

Try out my "Markets Front Burner" email report. My next one is due out today and is going to be entitled, "When China sneezes…" Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it's free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html .

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Retail investors bullish on gold but Wall Street analysts shift into neutral

Retail investors bullish on gold, but Wall Street analysts shift into neutral

Gold inched steadily higher this week, with prices seeing bumps following economic data releases, but after the strong and sudden moves of the past month or so, the precious metals’ price action was more orderly and less dramatic.

The latest Kitco News Weekly Gold Survey sees retail investors maintaining an overwhelmingly bullish bias going into next week, while the exact same proportion of market analysts have switched to a neutral assessment of the yellow metal’s near-term prospects.

Adrian Day, President of Adrian Day Asset Management, expects gold prices to be little changed during the coming week. “After the recent run, gold is vulnerable to bad news,” he said. “The medium-term fundamentals are very powerful: at some point, the Fed and other central banks will ease tightening before inflation has been conquered and that will be the firing gun for gold. But that’s not yet.”

Daniel Pavilonis, Senior Commodities Broker at RJO Futures, sees a period of prolonged consolidation for gold now that the geopolitical risk bid has subsided.

“We're right smack at the upper band of this trading range that we've been in for several weeks,” said Pavilonis. “Most likely we're not going to see any more rate hikes. We could possibly see some rate cuts in May of next year, but I doubt that's going to happen. I think we're really just going to stay where we're at for a while.”

Pavilonis said that while gold prices continue to react to economic indicators, they aren’t providing the precious metal with a clear direction. “I think that the market is just trading off of a mixed range of inflation data,” he said. “Housing starts, they’re still building houses, there's still demand. Employment reports still look relatively strong. The CPI numbers, the big drop was healthcare, supposedly. I would say next week we're still going to be range bound. I don't see anything that's going to break this thing out to the upside. I would imagine it's going to stay where we've been, trading within this 40, 50, 60-dollar range.”

“Gold is just going to have trouble moving higher if inflation data continues to weaken and we don't lower interest rates,” he said. “I don't know what the driver is going to be if geopolitics isn't there.”

This week, 12 Wall Street analysts participated in the Kitco News Gold Survey. Like last week, three experts, or 25%, expected to see higher gold prices next week, but this week only one expert, representing 8%, predicted a drop in price. The overwhelming majority, or 67%, were neutral on gold for the coming week.

Meanwhile, 595 votes were cast in Kitco’s online polls, and market participants were even more optimistic than they were in last week’s survey. 394 retail investors, or 66%, looked for gold to rise next week. Another 125, or 21%, expected it would be lower, while 76 respondents, or 13%, were neutral on the near-term prospects for the precious metal.

Next week will be a short one for trading and economic data releases, as Thursday’s U.S. Thanksgiving holiday means most of the action will be compressed into the first three days. Highlights include the release of the latest FOMC minutes and October Existing Home Sales on Tuesday, followed by October Durable Goods, University of Michigan Consumer Sentiment for November, and weekly jobless claims on Wednesday.

Everett Millman, Chief Market Analyst at Gainesville Coins, said he believes that the attention of gold investors is moving from the geopolitical sphere to macroeconomics.

“I think that we're seeing a shift in the focus of the gold market away from the war premium that we saw, that certainly drove gold higher in recent weeks,” he said. “I think that's becoming less of a central concern for the gold market, and now the attention is shifting more toward the macroeconomic picture and particularly, what Fed policy is going to be.”

Millman said the consensus now is that the Fed is most likely done hiking rates, and the gold market is really going to be focused on how soon the rate cuts will come. “Lower interest rates are basically the biggest bullish driver out there for gold, outside of a deep recession,” he said. “I think the economic data have been a bit mixed. I see so many takes about how strong the economy actually is, and yes, there's some data showing that. But then there's just as many examples or indicators you can look at on the other side.”

“I think that spells a period of sideways movement or consolidation for gold until we get some clearer pictures on economic conditions.”

Millman also said that under this Federal Reserve Chair, gold traders can’t afford to wait for interest rate cuts to get into their positions, unlike during Feds past.

“This is very different from the Greenspan era, where he basically was trying to cloak what the Fed was going to do so no one could front-run it,” he said. “Now the Fed does directly telegraph these things, and Powell has repeatedly acknowledged that these policy actions act with a lag, and traditionally that lag could be as long as 18 months. So I think it actually makes some sense that markets are going to go off of the signal rather than the action, because we do know that these changes in interest rates, or things like switching from QE to QT, that these types of policy decisions take 12 to 18 months to fully work their way into the economy and actually affect markets.”

“Obviously, if there is that long a lag, then market participants have to go off of the signal and work ahead, because if you're waiting to react to the actual consequence, like that lagged result, then you're going to be so far behind the eight ball,” Millman said. “They know that this 500-basis-point change in interest rates occurred in a very short span of time, but we're still not the full year and a half out, we're getting close. I think that definitely factors into the calculus here.”

Ole Hansen, head of commodity strategy at Saxo Bank, said he doesn’t see any big moves for gold in the near term. “Having been so ‘lucky’ to hit it spot-on last week, I’m now looking for additional consolidation next week, so the call is NEUTRAL.”

Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, is also neutral on gold for the coming week. “My reasoning is that between the usual late month drop-off in economic news and next week’s US Thanksgiving holiday, markets in general are likely to be quieter for the next ten days.”

Darin Newsom, Senior Market Analyst at Barchart.com, is bullish on gold’s prospects next week. “Dec gold’s short-term uptrend firmed this past week, with the contract hitting a high of $1,996.40 early Friday,” he said. “If the contract closes lower Friday, based on the Benjamin Franklin Fish Analogy (Like guests and fish, markets start to stink after three days of moving against the trend), Dec gold could move lower Monday and Tuesday as well.”

“Using Elliott Wave Theory, this would be considered Wave 2 of the 5-wave short-term uptrend pattern,” Newsom said. “Ultimately, the contract would be expected to take out the Wave 1 high.”

Marc Chandler, Managing Director at Bannockburn Global Forex, has a neutral bias for the coming week. “Gold bottomed near $1931 in the spot market on Monday and reached almost $1993.50 today, ahead of the weekend,” he said. “The main drivers appear to be the drop in US rates and the dollar. It is not inflation but the decline in inflation (US and UK reported in recent days) that presses rates lower and knocks a leg from under the dollar.”

“Lighter economic calendars next week and the market is pricing in 100 bp of Fed cuts next year,” Chandler added. “So, I look for some consolidation throughout the capital market and this could see the yellow metal consolidated. I see initial support in the $1970-75 area.”

And Kitco Senior Analyst Jim Wyckoff expects gold prices to make gains next week. “Higher, as charts have turned friendlier, and so has U.S. monetary policy after this week’s tamer inflation reports,” Wyckoff said.

Spot gold is currently flat on the day, but up 2.17% since Monday as market participants prepare for the weekend. The precious metal last traded at $1,980.43 per ounce at the time of writing.

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Massive divergence – Kai Hoffmann on why gold stocks should be trading higher

Massive divergence – Kai Hoffmann on why gold stocks should be trading higher

Generalist investors are still on the sidelines when it comes to gold, noted Soar Financial CEO Kai Hoffmann.

On Thursday Hoffmann spoke to Kitco. Hoffmann is hosting Deutsche Goldmesse in Frankfurt, Germany. The 2023 fall event kicks off November 24. Headliners include Lobo Tiggre, Thorsten Polleit and Michael Howell.

Hoffmann said the gold sector needs a spark. The metal has had high sustained prices through 2023, but the GDX, an index of gold companies, is still down for the year.

"It needs a bit of a trigger…to get generalists back into the market," noted Hoffmann. "It'd be great to see like a $50 to $100 move in a day, which is massive for a 5,000-year-old relic. Mainstream media might jump back on it."

Mining has been enjoying a lift from energy transition and all the metals needed for building fleets of electric vehicles, but Hoffmann likes beaten up precious metal companies.

"What's more contrarian than being a gold mining stock investor right now? If you look at how the stocks have performed and look at the gold price, there is a massive divergence. The stocks should be trading a lot higher."

While sentiment towards the resource sector has soured, Hoffmann described financings as mixed. He said the Oreninc index, which measures investment flows in the resource sector, is at a near average.

"We've seen way worse," said Hoffmann. "The index is including a lot of the flow through financings right now. In November half the money raised went straight into flow-through financings."

Hoffmann noted that early-stage companies are having a tough go of it.

"The grassroots explorers are hurting right now. There is no money for them. It doesn't matter what commodity. Unless you have a sexy project and an amazing management team, you're not getting any money from the market right now."

By

Michael McCrae

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Gold price up amid weakening USDX down-tick in US bond yields

Gold price up amid weakening USDX, down-tick in U.S. bond yields

Gold and silver prices are moderately higher in early U.S. trading Friday, with silver hitting a 2.5-month high. The precious metals are supported on this last trading day of the week by a lower U.S. dollar index and a decline in U.S. Treasury yields. The near-term technical postures for gold and silver have improved this week, which is inviting chart-based bulls to the long sides of those metals. December gold was last up $6.10 at $1,993.40. December silver was last up $0.207 at $24.14.

It’s been an extra important trading week that is just winding down. U.S. inflation data was tamer, as was that from the U.K. Reads a Wall Street Journal headline today: “Global inflation fight turns a corner.” Trader and investor risk appetite was boosted this week, evidenced by the U.S. stock indexes hitting multi-week highs. After the tame U.S. inflation data earlier this week, the marketplace now expects the Federal Reserve has finished its interest-rate-increase cycle. There are growing notions the Fed will even lower interest rates in the spring. Lower global interest rates are bullish for the metals, suggesting better consumer and commercial demand amid lower borrowing costs.

Asian and European markets were mixed in overnight trading. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.

In overnight news, the Euro zone October consumer price index was reported up 2.9%, year-on-year, which was in line with market expectations.

Nymex crude oil prices are higher and trading around $73.75 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.406%.

U.S. economic data due for release Friday is light and includes new residential sales.

Technically, the gold futures bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,996.40 and then at $2,000.00. First support is seen at the overnight low of $1,983.90 and then at $1,975.00. Wyckoff's Market Rating: 5.5.

The silver bulls have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at the overnight high of $24.22 and then at $24.50. Next support is seen at the overnight low of $23.805 and then at Thursday’s low of $23.35. Wyckoff's Market Rating: 6.0.

Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes…” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Investors will want to own gold as America faces a debt reckoning’ – Maison Placements Canada’s John Ing

Investors will want to own gold as ‘America faces a debt reckoning' – Maison Placements Canada's John Ing

One of Toronto’s oldest boutique investment firms is warning investors that gold could be a good asset to own as the world faces significant threats in the coming months and years.

In his latest research report, John Ing, president and CEO of Maison Placements Canada, said he is looking for gold prices to rally to $2,200 an ounce as the chickens, raised on decades of uncontrollable spending, come home to roost.

Ing said in his latest commentary that they believe “mounting inflation, de-dollarization, heightened geopolitical risks, global debt and the rise in populism” provide a positive backdrop for gold: “it is a good thing to have.”

According to Ing, the biggest factor behind most of the global economic threats comes down to growing debt problems in the U.S. Ing noted that since 2008, the supply of Treasuries has risen five-fold to more than $25 trillion.

This fiscal year saw deficit spending in the U.S. rise by $1.7 trillion, pushing the debt past $33 trillion. “America faces a debt reckoning,” Ing warned.

Despite the growing threat, Ing noted that the U.S. government continues to spend money at a record pace as it pushes the transition to green energy to meet global carbon dioxide reduction targets. He described the green energy transition as a black hole: “Once you are in it, it is impossible to get out.”

“[President Joe] Biden’s Green Deal is something between a mirage and boondoggle as high interest rates, permit delays and supply problems become the new reality,” he said.

Ing also noted that the U.S. government’s debt makes it more challenging for America to provide a stable force as the world starts to fracture in the face of two major conflicts.

“As America's military arsenal runs low, it is an inconvenient fact that arming itself will prove very costly,” he said. “The strength of the American economy was one of the main reasons the US won the Cold War with Russia, allowing them to build a global defense behemoth which the Soviet Union could not match. America’s overconfidence led to arrogance and now complacency.”

America’s massive debt is also taking its toll on the U.S. dollar as the deglobalization trend is also prompting nations to diversify away from the greenback.

“The biggest threat to the dollar comes not from others but from the US government itself,” he said. “And that is a worry because the burden of debt is America’s Achilles heel.”

At the same time, Ing said that the selloff in bond markets has only begun as investors are reluctant to expose themselves to more U.S. debt.

“A meltdown in Treasuries now ranks among the worst Treasury crashes in history with 10-years collapsing 46% in the last three years while the 30-year bond erased 53% of gains. The meltdown has just begun,” he said. “America’s addiction to low rates and profligate spending debases the dollar, eroding its dominance, central to America’s credibility in financial markets.”

“We believe this fiscal unsustainability will show up in even higher yields and pain, from the shopping cart to corporate balance sheets, to taxpayers, as those chickens are only coming home to roost.”

In this environment, Ing said that gold remains a buying opportunity as it will help investors preserve their capital.

 

By

Neils Christensen

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Online Safety 101 How to Keep Cyber Snoopers at Bay

Online Safety 101: How to Keep Cyber Snoopers at Bay

Have you ever paused to reflect on those emails from your bank urging you to update your information or the seemingly innocent act of connecting to your favorite coffee shop's Wi-Fi for a quick cup of joe? In the vast landscape of our digitally connected lives, have you ever entertained the thought of whether someone might be eavesdropping on your conversations?

In the contemporary world, where our daily routines intertwine seamlessly with digital communication, safeguarding the security and privacy of our online interactions has assumed a position of unparalleled significance. Alas, the challenge persists as cybercriminals continuously evolve, devising innovative methods to exploit vulnerabilities within our digital systems. Among these threats, the man-in-the-middle attack stands out as a particularly sophisticated and menacing technique, posing a substantial risk to the integrity of our digital security.

In this article, we explore the man-in-the-middle attack, unraveling its intricate workings, understanding its far-reaching implications, and, most importantly, arming ourselves with knowledge on how to shield against this pervasive cybercrime. Join us on this journey as we delve into the nuances of digital security and equip ourselves with the tools to navigate the ever-evolving landscape of cyber threats.


Source: Imperva.com

What is a Man-In-The-Middle Attack?

Imagine a scenario where your digital conversations aren't as private as you think; that's the unsettling reality of a man-in-the-middle (MITM) attack, a serious cybersecurity threat more pervasive than we might realize. In this digital battleground, an attacker sneaks into the communication channel between two unsuspecting parties, much like a sneaky postal worker sorting through your mail.

The term "man-in-the-middle" is fitting because, just like that rogue mailman, the attacker plants themselves right in the middle of the communication flow. It's akin to this mail mischief-maker intercepting your bank statement, jotting down your account details, and then sealing the envelope back up before it reaches your mailbox. The victim remains blissfully unaware of this intrusion.

So, why is this cyber maneuver so dangerous? Well, imagine the rogue mailman stealing not just your bank statement but also your login credentials, credit card numbers, and other personal details. That's what happens in an MITM attack. The attacker gains access to sensitive information, opening the door to identity theft, unauthorized fund transfers, and other malicious exploits.

What makes MITM attacks particularly treacherous is their stealthy nature. They can lurk undetected for long periods, silently pilfering information. It's like a silent invader setting up camp in your digital space without you even realizing it. Worse yet, these attacks can introduce malware onto your device, giving the attacker complete control over your system.

MITM attacks come in various shades, from the passive ones, where the attacker slyly intercepts user traffic, to the active ones, where the attacker actively manipulates or alters the data flow. It’s like different tactics in a cyber playbook – IP spoofing, DNS spoofing, HTTPS spoofing, and email spoofing, each with its own crafty strategy.


Source: ReadyTechGo.com

Interception

Have you ever gotten a sketchy message from an unknown number posing as your bank or an enticing email from a supposed unfamiliar angel promising a piece of his fortune? These seemingly harmless messages might just be the tip of the iceberg regarding a man-in-the-middle (MITM) attack, a favorite trick in the cyber criminal's playbook, where sensitive information is stolen from the unsuspecting victim.

So, what's the deal with interception, and how does it play into the whole MITM drama? Interception is like a digital sleight of hand with which the attacker slyly intercepts your online traffic before it reaches its intended destination. In the MITM attacks, the cyber trickster strategically positions themselves between two chit-chatting parties to either sneak a peek or slyly tweak the data passing between them.

The more straightforward and common form of MITM interception is where the attacker sets up a free Wi-Fi hotspot, maybe with a sneaky name like "CoffeeShop_FreeWiFi," and lures unsuspecting victims. Once connected, the attacker gets a backstage pass to all the victim's online data exchanges, kind of like a digital puppet master pulling the strings.

The attacker can spoof your IP and trick your computer into thinking it's hitting up a legitimate website when, in reality, it's a detour to the attacker's lair. Another move is DNS spoofing, where the attacker messes with your computer's GPS, sending it to the wrong digital address, aka their server, instead of the real deal. And who could forget HTTPS spoofing? This is like setting up a fake secure website, inviting victims to input their sensitive info, and then snatching it up like a digital pickpocket.

Email spoofing is another player in the MITM game. The attacker crafts an email that looks legit, maybe even mimicking a trustworthy source, to lull victims into a false sense of security. Once the victim bites, the attacker swoops in to nab the sensitive data. Here's the kicker: in all these cyber theatrics, the attacker stays incognito, a ghost in the machine, intercepting and manipulating data without the communicating parties having a clue. They might even drop malware on a targeted user's device, making themselves right at home.

Decryption

Alright, let's unravel the second act in the drama of a man-in-the-middle attack, which is decryption. Now that the digital trickster has nabbed the data sailing between two parties, it's time for the grand reveal. Decryption, in simple terms, is like translating a secret code back into something understandable. 

In the wild landscape of a man-in-the-middle escapade, decryption is the secret sauce that turns the jumbled-up, encrypted data back into its original, readable form. Now, why is this a big deal? Well, it's the key to unlocking a treasure trove of sensitive info – think login credentials, financial details, and personally identifiable information (PII). The attacker unleashes this process to expose what was meant to be private and secure.

One classic thing the attacker does is known as the packet sniffer. A virtual detective captures and dissects the data zipping across the network. It's like intercepting letters and reading them before they reach the recipient. Sneaky, right? Then there's the brute-force attack, a cyber brute trying every password combination until it hits the jackpot. It's like trying every key in the bunch until one finally opens the door. Another trick up the attacker's sleeve is the rainbow table attack, which is a cheat sheet of pre-computed encrypted passwords, speeding up the process of finding the original password. It's the cyber equivalent of having a master key.

But why should we care about decryption? Well, if the attacker succeeds, they waltz right into sensitive information territory. This can lead to identity theft, fraud, and other malicious endeavors. Plus, decryption is like the golden ticket for installing malware on a targeted user's device, the cyber version of an uninvited guest overstaying their welcome.

Prevention

Now that we've uncovered the ins and outs of man-in-the-middle attacks and how these sneaky maneuvers go down let's arm you with the knowledge to steer clear of falling victim to them. Lucky for us, there are several effective methods to keep these digital tricksters at bay. Let's dive into some savvy ways to keep yourself in the clear:

1. Embrace the Power of VPNs:
Think of a Virtual Private Network (VPN) as your digital superhero cape. It encrypts all your internet traffic and guides it through its own secure servers. Even if an attacker tries to intercept your data, they'll just be staring at a wall of encryption. It's like sending your online messages in an unbreakable code.


Source: Markethive.com

2. HTTPS and SSL/TLS:
This dynamic duo of HTTPS and SSL/TLS transforms your internet communication into a secret language. When you visit a website using HTTPS, just like Markethive does, your browser locks arms with the website's server in a secure handshake. An attacker attempting to eavesdrop finds nothing but encrypted gibberish. It's like turning your online conversations into an encrypted treasure chest.

3. Safeguard with Email and DNS Security:
Email and DNS can be the Trojan horses of MITM attacks, but fear not! Strengthen your defenses with email security tools like SPF, DKIM, and DMARC to verify the legitimacy of your emails. For DNS, enlist the help of a secure resolver to ensure your DNS requests aren't being intercepted. It's like adding an extra layer of protection to your digital communication channels.

Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) are email security tools that can help you protect your emails from spoofing, phishing, and spam. They work by verifying the sender’s identity and the integrity of the email content.

4. Double Down with Two-Factor Authentication (2FA):
Think of 2FA as having a bouncer at the entrance to your digital party. It requires a password and a second form of verification, like a code sent to your phone. This tag team ensures that only you get VIP access. It's like having a secret handshake for your online accounts.

5. Arm Yourself with Anti-virus Software:
Consider anti-virus software as your digital bodyguard. It scans, detects, and blocks potential threats, acting as a shield against MITM attacks. Keep it up-to-date to stay one step ahead of the cyber baddies.

6. Keep Software Updated:
Updating your software is like giving your digital fortress a fresh coat of paint. Hackers often exploit vulnerabilities in outdated software, so ensure your operating system, web browser, and other applications are rocking the latest security patches. It's like fortifying your defenses against unseen invaders.

It's essential you understand that by weaving these prevention methods into your digital routine, you significantly reduce the risk of becoming a victim of a man-in-the-middle attack. Remember, an ounce of prevention is worth a pound of cure. So, gear up, stay vigilant, and keep the online baddies at bay!

Detecting a Man-In-The-Middle Attack

Detecting a man-in-the-middle attack can be subtle, but it’s important to stay alert. The first sign something’s off will likely be a slowdown in internet or network speed. If you notice it taking longer than usual to load pages, watch out; you might be under attack. The next sign is a pop-up error message. These error messages can appear for several reasons, but if the error message says, “The security certificate presented by this website is not secure,” that’s a red flag. An improper security certificate is a definite sign that the website is not secure and may have been compromised.

Network Monitoring is essential in detecting a man-in-the-middle attack. Network monitoring tools come in various shapes and sizes. They keep track of network traffic, identify traffic patterns, and check for suspicious behavior. SSL Certificate Warnings are some of the most common ways web browsers detect a Man-in-the-Middle Attack. 

When attempting to visit a website with an invalid certificate, the browser warns its user of its dangers, often citing the risk of middleman attacks. Suspicious Network Activity is another sign. If your network administrator or ISP has monitoring tools in place, unusual network activity can quickly raise a red flag. DNS Spoofing Detection Tools can help detect DNS hijacking and monitor suspicious activity on your network.

It's always best to have multiple lines of defense when trying to detect a man-in-the-middle attack. Using a combination of techniques and tools is key to recognizing suspicious activity before it's too late. Remember, prevention is always the best defense. Staying vigilant and using the preventive measures outlined in the previous section is vital. 

Examples of Man-In-The-Middle Attacks

As you might have figured out by now, man-in-the-middle (MITM) attacks are pretty dangerous. They are used to steal sensitive information from various targets, including users of financial applications, e-commerce sites, and SaaS businesses. Such attacks can also gain entry into a secure network by installing malware on a user's device.

But let's dive deeper and look at some real-life instances of man-in-the-middle attacks that have occurred. In 2010, an Iranian hacker used a man-in-the-middle attack to access the Gmail accounts of several high-profile individuals, including US government officials and journalists. The attacker created a fraudulent security certificate for Google services, which allowed them to intercept email communication.

DigiNotar, a Dutch certificate authority that the hacker compromised, issued the security certificate. The hacker bypassed the HTTPS encryption that usually protects the communication between a user and a website. The hacker also used a technique called DNS spoofing, which involves changing the DNS records of a domain name to point to a malicious server. This way, the hacker could redirect the users to a fake Google website that looked identical to the real one but was under the hacker’s control.

In 2011, at a Black Hat conference, a researcher named Nicholas Percoco and his colleague Christian Papathanasiou showed how easy it was to run a man-in-the-middle attack on mobile devices running iOS and Android. The attack involved intercepting data packets between a mobile device and a wireless access point using a tool called SSLstrip.

SSLstrip is a tool that can downgrade HTTPS connections to HTTP connections and strip away the encryption that normally protects the communication between a user and a website. The tool can also modify the content of the web pages that the user sees, such as replacing the padlock icon with a fake one or inserting malicious links or scripts.

The researchers demonstrated how they could use SSLstrip to hijack a user’s Facebook session, steal their login credentials, and post messages on their behalf. They also showed how to intercept a user’s email communication, read their messages, and send spoofed emails. They also revealed how to access a user’s online banking account, view their balance, and transfer money to another account.

One of the most widespread man-in-the-middle attacks in recent times is the "Superfish" incident. Lenovo shipped its laptops with adware called "Superfish," designed to serve targeted ads to users. However, Superfish was designed to intercept HTTPS traffic, leaving users vulnerable to MITM attacks.

Another example of a widespread MITM attack is the WannaCry ransomware attack that took place in 2017. The WannaCry ransomware was propagated via a vulnerability in Windows systems and encrypted users' files, demanding a ransom for decryption. This sophisticated ransomware attack attacked several government agencies, businesses, and individuals worldwide. 

While most man-in-the-middle attacks aim to steal user data, some use MITM attacks to target companies and individuals. For instance, during the Syrian civil war, the SEA (Syrian Electronic Army) carried out a targeted MITM attack against the Associated Press (AP) Twitter account. The SEA used the account to post fake news about an explosion at the White House, causing a significant drop in the stock market. While man-in-the-middle attacks might not be new, the stakes are increasing with new technologies such as Artificial Intelligence. So, it's crucial that you stay informed of such attacks and take the necessary precautions to protect your data.


Source: Cyber Security News

Security analysts discovered one recent incident of an MITM attack in April 2023. The attack targeted Wi-Fi networks and could bypass their security mechanisms. The attacker operated by imitating the genuine access point and transmitting a forged Internet Control Message Protocol (ICMP) to redirect the message to a targeted supplier. ICMP is a protocol used to send error messages and other information between network devices.

A redirect message is an ICMP message that tells a device to use a different route to reach a destination. By sending a forged redirect message, the attacker could trick the device into sending its traffic through a malicious router, where the attacker could intercept and modify it. This way, the attacker could hijack any device's traffic connected to the Wi-Fi network and perform various malicious activities, such as stealing passwords, injecting ads, or redirecting users to phishing websites.

Conclusion

So, we know these attacks are dangerous and can happen to anyone, anywhere, at any time. From intercepting personal information to potentially installing malware, cybercriminals will stop at nothing to get what they want, which is why it's so important to be aware of the risks posed by man-in-the-middle attacks.

We've gone over a few key steps to prevent becoming a victim, like using a VPN, HTTPS, SSL/TLS, email and DNS security, and two-factor authentication. It's also essential to keep your software up-to-date and be aware of suspicious network activity. But even with these precautions, it's not always possible to avoid a man-in-the-middle attack, so it's important to know how to detect one if it does happen.

Whether it's noticing strange SSL certificate warnings or monitoring network activity, early detection can be the difference between a minor inconvenience and a major data breach. And while it's easy to feel overwhelmed by the thought of cybercriminals lurking around every corner, being aware of the risks posed by man-in-the-middle attacks is the first step toward protecting yourself. 

Remember, attacks like these can happen to anyone. Still, you can minimize your risk and stay safe in an increasingly dangerous digital world by remaining vigilant and taking the necessary precautions. So, whether you're shopping online, checking your bank account, or browsing the web, remember to stay alert, stay safe, and watch for those pesky man-in-the-middle attacks. After all, when it comes to online security, a little awareness can go a long way to save you from disaster.

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

Gold price pauses Wednesday after solid gains Tuesday

Gold price pauses Wednesday after solid gains Tuesday

Gold prices are just a bit weaker and silver higher in midday U.S. trading Wednesday. Gold is seeing some routine profit-taking from the shorter-term futures traders, following this week’s gains. A rebound in the U.S. dollar index and an uptick in U.S. Treasury yields at mid-week are negative daily outside market influences for the yellow metal. Silver is seeing good follow-through strength after posting solid gains Tuesday. December gold was last down $1.80 at $1,964.80. December silver was last up $0.398 at $23.53.

Trader and investor attitudes are more upbeat at mid-week following Tuesday’s U.S. consumer price index report for October that came in at up 3.2%, year-on-year. CPI was forecast at up 3.3%, year-on-year, versus a gain of 3.7% in the September report. U.S. producer price index data for October, released this morning, corroborated Tuesday’s tamer CPI data. October PPI was down 0.5% from September versus expectations for a rise of 0.1% in the period. The CPI and PPI data fall into the camp of the U.S. monetary policy doves, who want to see the Federal Reserve halt its interest-rate-tightening cycle. Now, more Fed market watchers believe the U.S. central bank will continue to pause on raising interest rates in the coming months.

The U.K. also got some better inflation news today. Consumer prices were 4.6% higher in October, year-on-year, following a rise of 6.7% in September. The October rise in CPI was the slowest in the U.K. in two years. Some analysts are now saying the better U.K. inflation data will end the Bank of England’s interest-rate-increase cycle.

U.S. stock indexes are higher and at multi-week highs in midday trading, following the strong gains posted Tuesday.

On tap today, U.S. President Joe Biden and Chinese leader Xi Jinping are meeting during the Asia-Pacific Economic Cooperation summit in San Francisco. The White House wants a resumption of U.S./China military communications. Iran is also on the agenda, including the question of Iran’s nuclear program. A potential thawing of heretofore icy U.S.-China relations also has traders and investors with more upbeat attitudes this week.

U.S. lawmakers are once again scrambling to pass a measure to fund the federal government. This time the deadline is midnight Friday. This is “old hat” for the marketplace and markets are so far not reacting much to a potential U.S. government shutdown. U.S. congressional leaders are presently working on a plan to avert the shutdown.

The key outside markets today see the U.S. dollar index firmer on a corrective bounce after careening to a nine-week low on Tuesday. Nymex crude oil prices are lower and trading around $77.00 a barrel. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 4.531%.

Technically, December gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today’s high of $1,979.20 and then at $1,985.00. First support is seen at today’s low of $1,958.80 and then at $1,950.00. Wyckoff's Market Rating: 5.0.

December silver futures bulls and bears are back on a level overall near-term technical playing field but the bulls now have momentum. A price downtrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.05. The next downside price objective for the bears is closing prices below solid support at this week’s low of $21.925. First resistance is seen at today’s high of $23.71 and then at the October high of $23.88. Next support is seen at today’s low of $23.095 and then at $23.00. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed up 355 points at 371.90 cents today. Prices closed nearer the session high today and closed at a 2.5-month-high close. The copper bears still have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 351.95 cents. First resistance is seen at the November high of 372.55 cents and then at 378.60 cents. First support is seen at today’s low of 366.80 cents and then at 365.00 cents. Wyckoff's Market Rating: 4.5.

Try out my “Markets Front Burner” email report. My next one is due out today and is going to be entitled, “When China sneezes…” Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. And it’s free! Sign up to my new, free weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

The Unyielding Spirit: The Power of Never Giving Up

The Unyielding Spirit: The Power of Never Giving Up

I
In the journey of life, obstacles and challenges are inevitable companions. The path to success is seldom a smooth one, but it's our response to adversity that defines our character. One of the most potent qualities that propels individuals towards their goals is the unwavering determination to never give up. In this blog, we will explore the profound motivation that stems from embracing challenges and persisting in the face of adversity.

ecosystem for entrepreneurs

1. **Resilience in the Face of Failure:**
   Every successful person has a story of setbacks and failures that could have deterred them from their dreams. The key difference lies in their resilience. Instead of viewing failure as a roadblock, they see it as a stepping stone to success. Each setback is an opportunity to learn, grow, and refine their approach. This resilience enables individuals to bounce back stronger, armed with the knowledge that only failure can provide.

2. **The Power of Positive Thinking:**
   A positive mindset is a formidable weapon against the trials of life. When faced with challenges, maintaining a positive outlook can shift your perspective. Instead of dwelling on the difficulties, focus on the lessons and possibilities that emerge from adversity. Positive thinking not only boosts morale but also attracts positive energy, paving the way for creative solutions and new opportunities.

3. **Fueling Ambition with Passion:**
   Passion is the driving force that fuels the motivation to keep going, even when the going gets tough. When you are genuinely passionate about your goals, the desire to achieve them becomes a powerful motivator. It ignites a fire within, pushing you to overcome obstacles, persevere through hardships, and continue striving towards your dreams.

4. **Learning and Growth:**
   The journey towards success is often a journey of continuous learning and growth. Each challenge presents an opportunity to acquire new skills, broaden your knowledge, and develop as an individual. Embracing this process of continuous improvement not only enriches your skill set but also instills a sense of accomplishment and confidence that bolsters your determination.

5. **Drawing Inspiration from Role Models:**
   Many successful individuals have faced insurmountable odds before achieving greatness. Learning about the journeys of these role models can provide invaluable inspiration during difficult times. Understanding that even the most accomplished people faced setbacks and overcame them can serve as a powerful reminder that persistence is a common thread among those who achieve remarkable success.

6. **Building a Support System:**
   Surrounding yourself with a supportive network of friends, family, mentors, and like-minded individuals can be a game-changer. Having people who believe in you and your goals provides emotional support during challenging times. Their encouragement can reignite your motivation and remind you that you're not alone on your journey.

In the grand tapestry of life, the threads of perseverance, resilience, and determination weave a narrative of triumph over adversity. The motivation to never give up is a force that propels individuals towards their goals, no matter how formidable the challenges may be. By embracing failure, cultivating a positive mindset, nurturing passion, fostering continuous learning, drawing inspiration from role models, and building a strong support system, one can cultivate an unyielding spirit that can weather any storm on the path to success. Remember, it's not the absence of challenges that defines us but our response to them that shapes our destiny. So, hold onto your dreams, stay resilient, and let the unwavering flame of determination guide you to the pinnacle of success.

Tim Moseley

Gold prices can fall 4 in the near term but its long-term outlook remains bullish – Natixis

Gold prices can fall 4% in the near term, but its long-term outlook remains bullish – Natixis

Weak inflation pressures have pushed gold prices solidly back above $1,950 an ounce; however, despite Tuesday’s gains, one international bank is looking for lower prices through the end of the year as the fear trade continues to fade.

In his latest gold analysis, Bernard Dahdah, precious metals analyst at Natixis, said that gold prices could fall another 4%, pushing prices back below $1,900 an ounce as geopolitical tensions in the Middle East stabilize and Israel’s war with Hamas remains confined with Gaza’s borders.

However, despite his near-term bearish outlook, Dahdah said he sees long-term potential for the precious metal through 2024 and 2025.

Our view is that even if a correction takes place, gold prices are expected to find support as the Fed starts cutting rates, which we think will be as soon as May,” he said in the report. “Although we see gold prices retreating in the near term, the back of a long-term cease-fire that will eventually come, prices will still average $1,883/oz in 2024 and rise to an average of $1,918/oz in 2025.”

December gold futures last traded at $1,968.10 an ounce, up nearly 1% on the day as investors continued to digest the latest Consumer Price Index report.

Tuesday’s inflation data continues to support expectations that the Federal Reserve is done raising interest rates in this tightening cycle. October’s CPI showed inflation rose 3.2% in the last 12 months. This was the weakest increase since December 2021.

According to the CME FedWach Tool, markets see a nearly 100% chance that the Federal Reserve will leave interest rates unchanged next month. Markets see the first rate cut coming in May, with a total of three rate cuts through next year.

Although the Federal Reserve is done tightening interest rates, it has signaled that it will continue to maintain restrictive rates for the foreseeable future to make sure inflation is on track to fall back to its 2% target.

In comments made at an event hosted by the International Monetary Fund, Fed Chair Jerome Powell said that the committee is “not confident” it has done enough to bring inflation down.

“If it becomes appropriate to tighten policy further, we will not hesitate to do so,” he said during the event. “We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data and the risk of overtightening.”

  Gold is still undervalued at $2,000, will hit $2,400 next year – IG Wealth Management's Petursson

By

Neils Christensen

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter