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The One Reason Why Cardano Bulls Are Seriously Banking On 3 ADA Explosion Despite Price Downturn

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The One Reason Why Cardano Bulls Are Seriously Banking On $3 ADA Explosion Despite Price Downturn

By Newton Gitonga – March 29, 2024

Cardano (ADA) has been experiencing a prolonged period of stagnation, hovering just above the $0.65 support level, while other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) witnessed significant surges.

Despite this apparent setback, ADA proponents remain undeterred, expressing optimism about an imminent rally that could potentially propel the coin to the coveted $3 mark.

In a Saturday post, a vocal ADA supporter known as “Crybaby” reflected on the current market sentiment, drawing parallels to previous market cycles. He highlighted the scepticism and doubt among ADA holders as other cryptocurrencies surged, reminiscent of a similar scenario. However, ‘Crybaby’ remained steadfast in his belief in ADA’s potential, emphasizing the resilience of the ADA community and predicting a substantial price surge shortly.

“With the recent hype of BOME and SOL price hike. Exponentially increasing of trash talk towards $ADA. I can see that the teleportation portal on Cardano is about to be ready. Real soon. Be ready with your space suit. We’re about to be chilling with zero gravity soon.” Wrote the investor, echoing the sentiments of other ADA supporters.

Elsewhere, renowned crypto analyst Ali Martinez further echoed this sentiment, pointing out similarities between the current ADA price action and historical patterns observed from 2018 to 2021. Notably, Martinez suggested that ADA could consolidate within the $0.55 to $0.80 range before experiencing a surge to $1.70.

Moreover, the growth of the Cardano ecosystem has served as an additional catalyst for optimism among ADA supporters. Addressing concerns about scaling Cardano, Charles Hoskinson, the founder of Cardano, reassured the community in a recent video, emphasizing the robustness and scalability of the Cardano network. With over 2,300 days of uninterrupted uptime and a commitment to decentralized principles, Cardano appears well-positioned to overcome scaling challenges and drive further adoption.

While skeptics may question ADA’s ability to compete with other leading cryptocurrencies, proponents remain resolute in their belief in the project’s long-term potential. Despite the current price downturn, many ADA holders view this consolidation phase as a necessary precursor to a significant price rally.

ADA was trading at $0.65 at press time, reflecting a 0.11% drop in value over the past 24 hours. The daily chart shows ADA’s price has encountered significant resistance within the $0.76-$0.80 range. A breakthrough and sustained closure above $0.80 would signal a resurgence in bullish momentum for Cardano, potentially driving its price towards $0.90 and beyond.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Newton Gitonga and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Bitwise Submits Filing For Spot Ethereum ETF Joining Other Firms In Race For SEC Approval

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Bitwise Submits Filing For Spot Ethereum ETF, Joining Other Firms In Race For SEC Approval

By Brenda Ngari – March 29, 2024

Bitwise has applied to list a spot Ethereum exchange-traded fund (ETF) in the U.S., even as questions continue to swirl around when the Securities and Exchange Commission might give such investment vehicles the regulatory blessing. Bitwise already manages the fourth largest spot Bitcoin ETF by assets under management, holding over $2 billion in BTC.

Bitwise Joins ETH ETF Bandwagon

Bitwise has taken a significant step toward introducing a spot Ethereum ETF. The company filed an S-1 registration form with the Securities and Exchange Commission on March 28, followed by a 19b-4 form barely an hour later. If approved, the Bitwise Ethereum Trust will be listed on the New York Stock Exchange. The proposed product intends to give investors direct exposure to the industry's largest altcoin by market cap and may stake a portion of the fund's assets via trusted staking providers to earn more rewards. Bitwise is one of the now-11 issuers of spot Bitcoin ETFs. The financial giant's BITB spot ETF has collected roughly $2 billion in assets after only 2 1/2 months.

Bitwise's ether ETF filing sparked optimism in the crypto community about a potential spot ETH ETF approval in May. However, senior Bloomberg ETF analyst Eric Balchunas was quick to stress that the likelihood of said approval is still super low.

Balchunas noted that there are now just seven weeks before the May 23 deadline, and the SEC hasn't gone back and forth with potential issuers over spot ETH ETFs, a contrast to the lengthy discussions that happened before BTC ETFs were greenlighted in mid-January.

SEC Uncertainty On Whether ETH Is A Security

The SEC has repeatedly shelved decisions on multiple high-profile Ethereum spot ETF applications in recent months, including those from BlackRock, Grayscale, Fidelity, Invesco, and Galaxy Digital. Moreover, a Bitwise executive recently forecasted that spot ETH ETFs are unlikely to get the SEC's nod this summer. “Spot Ethereum ETFs will gather more assets if they launch in December versus if they launch in May,” Bitwise's Chief Investment Officer Matt Hougan posited. “TradFi needs more time to digest the Bitcoin ETFs.” The Ethereum Foundation was recently embroiled in an investigation by an unknown “state authority” that was later alleged by Fortune to be an effort by the SEC as it attempts to categorize Ethereum as a security. Notably, the SEC has so far refused to clarify its stance on whether ether is a security or not. Now, the regulator might be forced to actually define Ethereum, which could have a huge impact on the crypto sector in the U.S. However, BlackRock CEO Larry Fink believes that it would still be possible to launch a spot-based ETH ETF even if the Commission were to label Ethereum a security.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Gold appears unstoppable as it hits record highs above 2250 capping off a solid month and quarter

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Gold appears unstoppable as it hits record highs above $2,250, capping off a solid month and quarter

The gold market continues to be an unstoppable juggernaut as it closes out the month and quarter near a record high, solidly above $2,200 an ounce.

Analysts note that gold’s performance on Thursday, which wraps up a shortened trading week ahead of the Easter long weekend, is even more impressive when compared to the U.S. dollar Index, which is trading near a six-week high above 104 points.

Gold prices last traded at $2,241 an ounce, up 2.7% from last week. For the month, gold is up 9%, and for the quarter, the precious metal is up 8%.

Gold’s further push into blue sky territory also comes ahead of important inflation data. Although markets are closed for Easter, it is not a recognized government holiday, so the U.S. Bureau of Economic Analysis will be releasing its Personal Consumption Expenditures (PCE) Index. According to consensus estimates, economists expect inflation to have risen 0.3% in February.

Some analysts have said that gold is attracting new momentum because inflation is less of a threat than it was. Last week the Federal Reserve signaled that it still looks for three rate cuts this year even as they see inflation holding above its 2% target.

Darin Newsom, Senior Market Analyst at Barchart said that the gold rally is a signal that investors are worried that the Federal Reserve won’t be able to get inflation under control as it starts to cut interest rates.

He added that he also sees gold well supported as a geopolitical risk hedge.

“Geopolitical fears are still out there and will only continue to grow as we approach the November U.S. election,” he said. “If the Fed starts cutting rates, bond yields will fall, which makes gold a more attractive safe-haven.”

At the same time, some analysts note that the U.S. dollar is losing its grip on the gold market as U.S. government debt continues to spiral higher.

“Gold is not expensive. The truth is that the U.S. dollar is cheap as the government floods the global economy with it,” said Julia Khandoshko, CEO at the European broker Mind Money, in an interview with Kitco News.

Although the Federal Reserve has been tightening its balance sheet as part of its aggressive monetary policy, some analysts have noted that the nation’s money supply continues to grow.

David Kranzler, precious metals analyst and creator of the The Mining Stock Journal said in a comment on social media that the U.S. The Monetary Base, as measured by Money Zero Maturity (MZM), is up nearly 10% since March 2023.

“Gold smells a massive money-printing program coming at some point. In fact, low-grade money printing has already occurred,” he said.

MZM represents money readily available within an economy for spending and consumption. and includes M2 money supply, less the time deposits, plus all money market funds.

Regardless of what is driving gold at its record highs, Adam Button, Chief Currency Strategist at Forexlive.com said that he expects this is only the start of the rally.

Despite gold’s historic rally, Button said that the precious metal sector continues to be ignored in the broader marketplace. He added that the mining sector, while off its lows is still significantly undervalued compared to gold prices.

“This quiet rally is extremely encouraging for gold investors,” he said. “This is not an exhausted bull market. The time to sell is when everyone is talking about gold and the miners are taking off.”

Although Button is bullish on gold, he added that investors should wait for a pullback before jumping in. He pointed out that there appears to be some initial support at $2,150 that could attract some buyers.

Ole Hansen, Head of Commodity Strategy at Saxo Bank said that he expects the gold market to have further upside potential. He added that it's more than just momentum that is pushing gold prices higher.

“Gold’s continued ability to withstand headwinds from dollar and yield movements is nothing but impressive and it highlights a market that continues to attract demand making it a relatively easy task for hedge funds to defend their huge long positions,” he said. “My main concern during the past couple of weeks has been the risk of weakness forcing a cascade of long liquidation, but with prices now above $2,200 that risk continues to fade.”

Although gold is ending a shortened trading week on a strong note, next week does present new risks. The economic calendar next week will focus on the U.S. labor market with March’s nonfarm payrolls report on Friday as the highlight.

The week also features a solid lineup of central bank speakers including Federal Reserve Chair Jerome Powell, who will be speaking at Stanford's Business, Government, and Society Forum.

Some analysts have said that stronger employment numbers, coupled with stubborn inflation may force the Federal Reserve to push back the start of its approaching easing cycle.

“Macro traders certainly still have scope to add to their gold length — but only if rates market expectations notably firm. This places the onus on upcoming data to corroborate the Fed's outlook for three cuts this year, but continued strength in the data with little change in tone from the FOMC also raises the risk of a buyer's strike in Treasuries, leading to higher rates that could mechanically weigh on the yellow metal through the re-accumulation of macro trader short acquisitions,” said commodity analysts at TD Securities.

Economic data for the week

Monday: ISM Manufacturing PMI

Tuesday: JOLTS job openings

Wednesday: ADP nonfarm employment change, ISM Service Sector PMI, Powell to speak

Thursday: Weekly jobless claims

Friday: Nonfarm payrolls

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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There is a new way to lose weight through alternative medicine

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There is a new way to lose weight through alternative medicine

alternative medicine

There is a new way to lose weight through alternative medicine.

When it comes to losing weight, there’s no magic solution. To lose weight and maintain it, you need to be active every day and make changes to your eating habits. Alternative medicine practices can help improve flexibility, boost energy, and potentially reduce body weight.

Not to be too specific, but one of the most popular topics on late-night TV is losing weight. When you’re flipping through channels after 11 PM, you’re bound to come across ads for weight loss pills and diet supplements. Each of these ads claims to help you lose unwanted pounds and get rid of stubborn belly fat forever.

To tell you the truth, if these drugs were effective, the United States of America would not be the most overweight nation in the worldwide rankings.

On the other hand, there are many types of alternative medicine that can help with weight loss. These methods can make you more flexible, boost your energy, and as a result, help you lose weight. While there’s no miracle alternative medicine, following these principles can help you reach your goals.

alternative medicine

LET’S TAKE YOGA AS AN EXAMPLE

Let’s use yoga as an example. The gentle stretching in yoga can help reduce stress, which may decrease the likelihood of overeating due to feelings of sadness or frustration. Acupuncture uses specific points in the ear that can help reduce cravings. Detoxifying teas and herbs can contribute to a sense of well-being, which may lead to a reassessment of unhealthy food choices. In this view, alternative medicine can be a beneficial approach to weight loss.

DETOXIFYING TEAS,

Detox teas, energy pills, and vitamins are the most common alternative medicines for losing weight. However, for safe and long-term weight loss, we should focus on healthy eating and regular exercise. There is no quick fix for weight loss. In reality, we need to change our eating habits and exercise regularly to lose weight and keep it off.

NEVERTHELESS

Nevertheless, in order to prepare you ready for weight loss, here are some detoxifying teas and fascinating supplements that are being offered by alternative medicine.

The turmeric, ginger, and lemon, along with the juice of half a lemon, should be brought to a boil in two cups of water. Each of these ingredients should be around a half teaspoon. You should drink it first thing in the morning as a detoxifier before starting your diet.

The content you provided is already simple and easy to understand.

When you visit a local food co-op or herbalist, they can offer you many different types of alternative teas and advice on nutrition. They can also connect you with a trusted homeopathic doctor who will assess your needs and figure out what specific nutrition you require.

THE ALTERNATIVE MARKET

The alternative market has recently seen the introduction of two dietary supplements: bovine cartilage and shark cartilage. Despite the fact that both have been utilized for a considerable amount of time outside of the United States and Britain, they are currently popular in health food stores.

When it comes to losing weight, hypnosis is a popular form of alternative treatment. It helps change your behavior without relying solely on willpower.

The way hypnosis works is by exploring the unconscious factors that lead you to keep thinking and eating in ways that make you gain weight. Hypnotists believe that if they can ease the underlying cause of obesity, the patient will naturally start losing weight as a result. Unlike expensive spa visits and over-the-counter weight loss medications, hypnosis is a more cost-effective alternative. It can help you release worries that keep you from eating healthily and allow positive energy to flow through you. This will motivate you to continue with a new way of eating and exercise.

Tim Moseley

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Mysterious Whale Suddenly Transfers 2000 BTC Mined in 2010 Now Worth Over 140 Million

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Mysterious Whale Suddenly Transfers 2,000 BTC Mined in 2010, Now Worth Over $140 Million

By Arnold Kirimi – March 28, 2024

Bitcoin’s mysterious early adopters continue to make waves in the cryptocurrency space as an unidentified individual or entity recently consolidated 2,000 BTC mined in 2010 into a single wallet.

This move, highlighted by developer mononautical on X, underscores the remarkable value appreciation of Bitcoin over the past 14 years, with the 2,000 BTC now worth a staggering $140 million.

This significant transfer of wealth from the early days of Bitcoin mining is a testament to the foresight and patience of these early adopters, who have held onto their coins through volatile market cycles and exponential price increases.

Consolidation of 2,000 BTC Mined in 2010

The consolidation of 2,000 BTC mined in 2010 into a single wallet marks a notable event in Bitcoin’s history. This move involves the transfer of 40 sets of mining rewards, each consisting of 50 BTC, into one wallet.

The sheer size of this transaction underscores the value of Bitcoin’s long-term holding strategy, with Satoshi-era adopters now reaping the rewards of their patience.

Developer mononautical, upon noting the consolidation, commented on the remarkable journey of these early mined coins, which have seen their value skyrocket from a few hundred dollars to $140 million.

This long-term holding strategy highlights the belief early adopters had in the potential of Bitcoin, even during its early days when its value was highly volatile and uncertain.

While some have raised concerns about a compromised key generation or the possibility of a security breach, mononautical clarified that the miner remains unidentified. This suggests that the consolidation may have been a strategic move by the miner, rather than a result of compromised keys.

The fact that the transfer went straight to an over-the-counter (OTC) desk further supports this notion, as it indicates a deliberate decision to liquidate the holdings through official channels.

It’s a familiar phenomenon in the world of cryptocurrency to see long-dormant addresses become active again. Recently, this trend was observed in the Bitcoin market when an address, previously inactive and ranked as the fifth richest in Bitcoin holdings, suddenly showed signs of activity.

This particular address had been funded with 94,500 BTC back in 2019, valued at $6.05 billion at the time. After lying dormant for years, the Bitcoin from this address was recently split and moved to new addresses.

As reported by ZyCrypto, a Bitcoin wallet that remained inactive for over 13 years and nine months recently became active again, reawakening after nearly a decade and a half. This wallet, dating back to Bitcoin’s early days, holds 50 BTC, which was relatively small in value when last used but has since surged to over $3.3 million in today’s market.

Impact on Market Liquidity

The consolidation of these old Bitcoin holdings has broader implications for the cryptocurrency market, particularly in terms of liquidity. CryptoQuant founder and CEO Ki Young Ju noted that the consolidation indicates a “sell-side liquidity crisis waking up old Bitcoin.”

This suggests that the movement of these long-dormant coins is contributing to a tightening of the Bitcoin supply available for sale, which could potentially drive up prices.

It’s not unusual for early cryptocurrency adopters to resurface after long periods of dormancy. This trend was

The consolidation of these old Bitcoin holdings comes at a time when the cryptocurrency market is experiencing significant growth and adoption.

The introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. has led to a surge in demand for Bitcoin, further reducing the available supply for sale. As a result, Bitcoin’s liquid inventory has reached its lowest level ever, indicating a potential supply crunch in the market.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Arnold Kirimi and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Currency risks will drive gold and silver sky-high by year-end BMO Capital Markets

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Currency risks will drive gold and silver sky-high by year-end – BMO Capital Markets

While gold and silver prices may continue to consolidate in the near term, the rally in the precious metals sector is only getting started, according to commodity analysts at BMO Capital Markets.

In a report published Wednesday, the Canadian bank announced a significant upgrade for its gold and silver price projections for the next three years, with the high-water mark in the final quarter of 2024. The bank’s commodity analysts see gold prices averaging this year around $2,169 an ounce, up 11% from its previous forecast.

At the same time, they see gold prices averaging next year around $2,100 an ounce, a 12% increase from December’s estimates. Gold prices are expected to average around $2,000 an ounce in 2026 and $1,950 in 2027, an increase of 8% and 3%, respectively from the December estimates.

Looking at silver, BMO sees the white metal averaging around $25.60 an ounce this year, up 13% from the December forecasts. The price is expected to average around $25.30 an ounce next year, up 11% from the previous estimate. Finally, prices are expected to average $24 in 2026 and $23.50 in 2027, an increase from the previous estimate of 8% and 3%, respectively.

This year, BMO sees gold prices averaging around $2250 an ounce in the fourth quarter, a 13% increase from the previous estimate. At the same time, silver prices are expected to average the final quarter of the year around $28 an ounce, a 22$ increase from December’s forecast.

June gold futures last traded at $2,214 an ounce, up 0.67% on the day.

The commodity analysts said that gold’s consolidation near its recent all-time highs is an indication that the precious metal is forming a new base and investors are getting comfortable with higher prices.

They added that they remain bullish on the precious metal as a hedge against rising currency risks worldwide, and noted that gold’s all-time highs also coincide with Bitcoin’s move to record highs above $73,000 per token.

“Given no politician is likely to be elected by promising to spend less in a year loaded with elections across key democracies, there is certainly a chance that later in the year we may see further currency concerns supporting precious metal performance as a new era of elevated fiscal spending across global economies gathers traction,” the analysts said in the report. “While we see some consolidation in the current range through mid-year, we expect further sequential gains in H2 as the U.S. rate cut cycle starts to gather pace and geopolitical tensions rise as the U.S. election nears. This could be one of the rare years where both macro and retail investors increase exposure to precious metals.”

While gold regains its luster as a risk hedge, BMO also said they expect the market to remain well supported by “price-insensitive central banks.”

The bank also reiterated its call for Chinese demand to dominate the marketplace.

“China’s households accumulated strong savings over the pandemic, and even over the past two years ~35trn RMB was added. However, these households have had somewhat of a dilemma as to where to put this money, something often termed the ‘ugliness contest’ for Chinese investors,” the analysts said. “Historically, money might have been invested in property as a default position; however, as has been widely discussed this sector continues to face major structural issues which are impacting buyer confidence. With this, gold exposure has become a necessity for Chinese portfolios, as they continue to expect disinflation and income uncertainty.”

Meanwhile, BMO explained that silver will remain well-supported by industrial demand and weak supply growth.

“Historically, money might have been invested in property as a default position; however, as has been widely discussed this sector continues to face major structural issues which are impacting buyer confidence. With this, gold exposure has become a necessity for Chinese portfolios, as they continue to expect disinflation and income uncertainty,” the analysts said in the report.

“Recent weeks have seen vast lay-offs at the world’s largest solar manufacturer, Longi Green Technology, while there have been a number of news articles around poor utility return on solar installations in Europe,” they added. “This has led to some fears of a wider solar industry slowdown; however, we see this as a cyclical element of overinvestment and higher interest rates.”

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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ADA at 10 Price In View As Cardano Surpasses Ethereum ETH Other Top Blockchains In Developer Activity

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ADA at $10 Price In View As Cardano Surpasses Ethereum (ETH), Other Top Blockchains In Developer Activity

By Arnold Kirimi – March 24, 2024

Cardano (ADA) has emerged as a leader in developer activity, surpassing Ethereum (ETH) and other major blockchain networks. The surge in GitHub commits reflects Cardano’s commitment to innovation and growth, positioning it as a frontrunner in the competitive blockchain landscape.

GitHub commits are updates or modifications made to a project’s code on the GitHub platform using the Git version control system.

Each commit represents a specific change to the codebase, like adding features, fixing bugs, or enhancing performance. Commits include a message explaining the changes, aiding collaboration and progress tracking in software development.

Impressive GitHub Commit Numbers

IntoTheBlock reports that Cardano’s ADA is currently the cryptocurrency with the highest development activity and weekly engagements, surpassing major cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC). Following ADA, Avalanche (AVAX) takes the third spot, with Litecoin (LTC) ranking fourth.

Between March 11 and 17, Cardano recorded an impressive total of 978,780 commits on GitHub, showcasing its proactive approach to advancing its platform. In comparison, Ethereum, a leading blockchain platform, trailed behind with 407,170 commits during the same period.

This significant lead in GitHub activity underscores Cardano’s dedication to attracting developers and enhancing its ecosystem.

The rise of Cardano’s developer activity also sheds light on the broader trend of increasing engagement across layer-1 (L1) blockchain protocols. Avalanche (AVAX) recorded 315,770 commits, demonstrating a strong commitment to innovation and growth.

Similarly, Litecoin (LTC) and Tron (TRX) showed notable developer engagement, with 84,110 and 79,380 commits, respectively. Despite these efforts, these networks still lag behind Cardano in terms of overall developer activity.

Developer engagement is a critical metric for evaluating a blockchain protocol’s potential growth and evolution. High-commit counts indicate an active developer community working on decentralized applications (dApps) and improving the network’s capabilities.

This continuous development work is essential for enhancing the functionality and resilience of the blockchain network over time.

Cardano Price Performance vs. Developer Activity


ADA/USDT Price Chart: TradingView

Despite Cardano’s strong developer activity, its price performance has not mirrored this success. ADA has been trading below the $1 mark since April 2022 and is currently priced at $0.63, reflecting a 0.18% surge in the past 24 hours. Despite the positive GitHub commit data, ADA has experienced a decrease of 20.66% over the past week.

However, several analysts have recently expressed optimism about the asset, forecasting a new record high in the coming days. For instance, X user Ali Charts drew parallels between the coin’s current performance and its past bull cycle, suggesting a potential “parabolic” surge to reach as high as $10.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Arnold Kirimi and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

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Silver can still outperform gold even as prices fall 1 below 2450 – MKS

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Silver can still outperform gold even as prices fall 1% below $24.50 – MKS

Silver continues to underperform within the precious metals market and has been unable to hold gains above $25 an ounce even as gold prices hold near their record highs.

Despite the disappointing price action, many analysts remain optimistic that silver will have its turn to shine in the spotlight.

Even with higher volatility, Nicky Shiels, head of metals strategy at MKS PAMP, said silver is building a solid floor above $23.50 an ounce. She added that she sees potential for the white metal to reach $28 an ounce this year.

The bullish outlook comes as gold prices hold solid support above $2,150 an ounce; spot silver has fallen to a one-week low, last trading at $24.36 an ounce, down more than 1% on the day. The gold/silver ratio remains elevated and is above 89 points.

However, with inflation expected to remain stubbornly elevated for longer than forecasted, Shiels said that she expects the ratio to start falling.

“US growth has exceeded expectations as the Fed manufactures a soft landing while ROW / global growth is ‘stable’ish.’ With expected easier G-10 monetary policy now collectively tolerating a ‘higher for longer’ inflation regime, high beta cyclical commodities like Silver should outperform & the ratio should rerate lower,” she said in a note published last week.

Last week the Federal Reserve signaled that it was still on track to lower interest rates three times this year even as inflation remains above its 2% target.

Along with easing interest rates, Shiels noted that silver remains well supported by strong supply and demand fundamentals as demand continues to outpace supply.

She pointed out that India has once again become a robust source of demand for the physical metal. Quoting the nation’s trade data, Sheils said that in the first two months of the year, India has imported about 3,000 tonnes of silver.

“While that buying pace may subside, we don’t foresee a dramatic scale back in purchases at $25/oz+ prices,” she said.

At the same time, analysts expect healthy industrial demand to push the silver market into another deficit this year. According to research from the Silver Institute, global silver demand is expected to reach 1.2 billion ounces in 2024, the second-highest level on record.

Shiels noted that ongoing demand for silver has pushed above-ground stocks held with the London Bullion Market Association to record lows of 814 million ounces.

Meanwhile, the supply of silver continues to dwindle. Sheils noted that silver production from Mexico and Peru, the world’s top two producers, has dropped to its lowest level in 14 years.

“Mexico & Peru together are producing 25% less vs 2016 levels, helping drive the drawdown in above-ground stocks as a substitute,” she said.

As to what will drive investors back into silver, Shiels said that she expects investment demand to pick up as central banks start to cut interest rates. The Federal Reserve is likely to embark on its easing cycle with a cut in June. She added that geopolitical uncertainty ahead of the U.S. elections can also create some safe-haven demand for silver.

“Trying to time investor engagement is tricky, but as is the case with gold, it’s usually a FOMO trade, so a technical breakup & above $26 (a relatively sticky area) should attract the momentum crowd,” she said.

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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Gold gains on technical buying friendly outside markets

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Gold gains on technical buying, friendly outside markets

Gold prices are posting decent gains in midday U.S. trading Monday, supported by chart-based buying amid bullish technicals, and by friendly daily “outside market” forces that see the U.S. dollar index lower and crude oil prices higher. Silver prices are trading slightly up. April gold was last up $16.80 at $2,176.70. May silver was last up $0.042 at $24.885.

Broker SP Angel this morning said in an email dispatch that China and other central banks continue to buy gold. “Recent interest rate moves by major central banks of Japan, Taiwan and Turkey along with the expectations for U.S. rate cuts are making gold increasingly attractive. Investors also remain concerned at the level of high government debt supported by the U.S. and China.”

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are higher and trading around $82.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.25%.

Technically, April gold futures bulls have the solid overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract and record high of $2,225.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,149.20. First resistance is seen at the overnight high of $2,182.50 and then at Friday’s high of $2,188.00. First support is seen at today’s low of $2,164.40 and then at Friday’s low of $2.158.40. Wyckoff's Market Rating: 8.0.

May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the March high of $25.975. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at Friday’s high of $25.11 and then at $25.50. Next support is seen at last week’s low of $24.58 and then at $24.22. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed up 80 points at 401.55 cents today. Prices closed near mid-range. The copper bulls have the firm overall near-term technical advantage but appear tired now. Prices are in a six-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 March high of 416.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 385.00 cents. First resistance is seen at today’s high of 404.70 cents and then at Friday’s high of 406.65 cents. First support is seen at today’s low of 399.05 cents and then at 396.75 cents. Wyckoff's Market Rating: 7.0.

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Jim Wyckoff

Time to Buy Gold and Silver

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Gold price correction This week won’t derail a broader rally as Fed looks to cut rates

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Gold price correction This week won’t derail a broader rally as Fed looks to cut rates

The Federal Reserve has given the all-clear to gold after signaling it still wants to cut interest rates three times this year, even as inflation remains above the 2% target; however, some market analysts said that the precious metal could see a healthy correction next week and in the near term.

Following the Federal Reserve’s monetary policy meeting on Wednesday, gold prices rallied to a record high above $2,220 an ounce; however, the rally was short-lived, and prices are looking to end the week in neutral territory. April gold futures are currently trading around $2,164 an ounce, only a few dollars up from last week’s close.

Although the market looks a little heavy, a short trading week with markets closed Friday because of the Good Friday holiday could limit price volatility next week.

James Stanley, senior strategist at Forex.com, said that he expects gold prices to ultimately trend higher ahead of the Federal Reserve’s June monetary policy meeting when the central bank is expected to start its easing cycle.

He noted that gold remains well supported as the Federal Reserve signaled that it will ease interest rates even if inflation remains elevated.

“The Fed had every opportunity to strike a more balanced note, but they didn’t. If you look at the data, there is no reason for the Fed to look for three rate cuts this year. They don’t need to cut as the unemployment rate remains at the lowest point in my lifetime,” he said. “The fact that the Fed didn’t strike a more balanced tone raises a lot of questions for me and is a red flag for the economy that I think will continue to support gold.”

However, Stanley added that although he likes gold, he expects to see a correction in the near term. He said that investors should be cautious of chasing prices near record highs.

“Gold wants to go higher, but I think a pullback would be healthy. For investors who were long gold at the start of the month, this would be a good place to take some profits so we could see a short-term correction,” he said.

Looking at technical levels, Stanley said he is watching initial support at $2,146, as that was the December swing high. However, he added that he wouldn’t be surprised to see gold test support at $2,075 an ounce, representing a three-year resistance point before the early March breakout.

Lukman Otunuga, manager of market analysis at FXTM, said that although the Federal Reserve continues to signal rate cuts this year, the depth of the easing cycle will remain data-dependent. He explained that gold needs to see more disappointing economic data in the coming weeks and months to support the current rally.

“Although the Fed has signaled that three US interest rates remain on the cards in 2024, it’s all about economic data which could support or oppose the argument around rate cuts,” he said. “Gold bulls could return to the scene if incoming US data next week supports the case for lower rates. However, bears are also lurking and waiting for another opportunity to strike prices lower.”

Despite the bullish outlook, Otunuga said that, ahead of next week, the gold market “is looking a little tired.”

 

Although gold prices could see a correction next week, other analysts have said that investors should remain focused on the broader uptrend.

Naeem Aslam, Chief Investment Officer, said that although gold has seen a strong rally this month in anticipation of the Fed’s easing cycle, there is still significant potential for higher prices.

“We certainly haven’t hit high in terms of the gold price. We think that the important ingredient is the Fed’s definition of a normal interest rate, i.e., their target level,” he said. “We do think that the process has started as the Fed is sending a subdued signal that their pre-Covid level needs to be adjusted, and once they make it clean, we would expect the gold price to rally.”

While gold’s technical price action represents a short-term risk, the precious metal also faces some fundamental threats in the near term.

David Morrison, senior market analyst at Trade Nation, said that renewed strength in the U.S. dollar creates a headwind for gold. The greenback is ending Friday at a four-week high above 104 points.

“Could this sudden reemergence of dollar strength indicate that investors are less sanguine than the Fed over the prospect of rate cuts? Perhaps. But it also reflects that the latest round of central bank meetings have made it clear that rate cuts are coming from just about everyone,” he said in a note Friday. “In fact, the Swiss National Bank have already moved. That being the case, the US dollar is back in favour as it’s now the cleanest shirt in the laundry basket. It could be that this shake-out of the weaker holders of gold and silver can set the stage for a bigger rally. But that may be wishful thinking if the dollar continues to strengthen.”

 

Economic data for next week

 

Monday: New home sales

Tuesday: Durable goods orders, consumer confidence

Thursday: Weekly jobless claims, US GDP, Pending home sales

Friday: Core PCE price index

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