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TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could ‘Drive Capital Away’

TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could ‘Drive Capital Away’Precious metals markets continue to flounder this week as gold’s value per troy ounce has slid by 6.53% in value against the U.S. dollar during the last month, while silver has shed 2.34% in 30 days. Amid the raging inflation worldwide and the hawkish central banks, gold and silver prices have struggled in 2022 and […]

TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could ‘Drive Capital Away’

Precious metals markets continue to flounder this week as gold’s value per troy ounce has slid by 6.53% in value against the U.S. dollar during the last month, while silver has shed 2.34% in 30 days. Amid the raging inflation worldwide and the hawkish central banks, gold and silver prices have struggled in 2022 and investors expected quite the opposite to happen.

Precious Metals Continue to Tank in Value

The nominal U.S. dollar value per troy ounce of gold (Au) and silver (Ag) has dropped between 0.18% (Au) and 0.27% (Ag) during the last 24 hours. Over the last 30 days, the price of gold slipped 6.531% lower against the U.S. dollar, and silver lost 2.34% against the greenback during the same time frame.

The losses precious metals have been dealing with are occurring while global inflation has run rampant and the world economy faces turbulent markets. Furthermore, the U.S. Federal Reserve hiked the benchmark bank rate by 75 basis points (bps) last Wednesday, and the U.S. Dollar Currency Index (DXY) soared to a 20-year high the following Friday.

TD Securities global head of commodity markets strategy, Bart Melek, told Kitco News on Friday that the recent Fed rate hike has been a net negative for gold.

“We’ve seen significant increases in the markets’ estimates of what the federal funds rate will do over the next year. It is quite a big difference from a month ago, and it is in line with the Fed being more aggressive,” Melek said. The TD Securities commodity markets strategist added:

The real rates are rising. That’s negative for gold. High cost of carry and high opportunity cost will probably drive capital away.

Silver and Gold Daily Moving Averages Signal ‘Bearish’ Sentiment, Analyst Believes Gold Will ‘Rebound Next Year’

RM Capital Analytics strategist Rashad Hajiyev believes gold’s price should be higher. Last week, the analyst expected a rebound following gold’s downtrend against the U.S. dollar.

“Gold should be trading above $1,690 within 1-2 days if the recent sell-off is a breakdown,” Hajiyev tweeted last Tuesday. “Gold holding around key support & GDX adding 1.75% yesterday on a flat gold price suggests that the metal is on the cusp of a major move higher.” Six days after Hajiyev’s tweet, gold has not seen a significant move higher.

Financial advisor Renuka Jain told her 61,300 followers on Twitter that her firm expects gold’s value to rebound next year. The advisor further expects the U.S. central bank to cut rates in 2023.

“For 2023, the gold price outlook is more positive,” Jain detailed. “Not only do we expect the U.S. dollar to weaken, but we also expect the Fed to start cutting rates in 2023. On top of that, we expect lower U.S. real yields. As a result, gold prices are likely to rebound next year or even earlier.”

A Sunday price analysis that covers both gold and silver prices on schiffgold.com explains that the daily moving averages (DMA) for both precious metals show bearish signals. The analysis notes that silver has held up better than gold but the precious metal has “real resistance” at 22 nominal U.S. dollars per troy ounce.

“[For gold] it’s bearish that the 50 DMA ($1743) is well below the 200 DMA ($1831); however, the market rarely goes in one direction without a pause,” the analyst writes. “Expect a short-term bounce. The bounce cannot be trusted until the current price ($1655) at least breaches the 50 DMA and more likely the 50 DMA needs to break the 200 DMA to confirm a new bullish trend.”

What do you think about the recent market performances of gold and silver? Do you expect precious metals to go up from here or is there more decline on the horizon? Let us know what you think in the comments section below.

Source: Markets and Prices Archives – Bitcoin News

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A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s CollapseAt the time of writing the global cryptocurrency market capitalization is hovering around $842 billion on Sunday, Nov. 27, 2022. Bitcoin prices consolidated since the start of the week, as seven-day stats indicate the price of bitcoin has dropped by 0.02% this week. Meanwhile, while bitcoin prices remain static, a number of alternative crypto assets […]

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

At the time of writing the global cryptocurrency market capitalization is hovering around $842 billion on Sunday, Nov. 27, 2022. Bitcoin prices consolidated since the start of the week, as seven-day stats indicate the price of bitcoin has dropped by 0.02% this week. Meanwhile, while bitcoin prices remain static, a number of alternative crypto assets have recorded double-digit gains this week.

Crypto Economy Hovers Above the $800 Billion Zone as a Dozen Tokens Record Double-Digit Gains

Bitcoin (BTC) on Sunday is currently trading for $16,550 per unit and prices have remained stagnant for the last seven days. The token with the second-largest market capitalization, ethereum (ETH), has managed to gain 3.45% this week climbing back above the $1,200 range.

At the time of writing (10:00 a.m. ET), the crypto economy is down 0.07%, and it is currently valued at 842 billion nominal U.S. dollars. Out of the top ten largest cryptos this week, the two leading tokens include BNB and DOGE.

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

BNB has increased by 16.29% against the greenback during the past week, and seven-day stats show dogecoin (DOGE) is up 25.57%. Both of these crypto assets are not the only tokens that have seen double-digit gains during the past week.

The exchange coin huobi token (HT), for instance, has increased by 55.99% this week and celo (CELO) is up 45.31%. Curve’s dao token (CRV) has jumped 35.41% higher against the U.S. dollar, and litecoin (LTC) has increased by 25.29% this week.

Apecoin (APE) managed to rise 22.55% this week, and chainlink (LINK) rose by 17.95%. Dash (DASH) is up 17.25% and convex finance (CVX) has risen by 15.25% against the greenback.

In fact, 13 different crypto assets out of the 21,863 listed on coinmarketcap.com, have increased by double digits during the last week. This week’s biggest losers, however, included chiliz (CHZ) down 24.16%, chain (XCN) which lost 16%, and algorand (ALGO) shed 12.67%.

Those were the only three crypto tokens that saw double-digit losses against the U.S. dollar during the past seven days. Presently, out of the $842 billion global cryptocurrency market capitalization, bitcoin’s (BTC) market cap dominates by 37.7%.

Ethereum (ETH), on the other hand, dominates the crypto economy by 17.6% on Nov. 27, 2022. Global trade volume is a lot less than when FTX collapsed two weeks ago, as it rose above $200 billion during multiple 24-hour periods.

Today, the crypto economy’s Global trade volume is only $36.84 billion and tether (USDT) commands $26.78 billion of the aggregate. Bitcoin’s (BTC) global trade volume today is around $19.30 billion and ETH captures $4.38 billion of Sunday’s trade volume.

What do you think about the handful of crypto tokens that have recorded double-digit gains this past week? Let us know what you think about this subject in the comments section below.

Source: Markets and Prices Archives – Bitcoin News

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