![]() The Challenging First Half of 2022Īll these concerns materialized in a significant way during the first six months of 2022. ![]() Commentaries on these matters can be found in my previous Insights and commentaries. John Hathaway, Sprott Asset Management LP : Many investors are asking why gold’s performance has been disappointing in light of what would seem to be the perfect backdrop? Interest in gold has been driven by problematic inflation, prospects of a recession, excessive public and private debt, widening credit spreads, the onset of a bear market in equities and bonds, and a growing loss of confidence in the Federal Reserve (“Fed”). Are they going to continue looking at something along the lines of fighting inflation, or are they going to become more “data dependent.” That statement could be very crucial. China’s COVID-19 situation and attendant lockdowns are also putting pressure on silver prices.Īt this point, a recession seems all but an inevitability, but the question is now going to be where does the Fed see the economy going forward. ) Industrial Order Expectations fell from 18 points to 8 points, well below the expected value of 13 points. Also reinforcing the pullback from intraday highs was the disappointing data from the UK, where the CBI (NS: Business activity in the manufacturing sector in the US, Eurozone, and UK have all fallen below expectations. Silver price predictions to the upside remain highly unpredictable for now, as the industrial metal’s recovery attempts have been truncated by a slew of poor manufacturing PMI data from across the world. ![]() If the bearish trend reverses, $18-$18.5 could be the support for a new trend. The severe 40% decline from the $30 peak reached on January 25, 2021, however, could possibly suggest that the silver downtrend may have already given most of its power. Silver prices are in a consolidation phase, with trading mostly contained within a narrow range. Silver prices have started the week positively after a series of price rejections by the bulls from the $18.213 price pivot. Silver prices broke through the downward channel they had been trading in since reaching highs of $30 at the end of January 2021. The decline in real yields has been driven by a significant drop in nominal yields (US 10-year Treasury), which fell from 3% to 2.75 %, while the 10-year break-even rate remained stable at around 2.36 %. Growing recessionary fears have resulted in a sharp drop in US real yields, which have fallen below 0.4%, to their lowest level since June 10, as the market begins to believe that the Fed will be forced to reverse its rate-hiking policy down the road. A slew of negative economic data and geopolitical headlines has kept market risk sentiment depressed and raised concerns about an impending recession. There is still considerable uncertainty about the Fed’s next moves, causing precious metals traders to trade sideways in the meantime. Gold and silver prices are attempting to find a floor from which to recover in the expectation that a recession will cause the Fed to halt its rate-hike path. Short- and medium-term traders want to sell gold in advance of the event, expecting the decision to be bad for gold and silver prices, but buyers of gold and silver are waiting in the wings to take advantage of an expected price drop, creating a market equilibrium. With a 75-bp hike already priced in,Īnd silver could hold ground or trend lower after the Fed meeting, depending on how much short covering takes place. The US Federal Reserve is widely expected to raise interest rates by another 75 basis points at the conclusion of its policy meeting today, as it attempts to tame runaway inflation without triggering a recession. ![]() This would have to be the most fully expected, fully priced into markets 75-point rate hike in history. All eyes are on the Federal Reserve, which is expected to announce its second straight 75 basis point hike at its FOMC meeting today. Two new breweries have been added to this year's lineup: Trail Town Brewing in Yellow Springs and Bock Family Brewing in Centerville.Gold and silver prices struggled to find any clear direction, as investors avoided big moves ahead of a key US Federal Reserve interest rate decision that could influence the outlook for bullion. Once the passport is filled, participants present theirs at the Yellow Cab Tavern, located at 700 E 4th St. Participants have the full calendar year to visit each participating brewery and get a stamp with a purchase at each brewery.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |