Category: The GoldClub Review

The Intricate Dance: Consumer Confidence, Greed and Fear Index, Stock Market, and the Role of Gold and Silver

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In the realm of finance, a delicate dance occurs between various factors that shape investor behavior and drive market performance. Among these factors, consumer confidence, the Greed and Fear Index, and the stock market play pivotal roles. Embedded within this intricate ecosystem, gold and silver have emerged as prominent alternative investments and safe-haven assets. This analysis unravels the intricate ties between consumer confidence, the Greed and Fear Index, the stock market, and the indispensable role of gold and silver.  As the World Gold Council pointed out earlier this month: Not only are central banks around the world increasing their gold purchases, but coin and bar investment has seen an increase of 5% year-on-year, contributing to overall demand reaching its highest level since 2010.

Consumer Confidence: Powering Market Momentum

Consumer confidence holds immense sway over economic growth, with its impact rippling across multiple sectors, including the stock market. During periods of elevated consumer confidence, investors become more willing to embrace the stock market. Buoyed by optimism, demand for stocks surges, propelling prices upward. Conversely, when consumer confidence wanes, caution sets in, leading to reduced investments and potential market downturns.

The Greed and Fear Index: Decoding Market Sentiment

The Greed and Fear Index, a crucial barometer of market sentiment, amalgamates various indicators to offer insights into investor attitudes. During periods of rampant greed, exemplified by a high index value, investors exhibit an appetite for risk and pour funds into the stock market, fueling price increases. Conversely, times of fear, marked by a low index value, see investors seeking safe havens and retreating to safer investments like precious metals.

Gold and Silver: Guardians of Wealth

In the face of economic uncertainty, gold and silver have stood the test of time as bastions of stability, offering a sanctuary for investors aiming to safeguard their wealth. These precious metals possess intrinsic value and have served as mediums of exchange for centuries.

Amidst fear and uncertainty, investors gravitate toward gold and silver, drawn by their stability and ability to hedge against inflation and currency fluctuations. Consequently, demand for these metals soars, propelling their prices and premiums upward. This phenomenon reaches its zenith during economic recessions, geopolitical tensions, or stock market corrections when the allure of gold and silver as safe-haven assets becomes most pronounced.

Stock Market and Precious Metals: A Tango

The relationship between the stock market and gold or silver follows an intricate dance characterized by an inverse correlation. During bullish market conditions and high investor confidence, the appeal of safe-haven assets diminishes, potentially leading to a decline in gold and silver prices.

However, in bearish market climates or during stock market downturns, investor fear and uncertainty surge, sparking a flight to safety. It is in these moments that gold and silver shine brightly as investors diversify their portfolios and shield their wealth. Consequently, the prices of these precious metals may ascend due to heightened demand.

Embracing the Intersection

The intricate interplay among consumer confidence, the Greed and Fear Index, the stock market, and the role of gold and silver reveals the complexity of the financial landscape. Consumer confidence acts as a catalyst, influencing investor behavior and driving stock market performance. Meanwhile, the Greed and Fear Index offers valuable insights into market sentiment.

In this dynamic environment, gold and silver assume pivotal roles as alternative investments and safe-haven assets. As investor sentiment fluctuates and economic uncertainty looms, these precious metals provide a reliable means of preserving wealth and weathering market storms.

This all plays into why gold has held above $1950 recently.  While technically in a minor downtrend, it’s possible markets hold between the $1,900 and $2,000 and $22-$25 point for gold and silver, respectively, as the vote to raise the debt limit is set for later in the week and the current recession rolls into the summer months.  Embrace the interplay, understand the dynamics, and navigate the ever-changing financial landscape with the wisdom of consumer confidence, the Greed and Fear Index, and the enduring allure of gold and silver as your guide.

Market Update: Precious Metals React to Latest Employment Data

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The latest employment data certainly did not disappoint, sending waves through the financial sector, with a staggering rise of 311,000 compared to the expected 225,000. However, this impressive figure has been accompanied by a surprise increase in U.S. unemployment rates from 3.4% to 3.6%. This raises questions about the true state of the labor market, and investors are right to be wary.

As we highlighted earlier this week, the precious metals markets have been flirting with the $1,815 level, waiting for the right catalyst to spur a reversal. Today, that catalyst arrived in the form of risk aversion and increased safe haven demand, with gold surging 1.62% to $1864.70 and silver climbing 2.53% to $20.64. Against the backdrop of uncertainty and volatility in the financial sector, precious metals are once again demonstrating their value as a reliable store of wealth and a hedge against market turbulence. This is further supported by the downward shift in 2Y Treasury yield, which is down 45bps, which is the biggest 2-day drop since September 2008.

With the situation at SVB Financial and the ongoing concerns about the labor market, it’s clear that investors need to remain vigilant and stay alert to the risks posed by a rapidly changing global economy. Technically, the gold futures bulls and bears are now back on a level playing field, with both sides vying for control over the near-term outlook.

Bulls aim to close April futures above the strong resistance at $1,875.00, while bears seek to push prices below the solid technical support at $1,800.00. Currently, the first resistance level is at $1,850.00, followed by the March high of $1,864.40 (gold peaked at 1868.60 today). On the downside, the initial support is at the overnight low of $1,830.00, then at $1,825.00.

In terms of silver, the market sentiment is still bearish in the short-term. Prices have been steadily declining over the past five weeks. The silver bulls are aiming to push the May futures prices above the robust technical resistance level of $21.50. On the other hand, the bears are looking to drive the prices below the strong support level of $19.00. Currently, the initial resistance level is noted at $20.505 and then at $21.00 (Silver peaked at 20.90 today). In contrast, the next support is observed at the overnight low of $19.945, followed by $19.50.

Against the backdrop of heightened market uncertainty and rising risk aversion, precious metals remain a critical safe haven asset for investors looking to protect their wealth and mitigate risk. With the technical suggesting that both gold and silver are poised for further gains, savvy investors will be keeping a close eye on these markets and positioning themselves accordingly. Stay alert, stay informed, and stay ahead of the curve in these turbulent times.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

The gold market takes a hit: Powell warns of higher interest rates

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Busy week here at GoldClub Direct as we expect some price action! Federal Reserve Chair Jerome Powell issued a stern warning to US lawmakers today, stating that interest rates are likely to be higher than previously anticipated due to stronger-than-expected economic data.

In ‘hawkish’ prepared remarks for a hearing before the Senate Banking Committee, Powell cited a tight labor market, solid consumer spending, manufacturing production, and higher-than-expected inflation data as evidence that the ultimate level of interest rates will be higher than previously thought.

Powell warned that if these strong economic trends persist, the Fed could speed up its rate increases, which could cause further turbulence in the precious metals market. Powell noted the current situation is a combination of supply and demand issues, the war in Ukraine and further unknown resolution. He also acknowledged that getting inflation back down to the Fed’s 2% goal will be a a long and bumpy ride.

It is a good idea to proceed with caution in the current economic climate, as Powell’s warning suggests that the gold market could continue to be volatile in the weeks and months ahead. Markets will continue to monitor the situation as the testimony on U.S. monetary policy to Senate and House committees continues Tuesday and Wednesday.

These initial comments pressured gold prices down, with April Comex gold futures currently trading at $1,820.80, down 1.82% and Silver futures down 4.42% to $20.200 on the day. Solid support still exists for gold at $1,810.35 and the $1,800 price points and silver at 20.25 and $20.  Keep an eye out for any major reversals as the markets continues to digest the latest information.  A great buying opportunity may present itself to those looking to take advantage of the market dip in gold and silver!

While metals, crypto and stocks (S&P currently sitting at 3,997.08, down 1.27%) are all trending lower, predictably the dollar spot index and treasury yields rose higher.

Recap:
  • The US economy has continued to recover from the pandemic, with strong growth in GDP, employment, and consumer spending, but there are still challenges related to the pandemic, supply chain disruptions, and other factors.
  • Inflation has been higher than expected in recent months, driven by supply chain bottlenecks, strong demand, and other factors, but the Fed expects inflation to moderate over time as these factors ease.
  • The Fed has maintained its accommodative monetary policy stance, with interest rates near zero and asset purchases ongoing, but it is preparing to adjust policy as necessary to achieve its goals of maximum employment and stable prices.
  • The Fed’s outlook for the economy and inflation is still uncertain and there will likely be continued softening in the labor market to achieve 2% inflation.

Looking ahead, all eyes will be on the the Labor Department which is scheduled to release the February U.S. employment situation report Friday, which will include the highly anticipated non-farm payrolls component. Experts predict that the report will reveal an increase of 225,000 jobs, following an impressive rise of 517,000 in the January report.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Working For The Weak-end: Market Outlook

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To wrap up the week in U.S. trading, both gold and silver prices weakened. Furthermore, outside market forces such as a higher U.S. dollar index and rising U.S. Treasury yields are also bearish for the metals market bulls. April gold closed at $1,817.10, down by $9.7, while March silver is down $.496 at $20.810.

The U.S. data point of the day on Friday was the personal income and outlays report for January, including its PCE price index component. As the Fed’s preferred inflation measure, the annual core PCE price index, accelerated in January to 4.7%, above expectations of 4.4%. This macroeconomic outlook has led to concerns about gold’s vulnerability in the short term, with indications of a potential further drop if it falls below $1,800 per ounce. As noted yesterday, there is strong resistance indications at $1,780. However, geopolitical tensions are supporting gold’s search for a bottom in this downtrend, as the threat of nuclear war looms large.

Global stock markets experienced mixed results overnight, with U.S. stock indexes opening and closing lower after a hot inflation report. This week, the U.S. stock indexes have hit multi-week lows, signaling a low risk appetite, as the market finally understands that the U.S. will maintain tighter monetary policies to curb inflation. This scenario is bearish for the metals market from a global demand perspective.

Despite the volatility in the gold market, some experts predict that the precious metal’s tendency for quick selloffs and recoveries during times of panic will continue. Analysts will closely monitor macro data scheduled for next week, including the ISM manufacturing and service sector reports for February, for any signs of weakness after a more-or-less strong start to the year.

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All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

 

Metals Cool Off: Market Update

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As cold weather and high winds disrupts many in the western and north-central parts of the country, gold and silver prices are also cooling off as U.S. trading draws to a close on Thursday, with gold reaching its lowest level in seven weeks and silver projected to finish slightly above its seven-week low. This is attributable, in part, to indications that the U.S. Federal Reserve will prolong its schedule of elevated interest rates, resulting in unfavorable demand implications for the metals markets.

In the current session, April gold witnessed a 0.47% decline and was last trading at $1,832.8, while March silver saw a dip of $0.337 and was priced at $21.34. Today’s updated fourth-quarter U.S. gross domestic product (GDP) report revealed inflation components that were slightly higher than anticipated. Although the report did not elicit much response, it briefly led to an increase in U.S. bond yields and bolstered gains in the U.S. dollar index.

This development comes after the FOMC minutes were released on Wednesday afternoon, which the market interpretation of both the FOMC minutes and the GDP inflation components being that the Federal Reserve will maintain a hawkish monetary policy stance for an extended period to combat rising inflation. This development is typically unfavorable for gold and silver prices, which tend to thrive in a low-interest-rate, high-inflation scenario. Select FOMC members proposed increasing the Fed fund range by 50 basis points during the January meeting, whereas a 25 basis point rise was implemented at that meeting.

Today’s trading in gold revealed a resistance level at the day’s high of $1,841.20, followed by another resistance level at this week’s high of $1,856.40. Meanwhile, support was noted at $1,824.80, with additional support at $1,815.00. The April gold futures prices have recently hit their lowest point in seven months, suggesting a bearish sentiment in the short term, supported by a downtrend. However, the bulls aim to break through the strong resistance level at last week’s high of $1,881.60 and achieve a closing price above it. Despite this goal, the current technical outlook for gold is not favorable for bullish investors. In the near term, the bears will target pushing futures prices below the robust technical support level of $1,800.00. However, the market may find some support at oversold levels around the $1,780 mark due to strong physical demand, which could lead to a rally.

March silver futures are expected to close today near their seven-week low. The current resistance levels for silver are at $21.67 and $22.00, with support levels at $21.155 and $21.00. Unfortunately, the technical outlook for silver is not in favor of bullish investors. The silver bears have the upper hand in the near term, with a steep downtrend. The next objective for silver bulls is to surpass the solid technical resistance at $23.00, while the bears aim to achieve a closing price below the solid support level at $20.00.

Meanwhile, global stock markets were generally positive, although mixed. In contrast, the U.S. stock indexes experienced a midday sell-off, with the SPX maintaining above the 4k mark. Meanwhile, the U.S. dollar index remained stable, practically unchanged.  Nymex crude oil futures prices were up by almost $1.5, trading at around $75.50 per barrel, at the same time, the yield on the benchmark U.S. 10-year Treasury note is presently at 3.881%.

So, what does all of this mean for investors in gold and silver? The combination of a hawkish Fed, rising bond yields, and a stronger dollar all point to further downside for gold and silver prices in the near term.  This could also present a great buying opportunity.

Looking to Friday, new home sales numbers and January PCE data should be released. This should shed more light on consumer spending habits and market confidence.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Gold, Silver, and Beads: Market Update

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Happy Fat Tuesday everyone! Mardi Gras, a holiday celebrated around the world in anticipation of the Christian season of Lent, is in full swing today (3rd Tuesday of February). It’s a time for indulgence and revelry before the solemn period of sacrifice and penance that precedes Easter. While the holiday is best known for its parades, costumes, and partying, it also historically was a time for settling debts and making final transactions, including the exchange of precious metals before Ash Wednesday.

The carnival party has been riding high for the gold futures bears, as they grasp a slim near term technical advantage, and the prices are in a fledgling downtrend. The gold bulls are still in the game, and their next target is to close April futures above the solid resistance of $1,881.60, which was last week’s high. On the other hand, the bears are looking to push futures prices below the solid technical support of $1,800.00, but we won’t let that stop the celebration! The first resistance is seen at the overnight high of $1,856.40, and then at $1,870.90, while the first support is visible at the overnight low of $1,839.00 and the February low of $1,827.70.  Currently, Gold Futures sit at $1843.3

The silver market is also in a festive mood, with the bears have the upper hand in the near-term technical outlook. The prices are in a downtrend, but that won’t stop the silver bulls from aiming for their next upside price objective, which is to close March futures prices above the solid technical resistance level of $22.64. The next downside price is reached by closing prices below the firm support level of $20.00. The first resistance is seen at the overnight high of $21.905, followed by $22.00, while the next support level is visible at $21.50, and then at the February low of $21.155.  Currently silver futures sit at $21.885

Looking towards the equities market, the global stock markets took a hit overnight and continued to be suppressed with US trading trading lower and the S&P breaking support, currently down 1.62% to $4013.  Traders and investors are playing it safe with an elevated risk aversion as President Biden made a surprise visit to the Ukraine and promised $500 million more in aid to the war-torn nation. Coupled with Russia suspending participation in the last remaining nuclear arms control treaty with the US, the latest move has certainly triggered a few alarm bells, and the U.S.-China-Russia relations continue to hit new lows, further fueling the market’s apprehension.

The bulls are still in the game, and with solid resistance and support levels, we can still celebrate and look forward to the markets reaching back into the $1,900. So, let’s raise a glass to the precious metals market and keep the festive mood going! As commented on previously, now is a great time to look to acquisition strategies such as dollar-cost-averaging.

The GoldClub Direct free premium membership offer is still available and as always, impeccable new gold and silver arrivals at low prices! Stay tuned for more market updates!

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Market Roundup: Rate Increases incoming

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Hey there, market junkies! Gold and silver prices are sliding to end the week, with gold hitting a six-week low and silver reaching a 10-week bottom. What’s driving this sudden drop? Well, it seems like recent U.S. economic data, including a scorching hot producer price index report, has spooked the marketplace into a risk-averse mindset. That’s right, folks – the Fed’s aggressive hawkishness is causing some serious jitters.

Metals traders are shaking their heads, deeming this bearish news for global demand prospects. Central banks are cracking down on their monetary policies to slow economic growth and curb inflation, and that’s got traders and investors feeling some type of way. While the day begin on a sour note with April gold down $15.80 at $1,836.00, and March silver is down $0.34 at $21.37, by mid-day, April gold had recovered, down only $1.10 at $1,850.70, and March silver unchanged  at $21.72.

But it’s not just precious metals that are taking a hit. Global stock markets were down overnight, and U.S. stock indexes are driving lower, with the S&P dropping 1% to $4,050. Risk aversion is the name of the game as we head into the weekend.

It appears that the markets are now aligning with the actual state of affairs, and it is necessary to factor in the possibility of interest rate increases. As we see it at GCD, although it has been a long time coming, it seems that the unyielding confidence of investors is now being tested. The most recent PPI data has made it clear that achieving a smooth economic landing in the United States will be an extremely difficult task and there will probably be significant difficulties throughout the process.

So, what about the other outside markets? The U.S. dollar index has shown strong gains and reached a five-week high overnight. Conversely, Nymex crude oil futures are experiencing a sharp drop, currently trading at around $76.00 a barrel. The benchmark U.S. 10-year Treasury note’s yield has been climbing towards the end of this week.

Regarding gold futures, those who have been buying (known as “bulls”) are now at a slight disadvantage. Prices are currently showing a slight decline on the daily chart, and the bulls’ goal is to increase the price and close above a high point of $1,881.60 this week. Conversely, those who have been selling (known as “bears”) are looking to push prices down below a certain level of technical support at $1,800.00. The first level of resistance is at a high point of $1,854.90 on Thursday, followed by $1,870.90 on Wednesday. The first level of support is at a low point of $1,827.70 overnight, followed by $1,820.00. In regards to silver, the sellers have an advantage at the moment, as prices are showing a slight decline on the daily chart. The buyers want to increase the price and close above a certain level of technical resistance at $22.635 for March futures. Conversely, the sellers are looking to push prices down below a solid level of support at $20.00. The first level of resistance is at a high point of $21.585 overnight, followed by $21.875. The first level of support is at a low point of $21.155 overnight, followed by $21.00.

So, buckle up and hold onto your portfolios, folks. It’s going to be a bumpy ride heading into the weekend.

Don’t miss out on our free premium membership offer and awesome new gold and silver arrivals at low prices. Stay tuned for more market updates!

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Inflation Report Puts Pressure on Gold and Silver Prices

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As the latest US inflation report for January came in smoking hot, gold and silver prices are feeling the heat with a slight dip in early US trading on Thursday. At publishing of this commentary, April gold was up $5.60 at $1850.9, while March silver increased $0.143 to $21.715. Brace yourselves, investors, as the US economic data due for release on Thursday includes a ton of hotly anticipated updates, such as the weekly jobless claims report, the producer price index, the Philadelphia Fed business survey, and new residential construction. Not to mention, several Federal Reserve officials are slated to give speeches today.

Despite the technical advantages held by the gold futures bulls, prices are in a fledgling downtrend on the daily bar chart. The bears’ next near-term downside price objective is to push futures prices below solid technical support at $1,800.00, which could spell trouble for the shiny metal. First resistance is seen at Wednesday’s high of $1,870.90, and then at this week’s high of $1,881.60. First support is seen at this week’s low of $1,839.30 and then at $1,830.00. Similarly, the silver bears hold the overall near-term technical advantage, with prices in a fledgling downtrend on the daily bar chart. The silver bulls’ next upside price objective is to close March futures prices above solid technical resistance at $23.00, while the next downside price objective for the bears is to close prices below solid support at $21.00. First resistance is seen at Wednesday’s high of $21.875, and then at this week’s high of $22.085. Next support is seen at this week’s low of $21.41 and then at $21.00.

While global stock markets are mostly higher, US stock indexes are pointing toward a lower opening when the New York day session began. In overnight news, the ongoing tension between China and the US escalated as China blacklisted US companies Lockheed and Raytheon, both major US defense contractors. This move comes after the US blacklisted six Chinese companies linked to the Chinese spy balloons. What does this mean for the market? Only time will tell, but it could lead to some serious turbulence.

The US dollar index is weaker on a corrective pullback from recent good gains that saw the index hit a five-week high on Wednesday. Nymex crude oil futures prices are slightly up, trading around $78.75 a barrel. On the other hand, the yield on the benchmark US 10-year Treasury note is presently fetching a hefty 3.788%, giving traders something to chew on.

Watch out, investors, as gold’s high-convexity allure may be on full display over the next couple of months. With the Federal Reserve taking its benchmark to at least 5.25%, pushing real rates higher, gold is likely to stay tethered around $1,800 an ounce. This could induce short-straddle expressions in the interim. The hotter PPI report falls into the camp of the US monetary policy hawks, who want to see the Fed continue to raise US interest rates to choke off problematic price inflation.

Don’t forget to visit our gold and silver new arrival pages for the newest product releases and to stay tuned for more market updates!

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

The Great Gold Standoff: US Labor Market Defies Expectations, Gold Market Stays Stable

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In light of labor market developments, the gold market has remained in a stable holding pattern, currently trading at $1,877 an ounce, up from the previous day. Technically, both gold and silver futures have gained momentum this week and remains bullish, with gold having resistance levels at $1,900 and $1,915, and support levels at $1,880 and $1,873. Silver futures have resistance levels at $22.65 and $23, with support levels at $22.12 and $22.  Still down sharply from last week and  despite the fluctuations in the labor market, the gold market has maintained its stability below the $1,900 an ounce threshold.  Future traders will look for an April close above the $1,975 resistance level.

The United States labor market has been a focal point of economists as it holds a significant influence on the Federal Reserve’s monetary policy. Today, the U.S. Labor Department reported an increase in weekly jobless claims by 13,000 to 196,000, which missed expectations. Although the latest data showed a rise in claims, the four-week moving average, viewed as a more reliable measure, slightly fell to 189,250. Continuing jobless claims were at 1.688 million during the week ending January 28, a rise of 38,000 from the previous week.

Despite the recent uptick in jobless claims, the U.S. labor market has managed to defy expectations of a slowdown, as 517,000 jobs were ‘created’ last month according to the Bureau of Labor Statistics.  It’s important to keep in mind that the BLS had released a number of data revisions as it relates to reclassification of titles and sectors such as seasonal employment.  And when we look at the data closer, its easy to see how the market actually lost more full-time employees while adding part-time employees. Federal Reserve Chair Jerome Powell noted that the central bank would need to see softness in the labor market before it would consider loosening its aggressive monetary policy stance.

Looking to next week as top officials, including New York Fed President Williams and Atlanta Fed President Bostic, are advocating for a higher peak interest rate in response to the recent job growth in the U.S. With the next Consumer Price Index (CPI) data set to be released next Tuesday, the market is eagerly awaiting its impact on the economy. While some predict a decrease in inflationary data, which could boost risk assets and hurt the dollar, others are hoping for an increase in the U.S. CPI data. If the data comes in higher than expected, we could see a rally in U.S. Treasury yields and a strengthening of the dollar. This could put pressure on the gold market, as gold is a non-interest-bearing asset.

As the Federal Reserve’s policy shifts, the market is predicting a peak rate of 5.1% in comparison to the current rate of 4.6%. The pivot point is expected to occur in August. At the end of the day, the gold market’s stability in the face of unexpected labor market developments is a testament to the precious metal’s enduring value and reliability as a safe haven investment. Whether it’s political turmoil, economic instability, or a global pandemic, gold continues to prove its worth as a dependable store of wealth. It’s an exciting time for economic analysis and forecasting, and we’re all buckling up for the economic roller coaster ahead!

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Market update 2/2/23

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Gold and silver prices are down sharply from yesterday’s highs, currently sitting at $1922.33 and 23.59. Precious metals had been soaring lately, reaching a 9-month high yesterday. The rising precious metals prices had been fueled by the belief that the Federal Reserve may ease up on its monetary policy sooner rather than later. The market is still digesting the Federal Open Market Committee (FOMC) statement and Fed Chair Jerome Powell’s press conference from yesterday. Although the Fed raised the Fed funds rate range as expected, Powell’s remarks indicated that the Fed may be close to ending its string of interest rate increases. The European Central Bank and the Bank of England both raised their main interest rates by 0.5% in their monetary policy meetings today, which was expected.

US stock indexes opened higher with S&P at its highest level in 5 months and the US dollar index opened a bit higher, albeit a bit weaker, hitting a 9-month low yesterday. The yield on the US 10-year Treasury note is 3.409%. Key US economic data releases for Thursday include the weekly jobless claims report and the January employment situation report from the Labor Department, which is expected to show an increase of 187,000 jobs.

Technically, gold and silver futures both have the advantage and have gained momentum this week. For gold, the next resistance is at $1,975.00 and $1,985.00, with support at $1,950.00 and $1,936.00. For silver, resistance is at $24.65 and $24.78, with support at $24.00 and $23.50.

In other news, GoldClub Direct is pleased to introduce the Argor Heraeus Mint’s line of products to our members!  These gorgeous bars are in-stock and available now. Please don’t hesitate to reach out to GoldClub support specialists for any questions you may have by phone at 1-800-700-4715, by email at [email protected], or through the live chat feature in the bottom right-hand corner.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.