Category: IRA Investing

Like the dog days of summer, the current tranquility in the commodities market could be a deceptive lull, as a flurry of impending pivotal economic data and events is poised to set the tone for their upcoming trajectories.

All eyes are currently trained on the Federal Reserve’s Open Market Committee (FOMC) gathering, which kickstarted Tuesday morning and is set to wrap up Wednesday afternoon. Seen as the most important U.S. economic data event, a majority of market spectators foresee a 0.25% lift in the Fed funds rate, the central U.S. rate. Market participants globally will meticulously dissect the forthcoming FOMC statement and Fed Chair Powell’s media briefing for potential indications of the Fed’s monetary strategy in the forthcoming months.

Gold and silver prices successfully clung onto their small gains as the U.S. Federal Reserve stepped into the commencement of their two-day policy meeting. Recent metrics indicated a positive leap of $4.20 for August gold, positioning its worth at $1,966.5.  Its worth noting that while bulls have a near term advantage, we are still seeing the established support and resistance levels in like with the $1900-$2000 price window. Meanwhile, September silver charted an increase of $0.26, reaching $24.84.

U.S. stock indexes displayed modest upward movement at midday,  hinting at a probable continuation of the price upward trends in the subsequent weeks. Meanwhile, the favorable stock market conditions might be potentially redirecting interest from investors towards it, diverting them from traditionally steadfast safe-haven assets like gold and silver.

Balance could quickly shift as the week unfolds a series of economic data and corporate earnings announcements. Noteworthy are the release of various global PMI data, earnings results from tech behemoths like Microsoft and Alphabet, central bank verdicts from the likes of the European Central Bank and the Bank of Japan, and the U.S. Q2 GDP report, among other things.

These vital economic pointers and corporate performance measures will undeniably influence investor sentiment, thereby shaping the commodities market. Especially, the anticipated interest rate increment by the Fed could wield a critical impact on gold prices.  Don’t be surprised if we witness a volatile next couple of days.

Beginner’s Pointers

Investing in precious metals can be a wise choice for many investors, but it’s important to understand the basics before diving in. Here are some steps that I would suggest to someone looking to learn more about investing in precious metals:

Understand the basics
Start by reading up on the basics of investing and precious metals. Learn about the different types of precious metals available for investment, such as gold, silver, platinum, and palladium, and the different ways to invest in them,

such as physical bullion, ETFs, mutual funds, and mining stocks.

Learn about the market
Research the precious metals market and the factors that affect their prices, such as supply and demand, geopolitical events, inflation, and interest rates. Follow financial news sources, such as Bloomberg or the Wall Street Journal, to stay up to date on market trends and developments.

Set investment goals
Determine your investment goals and risk tolerance. Are you looking to invest for the short term or the long term? Do you want to invest in precious metals as a hedge against inflation or as a diversification strategy? Understanding your goals and risk tolerance will help you make informed investment decisions.

Choose a reputable dealer
If you decide to invest in physical precious metals, choose a reputable dealer. Look for dealers with a long history of providing quality products and good customer service.  While GoldClub Direct is newer, our team comprises of over 100 years of experience in the space.

Consider working with a financial advisor
Investing in precious metals can be complex, and it’s important to have a solid investment strategy in place. Consider working with a financial advisor who specializes in precious metals investing to help you make informed decisions and manage your portfolio.

Remember that investing in precious metals is not a one-size-fits-all solution, and it’s important to do your own research and make informed decisions based on your own goals and risk tolerance. By following these steps and learning as much as you can about the market, you can make informed investment decisions that work for you.

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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.

As we pass the halfway point of 2023 and Americans return to work following the Independence Day holiday, the monthly payroll report(s), also known as the ADP and non-farm payrolls (NFP) report(s), are set to be released. The ADP employment report is typically released a few days before the NFP report. The ADP employment report is published by the payroll processing company Automatic Data Processing (ADP) in collaboration with Moody’s Analytics. It is based on payroll data from ADP’s extensive client base, covering approximately 24 million employees in the private sector. On the other hand, the NFP report is released by the U.S. Bureau of Labor Statistics (BLS) and is based on a survey of employers in both the private and public sectors, excluding agricultural employment. Acting as a key economic indicator released by the U.S. Bureau of Labor Statistics, the NFP report provides information about the number of jobs added or lost in the non-farm sector of the U.S. economy, excluding agricultural and government employment.

June Payrolls Miss the Mark

Now that we’ve established what they are, on Thursday the ADP employment report revealed a surge in job numbers, doubling market expectations with 497,000 jobs added. The report had led to a significant impact on the U.S. dollar index, Treasury yields, and the precious metals market. This caused gold and silver prices to experience a dip in U.S. trading, driven by a stronger-than-expected U.S. labor market and the overall state of the economy.  This set the stage for an exciting Friday morning, anticipating that the NFP report would also exceed expectations.

Unfortunately, the report missed the mark, and as a result, the gold market is witnessing upward movement as momentum in the U.S. labor market appears to be weakening, with fewer NFP jobs created than expected. The U.S. nonfarm payrolls for June rose by 209,000, below the market consensus estimate of 240,000, while the unemployment rate dropped as anticipated. In response, the gold market experienced modest gains, with prices reaching initial resistance levels. The report also highlighted persistent wage inflation concerns, indicating an increase in average hourly earnings over the past year. However, the disappointing headline numbers and revisions to previous employment data present surprises for economists.

While the initial reaction in the gold market has been positive, precious metals investors must navigate the influence of the Federal Reserve’s aggressive monetary policy stance. The Fed’s decisions regarding interest rates and monetary tightening continue to be influential factors that shape the precious metals landscape. And while yesterday’s ADP numbers indicated a more than likely interest rate increase for July, today’s updates reel that thought in and begs the fed to hold steady. As the metals market moves and evolves, the interplay between the monthly payroll reports, market dynamics, and other key factors remains a captivating narrative in the world of precious metals trading.

Chart 1. Gold Spot Price Movement, Interday 7/7/23

Factors

The precious metals market, (gold, silver, platinum, and palladium), is influenced by various factors, including economic indicators and market sentiment. The monthly payroll report is closely watched by investors and traders because it provides insights into the health of the U.S. labor market and the overall state of the economy. Here are a few reasons why the report can impact the precious metals market:

1. Economic Outlook: The labor market is a significant component of the overall economy. Positive job growth and low unemployment levels indicate a strong economy, which can boost investor confidence and increase demand for riskier assets like stocks. In such cases, precious metals, which are often considered safe-haven assets, may experience decreased demand and price volatility.
2. Inflation Expectations: The monthly payroll report also provides data on average hourly earnings, which can be an indicator of wage inflation. Higher wage growth may indicate increased consumer spending power and potential inflationary pressures. Precious metals are often seen as a hedge against inflation, so if the report suggests rising inflationary concerns, it can lead to increased demand and upward pressure on precious metal prices.
3. Monetary Policy: The U.S. Federal Reserve closely monitors economic indicators like the monthly payroll report to make decisions about monetary policy, including interest rates. If the report shows strong job growth and low unemployment, it may imply a robust economy and potentially lead to expectations of tighter monetary policy, such as interest rate hikes. Higher interest rates can increase the opportunity cost of holding non-interest-bearing assets like precious metals, which can impact their demand and prices.
4. Market Sentiment and Speculation: The release of important economic data, such as the monthly payroll report, often creates market volatility. Traders and speculators closely analyze the report, looking for signals to make trading decisions. Increased trading activity and speculation can result in short-term price fluctuations in the precious metals market.

While the monthly payroll report can have an impact on the precious metals market, it is just one of many factors that influence their prices. Other factors such as geopolitical events, global economic trends, central bank policies, and investor sentiment can also play significant roles in shaping precious metals market dynamics.

Why Precious Metals Should Be Part of Your Investment Portfolio

Precious metals have been used as currency and a store of value for thousands of years, with gold becoming the first known form of currency in ancient Egypt around 2,500 BCE. Over time, gold and silver were adopted as currency by various civilizations, and in the Middle Ages, European monarchs issued their own coins.

In the 20th century, governments began to abandon the gold standard, which tied the value of their currency to a fixed amount of gold, in favor of fiat currency, which is not backed by a physical commodity. However, gold and other precious metals continue to be used as a store of value and a hedge against inflation and economic uncertainty. Today, precious metals are traded globally through a variety of financial instruments and investment vehicles.

There are several compelling reasons why someone might choose to invest in precious metals. Here are the most common:

1.       Hedge against inflation: Precious metals have historically been seen as a hedge against inflation, as they tend to maintain their value even when paper currencies lose purchasing power due to inflation.

2.       Safe haven in times of economic uncertainty: During times of economic uncertainty, investors may turn to precious metals as a safe haven investment. This is because precious metals are perceived to be a store of value that is not tied to any government or central bank and are therefore less vulnerable to economic volatility and political instability.

3.       Portfolio diversification: Adding precious metals to an investment portfolio can help to diversify it and reduce overall risk. Precious metals have a low correlation with other asset classes, such as stocks and bonds, which means that they can help to offset losses in those areas and provide a measure of stability.

4.       Potential for long-term growth: While precious metals can be volatile in the short term, they have the potential to appreciate over the long term due to increasing demand, limited supply, and their various industrial uses.

Overall, investing in precious metals can offer a range of benefits, from hedging against inflation and economic uncertainty to providing portfolio diversification and the potential for long-term growth. It is important to remember that investing always carries risks, and it is important to carefully consider your investment goals and conduct due diligence before making any investment decisions.

Don’t miss weekly and daily deals at the lowest prices. Always Insured, Always Online, GoldClub Direct.

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 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.

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.

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.

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.

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.