Whether you have been looking to invest in gold, silver, or other precious metals, there are a number of reasons to consider trading with Kitco. In fact, according to a recent article from UBS AKTIE and the NASDAQ indices, the prices of precious metals are battling against the recent strength of the dollar.
Precious metals pricing fights an uphill battle due to recent dollar strength
Those interested in the gold price are likely to have noticed that it recently made new recovery highs against several currencies. This is in part due to dollar strength, which has weighed on the price of gold and other dollar-denominated commodities.
One thing that many traders are unaware of is that gold pricing can vary depending on the value of the currency in which it is traded. This means that in the United States, a stronger dollar means a higher gold price. Similarly, a weaker currency makes the gold price cheaper.
Gold prices are typically quoted in ounces per U.S. dollar, and gold is priced in local currencies around the world. However, the most important factor is not the value of the currency but the sentiment surrounding it.
The gold price has been moving in a narrow band over the last month. This is not to say that it hasn't been a positive move. It's just that dollar strength has weighed on the price of gold and limited the upside potential of its price.
One of the reasons for gold's impressive price rise is that it has done well during times of high uncertainty. In recent months, the global economy has experienced a lot of volatility, luring investors to safe-haven assets. It's also important to note that gold does well in times of currency debasement. In particular, countries with tight fiscal discipline often have deflationary economies. This creates a fetish for fiscal stimulus, raising questions about the integrity of their currencies.
Demand in traditional physical markets ushering in a new phase of upward momentum
Despite gold prices being stuck below US $1,800 an ounce, Kitco Gold Trading sees strong demand in traditional physical markets ushering in a new phase of upward momentum. Analysts also note that the U.S. dollar is trading near a 20-year high, which is a significant headwind for gold.
While some analysts argue against chasing the gold market, others believe that it is an attractive safe-haven asset. Analysts believe that there is enough market uncertainty to support gold prices through the rest of the year.
The Federal Reserve has signaled a more aggressive monetary policy stance. A healthy labor market will help support market expectations for rate hikes. However, analysts warn that the Fed may not be able to reverse its current interest rate policy anytime soon.
While the Fed is expected to raise interest rates by 75 basis points next month, the U.S. Consumer Price Index is expected to show an annual increase of 7.9%. This could be a positive for gold, but the inflation figures could easily prove hotter than expected.
A weakening housing market is weighing on the gold market. Analysts believe that rising mortgage rates are contributing to the weakness. In addition, pending home sales are down 24% year-over-year.
The Federal Reserve signaled they would not abandon hawkish monetary policy to reduce inflation
During a press conference after the Fed's latest meeting, Federal Reserve Chairman Jerome Powell made several hawkish comments. He said the Fed was "receptive to further policy adjustments to further limit the growth of inflation" and would "continue to monitor economic developments closely to see whether further measures are necessary."
Powell emphasized the importance of data and supply shocks in the fight against inflation. He also acknowledged that the Fed is responsible for some of the inflationary risks.
The Fed boosted its short-term rate by a quarter of a percentage point for the third time in as many meetings. It also signaled it was likely to raise rates again this year.
While the Fed did signal that it would likely raise rates again this year, the hikes may not come as soon as many expected. Some analysts argue that this could be the last time the Fed hikes by a quarter of a percentage point.
However, the Fed's decision to raise rates this year is the most hawkish since the early 1980s. The Fed's short-term rate is now at its highest level in 15 years.
The Fed is now expected to raise the federal funds rate by a half-percentage point in December. This is a slight step down from the three quarter-point hikes it has made in the past four meetings.
London Bullion Market Association (LBMA)
LBMA is an international trade association, and it represents the precious metals industry. It sets benchmark prices for precious metals and has over 140 members, including banks, refiners, and traders. The association also produces the Good Delivery List, which is recognized as a benchmark standard for the quality of precious metal bars across the world.
The LBMA is also responsible for the London Gold Fix, a twice-daily auction that was suspended in 2015. The LBMA has released a new code of conduct, which aims to boost confidence in the gold market. The code outlines best practices in governance, compliance, and ethics. Members have a 12-month deadline to show compliance with the code.
In June, LBMA reported that 227 million ounces of gold were traded in over-the-counter markets. That is a significant increase from May's 177 million ounces.
The value of gold transferred daily rose 4.5%, to $26.1 billion. The number of ounces transferred daily rose by 34.8%. The average ounce per transfer rose by 3%.
The LBMA also reported that the price of gold rose 4.8% in July. This was the largest increase in three years. The LBMA said that July's silver market activity was "more buoyant than gold". The number of silver ounces transferred daily rose 12.7%, to 291.4 million ounces.
Hong Kong
CGSE has been the heart of Hong Kong's local gold market. However, CGSE's initiatives underscore the growing dominance of the Chinese gold market.
The Chinese gold market is moving towards internationalization. The Hong Kong gold market, in particular, is now a key hub for international bullion banks. A large number of investment banks maintain gold trading desks in the Hong Kong financial district. Several large Hong Kong / Chinese banks are involved in gold trading, including Hang Seng Bank, ICBC, and Standard Chartered.
The CGSE has over 170 members. The CGSE has accredited 13 refineries in Hong Kong as approved refineries, which allows them to produce 999.9 One Kilo gold bars. These bars are certified as Hong Kong 'Good Delivery' bars.
CGSE also has a settlement department that handles all settlement transactions. It informs banks of settlement transactions and has a designated member to take responsibility for final authorization. The Hong Kong-based CGSE is in discussions with the Singapore Exchange to create the Singapore - Hong Kong Gold Connect. The Singapore - Hong Kong Gold Connect would provide CGSE members with access to the Singapore gold market. It would also boost trading volumes on the SGE International Board.
UBS AKTIE und aktueller Aktienkurs
Purchasing gold is a good way to protect yourself in times of economic downturn. It's a widely accepted form of payment and a symbol of stability and success.
There are several factors that can influence the gold price. A weaker dollar can lead to an increase in general gold demand. There are also factors like political conflict, economic crises, and global events that can drive gold prices up.
Some investors may be waiting for a positive gold price development. Others may be jumping in to buy when the price drops. The right gold investment is one that pays off over a long period of time.
Aside from the general gold price, you should also consider the tax implications. You will need to calculate the cost of handling and storage. Also, make sure to choose the right bank to trade with.
The UBS Group is one of the largest global financial services companies. Its strength lies in investment banking, asset management, and retail banking. It has offices in 50 countries and serves millions of customers in Switzerland.
The UBS Group is also the first bank of its size to enter the gold market. It has launched an innovative digital gold trading service for its Swiss customers.
Coronavirus could affect the stock market
Traders are keeping tabs on the impact of the coronavirus pandemic on global financial markets. The news continues to roil the market. The spread of the disease could lead to slow growth and a drop in interest rates.
The World Health Organization has declared an emergency meeting to discuss the spread of the new strain of the virus. Countries are taking measures to slow the spread of the disease. Some countries are even implementing new lockdown measures.
Analysts are concerned about the possible spread of the coronavirus throughout China. Many economists believe that the country will be affected the most by the outbreak. Some countries, including South Africa, have already taken steps to limit the spread of the disease.
Goldman Sachs estimated last week that the virus could reduce growth by 0.4% in Q1. The company also said that a major drag on growth would be lower tourism and goods exports to China. In addition, central banks may have to sell gold reserves to help economies.
The spread of the disease is affecting global supply chains. The impact of the outbreak is already beginning to show on manufacturing indexes in the major world economies. The new strain is spreading in southern Africa. South Korea has reported 200 confirmed cases of the disease. In addition, the European Union is halting air travel from South Africa.