CFDs on Gold (US$ / OZ)

GOLD TVC
GOLD
CFDs on Gold (US$ / OZ) TVC
 
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History of GOLD

Important events

Aug 152022

Yielding gains

Gold prices drift higher towards their fourth straight week of gains thanks partly to lower yields as investors digest economic news.

  • Gold climbed 0.70% on Friday to its highest close since early July at $1,802 per ounce. The drift higher was helped by a drop in long-term US Treasury yields on Friday after a volatile week of trading – the yield on the benchmark 10-year Treasury note and the 30-year bond both lost around 5 points on Friday.
  • Investors are trying to evaluate what economic news means for the Fed, as is everyone. A recent jobs report had added to the case for more Fed hawkishness, pushing up the greenback and bond yields while sending down gold bc it pays no interest and is priced in the dollar.
  • Gold has been fighting a resistance at $1,800 for some weeks now, and recent data finally pushed prices above that mark on Friday as people figured the Fed wasn’t done with its fight against inflation, making the yellow metal look rather attractive as a haven asset. Bearing in mind, this could all change come September…
Jingming Pan / Unsplash

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Jul 292022

What is a recession, anyway?

Precious metals are enjoying one of the best weekly rallies of the year just as economic data suggests the US could be (but probs isn't) in a recession.

  • Gold is enjoying its best week since March, now up 2.11% for the week so far after Fed Chair Jerome Powell hinted that the Fed’s aggression towards rate hike might be slowing in September; while Silver continues to rally towards its best week since December 2020 with 7.85% gains so far.
  • Are investors looking for a hedge? New data shows that GDP in the US fell 0.9% YoY in the second quarter, representing the second straight quarter that the economy has shrunk, which is a common criteria for a technical recession, despite J-Pow saying on Wednesday that we were not in one (yet).
  • What do you mean “technical recession”, I hear you ask. Well, turns out there’s some debate as to what actually constitutes a recession, and two quarters of economic shrinking is only one signal. Added to that, preliminary GDP data is often not quite accurate and needs months of revision given the size of the economy, so the data’s been taken with a pinch of salt.
Rene Böhmer / Unsplash
Jul 112022

An inflation hedge gets trimmed

Gold continues to lose its shine in the market thanks to growing fears about interest rates and the global economy.

  • Spot gold sank 3.77% last week for its fourth consecutive week in the red. The so-called hedge against inflation is in its fourth month down in goblin town after flirting with an all-time high in March, and is now trading around its lowest levels since September last year at $1,736 per ounce as of Monday morning.
  • Growing strength in the US dollar is putting pressure on prices. The greenback hit its highest levels since 2002 last week, and investors are fleeing to the safety of the dollar as a hedge against inflation instead as the market faces turmoil – meanwhile, Bitcoin, which was once widely regarded as hedge, is also now sitting around 18-month lows.
  • Another expected 75bps rate hike is souring sentiment toward gold bc it means a higher opportunity cost given the asset yields no interest. Analysts see gold as bearish in the long term but think there could be a bullish bounce on the way in the short term.
Peter Olexa / Unsplash