Latest news with #COMEX-approved
Yahoo
15-03-2025
- Business
- Yahoo
Gold vaults $3,000 in rush for safety from market, political worry
By Sherin Elizabeth Varghese and Anmol Choubey (Reuters) - The relentless rise of gold has taken prices of the precious metal above the psychologically key $3,000 per ounce mark for the first time, as geopolitical and economic uncertainty sent investors rushing into the safe-haven asset. Spot gold hit a record $3,004.86 per ounce on Friday, marking its thirteenth all-time high in 2025. Prices have already climbed 14% this year, after surging 27% in 2024. "With continued central bank buying, there are multiple factors driving demand. In a backdrop of geopolitical uncertainty and ongoing tariff changes, appetite for gold remains strong," said Standard Chartered analyst Suki Cooper. Since the start of U.S. President Donald Trump's administration, protectionist policies have jolted global markets, with his tariffs triggering swift retaliation from China and Canada. "With equity markets selling off and unpredictable political risks, we are starting to see a return of Western investors to gold, which could propel it to much higher levels," said John Ciampaglia, CEO of Sprott Asset Management. [GOL/ETF] "We consider gold as an 'insurance policy' and source of liquidity in difficult market environments." Tariffs fuel inflation fears and trade tensions, driving investors to gold as a safe-haven hedge. Meanwhile, gold stocks in COMEX-approved warehouses hit a record 40.56 million ounces, as traders rushed to cover positions amid tariff uncertainty. But inflows have slowed in recent weeks. FEDERAL RESERVE Traders are doubling down on U.S. Federal Reserve rate cuts, now expecting three quarter-point reductions this year, up from two just days ago. The Fed has slashed rates by 100 basis points since September, pausing in January, but markets now anticipate cuts to resume in June. That is keeping the dollar under pressure, a stark shift from when Trump's protectionist policies strengthened the currency. "The inflation data is helping to give the market confidence that the easing cycle will continue, given concerns around inflation and growth," said Standard Chartered analyst Suki Cooper. ETF DEMAND Investor demand for gold is surging, with physically-backed gold exchange-traded funds (ETFs) recording their largest weekly inflow since March 2022, according to the World Gold Council's February data. The SPDR Gold Trust (GLD), the world's largest gold-backed ETF, saw holdings rise to 907.82 metric tons on February 25, the highest since August 2023. [GOL/ETF] "There will likely be increased flows into safe-haven assets like gold, especially as investors move away from equity growth stocks amid rising uncertainties and future concerns," said Dina Ting, Head of Global Index Portfolio Management at Franklin Templeton. She noted that while investment strategies vary, a 5% to 10% gold allocation can offer effective diversification. CENTRAL BANK DEMAND Gold's rise is getting another tailwind from central bank demand. Analysts say strong buying in 2025 could push prices to new highs as nations continue stockpiling the metal amid economic uncertainty. "Central banks may ramp up gold purchases amid market uncertainties, not just to hedge against the U.S. dollar but to anchor their currencies to gold as well," Ting said. China's gold reserves marked four straight months of buying in February. After an 18-month spree, the central bank paused for six months in 2024 before resuming purchases in November. In the absence of any improvement in the U.S. budget deficit, gold could challenge a high of about $3,500, Macquarie said in a note. Goldman Sachs raised its year-end 2025 gold target to $3,100. Central banks snapped up over 1,000 tons of gold for the third year in a row in 2024, and in the final quarter of 2024 - as Trump's election win roiled markets - buying soared 54% year-on-year, according to a report from the World Gold Council last month.
Reuters
14-03-2025
- Business
- Reuters
Gold vaults $3,000 in rush for safety from market, political worry
March 14 (Reuters) - The relentless rise of gold has taken prices of the precious metal above the psychologically key $3,000 per ounce mark for the first time, as geopolitical and economic uncertainty sent investors rushing into the safe-haven asset. Spot gold hit a record $3,004.86 per ounce on Friday, marking its thirteenth all-time high in 2025. Prices have already climbed 14% this year, after surging 27% in 2024. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. "With continued central bank buying, there are multiple factors driving demand. In a backdrop of geopolitical uncertainty and ongoing tariff changes, appetite for gold remains strong," said Standard Chartered analyst Suki Cooper. Since the start of U.S. President Donald Trump's administration, protectionist policies have jolted global markets, with his tariffs triggering swift retaliation from China and Canada. "With equity markets selling off and unpredictable political risks, we are starting to see a return of Western investors to gold, which could propel it to much higher levels," said John Ciampaglia, CEO of Sprott Asset Management. "We consider gold as an 'insurance policy' and source of liquidity in difficult market environments." Tariffs fuel inflation fears and trade tensions, driving investors to gold as a safe-haven hedge. Meanwhile, gold stocks in COMEX-approved warehouses hit a record 40.56 million ounces, as traders rushed to cover positions amid tariff uncertainty. But inflows have slowed in recent weeks. FEDERAL RESERVE Traders are doubling down on U.S. Federal Reserve rate cuts, now expecting three quarter-point reductions this year, up from two just days ago. The Fed has slashed rates by 100 basis points since September, pausing in January, but markets now anticipate cuts to resume in June. That is keeping the dollar under pressure, a stark shift from when Trump's protectionist policies strengthened the currency. "The inflation data is helping to give the market confidence that the easing cycle will continue, given concerns around inflation and growth," said Standard Chartered analyst Suki Cooper. ETF DEMAND Investor demand for gold is surging, with physically-backed gold exchange-traded funds (ETFs) recording their largest weekly inflow since March 2022, according to the World Gold Council's February data. The SPDR Gold Trust (GLD), the world's largest gold-backed ETF, saw holdings rise to 907.82 metric tons on February 25, the highest since August 2023. "There will likely be increased flows into safe-haven assets like gold, especially as investors move away from equity growth stocks amid rising uncertainties and future concerns," said Dina Ting, Head of Global Index Portfolio Management at Franklin Templeton. She noted that while investment strategies vary, a 5% to 10% gold allocation can offer effective diversification. CENTRAL BANK DEMAND Gold's rise is getting another tailwind from central bank demand. Analysts say strong buying in 2025 could push prices to new highs as nations continue stockpiling the metal amid economic uncertainty. "Central banks may ramp up gold purchases amid market uncertainties, not just to hedge against the U.S. dollar but to anchor their currencies to gold as well," Ting said. China's gold reserves marked four straight months of buying in February. After an 18-month spree, the central bank paused for six months in 2024 before resuming purchases in November. In the absence of any improvement in the U.S. budget deficit, gold could challenge a high of about $3,500, Macquarie said in a note. Goldman Sachs raised its year-end 2025 gold target to $3,100. Central banks snapped up over 1,000 tons of gold for the third year in a row in 2024, and in the final quarter of 2024 - as Trump's election win roiled markets - buying soared 54% year-on-year, according to a report from the World Gold Council last month.
Yahoo
14-02-2025
- Business
- Yahoo
Silver catches a lift from gold's bull run to eye 10-year peak
By Brijesh Patel and Daksh Grover (Reuters) - Silver prices hit their highest since late October on Friday, latching on to factors that drove gold to successive record highs, with some analysts suggesting investors in the metal may aim to challenge a 10-year high just shy of $35 per ounce. However some analysts were cautious on the market's trajectory, given higher volatility in silver and a failure to reach similar dizzying heights as gold in 2024. Spot silver was last up 2% at $33 per ounce, having hit its highest level since late October at $33.41. The white metal scaled a more than 10-year peak of $34.87 per ounce on October 22. [GOL/] "Silver's been a laggard, and some would refer to it as the Cinderella metal, because it always misses the ball. Having said that, silver has finally woken up and broken above some key technical resistance," independent analyst Ross Norman said. If current momentum continued, silver could challenge the $35 level, he added. After rising 21% in 2024, silver, both a precious and industrial metal, has gained 14% so far in 2025 supported by similar factors to gold - a jump in U.S. Comex futures prices on concerns of a possible trade war sparked by proposed U.S. import tariffs. The U.S. March silver contract was last up 3.3% at $33.79. In recent weeks the spread between Comex gold futures and London spot prices has widened significantly, while the spot gold price hit a record $2,942.70 per ounce on Tuesday. [GOL/] Providing additional support to silver, copper prices hit their highest in more than three months in London on Friday. [MET/L] The unusually high premium between CME futures and London spot prices caused volatility in the part of the market known as the exchange of futures for physical (EFP), used as a hedge to general precious business activity, and attracted massive inflows to the silver stocks in COMEX-approved warehouses. CME silver stocks jumped by 22% to 375.8 million ounces since November 24 when U.S. President Donald Trump pledged steep tariffs on all products from Mexico and Canada. Trump later delayed the tariffs until March. CME gold stocks had seen a sharper growth since November partly because gold is flown around by plane and silver is usually transported by sea or land. "Elevated EFPs continue to draw metal from London into the COMEX, with the threat of tariffs inadvertently accelerating the drain on LBMA inventories towards critical levels," TD Securities said. The amount of silver stored in the London vaults fell by 8.6% from December to 23,528 tons in January, worth $23.9 billion, the London Bullion Market Association said last week. The monthly decline was the largest since the LBMA records began in mid-2016. VOLATILE Despite some bullish-looking factors, analysts noted the silver market's propensity to be volatile - injecting a note of caution. "Silver has a long history of higher volatility than gold, and that when gold makes a decisive move, silver's amplitude is usually 2.0-2.5 times that of gold," StoneX analyst Rhona O'Connell said in a recent note. Prices also looked slightly vulnerable from a technical perspective. "Last year's range was $22-35; unusually wide. The previous year was $19-27 and that range was made in the first handful of months," said Tai Wong, an independent metals trader. "It feels disappointing because gold made 40 historic highs in 2024 and silver 0," he added. About half of silver usage comes from industrial use, which may be subject to headwinds if a trade war has a chilling effect on global economic growth. There may be fewer rate cuts than previously expected by the U.S. Federal Reserve and slowing growth in China, said Hamad Hussain, assistant climate and commodities economist at Capital Economics. Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Silver catches a lift from gold's bull run to eye 10-year peak
By Brijesh Patel and Daksh Grover (Reuters) - Silver prices hit their highest since late October on Friday, latching on to factors that drove gold to successive record highs, with some analysts suggesting investors in the metal may aim to challenge a 10-year high just shy of $35 per ounce. However some analysts were cautious on the market's trajectory, given higher volatility in silver and a failure to reach similar dizzying heights as gold in 2024. Spot silver was last up 2% at $33 per ounce, having hit its highest level since late October at $33.41. The white metal scaled a more than 10-year peak of $34.87 per ounce on October 22. [GOL/] "Silver's been a laggard, and some would refer to it as the Cinderella metal, because it always misses the ball. Having said that, silver has finally woken up and broken above some key technical resistance," independent analyst Ross Norman said. If current momentum continued, silver could challenge the $35 level, he added. After rising 21% in 2024, silver, both a precious and industrial metal, has gained 14% so far in 2025 supported by similar factors to gold - a jump in U.S. Comex futures prices on concerns of a possible trade war sparked by proposed U.S. import tariffs. The U.S. March silver contract was last up 3.3% at $33.79. In recent weeks the spread between Comex gold futures and London spot prices has widened significantly, while the spot gold price hit a record $2,942.70 per ounce on Tuesday. [GOL/] Providing additional support to silver, copper prices hit their highest in more than three months in London on Friday. [MET/L] The unusually high premium between CME futures and London spot prices caused volatility in the part of the market known as the exchange of futures for physical (EFP), used as a hedge to general precious business activity, and attracted massive inflows to the silver stocks in COMEX-approved warehouses. CME silver stocks jumped by 22% to 375.8 million ounces since November 24 when U.S. President Donald Trump pledged steep tariffs on all products from Mexico and Canada. Trump later delayed the tariffs until March. CME gold stocks had seen a sharper growth since November partly because gold is flown around by plane and silver is usually transported by sea or land. "Elevated EFPs continue to draw metal from London into the COMEX, with the threat of tariffs inadvertently accelerating the drain on LBMA inventories towards critical levels," TD Securities said. The amount of silver stored in the London vaults fell by 8.6% from December to 23,528 tons in January, worth $23.9 billion, the London Bullion Market Association said last week. The monthly decline was the largest since the LBMA records began in mid-2016. VOLATILE Despite some bullish-looking factors, analysts noted the silver market's propensity to be volatile - injecting a note of caution. "Silver has a long history of higher volatility than gold, and that when gold makes a decisive move, silver's amplitude is usually 2.0-2.5 times that of gold," StoneX analyst Rhona O'Connell said in a recent note. Prices also looked slightly vulnerable from a technical perspective. "Last year's range was $22-35; unusually wide. The previous year was $19-27 and that range was made in the first handful of months," said Tai Wong, an independent metals trader. "It feels disappointing because gold made 40 historic highs in 2024 and silver 0," he added. About half of silver usage comes from industrial use, which may be subject to headwinds if a trade war has a chilling effect on global economic growth. There may be fewer rate cuts than previously expected by the U.S. Federal Reserve and slowing growth in China, said Hamad Hussain, assistant climate and commodities economist at Capital Economics. Sign in to access your portfolio
Reuters
14-02-2025
- Business
- Reuters
Silver catches a lift from gold's bull run to eye 10-year peak
Feb 14 (Reuters) - Silver prices hit their highest since late October on Friday, latching on to factors that drove gold to successive record highs, with some analysts suggesting investors in the metal may aim to challenge a 10-year high just shy of $35 per ounce. However some analysts were cautious on the market's trajectory, given higher volatility in silver and a failure to reach similar dizzying heights as gold in 2024. Spot silver was last up 2% at $33 per ounce, having hit its highest level since late October at $33.41. The white metal scaled a more than 10-year peak of $34.87 per ounce on October 22. "Silver's been a laggard, and some would refer to it as the Cinderella metal, because it always misses the ball. Having said that, silver has finally woken up and broken above some key technical resistance," independent analyst Ross Norman said. If current momentum continued, silver could challenge the $35 level, he added. After rising 21% in 2024, silver, both a precious and industrial metal, has gained 14% so far in 2025 supported by similar factors to gold - a jump in U.S. Comex futures prices on concerns of a possible trade war sparked by proposed U.S. import tariffs. The U.S. March silver contract was last up 3.3% at $33.79. In recent weeks the spread between Comex gold futures and London spot prices has widened significantly, while the spot gold price hit a record $2,942.70 per ounce on Tuesday. Providing additional support to silver, copper prices hit their highest in more than three months in London on Friday. The unusually high premium between CME futures and London spot prices caused volatility in the part of the market known as the exchange of futures for physical (EFP), used as a hedge to general precious business activity, and attracted massive inflows to the silver stocks in COMEX-approved warehouses. CME silver stocks jumped by 22% to 375.8 million ounces since November 24 when U.S. President Donald Trump pledged steep tariffs on all products from Mexico and Canada. Trump later delayed the tariffs until March. CME gold stocks had seen a sharper growth since November partly because gold is flown around by plane and silver is usually transported by sea or land. "Elevated EFPs continue to draw metal from London into the COMEX, with the threat of tariffs inadvertently accelerating the drain on LBMA inventories towards critical levels," TD Securities said. The amount of silver stored in the London vaults fell by 8.6% from December to 23,528 tons in January, worth $23.9 billion, the London Bullion Market Association said last week. The monthly decline was the largest since the LBMA records began in mid-2016. VOLATILE Despite some bullish-looking factors, analysts noted the silver market's propensity to be volatile - injecting a note of caution. "Silver has a long history of higher volatility than gold, and that when gold makes a decisive move, silver's amplitude is usually 2.0-2.5 times that of gold," StoneX analyst Rhona O'Connell said in a recent note. Prices also looked slightly vulnerable from a technical perspective. "Last year's range was $22-35; unusually wide. The previous year was $19-27 and that range was made in the first handful of months," said Tai Wong, an independent metals trader. "It feels disappointing because gold made 40 historic highs in 2024 and silver 0," he added. About half of silver usage comes from industrial use, which may be subject to headwinds if a trade war has a chilling effect on global economic growth. There may be fewer rate cuts than previously expected by the U.S. Federal Reserve and slowing growth in China, said Hamad Hussain, assistant climate and commodities economist at Capital Economics.
