Right now, according to LBMA, silver is in higher demand than gold. While silver may be a hot commodity, you may not want to stop watching gold just yet. Experts say with gold being oversold and the Federal Reserve keeping rates low, gold investors are seeing an opportunity knocking.
Kitco News/Rajan Dhall
LBMA data shows there is more demand for silver at the moment
The LBMA has released its latest gold holdings and clearing statistics data. The association has said at the end of February 2021, there were 9,559 tonnes of gold, valued at $535.6 billion. This much gold equates to approximately 764,741 gold bars. When it comes to silver, at the end of February 2021, there were 34,996 tonnes of silver, valued at $30 billion. This is around 1,166,540 silver bars.
For February, clearing stats were unchanged month on month (m/m) at 18.8 mn ounces, with the corresponding value 2.9% lower at $34.1 bn. There were 4,650 transfers in February broadly in line with the previous month, with the clearers settling on average 4,053 ounces per transfer, 0.7% higher m/m.
For silver, the volume of ounces transferred in February increased by 30% to 336.2 mn ounces, with the corresponding value transferred more than 37% higher m/m at $9.2 bn. The number of transfers in February increased by 44% m/m to 2,737, with the clearers settling on average 122,830 ounces per transfer, 9.8% lower m/m.
This price has been reflected in the price action as the silver chart still has a more bullish structure on the daily timeframe. Any move lower in gold has been more toward the main consolidation low but the silver price is still no way near any major support zones. The CFTC data is showing that shorts are at very high levels for gold and silver is still holding up better in that respect too.
Read the full story, here.
Reuters via CNBC/Shreyansi Singh
Gold rises over 1% as dollar, yields retreat
Gold rose over 1% on Thursday buoyed by a retreat in the dollar and U.S. bond yields, while grim U.S. jobless data clouded the outlook for an economic recovery, adding to the metal’s safe-haven appeal.
Spot gold rose 1.2% to $1,727.86 per ounce. Most markets will be closed for Good Friday on April 2. U.S. gold futures settled up 0.7% at $1,728.30.
The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, the Labor Department said.
“The higher initial claims than were expected could lead to more stimulus and a slower recovery,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago, adding a weakening dollar and softer yields are helping prices.
The dollar index marched back from a five-month high hit in the previous session, making gold less expensive for other currency holders. Benchmark U.S. Treasury yields also eased.
On Wednesday, Biden announced his long-awaited $2 trillion-plus job plan, that called for a sweeping use of government power to reshape the American economy.
With gold being oversold and the Federal Reserve keeping rates low, gold investors see an opportunity knocking, said Michael Matousek, head trader at U.S. Global Investors.
While gold is considered a hedge against inflation from widespread stimulus, higher bond yields this year have threatened that status as they translate into a higher opportunity cost of holding bullion.
Read the full story, here.
How Biden’s tax plan will impact retirement planning
Retirement Solutions Group President & CEO Alan Becker joined Yahoo Finance Live to break down the long-term effects Biden’s tax plan will have on retirement planning.
You can watch the video, here.