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VRS - who has written 36151 posts on Opalesque Commodities Briefing.


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Gold: If The Worst Is Over, What’s Next?

Posted on 24 July 2014

1. A number of top bank economists have turned bullish on gold in the past few months. That’s helping to boost confidence amongst thousands of Western gold community investors.

Could Silver Reach $100 By 2017?

Posted on 24 July 2014

An upward trend is afoot in the silver space, says Sean Rakhimov, editor of SilversStrategies.com. Rakhimov believes that at $26/ounce the reversal of the downward trend in silver will be confirmed and silver investors should set their sights on the next resistance level—$32/ounce. And if that threshold is breached, silver will test $50/ounce and more.

Palladium market to deliver sizeable deficit in 2014: Barclays

Posted on 24 July 2014

Russian Palladium shipments have witnessed a rebound of the trend that has been in dominance over the past few years, despite a two-month spike in April and May.

Copper under pressure but analysts see support from strategic buying

Posted on 24 July 2014

Although mainland imports are slowing amid tighter credit, prices are seen benefiting from strategic reserve purchases and power grid plans. While the worst fallout from the Qingdao metal-backed financing scandal may have passed, mainland copper imports are slowing, with volumes shifting from small traders to larger ones as banks become more cautious.

U.S. gold ETF delivers first physical bullion coins; holdings grow

Posted on 24 July 2014

Merk Gold Trust, a bullion-backed exchange-traded fund which allows its shares to be redeemed for physical gold, said on Wednesday it has made its first delivery in dozens of U.S. gold coins to an investor.

Malta launches its first alternative investment ETF under new Securitization Act

Posted on 24 July 2014

The first Exchange Traded Instrument (ETI) issued under the Malta Securitization Act went live recently on the European Wholesale Securities Market (EWSM). The “Dynamic Trading Strategies ETI” is linked to and backed by a performance linked bond issued by a Special Purpose Acquisition Vehicle allowable under the Securitization Act of Malta with the sole purpose of holding Managed Accounts at Interactive Brokers LLC and Sensus Capital Markets plc.

India: Commodity Exchanges’ Turnover Down Over 62% as of July 15

Posted on 24 July 2014

Commodity exchanges’ turnover declined over 62 per cent to Rs. 17.25 lakh crore till July 15 of the current fiscal year due to poor trading volumes in almost all commodities, the Forward Markets Commission (FMC) said on Wednesday.

What’s commodities exchange?

Posted on 24 July 2014

One of the biggest shocks in markets and trading last year in India had to do with an exchange called the NSEL, or the National Spot Exchange Ltd. Investors and traders in the NSEL lost nearly Rs 5600 crore because the exchange was mismanaged.

Lithuania gets final approval to adopt euro currency

Posted on 24 July 2014

EU ministers have given the final stamp of approval for Lithuania to join the eurozone next year. Amid fears of unjustified price hikes, the Baltic state will be the 19th nation to adopt the single currency.

The currency conundrum

Posted on 24 July 2014

The European Central Bank (ECB) is under pressure from eurozone politicians to introduce quantitative easing (QE) to reduce the value of the euro against the dollar. Politicians say a fall of 10 per cent from $1.35 to $1.20-1.25 is needed to help eurozone companies export and tackle low inflation.

EU ‘regrets’ Coalition’s carbon tax repeal

Posted on 24 July 2014

The European Union has expressed regret at the Abbott government’s decision to abolish carbon pricing and end Australia’s bid to link up with the world’s largest carbon market. EU climate action commissioner Connie Hedegaard on Thursday said Australia’s move wouldn’t deter the EU from working towards global carbon pricing with all international partners.

Shorten makes case for emissions trading

Posted on 24 July 2014

Opposition Leader Bill Shorten has warned Australia’s decision to abandon carbon pricing puts it at risk of being isolated on the world stage. Mr Shorten made his case for emissions trading during a speech in the United States, where he also urged the Abbott government to make climate change a priority at the G20 summit in November.

Germany unlikely to meet carbon reduction targets for 2020

Posted on 24 July 2014

Germany’s environment ministry believes it’s unlikely Germany will meet its 2020 greenhouse gas reduction goals. They say the country will come up seven percent short, but critics say it could be even worse.

Credit Suisse heads for exit on commodities trading

Posted on 23 July 2014

When is an investment bank committed to a business? Until it’s not! That oft-quoted adage could be heard in the City of London on Tuesday morning after Credit Suisse joined the ranks of investment banks exiting commodities trading. The bank announced that it was winding down its derivative-focused commodities unit to focus on more profitable businesses such as structured products and credit.

Bank Exodus From Commodities Could Hurt Liquidity Short Term

Posted on 23 July 2014

The trend of major banks leaving the commodities business could hurt liquidity in the short term, but eventually other trading firms will fill the void, say veterans of the commodities business. Most do not look for a major impact on the price trend of commodities in general; after all, speculators can establish either long or short positions. Nevertheless, some pointed out that past moves by banks to exit happened to coincide with a bottoming in commodities prices.

The End of Quantitative Easing and What It Means for Commodities

Posted on 23 July 2014

It’s rather bizarre that we’ve heard so much from pundits and Republican policymakers about the horrors of quantitative easing, how we’ve needed to end the problem for too long, and now — when we’re less than three months from closing the program, nobody in Washington or on Wall Street is talking about it.

OPEC’s Two-Decade Ride on Global Growth Stalls

Posted on 23 July 2014

For the past two decades, growth in the global economy spelled higher revenues for the Organization of Petroleum Exporting Countries. Not any more.

Risk of oil price rises due to conflicts

Posted on 23 July 2014

World stock markets and global economic recovery are at risk from a sharp rise in oil prices triggered by military conflicts, a leading economist said. A combination of fighting in the Middle East and the shooting down of the passenger jet over Ukraine sent crude oil prices rising by $2 a barrel in the past week, said Steen Jakobsen, chief economist at Saxo Bank.

Oil price gains lose steam on rising dollar

Posted on 23 July 2014

Oil prices rose Tuesday, supported by a threat of tougher sanctions against Russia and fierce fighting in Gaza, but lost steam as the dollar rallied against the euro, traders said. Brent North Sea crude for delivery in September had edged up four cents to stand at $107.72 a barrel in late London deals, after trading up 64 cents around midday in the British capital.

Where is gold headed?

Posted on 23 July 2014

Half way through 2014, markets remain confused where gold prices are headed. Investors are still in dilemma and are now looking at fresh set of factors that will drive the price trajectory for rest of the year. While there was no real sign of sustained economic strength in 2013 for the world economy, just the idea of Federal Reserve in the US may start tapering at some point was enough to send gold bullion prices lower and the “bull run” in gold ended losing around 30 per cent of its [...]

Gold price to roll back H1 gains, average below $1,300/oz in 2014

Posted on 23 July 2014

Gold will drift lower in the second half of 2014, leading to a second yearly drop in the average price after a dizzying decade-long rally, as U.S. monetary policy returns to normal and Asian demand is weak, analysts forecast in a Reuters poll.

Gold price gains on geopolitical uncertainty

Posted on 23 July 2014

Weakness on equity markets helped gold prices rise slightly on Monday as heightened geopolitical tensions in Ukraine and Gaza boosted the demand for safe-haven assets. Gold for August delivery was 0.3% higher at $1,313.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

Respite for gold investors as metal enjoys strong 2014

Posted on 23 July 2014

Gold investors are enjoying some respite in 2014 after a long period of falling prices, with the precious metal emerging as one of the year’s best plays to date.

Middle East grabs gold

Posted on 23 July 2014

The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion.

Palladium poised for record year

Posted on 23 July 2014

Palladium will reach its highest yearly price on record this year and could top that in 2015 as expectations for lower South African output combine with a recovery in demand and doubts over Russian supply, a Reuters poll showed.

World Crude Steel production rises 3.1% in June

Posted on 23 July 2014

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 137 million tonnes (Mt) in June 2014, an increase of 3.1% compared to June 2013.

Base metals climb on good demand, global cues

Posted on 23 July 2014

Most of the base metals climbed at the non-ferrous metal market here today on stockists buying amid sustained demand from industrial users in the backdrop of higher London Metal Exchange (LME) cues.

Commodity ETFs Signal Meaningful Divergence

Posted on 23 July 2014

In investing, the term commodity spans a great deal of assets and sectors. Precious metals, industrial metals, agriculture, livestock, and energy are just some of the varied classes that fall into this diverse arena. In an ideal world of inflationary and deflationary pressures, all of these sectors would move in a similar direction according to cyclical forces.

What Is A Short ETF?

Posted on 23 July 2014

A short exchange-traded fund (ETF) is designed to profit from a decline in the value of the underlying index. A short ETF gets its name from the fact that it is designed to benefit in the same manner as a short position in an underlying index. Thus, a short ETF will be profitable if the underlying index or asset declines in price, and will incur a loss if the underlying index or asset gains in price.

Water ETFs for Thirsty Investors

Posted on 23 July 2014

As the world reviews the effects of climate change, global population growth and inadequate or aging infrastructures, investors can consider water industry-related exchange traded funds to capture potential long-term opportunities.

Metal ETFs Lure Investors at Fastest Pace Since ‘09

Posted on 23 July 2014

Investors are buying metals from zinc to aluminum at the fastest pace since 2009, betting demand gains will tighten supply, just as Citigroup Inc. and Macquarie Group Ltd. predict this year’s rallies will end.

Is Nat’l Multi Commodity Exchange looking to wind-up ops?

Posted on 23 July 2014

It is tough times for the commodities market - after the levy of Commodity Transaction Tax (CTT), and the NSEL fiasco , volumes in the commodity space have dropped by more than 40%. This has forced two commodities exchanges - Anil Ambani promoted ICEX, and Ketan Seth promoted United Commodity Exchange to shut their trading operations over the last one year.

Could GBP/USD Exchange Rate Tumble on Stronger US Currency?

Posted on 23 July 2014

Currency News UK - Pound to Dollar Currency Predictions: will cable tumble into the 1.5000’s? Big news stories dominated last week’s session, with the shooting down of Malaysia Airlines flight MH17 and the international reaction to it, along with the ongoing situation in Iraq and an escalation of violence in Gaza. The latest GBP USD exchange rate today trades at 1.70669.

Tedious Journey towards W’African Single Currency

Posted on 23 July 2014

Since 1987 when the Economic Community of West African States (ECOWAS) Monitoring Cooperation Program (EMCP), saddled with the responsibility of introducing a common currency in the sub-region, was adopted, the body has continued to push for the implementation of the policy.

Global tie-up to improve agriculture

Posted on 23 July 2014

An international partnership across India, Africa and the US has formed the ‘One Agriculture-One Science: A Global Education Consortium’ initiative aimed at revitalising global agricultural education, capacity building and technology transfer, according to the International Crops Research Institute for the Semi-Arid Tropics (Icrisat).

Anger as Australia dumps carbon tax

Posted on 23 July 2014

Australia’s pioneering carbon-pricing mechanism has failed to survive its infancy. In a major victory for Prime Minister Tony Abbott, parliament agreed on 17 July to axe the scheme with immediate effect.

Germany, UK and Poland top ‘dirty 30’ list of EU coal-fired power stations

Posted on 23 July 2014

The UK and Germany lead a list of the EU’s most polluting coal-fired power stations compiled by environmental campaigners, who say coal emissions are undermining efforts to combat climate change. Both countries have nine of the so-called “dirty 30” and the campaigners say coal burning is increasing due to the relatively low price of the fuel compared to gas.

Swiss Commodities Traders Go Big on African Oil

Posted on 22 July 2014

Swiss commodities traders are buying significant volumes of Africa’s oil in opaque and lightly-regulated deals, according to a new report that spotlights their commanding position in the continent’s energy markets.

Speculators cut bets on higher oil prices

Posted on 22 July 2014

Speculators cut their bets on higher Brent crude oil prices by almost a quarter in the week to July 15 after prices dropped to three-month lows. Hedge funds and other money managers curbed their net long futures and options positions to 151,981 – the lowest since April 8 – from 201,568 contracts, the IntercontinentalExchange said in its Commitment of Traders report on Monday.

Oil price spike will hit ‘fragile three’

Posted on 22 July 2014

Three of the so-called ‘fragile five’ would be among the worst hit countries if unrest in Iraq sparks another spike in oil prices, Capital Economics has claimed. Chief emerging markets economist Neil Shearing said the group’s forecast is for prices to drop back to below $100 per barrel by the end of the year, in part due to increased supply from the rest of the Middle East.

Hedge funds slash Brent oil bets by 25 pct during price rout -ICE

Posted on 22 July 2014

Hedge funds and other large speculators slashed their bets on higher Brent crude oil prices by almost 25 percent in the week to July 15, ICE said on Monday, as prices collapsed to their lowest in three months.

Gold gains set to reverse as hedge funds cut bets on rally

Posted on 22 July 2014

Money managers trim net-long positions as gold price rally snaps, but investors are still adding to holdings through ETPs backed by metal. Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011.

Gold over $1,300; conflicts spur safe-haven bids

Posted on 22 July 2014

Gold stabilized near $1,310 an ounce on Tuesday as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal’s safe-haven appeal. Spot gold was little changed at $1,311.16 an ounce by 0009 GMT, after ending flat in the previous session.

Geopolitics Keeps Safe-Haven Bid in Gold Market

Posted on 22 July 2014

Gold prices are moderately higher in early U.S. trading Monday as heightened geopolitical tensions keep a safe-haven bid in the market. August Comex gold was last up $8.70 at $1,318.00 an ounce. Spot gold was last quoted up $5.60 at $1,317.00. December Comex silver last traded up $0.261 at $21.205 an ounce.

3 More Reasons to Invest in Gold Right Now

Posted on 22 July 2014

Gold is typically perceived to be a hedge against inflation, and with better than expected U.S. economic growth along with the European Union and China implementing economic stimulus packages, inflation is expected to grow. Furthermore, ongoing instability in the Middle East is driving crude prices higher, making economic growth more expensive, which will translate into higher global inflation.

Will Gold price crash below $1,200?

Posted on 22 July 2014

Over the past few weeks we have seen mining stocks make a transition out of a stage one base and into a new bull market. This transition is likely to be complete this week.

Precious metals dealers search for better benchmarks

Posted on 22 July 2014

Amid pressure from regulators, a new system for determining benchmark silver prices will be put in place from mid-August, while reforms are also under discussion in the gold market. Industry observers say increasing participation will be crucial to restoring confidence in the benchmarks.

Top 3 Silver Miners For $30 Silver

Posted on 22 July 2014

Silver mining companies offer big leverage to a rising price of silver and should be considered by silver bulls. Investors should look for low-cost producers in politically stable mining jurisdictions.

Silver ETFs Are Having a Good Summer

Posted on 22 July 2014

Gold gets all the glory, but silver’s no slouch. The price of silver has risen 10 percent since the end of May, more than double the gains in gold, bonds and stocks. This comes after a three-year slump when silver was down 50 percent, trailing gold by 30 percent and the S&P 500 Index by 100 percent. Until recently, it had a dubious distinction as one of the few things left in the investment universe that hadn’t rallied in recent years.

Zinc, aluminium hit multi-month highs, copper steady

Posted on 22 July 2014

Zinc and aluminium prices hit their highest in more than a year on Monday as investors sought exposure to commodities with improved fundamentals, but copper’s gains were curbed by worries over China’s property sector and over a build-up of stocks.

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