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Chinese and Indian gold buyers back in market in a big way

Posted on 22 October 2014 by VRS  |  Email |Print

What has been particularly strange about the gold market over the past two years is that the stronger the physical demand appearing for gold, the weaker the gold price has tended to get.
In the past few months, the gold price has fallen back from around $1,340 down at one time to $1,190 and now hovering back seemingly trying to breach $1,250 on the upside again, yet by all accounts demand in the two biggest consuming nations has been soaring and they are, between them, taking in virtually everything the world’s gold mines can produce………………………………………..Full Article: Source

Can gold bounce back? Here’s why experts feel that you should give yellow metal a miss this Diwali

Posted on 22 October 2014 by VRS  |  Email |Print

What will you buy on muhurat day? Will you stock up on equities or will you go for gold? To some buyers, gold might appear very attractive right now. The domestic gold price is down more than 18% from its all-time high of Rs 33,265 per 10 gm recorded in August 2013. The past 15 months, in fact, have been devastating for gold investors. The price of the yellow metal has slipped, turning conventional wisdom on its head. Even now, analysts believe that gold faces headwinds that could take prices down in the near to medium term.
This is not good news for buyers getting ready for Dhanteras shopping. After all, their blind faith in gold had delivered handsome returns in the past decade. This changed last year, with gold churning out losses for investors who bought the yellow metal on the muhurat day in 2012 and held it till the 2013 Diwali. ……………………………………….Full Article: Source

How Much Gold Is On Loan Worldwide?

Posted on 22 October 2014 by VRS  |  Email |Print

We can’t speak about the manipulation of the gold price today without understanding the derivatives market. Right after the crash of 2000 in the stock market I became alarmed by the exponential increase of derivative products but especially by the complexity of those products.
I am sure that if I asked one of those financial engineers who has designed those products to explain their functioning and consequences in a bear market or, better yet, in a crash, he would be incapable. We are familiar with derivatives in real life through cars. When we speak of the speed of a car we talk of a first derivative, while acceleration, an increase of the speed, is a second derivative………………………………………..Full Article: Source

Gold demand up, more buying needed:Barclays

Posted on 22 October 2014 by VRS  |  Email |Print

Given that the Diwali holiday is this week, ahead of the wedding season, Gold demand is expected to improve, potentially offsetting macro headwinds in the near term. However, buying needs to pick up materially to overwhelm the gold-negative external drivers, a report by Barclays said.
Broad risk reduction amid tumbling equity markets, the sharp decline in US 10y Treasuries, and weaker-than-expected US retail sales have fueled uncertainty and aided gold’s bounce. The gold-supportive macro environment has seen gold extend its gains above the $1200/oz mark as the dollar has weakened, the St Louis Fed discussed the possibility of further stimulus, and, importantly, demand picked up amid the seasonally strong period for consumption………………………………………..Full Article: Source

Why Silver Is Poised to Hit $50

Posted on 22 October 2014 by VRS  |  Email |Print

In the next few years, you could make triple-digit gains in one of the world’s most hated commodities: silver. You won’t get rich quick. But as I’ll show you today, higher prices are almost inevitable. And before the run is over, we could see spot rates triple or more.
The past few years have been hard for resource investors. Since the summer of 2011, spot gold prices are off more than 35% from their peak. And as we have written about a lot here at Fool Canada, gold miners are struggling just to keep the lights on………………………………………..Full Article: Source

6 beginner tips for investing in precious metals

Posted on 22 October 2014 by VRS  |  Email |Print

If you’ve been thinking about investing in precious metals for the first time, you’ve got your homework cut out for you. It’s a complicated space, especially if you’re a newbie, and a good grasp on the basics is essential to achieving any semblance of success.
Of course, many worthwhile investments take effort, so you should never shy away from the challenge if you’ve got funds to spare. Just make sure you arm yourself with as much information as possible, and don’t “bet” more than you can afford to lose………………………………………..Full Article: Source

Can gold bounce back? Here’s why experts feel that you should give yellow metal a miss this Diwali

Posted on 21 October 2014 by VRS  |  Email |Print

Gold is a good hedge against inflation and global investors get on the gold train only when they fear that inflation will go up. After fears of inflation, the European Union (EU) region is facing the threat of deflation, mainly due to the fall in global commodity prices. The international crude oil (Brent variety) is now trading at $83 per barrel, a two-year low.
Most global agriculture commodities are also at multi-year lows. The inflationary pressure has ebbed significantly in the US as well. Investors deserting gold: Investors have also deserted the gold market. The gold holdings of the SPDR Gold Trust, the largest gold ETF in the world, are down 44% from their peak of 1,353 tonnes in December 2012. They don’t see any upside potential now from the current levels. “Gold is no more in a buy zone………………………………………..Full Article: Source

Buying Gold on Dhanteras? 10 Things to Know

Posted on 21 October 2014 by VRS  |  Email |Print

Many Indians consider Dhanteras as an auspicious occasion to buy gold. Many jewellers have launched promotional schemes to attract gold buyers while stock exchanges have extended trading hours for gold trading on Tuesday. Here is a 10-point cheat-sheet to understand how gold prices could be impacted:
Analysts say that historically October has been seasonally a good month to buy gold. Vikas Vaid, product head of commodity and currency of Prabhudas Lilladher Group, said it has been observed that historically gold prices bottomed out in October and November is a strong month for the yellow metal in terms of prices………………………………………..Full Article: Source

Gold tipped to decline for third straight year in 2015

Posted on 21 October 2014 by VRS  |  Email |Print

Gold prices will lag industrial precious metals platinum and palladium in 2015, analysts polled by Reuters predict, as a gradually stabilising world economy favours raw materials over so called “defensive” assets.
A poll of 30 analysts conducted by Reuters over the last month returned an average gold price forecast of $1,225 an ounce for next year, against $1,270 an ounce predicted for 2014. That would represent a third consecutive year of losses. A similar survey in July returned an average 2015 price view of $1,250 an ounce, suggesting confidence in gold is waning………………………………………..Full Article: Source

American specialists expect two-fold rise in gold prices by the end of 2014

Posted on 21 October 2014 by VRS  |  Email |Print

American economists, such as John Williams, Peter Schiff, Paul Craig Roberts and Gerald Celente, expect the global revaluation of world currencies by the end of 2014. American statistical analyst Jim Willie explained the mechanism of such revaluation: Shanghai gold exchange is to eventually take over global price controls for the monetary metal away from the Comex (New York commodity exchange), and then force a global currency reset by raising the price of gold to its true or actual value, which exceeds the current price at least two-fold.
“When we get this next global currency reset, it’s going to be a complete reset. It apparently will happen predominantly in the gold world. They are going to change the price of gold, and jam it down the U.S.’s throat………………………………………..Full Article: Source

Large Speculators Add To Gold Bullish Positions For First Time Since Mid-August

Posted on 21 October 2014 by VRS  |  Email |Print

After cutting bullish Comex gold futures and options holdings for eight straight weeks, large speculators added to their net-long holdings, according to data compiled by the Commodity Futures Trading Commission.
The rise in net-long gold positions in the disaggregated and legacy reports coincides with a rebound in prices for the time period ending Oct. 14. For rest of the metals complex, the situation was mixed. In silver, funds expanded a net-short position in the disaggregated report and reduced a net-bullish position in the legacy data. In the platinum group metals, large speculators cut palladium exposure, but added to platinum positions. In copper, funds narrowed their net-short position………………………………………..Full Article: Source

Five reasons to buy gold now

Posted on 20 October 2014 by VRS  |  Email |Print

The last few years have been harrowing for gold investors, with international prices of the metal declining from $1,921 per troy ounce to about $1,240 now. But hold on, don’t write off gold yet. Global supplies of the yellow metal are likely to shrink as new reserves become increasingly difficult to find. And given that the Asian appetite for gold is set to grow, gold demand may only go up.
Here are five reasons why you should buy gold now: In the years ahead, it is likely to get increasingly difficult for producers to find easy-to-mine deposits of gold. At 2,968.5 tonnes (Thomson Reuters GFMS data), many investors believe that 2013 may be the peak year for gold production………………………………………..Full Article: Source

Gold Bulls Lured Back for First Time in Two Months: Commodities

Posted on 20 October 2014 by VRS  |  Email |Print

Speculators added bullish gold bets for the first time in nine weeks as concern that global economic growth is slowing whipsawed equity markets. The gain in the net-long position in New York gold futures and options snapped the longest run of reductions since 2010. Prices rose for a second week as global equities retreated to an eight-month low.
More than $3.2 trillion was wiped from the value of world shares this month as the International Monetary Fund cut its outlook for global growth in 2015. Federal Reserve policy makers identified slowing foreign economies as a risk to the U.S., spurring the fastest purchases of gold held through exchange-traded products since July………………………………………..Full Article: Source

Gold price upside limited in 2015 - Scotiabank

Posted on 20 October 2014 by VRS  |  Email |Print

In the latest edition of the Scotiabank Commodity Price Index, published on Thursday, Scotiabank economist Pat Mohr observed, ““Spot gold prices fell as low as US$1,183 intra-day on October 5 - re-testing the previous low of US$1,180 on June 20, 2013 - after the Fed Chairman indicated that Federal Reserve Board would likely reduce its ‘asset purchase program’ in 2014 (quantitative easing),” Mohr observed in her analysis.
“Miners continue to cut costs in today’s lower price environment - reducing ‘all-in sustaining cash costs for high-cost producers at the 80th percentile to no more than US$1,055,” she said. “While we think the upside on gold prices will be limited in the coming year, the successful re-testing of the previous low shows some support for gold,” Mohr suggested……………………………………….Full Article: Source

The sky is falling! Should you buy gold and silver?

Posted on 20 October 2014 by VRS  |  Email |Print

If stock markets are heading for freefall, should one invest in gold and silver as a wealth protector. Perhaps not yet! Fear is stalking the global stock markets. Stock indices have been falling back sharply seeing a move to what might be seemed safer assets like bonds and gold.
The falls have been precipitated by some poor economic data suggesting that most major economies are not out of the recessionary mire yet and, in the U.S. in particular, the realisation that the Fed is getting down to near eliminating its latest Quantitative Easing programme in total, although there may be some succour in that it tends to be putting back the day that it may allow interest rates to rise. And what happens in the U.S. markets tends to have a strong follow-through impact on markets in other parts of the world………………………………………..Full Article: Source

Why worry about bullion silver?

Posted on 20 October 2014 by VRS  |  Email |Print

Bullion silver is likely to be less pure than coins or small bars, but 1,000 ounce bullion silver bars are cheaper per ounce than the smaller fabricated sizes. Bullion silver is typically available for only a few cents more per ounce than the spot price in the paper futures market.
So long as bullion bars can always be purchased at little more than spot price, a business that simply melts the bars would never pay more to melt fabricated silver, even if it is more highly refined. If the business could not buy cheap bullion bars locally, it would simply go long a futures contract and then stand for delivery of the physical bullion silver. If a company cannot get bullion bars from the futures market to consume for its production needs, then there will be a delivery default on the futures exchange………………………………………..Full Article: Source

How Has The Federal Reserve Impacted Gold Since 2009?

Posted on 17 October 2014 by VRS  |  Email |Print

The last five years will be forever marked on the history books with some of the most innovative, aggressive and controversial actions by the U.S. Federal Reserve ever. There are critics and there are fans of former Federal Reserve Chairman Ben Bernanke, and perhaps the jury is still out on his overall handling of the 2008-2009 global financial crisis.
After all, the massive programs that he left in place are just now starting to be unwound. There remain many hurdles and uncharted waters for the central bank to navigate through on its unprecedented unwind and exit of the massive and extraordinary monetary policy initiatives of recent years………………………………………..Full Article: Source

Is gold set for a bull run?

Posted on 17 October 2014 by VRS  |  Email |Print

Gold prices could be set for a boom in the coming weeks as stock market jitters, Diwali celebrations and bulk-buying by the Swiss creates a perfect precious metal storm. Yesterday, the FTSE 100 dropped a mammoth 2.8 per cent, with other worldwide markets also suffering.
At the same time, gold prices reached a month high after dropping drastically since the year-peak it saw back in March – many investors turn to the precious metal as a safe haven in rocky periods………………………………………..Full Article: Source

Gold price higher on safe-haven buying, US dollar retreats

Posted on 17 October 2014 by VRS  |  Email |Print

Gold prices held at higher levels after a spate of poor US data in the previous session boosted the metal above resistance levels and weighed on the dollar. The spot gold price was last at $1,242.70/1,243.40 per ounce, u $2.70 on Wednesday’s closing level and bubbling just below the month high hit in yesterday’s session at $1,250.
The dollar has retreated to 1.2804 against the euro, with US equity markets all closing in negative territory after the release of forecast-missing retail sales figures and on fears of the spread of Ebola, bolstering gold’s credentials once again as a safe-haven asset………………………………………..Full Article: Source

The Real Reason Behind Gold’s October Surge

Posted on 17 October 2014 by VRS  |  Email |Print

On October 6 when GLD was trading for $114, I outlined a surprising case for the bullish trend change in the precious metals by asking the question accompanying the chart below, “What is this a chart of?”
In my article, “This Secret Uptrend Will Surprise You,” I laid the case for a rally in the precious metals on the back of a short term bottom in the Euro. That article and chart were extremely important for those owning precious metals as the updated chart below shows price has held its trend (in Euros) and has again started to advance………………………………………..Full Article: Source

Why Murenbeeld Thinks Gold Will Hit $1,335

Posted on 17 October 2014 by VRS  |  Email |Print

It seems hard to find someone who is bullish on gold prices these days but this economist thinks $1,335 gold may not be far-fetched. “One of the things that tend to be overlooked…is that the real interest rate in the U.S., particularly at the short end, is going to remain negative right through 2015,” he said.
“Furthermore… you will have significant additions to global liquidity and that is one of the key factors in our models and our forecast [for gold].” On this special 5-year interview with Dundee Capital Market’s Martin Murenbeeld, everything from QE4 to the U.S. dollar strength are covered. He thinks the U.S. currency is overvalued and a fiscal policy initiative should be put in place to rectify the situation………………………………………..Full Article: Source

LBMA names Morgan Stanley as gold, silver market maker

Posted on 17 October 2014 by VRS  |  Email |Print

The London Bullion Market Association (LBMA) said on Thursday it appointed Morgan Stanley as a market maker, underscoring the ambitions of some banks to expand into precious metals trading while others exit due to stringent regulations.
LBMA said it named Morgan Stanley & Co International, a unit of US investment bank Morgan Stanley, as a spot and options market-making member effective Thursday. Currently, LBMA has 13 market makers which serve in either one, two or all three of the spot, options and forwards markets. They make markets by quoting two-way prices in both gold and silver products to other market makers………………………………………..Full Article: Source

HSBC Bullish On Platinum Group Metals But Trims Forecasts

Posted on 17 October 2014 by VRS  |  Email |Print

HSBC maintained its bullish outlook on platinum group metals but trimmed its price forecasts Thursday. The bank described platinum as “oversold” after a decline in recent months, dragged down by weakness in gold and strength in the U.S. dollar.
“We maintain our bullish outlook on platinum but lower our price forecast by 6% in 2014 to average USD1,410/oz,” HSBC said. It revised its 2016 forecast to $1,505 from $1,700. For sister metal palladium, HSBC left its 2014 forecast at $825 but trimmed its 2015 outlook to $855 from $900………………………………………..Full Article: Source

Gold, silver doldrums to continue in 2015 - Natixis

Posted on 16 October 2014 by VRS  |  Email |Print

Noting that events in the United States are expected to exert the biggest impact on gold prices as they continue to disintegrate investors’ need for a safe haven, Natixis Commodities Research has predicted a gold price base forecast of an average of $1,170/oz in 2015 and $1,180 in 2016.
“For physically backed gold ETPs, we expect that current gradual outflows will continue during 2015,” advised precious metals analyst Bernard Dahdah and head of commodities research, Nic Brown. “We do not expect sharp outflows as we believe that most institutional investors already exited their positions in 2013.”……………………………………….Full Article: Source

Gold price vs Dow Jones shows metal still cheap

Posted on 16 October 2014 by VRS  |  Email |Print

On Wednesday gold futures enjoyed another up day, lifting the price of the precious metal to a five-week high on the back of a huge selloff on equity markets after surprisingly weak economic data from the US. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for December delivery was changing hands for $1,241.70 an ounce, up $7.40 from yesterday’s close.
Some safe haven buying prompted by wars in the Middle-East and a spreading Ebola pandemic also attracted buyers. But it’s mainly falling bond yields (making gold which does not pay a coupon more attractive) and weakness on stock markets that have pushed the metal 4.2% higher in value from nine-month lows hit earlier in the month………………………………………..Full Article: Source

Gold price set to average $1,170 in ’15 – Natixis

Posted on 15 October 2014 by VRS  |  Email |Print

Gold mines operating at higher costs represent a new potential source of supply in a market where prices will average $1,170 per ounce in 2015, Natixis said. Due to aggressive cost-cutting by gold producers, the all-in sustaining costs of production have fallen to somewhere around $960 per ounce, the research firm said in its latest report on Tuesday.
“That said there are still many mines operating at higher costs that could potentially need hedging,” it said. “This represents a potential source of supply in the market, which could help to accelerate any decline in prices.” The price of gold has been steadily declining since June, falling to a low near $1,180 in September before rebounding to $1,235.10/1,235.90 per ounce on Tuesday afternoon, effectively unchanged on Monday’s closing level………………………………………..Full Article: Source

Gold Futures Rise to Four-Week High on Demand for Haven

Posted on 15 October 2014 by VRS  |  Email |Print

Gold futures rose to the highest in almost four weeks as concern that global economic growth is slowing spurred demand for a haven asset. The metal advanced this month as Federal Reserve officials indicated a worldwide economic slowdown may delay U.S. interest-rate increases. Germany cut its growth outlook today, and investor confidence fell to the weakest in two years as recession concerns mount.
Holdings in exchange-traded products backed by gold rose yesterday by the most since July. On Oct. 10, the assets were at a five-year low. Prices climbed 2.4 percent last week, snapping five straight losses, as bets that record-low borrowing costs will persist fueled investor demand………………………………………..Full Article: Source

Expect big silver price surge if gold stays positive

Posted on 15 October 2014 by VRS  |  Email |Print

What a difference 10 days makes. A little over a week ago the gold market was all doom and gloom with the yellow metal crashing back below $1200 an ounce. But with a few extraneous geopolitical and global health factors positively impacting the market, and the possibility of a general stock market crash in the minds of investors, gold has seen positive action on the price front in something of a safe haven turnaround.
But silver, on the other hand, has hardly moved at all. Compare the 30-day kitco gold and silver charts below – courtesy kitco.com and kitcosilver.com. Historically, silver prices have sharply outperformed gold when precious metals prices are rising, and sharply underperformed when they are falling yet this pattern on the upside has just not yet started to appear. But if the recent gold price rise isn’t just a blip then we would expect silver to start to move upwards – and move upwards fast………………………………………..Full Article: Source

World’s top 10 silver producers updated – companies & countries

Posted on 15 October 2014 by VRS  |  Email |Print

While it has always been relatively easy to collate the world’s top 10 gold miners because they are all primary producers, to do the same for silver is not nearly such an easy task as most of the world’s silver is produced as a by- or co-product of gold and base metals mining.
Thus in the table of the top 10 global silver producers shown below only four could be classified as primary silver miners – and virtually all those will, in any case, also be producing other metals – notably gold, lead and zinc – as very significant by products without which they would perhaps not be profitable mining companies………………………………………..Full Article: Source

Palladium stands out from commodities crowd

Posted on 15 October 2014 by VRS  |  Email |Print

“Palladium is the outlier in the metal space,” says Walter de Wet, commodities strategist at Standard Bank. Speculative short positions – bets that the price will drop – have been rising across the market since mid-August, not surprising given the negative sentiment shift of late.
The selling has hit both precious and industrial products, with silver and copper shorts at the most in at least five years, Mr de Wet notes. The palladium price has slipped more than $100 over the past few months but, in contrast to peers, palladium shorts have also been falling………………………………………..Full Article: Source

A Comeback for Platinum and Palladium?

Posted on 15 October 2014 by VRS  |  Email |Print

Platinum and palladium futures rose this past week as traders swooped in to take advantage of prices that have fallen as a result of the strong US dollar. Russian and Swiss central banks looked to take advantage of the lower prices by stockpiling platinum and gold, respectively.
The week’s biggest mover on the weekly Global Precious Metals MMI was the price of Japanese palladium bar, which saw a 4.2% increase to JPY 2,742 ($25.19) per gram. This comes on the heels of a 7.3% decline the week prior. The price of US palladium bar rose 2.6% to $779.00 per ounce after falling 3.4% during the previous week. The price of Chinese palladium bar fell 0.6% to CNY 174.00 ($28.33) per gram after rising 1.7% the week before………………………………………..Full Article: Source

Barclays remains cautious on gold prices

Posted on 14 October 2014 by VRS  |  Email |Print

The precious metals endured intense downward pressure a week ago amid a stronger dollar and firmer rates, and last week a reversal of the macro dynamics has enabled the precious metals, gold in particular, to stage something of a bounce.
In line with Barclays expectations, from the lows reached at the end of last week, both of the PGMs have staged the strongest recovery with gold prices trading back above $1200 an ounce, as physical buying has returned in both India and China w/w. However, Barclays remains cautious on gold prices, and continue to see the macro environment presenting headwinds and would look for opportunities to sell into a rally………………………………………..Full Article: Source

Will Gold Prices Make A Reverse Swing?

Posted on 14 October 2014 by VRS  |  Email |Print

This is the festival time in India and should investors consider this sell-off as an opportunity to buy precious metals on the cheap? Is it the right time to buy Gold? Why this decline may not benefit Indian consumers? Take International Gold prices which fell under $1,200 an ounce this week for the first time in 2014.
Looking at technical price charts, a nearby continuation chart shows the December 2013 low of $1,180, which is just above the June low of $1,179.40. How the physical market responds to the trip under $1,200. Chinese traders will return to the market next week after their Golden Week holiday ends, and they anticipate these lower prices will stimulate Chinese demand………………………………………..Full Article: Source

Gold Rises As Worries About World Economy Spur Safety Buying

Posted on 14 October 2014 by VRS  |  Email |Print

Gold prices rose to the highest level in nearly four weeks as growth jitters burnished the appeal of relatively safe investments. Investors in recent days have sold stocks and other assets sensitive to the outlook for the global economy, scooping up traditional havens such as Treasurys and the Japanese yen. That shift also has lifted prices of gold, which had fallen out of favor with many money managers in the past two years.
The prospect of higher interest rates in the U.S. has weighed on the gold market since early 2013, when Federal Reserve officials first hinted that the central bank would begin dialing back accommodative monetary policies in place since the financial crisis. That dulled the allure of gold, which yields nothing and costs money to hold………………………………………..Full Article: Source

Why the gold rally might not last long

Posted on 14 October 2014 by VRS  |  Email |Print

Gold showed it still has a little more shine left to it. The precious metal bounced back to a three-week high after turning negative for the year. Investors have been flocking to bullion as the European economy and markets shake up. However, the rally in bullion may be short-lived because of strength in another safe haven, the U.S. dollar.
Gina Sanchez, founder of Chantico Global, expects gold prices to trade relatively flat, if not weaken, because investors are also piling into the dollar. “While we are seeing some negative sentiment around economic growth, the fact of the matter is that the U.S. is still growing better relative to the rest of the developed markets,” she said. “That’s causing a lot of money to flow into the U.S. dollar, and as the U.S. dollar continues to strengthen, that is bad for gold.”……………………………………….Full Article: Source

Silver price set-up attracts China banks

Posted on 14 October 2014 by VRS  |  Email |Print

Several Chinese banks have expressed interest in participating in the new global price setting mechanism for silver, according to the head of the London Market Bullion Association. The LBMA ushered in a new era of electronic benchmarking for London’s precious metals market in August when an algorithm was used for the first time to set the benchmark price for silver.
But so far only five participants have signed up to the new process, with JPMorgan Chase joining on Monday. The LBMA Silver Price replaces a closed teleconference run by member banks that was criticised for being opaque and vulnerable to manipulation………………………………………..Full Article: Source

Palladium Still the Fairest Precious Metal: BMO Capital Markets

Posted on 14 October 2014 by VRS  |  Email |Print

BMO Capital Markets made waves last week with the announcement that it’s lowered its price expectations for gold , silver and platinum. That’s bad news for precious metals investors, but luckily there’s still one such metal that the firm believes will do well. That, of course, is palladium.
In a report, BMO Nesbitt Burns analyst Jessica Fung said the firm sees gold averaging $1,190 per ounce in 2015, lower than its previous forecast of $1,275, and $1,238 in 2016, a drop from $1,250. Meanwhile, it sees platinum averaging $1,413 in 2015, down from the previously announced $1,500, and just $1,425 in 2016, a decline from $1,550………………………………………..Full Article: Source

Hedge Funds Miss Out on Gold Gains as Bull Holdings Drop

Posted on 13 October 2014 by VRS  |  Email |Print

Hedge funds reduced bullish gold wagers just before prices rallied the most since June on concern that global economic growth is weakening.The net-long position in New York futures and options contracted for an eighth week, U.S. government data show. The International Monetary Fund cut its 2015 world growth forecast on Oct. 7.
Minutes of the Federal Reserve’s last meeting showed policy makers saw slowing foreign expansion as a risk to the U.S., fueling bets that record-low borrowing costs will persist………………………………………..Full Article: Source

Asian Market Hubs Move Into Gold

Posted on 13 October 2014 by VRS  |  Email |Print

Asians buy most of the world’s gold, but nearly all of it trades in London. Now, with Western investors souring on the metal, the region is making a bid for some of the action. Three big financial hubs in Asia are separately launching trading in a gold contract, each backed with physical gold.
If they draw enough investors, the contracts could influence the price of gold, which is set by a daily fix in London. “You now have a market that’s driven by Asia,” says Catherine Raw, who manages BlackRock Inc.’s $7 billion global mining fund………………………………………..Full Article: Source

Why the gold bear market may finally be over

Posted on 13 October 2014 by VRS  |  Email |Print

After three tough years for gold, could a bullion turnaround finally be in the cards? That’s the argument made by Lindsey Group’s chief market analyst, Peter Boockvar, who says that the Federal Reserve meeting minutes released this week point to a reversal for the precious metal.
“The three-year bear market in gold, in my opinion, is over, because yesterday in their minutes, the Fed officially threw their hat in the global-currency-war ring,” Boockvar said……………………………………….Full Article: Source

Gold rebounds on reversal of macro dynamics, caution advised: Barclays

Posted on 13 October 2014 by VRS  |  Email |Print

Gold has rebounded on reversal of macro dynamics after witnessing intense downward pressure last week on stronger dollar nd firmer rates. With demand returning to India and China, precious metals seem to be a on a better footing. However, Barclays said it remains cautious on gold prices and continue to see the macro environment preseting headwinds and would look for opportunities to sell into a rally.
Gold prices are trading back above $1200/oz, buoyed by a relatively more supportive external environment w/w,as well as gold-specific factors turning comparatively positive.The FOMC minutes provided a boost to gold as markets concluded that the Fed may remain patient before moving to rate hikes. Meanwhile, physical demand has materialised at lower price levels………………………………………..Full Article: Source

Will gold and silver prices continue to go up as stocks go down?

Posted on 13 October 2014 by VRS  |  Email |Print

Last week gold and silver prices advanced by three per cent while the S&P 500 lost that much in its worst week for two years. Is this a new trend? Gold has almost certainly traced out a bullish triple bottom in its price chart, although the position looks less clear on the silver chart. Many areas of the US stock market are already past 10 per cent corrections while the major indexes are the last dominos to fall and on their way down now.
Is this a straightforward rotation into safe havens? T-bonds are also up. Riskier assets like junk bonds are out of favor like small cap stocks. True but this is not going to be a repeat of the 2008-9 wipe-out for precious metals for three reasons. First, gold and silver have just completed a three-year-plus correction. They are not at the top of their cycle waiting for a correction like equities today as they were in late 2008………………………………………..Full Article: Source

Standard Chartered strikes gold in China commodities

Posted on 13 October 2014 by VRS  |  Email |Print

While markets started the year range-bound, a surging dollar, weak economic data from Europe and the US – plus supply exceeding China demand – saw volatility return by the middle half of 2014 in a number of key commodities. Iron ore saw prices fall by 41% to reach a five-year low in mid-September, while protectionist moves by the Indonesian government requiring nickel to be smelted locally initially drove a spike in prices but this eventually reversed as Chinese firms offloaded supply into the global market, driving September prices 20% below their May high.
For banks, the global retreat from the commodities market continued. Credit Suisse closed down its commodities arm – a move that was felt particularly in Singapore, given the firm’s market-making role on the Singapore Exchange’s iron ore swap contract. The diminishing role of the global banks has been particularly felt in the oil derivative markets as the oil majors play an increasingly important role………………………………………..Full Article: Source

Why A Gold Standard Does Not Imply Price Stability

Posted on 10 October 2014 by VRS  |  Email |Print

Last week, Alan Greenspan penned an interesting article in Foreign Affairs that praised China’s recent conversion of some of its $4 trillion foreign exchange reserves into gold bullion and gave the gold standard some further adulation in a world where there is relatively little today from mainstream economists.
This marks the first time the gold standard has been seriously discussed by a senior U.S. policymaker (former or present) since 2012, when two GOP presidential candidates, Newt Gingrich and Ron Paul, along with former Congressman Lewis Lehrman and Grant’s Interest Rate Observer founder James Grant, called for a commission to consider readopting the gold standard………………………………………..Full Article: Source

World top 15 gold producers - output still rising but peaking this year

Posted on 10 October 2014 by VRS  |  Email |Print

According to the latest research report from London-based precious metals analysts – Metals Focus – global mined gold output is still on the increase this year, despite the much lower gold price prevailing. This is primarily due to the build-up to full production of a number of major new gold mining operations which came on stream in 2013, while the start-ups at Kibali in the DRC, Aykem in Ghana and Tropicana in Australia added a further 21 tonnes in the first half of the current year.
The increased mine production in the first half of the year, however, was at least in part countered by a continuing decline in scrap sales – indeed the consultancy is forecasting a fall in global gold supply for the full year due to a predicted double digit drop in scrap supply………………………………………..Full Article: Source

CIBC: Gold prices likely ‘not too far from their cyclical lows’

Posted on 10 October 2014 by VRS  |  Email |Print

Gold prices are “probably not too far from their cyclical lows,” said CIBC World Markets in a commodity update released Thursday. The Canadian bank forecast gold to be around $1,300 an ounce at the end of 2015.
CIBC recounted factors that have pressured the metal since earlier in the year, including a renewed bid in the U.S. dollar, muted inflationary pressures and market chatter about the U.S. Federal Reserve eventually tightening monetary policy………………………………………..Full Article: Source

BMO cuts gold, silver, platinum price outlook

Posted on 10 October 2014 by VRS  |  Email |Print

BMO Capital Markets warns miners should prepare for a “prolonged period of sub-US$1,200/oz gold prices.” As a result, “many of the gold producer equities will struggle, especially those with higher cash costs and/or high debt loads,” cautioned BMO Nesbitt Burns analyst Jessica Fung in a report issued October 7th.
“Gold, silver and platinum prices remain under considerable pressure due to expectations for the U.S. dollar to continue strengthening,” Fung advised. BMO has lowered 2015-16E gold prices from $1,275 to $1,190 in 2015 and from $1,250 to $1,238 in 2016 to reflect recent price performance, adding “BMO Research does not expect any upset for gold from current levels until H2/16E based on U.S. dollar forecasts.”……………………………………….Full Article: Source

Silver Price Optimism Still in the Cards

Posted on 10 October 2014 by VRS  |  Email |Print

It’s no secret that silver is having a bad time. Though prices for the white metal generally pick up in September, when investors return to the market after vacation, that simply hasn’t held true this year. Instead, silver has trended downward, with its slide culminating in a fall below $17 per ounce just over a week ago.
That’s pretty poor news, especially when silver’s overall 2014 price performance is taken into account — the metal has dropped 19 percent in the last quarter alone, and is down 22 percent for the year as a whole. However, that’s not to say silver is a lost cause; in fact, the current situation has a couple of pluses………………………………………..Full Article: Source

Morgan Stanley Says Gold One Of The Least Desireable Metals

Posted on 09 October 2014 by VRS  |  Email |Print

Asian markets are trading on a negative note ahead of the US Federal Reserve minutes today and concerns that global economic growth may worsen in future after International Monetary Fund (IMF) cuts the global growth forecast to 3.8 percent in 2015 from earlier estimates of 4 percent. This morning China’s HSBC Services Purchasing Managers’ Index (PMI) declined by 0.6 points to 53.5-mark in September as against a rise of 54.1-level in August.
Gold rose for a second session on Tuesday as its safe-haven appeal increased after the International Monetary Fund cut its global economic growth forecasts and weak German industrial data stoked further concerns. Gold is trading at 1213.30 up by just under $1.00 in the Asian sessions………………………………………..Full Article: Source

International Gold Price should Bottom around $1,100 per Ounce

Posted on 09 October 2014 by VRS  |  Email |Print

Gold has lost its year to date gains post Friday’s blockbuster US jobs data. The headline US unemployment rate came in at 5.9% - the last time the unemployment rate was below 6% was in July 2008.
The US economy added 248,000 jobs in September, which marked the 48th straight month of job creation. This was sufficient news flow for traders to push back the price of the precious metal below $1,200/ounce as the probability of an earlier than expected rate hike by the Fed looks likely………………………………………..Full Article: Source

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