Fri, May 29, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Bullion/Gold more

Gold price to test $1,100/oz imminently – ANZ

Posted on 29 May 2015 by VRS  |  Email |Print

Gold lacks direction at present but could break lower to test $1,100 in the very near term, ANZ said. “The right signals might be just around the corner,” the bank said in a note on Thursday. “To us, a downside break of the $1,180-1,220 per ounce range looks imminent.”
Gold has predominantly traded in a $1,175-1,225 range this year and was last little changed from the start of 2015 at $1,189 per ounce. But the US Federal Reserve is on course to raise interest rates this year or early in 2016, which would raise the opportunity cost of holding gold and push investors into more yield-bearing assets…………………………………Full Article: Source

The Fix Is In: Gold Price Manipulation is a Global Effort

Posted on 29 May 2015 by VRS  |  Email |Print

Many people think about gold as a percentage of a country’s total reserves. They are surprised to learn that the United States has 70% of its reserves in gold. Meanwhile, China only has about 1% of its reserves in gold. People look at that and think it shows an imbalance. But the way I see it, those are not very meaningful figures.
The figures are not meaningful because all countries’ reserves are a mixture of gold and hard currencies. The currencies can be in bonds or other assets. The US doesn’t need other currencies. We print dollars, so why would we hold euros and yen?………………………………..Full Article: Source

Gold price consolidate as safe haven status wanes

Posted on 29 May 2015 by VRS  |  Email |Print

The gold price was steady on Thursday, as dollar strength continued to cap gains and the yellow metal remained under the psychologically important $1,200 level. Spot gold was last at $1,188.80/1,189.50 per ounce, a $1.10 increase on the previous day’s close, as the metal was content to tread in well-worn ranges.
“Overall, we feel that a long-term base is being formed here, paving the way for the next bull leg in the super-cycle; but current conditions favour a slip to the lower end of the range,” Triland said in a note. Meanwhile, the metal’s status as a safe haven asset waned today amid renewed optimism over Greece staying in the eurozone…………………………………Full Article: Source

NCDEX launches “Gold Now”- the new national market for Gold

Posted on 29 May 2015 by VRS  |  Email |Print

NCDEX, the leading national commodity exchange, today announced the launch of a new national market for gold. The “Gold Now” platform is the first transparent and convenient online market for buying and selling gold. Aligned with the “Make in India” campaign of the government, the platform will accept gold recycled in exchange-approved refineries as Good Delivery. This is intended to reduce the dependence on imports.
Samir Shah, MD & CEO, NCDEX, said, “With the launch of the Gold Now national marketplace, we are creating an ecosystem that is at par with international standards and which will help the bullion and jewellery industry improve its efficiencies.”………………………………..Full Article: Source

Hedge Funds Have Taken a Shine to Silver

Posted on 29 May 2015 by VRS  |  Email |Print

Silver prices have remained stuck at historical lows for the past three years, but hedge funds have decided now is the time to pile in. Last week, hedge funds snapped up silver at the fastest pace since 1997, increasing their net long position to a three-month high according to data from Bank of America Merrill Lynch.
Large speculators increased their net long position to $4.4 billion as of May 19, up from $2.4 billion in the previous week, according to the bank’s research. The data, gathered from the U.S. Commodity Futures Trading Commission, is released every Friday, but reflects positions as of Tuesday’s close. The regulator requires traders to hand over data on their significant positions in major markets. Bank of America Merrill Lynch looks at a section of this data, which includes trading by speculative investors………………………………..Full Article: Source

Gold Price Has Bottomed – More Evidence

Posted on 28 May 2015 by VRS  |  Email |Print

Prominent analysts have announced often and persistently that gold will drop to $1,000, $850, and even below $500. Mainstream media, “gold-bashers,” and banks encourage the “gold is going lower” meme. But gold is real money, in contrast to the paper stuff that is valuable only as long as people, businesses, and countries retain confidence that it will devalue, but only slowly.
The world runs on paper and digital fiat currencies so don’t expect banks, central banks, or western governments to encourage or support gold. However, with the constant barrage of anti-gold, anti-silver, pro-dollar and pro-paper media stories, it is not surprising that people are confused, worried, and scared regarding gold prices, the value of real money, and the inevitable demise of paper currencies…………………………………….Full Article: Source

Bullish And Bearish Forces In The Gold Market

Posted on 28 May 2015 by VRS  |  Email |Print

The price of gold has gone nowhere in the last two years and has created a 2-year basing pattern. That is constructive for gold prices as the stronger the base, the stronger the next trend. But a trendless market also indicates a battle between bullish and bearish forces.
The strong U.S. dollar has pressured precious metals since last summer. Also, the talk of interest rate hikes by the Fed is said to have negatively influenced gold. We have explained previously that we hold an alternate view on the relationship between interest rates and gold, as detailed in “What Is Really Driving Gold.”……………………………………Full Article: Source

Gold Has Two Major Hurdles to Overcome

Posted on 28 May 2015 by VRS  |  Email |Print

Gold has 2 major hurdles to overcome and they are as follows: 1. Interest rate rises in the US. 2. Money printing by other nations, Japan, UK, Europe, etc. Both support the US$ and put downward pressure on gold. The specter of interest rate increases in the US hangs over the precious metals sector like the Sword of Damocles.
The Federal Reserve has stated that they want to ‘normalize’ rates now that the period of Quantitative Easing is over. Employment figures published by the Department of Labour have shown a steady increase in the number of jobs created over the last twelve months or so. On the inflation front; core prices, which exclude food and energy rose at a yearly pace of 1.8% for the month of April, which is the fastest monthly rise for almost a year……………………………………Full Article: Source

Gold is Poised to Move Lower Than Its $1,200 level

Posted on 28 May 2015 by VRS  |  Email |Print

Gold had a rough start to the week as the yellow metal dulled when it fell below the key $1,200 level, due to the strength of the U.S. dollar. For most of 2015, gold has been trading around $1,200 as it struggles to find its footing amid speculation over interest rate hikes that is causing gyrations in the markets.
Gold has mostly been more of a technical trade. Commodities are priced in U.S. dollars, so as the greenback moves higher, instruments like oil and gold generally move lower. And, of course, the reverse of this strong correlation also applies…………………………………….Full Article: Source

Gold price back under $1,200/oz as dollar strength weighs

Posted on 27 May 2015 by VRS  |  Email |Print

The gold price dropped under $1,200 per ounce during early Tuesday sessions as the yellow metal came under pressure from a stronger dollar following comments from the US Fed chair at the end of last week. On Friday, US Fed chair Janet Yellen said that despite mixed signs on the US economy, she expected to go through with an interest rate hike this year – with many in the market predicting a September date.
Spot gold was last at $1,197.20/1,198, a $9 loss on the previous day’s close. In currencies, the dollar was firm against the euro at 1,0918. “Unlike the Fed, other central banks are in full “easing mode” and are even contemplating expanding their stimulus (as is the case for China). All this should be, in theory, bullish for gold, but the precious metal has to contend with the offsetting bearish variable of a stronger dollar,” said INTL FCStone analyst Edward Meir…………………………………..Full Article: Source

The truth about gold prices

Posted on 27 May 2015 by VRS  |  Email |Print

Boris Gerjovič, from Maribor, Slovenia, accomplished a thorough examination of the real impact of interest rates on the price of gold. The results may surprise you. For quite some time, central banks around the globe — first and foremost the Federal Reserve System — are tinkering with the threat of a hike in interest rates, whereas the prompt result is a ‘Damocles Sword’ hovering above the markets, especially gold (higher US interest rates are generally believed to lead to a higher US dollar impacting the price of gold in US dollar negatively).
As per “The Sword above the Damocles-Dollar“ (2010): “The value of the sword is not that it falls, but that it hangs threatening to fall… Uneasy rests the head that wears the crown!”………………………………….Full Article: Source

When Is the Best Time to Buy Gold?

Posted on 27 May 2015 by VRS  |  Email |Print

Call it superstitious, call it good marketing, or call it tradition, writes Adrian Ash at BullionVault. But where India has Akshaya Tritiya in spring and Diwali in autumn, China then has Lunar New Year – the most ‘auspicious’ time of year for people to buy gold.
The best time for gold traders, however, is different. And it may be due in some part to those same religious and astrological dates observed by gold buyers in Asia. “Sell in May, come back on St.Leger’s Day,” claims stockbroking lore in the City of London. That old chestnut basically tells clients and staff to take a long summer vacation, starting with the Whitsun Bank Holiday and returning after the year’s last big horse-race meeting. Wouldn’t want to disturb your broker from studying the form, after all…………………………………..Full Article: Source

Silver Is Shaping Up To Be The Best Precious Metal Play Of The Decade

Posted on 27 May 2015 by VRS  |  Email |Print

Despite being caught in a long-term bear market, silver offers considerable long-term potential upside. The gold-to-silver ratio indicates that silver is significantly undervalued in comparison to gold.
Supply and demand fundamentals point to an ongoing physical supply deficit that will boost prices. Increasing industrial demand, particularly for solar and hi-tech applications, will exacerbate the supply shortage, driving prices higher…………………………………..Full Article: Source

India’s proposed gold deposit scheme could be a game-changer worldwide

Posted on 26 May 2015 by VRS  |  Email |Print

If the much-vaunted gold deposit scheme that seeks to tap into the country’s idle stock of 20,000-22,000 tonnes of the yellow metal succeeds in unleashing a fraction of that trapped wealth into the market, a likely supply-demand imbalance will turn the bullion market into a topsy-turvy state, said analysts.
Two likely scenarios — a supply glut and consequent price crash — that may emerge if India succeeds with its landmark gold monetisation plan will have a game-changing impact on the global precious metal industry………………………………………..Full Article: Source

Gold Market Remains Vulnerable To A Stronger U.S. Dollar

Posted on 26 May 2015 by VRS  |  Email |Print

Gold prices ended up Friday, just a few dollars off their weekly low, but managed to hold on to the $1,200 an ounce level as a stronger U.S. dollar and low liquidity in the marketplace created some week-end selling pressure, Friday. Gold ended the week in negative territory, after two consecutive weeks of positive gain. Comex June gold futures ended Friday at $1,204 an ounce, down more than 1.5% from Monday’s opening price.
At the same time the silver market underperformed as Comex July silver futures settled Friday at $17.111, down more than 2.4% for the week. The selloff in the gold market started on Tuesday as a five-day rally lost momentum to a surging U.S. dollar. Looking ahead, the price forecast appears at best mixed. The Kitco weekly gold survey saw a drop in enthusiasm as most Main Street voters are negative on gold prices next week but most analysts are bullish………………………………………..Full Article: Source

Should you be investing in gold right now?

Posted on 26 May 2015 by VRS  |  Email |Print

Is this the best time to stay invested in gold? Gold, which neared the keenly-watched $1,400 (Dh5,138) an ounce in 2014, had been an investor’s darling, but the yellow metal has mostly been curtailed in a range so far in 2015. But analysts are painting a bearish picture on gold over the short to medium term.
On Thursday, international spot gold traded at $1,200 an ounce level, after having traded in range of $1,163-$1,306.2 so far in 2015. Gold moved around $1,200 an ounce as bullish catalysts, such as signs of faster inflation, were offset by speculation the Federal Reserve will soon raise interest rates. While the weaker dollar usually draws buyers to gold, there’s also less demand for haven assets with equities near all-time highs………………………………………..Full Article: Source

Why the Economist is wrong on gold

Posted on 26 May 2015 by VRS  |  Email |Print

When reading the financial press, the amount of coverage one sees on the topic of precious metals, is almost nonexistent. Most pundits don’t care for the metal, nor do they understand it. In fact, former Federal Reserve Chairman Ben Bernanke told Congress that he doesn’t understand gold. Yet, when you read articles on gold from media pundits, all one hears is negativity about why you shouldn’t invest in the yellow metal.
The best example of this is a recent article I read in the Economist. It is called, Russia is buying gold, but few others are. This article claims that despite the low interest rate, easy money environment, combined with the fact that half the gold mining companies are generating negative cash flows, gold is still stuck at a stagnate price of $1200 per ounce. The economist claims, that this is due to the fact that no one is buying the yellow metal, except for Russia………………………………………..Full Article: Source

Silver is a Special Metal

Posted on 26 May 2015 by VRS  |  Email |Print

It always has been. And on a value basis, it’s also a good buy. Silver has been chugging more than gold but once it pops up, it could take off like a bandit. There are many reasons why silver will go higher and it’s just a matter of time. And as our dear friend Richard Russell points out, JP Morgan is aggressively accumulating physical silver by the hundreds of millions of ounces.
This is the largest accumulation of physical silver by a private entity in history! Plus, it’s three times the 100 million ounces acquired by the Hunt Brothers in 1980 or by Warren Buffet in 1998………………………………………..Full Article: Source

Platinum price – the cheese and biscuits analogies

Posted on 26 May 2015 by VRS  |  Email |Print

Platinum has been in a large deficit for the last two to three years – and a substantial one at that, last year in particular with the five-month long platinum miners’ strike in South Africa taking perhaps a further 1 million ounces away from the production picture. But, over this same period, the price has not risen, but has fallen, thus seemingly being counter to the normal supply/demand process.
An interesting panel discussion at last week’s Bloomberg Precious Metals Forum in London did not see an immediate end to this price malaise, although looking further ahead did feel there would be a stage when fundamentals would start to impact price positively………………………………………..Full Article: Source

Investments in gold could be the next best bet

Posted on 25 May 2015 by VRS  |  Email |Print

An increasing number of professional money managers think gold will be where the retail punters go to next and it’s true gold has been trading more like a currency than a commodity recently. If the dollar is no longer king, then gold looks like a worthy successor.
For a start, gold is at the bottom of a correction of more than three years and attractively priced for an upward move. It topped out at $1,923 in October 2011 and seems to have bottomed out around $1,140 an ounce. Gold has actually already held up very well with the rise of the US dollar and came second only to the dollar last year in performance against all other currencies………………………………………..Full Article: Source

Is this the best time to stay invested in gold?

Posted on 25 May 2015 by VRS  |  Email |Print

Gold, which neared the keenly-watched $1,400 (Dh5,138) an ounce in 2014, had been an investor’s darling, but the yellow metal has mostly been curtailed in a range so far in 2015. But analysts are painting a bearish picture on gold over the short to medium term.
On Thursday, international spot gold traded at $1,200 an ounce level, after having traded in range of $1,163-$1,306.2 so far in 2015. Gold moved around $1,200 an ounce as bullish catalysts, such as signs of faster inflation, were offset by speculation the Federal Reserve will soon raise interest rates. While the weaker dollar usually draws buyers to gold, there’s also less demand for haven assets with equities near all-time highs………………………………………..Full Article: Source

Gold settles lower as market mulls timing of U.S. rate hike

Posted on 22 May 2015 by VRS  |  Email |Print

Gold futures settled lower Thursday as investors parsed the minutes of the Federal Reserve’s April meeting released a day earlier, digging for further clues of the timing of an interest-rate hike.
At least for now, it seems that the possibility of a June rate hike has been deeply diminished. Still, the sense that the first hike in a decade may come sometime this year is giving gold investors reason to pause. Higher rates diminish the appeal of gold, which doesn’t offer interest………………………………………..Full Article: Source

Gold Trading ‘Anemic’ After ‘Rejecting $1232′

Posted on 22 May 2015 by VRS  |  Email |Print

Gold Trading in London saw Dollar prices slip to 1-week lows at $1202 on Thursday, as US stock markets rose and European shares eked out a small gain following better than expected manufacturing activity data.
The US currency held little changed following Wednesday’s release of minutes from the Federal Reserve’s latest policy meeting showed little chance of the first rate-rise from 0% coming in June, as formerly hinted. Silver meantime held firmer than gold, trading above $17.15 per ounce as commodity prices more broadly rose with US Treasury bond prices………………………………………..Full Article: Source

Chinese Gold Standard Would Need a Rate 50 Times Bullion Price

Posted on 22 May 2015 by VRS  |  Email |Print

A move to a gold standard in China would require an exchange rate of as much as $64,000 an ounce, 50 times bullion’s price now, according to Bloomberg Intelligence. A traditional gold standard, in which the precious metal backs the currency, is basically impossible at current prices due to the amount of metal needed and there’s no evidence the sixth-biggest bullion holder will adopt one, Bloomberg Intelligence said in reports published Wednesday.
Any attempt probably would involve new technologies and depend on the ratio of what is backed, it said. Chinese policy makers are trying to establish the yuan as a reserve currency, and backing it with gold would help attract foreign capital inflows, the Bloomberg research unit wrote………………………………………..Full Article: Source

Gold steady above $1,200 as June rate hike prospects dim

Posted on 22 May 2015 by VRS  |  Email |Print

Gold was little changed above $1,200 an ounce on Thursday, as minutes from the Federal Reserve’s policy meet showed the U.S. central bank was unlikely to hike interest rates in June, in line with market expectations.
Minutes of the Fed’s April meeting, released on Wednesday, showed policymakers believed it would be premature to hike interest rates in June, a view that is already widely held in the market following disappointing U.S. economic data. The minutes showed Fed officials pushing the prospect of a rate hike later into the year………………………………………..Full Article: Source

Gold Forecast: Likely Going Higher

Posted on 22 May 2015 by VRS  |  Email |Print

The action in the gold futures market (June 15) suggest that the metal will more than likely rise from here. During the session on Wednesday, we had the FOMC meeting minutes released, and they suggested that a June interest rate hike is very unlikely out of the Federal Reserve. This of course will build a bit of a case for owning gold, as the US dollar will more than likely struggle.
However, we didn’t necessarily think there was an imminent hike coming, and I think that the market in general was already looking at that possibility. It is because of this that we are looking for a gradual gain in the gold market, not some kind of “melt up.” The candle from the Wednesday session also makes a case for buying as far as we can see………………………………………..Full Article: Source

Gold Rises as Fed Minutes Boost Bets Rates Won’t Rise in June

Posted on 21 May 2015 by VRS  |  Email |Print

Gold prices advanced after minutes from the Federal Reserve’s last meeting showed that officials last month didn’t expect to raise rates at their next gathering in June. Many policy makers thought economic data available in June wouldn’t be robust enough to warrant tightening, according to the minutes released Wednesday of the April 28-29 session.
“People are interpreting these minutes as being more dovish than hawkish, and that is supporting gold,” Chris Gaffney, the president at EverBank World Markets in St. Louis, said in a telephone interview………………………………………..Full Article: Source

Chinese Gold Standard Would Need a Rate 50 Times Bullion’s Price

Posted on 21 May 2015 by VRS  |  Email |Print

A move to a gold standard in China would require an exchange rate of as much as $64,000 an ounce, 50 times bullion’s price now, according to Bloomberg Intelligence. A traditional gold standard, in which the precious metal backs the currency, is basically impossible at current prices due to the amount of metal needed and there’s no evidence the sixth-biggest bullion holder will adopt one, Bloomberg Intelligence said in reports published Wednesday.
Any attempt probably would involve new technologies and depend on the ratio of what is backed, it said. Chinese policy makers are trying to establish the yuan as a reserve currency, and backing it with gold would help attract foreign capital inflows, the Bloomberg research unit wrote………………………………………..Full Article: Source

India: Gold monetisation scheme to help bring idle gold into market

Posted on 21 May 2015 by VRS  |  Email |Print

The government on Tuesday proposed a new scheme offering tax-free interest on depositing the yellow metal with banks. The idea is to mobilise idle gold worth up to Rs 60 lakh crore held by households and institutions.
According to the draft gold monetisation scheme, there will be incentives for banks, too. While individuals and institutions could deposit even 30 grammes of gold, the interest earned on these deposits would be exempt from both income tax and capital gains tax………………………………………..Full Article: Source

HSBC bullish over gold

Posted on 21 May 2015 by VRS  |  Email |Print

The U.S. economy hasn’t completely recovered from its last recession – what some have called the biggest since the Great Depression – but another one could be just around the corner, according to one economist.
In an opinion piece in the Financial Times, Monday, HSBC chief economist Stephen King said that historical trends shows that recessions hit every eight or nine years and the last one in the U.S. ended six years ago. If history is any indication, the U.S. could be facing another recession in the next three years. What’s worse, he said, is that policy makers don’t appear to have the ammunition needed to fight another one………………………………………..Full Article: Source

A Rush to Gold ETF Options

Posted on 21 May 2015 by VRS  |  Email |Print

After stumbling through much of the first quarter, gold and bullion-related exchange traded funds have regained some lost luster, which has prompted increased options activity on ETFs such as the SPDR Gold Shares.
Tuesday “as in in recent sessions, the GLD call buying has been driven by the idea that gold, as a safe-haven asset, could benefit amid the turmoil in currency and bond markets, says Rebecca Cheong, head of Americas equity derivatives strategy at UBS Securities. And since gold prices haven’t swung to the same degree as currencies and government bonds, that means GLD options are cheaper for investors looking to hedge, she added,” reports Saumya Vaishampayan for the Wall Street Journal………………………………………..Full Article: Source

Industry sees no appeal in gold monetisation plan, says concerns remain

Posted on 21 May 2015 by VRS  |  Email |Print

A proposal in India to attract thousands of tonnes of gold owned by households into a bank deposit scheme will likely fail in its current form as it does not address some key concerns for banks and consumers.
Support from banks would be crucial for the success of the monetisation plan. Deposit schemes, similar to the one proposed on Tuesday by the Narendra Modi-led government, have previously failed as the incentives offered were not profitable for banks………………………………………..Full Article: Source

Gold Price Trend Forecast

Posted on 20 May 2015 by VRS  |  Email |Print

Now that Gold has pushed to a three month high, it’s clear that my bullish read of the Gold tape is at least partially correct. In the face of recent negative price action, I had managed to remain cautiously bullish given Gold’s position in a new Investor Cycle - it was far too early for Gold to be rolling over, even if it remained locked in an extreme bear market.
But now, after this week’s action, Gold is in a much better position, and with the possibility of upside ahead. The market analysts who have been overwhelming bearish on Gold (many holding Shorts) are now in the position of potentially needing to play catch up, which would chase the market higher. We’ll be eagerly watching for upside confirmation, but for now, we’ll be content with finally gaining clarity on Gold’s Cycles………………………………………..Full Article: Source

History Shows A Gold Bull Market Is Fast Approaching

Posted on 20 May 2015 by VRS  |  Email |Print

Yearning for sunnier skies for your gold investments? How’s this sound…Gold in a decisive bull market, with the price steadily rising. Silver soaring and outpacing gold’s gains. Gold stocks rocking, erasing underwater positions and racking up the profits.
That’s not pie in the sky wishful thinking—it accurately describes the next stage of the gold market, something that will soon visit your portfolio. With the price of gold currently stuck in place, like a stain on the front of your best shirt, and the stocks only teasing us like Lucy holding the football for Charlie Brown, how can I be so sure?……………………………………….Full Article: Source

Survey: Will the Gold Price Hit $5,000?

Posted on 20 May 2015 by VRS  |  Email |Print

Despite a ho-hum performance year to date for gold, Peter Schiff, chief executive officer at Euro Pacific Capital, is still betting on gold’s eventual climb to $5,000 an ounce. Schiff’s persistent call is more than 300% higher than Thursday’s settlement at $1,225.20 an ounce on Comex, which marked the highest close for the yellow metal since mid-February.
Gold is roughly 3% higher year to date, but the precious metal seems light year’s away from the all-time highs near $1,900 reached in 2011. Still, gold’s performance hasn’t been particularly exciting in recent months. Prices tallied declines for the last three months in a row. They logged declines last year and the year prior………………………………………..Full Article: Source

India moves closer to tapping 20,000-ton gold hoard

Posted on 20 May 2015 by VRS  |  Email |Print

India will allow citizens to deposit gold with banks to earn interest as the world’s second-biggest consumer seeks to cut reliance on imports by tapping idle bullion lying with households. Individuals and institutions can deposit a minimum of 30 grams in the form of bullion or jewelry under a so-called gold monetization scheme, according to a draft document released by the government on Tuesday.
The banks can set the interest rate on the deposits and the metal mobilized may be loaned to jewelers, the government said. Success in drawing out a part of the more than 20,000 metric tons of gold lying with households and institutions like temples may help India lower dependence on imports and ease pressure on the current-account deficit………………………………………..Full Article: Source

Palladium Gains From Environmental Rules

Posted on 20 May 2015 by VRS  |  Email |Print

Among precious metals, palladium has rarely shone brightest for investors. Yet in recent weeks, the metal, used mostly in catalytic converters for cars, has been commanding more attention than gold, silver and platinum, its more glamorous counterparts.
Analysts expect solid auto sales in China and the U.S., together with tighter environmental standards, to keep growth in demand for palladium strong enough to potentially outpace increases in supplies. The market was in deficit last year, and there could be shortfalls this year, in 2016 and in 2017, analysts at Australia & New Zealand Banking Group Ltd. predict………………………………………..Full Article: Source

Gold Trapped in Summer Doldrums Usually Means Volatile Wake Up

Posted on 19 May 2015 by VRS  |  Email |Print

For gold traders, summer has come early. Just don’t book your trip to the beach yet. Prices have seesawed for the past two months, leaving the metal trapped in the tightest trading range in two years, according to data compiled by Bloomberg through the end of last week. That’s historically a sign of more volatility to come.
When similar periods of calm blanketed the market, the metal swung 3.3 percent on average in the five days after breaking out of the band, almost twice the usual weekly change. Gold moved around $1,200 an ounce as bullish catalysts, such as signs of faster inflation, were offset by speculation the Federal Reserve will soon raise interest rates. While the weaker dollar usually draws buyers to gold, there’s also less demand for haven assets with equities near all-time highs………………………………………..Full Article: Source

Traders warn on gold liquidity

Posted on 19 May 2015 by VRS  |  Email |Print

A few years ago London’s precious metals traders would arrive at their desks to find the phones flashing. On the other end of the line were rival banks looking to buy and sell gold. Today, the trading floors are a lot quieter.
Not only is most trading screen-based but there has been a decline in bank-to-bank activity — the anchor of the over-the-counter (OTC) bullion market — as many institutions have scaled back or exited commodities. This has made the gold market more frenetic and pushed up the costs of hedging and doing larger trades, according to market participants………………………………………..Full Article: Source

Central Banks Increase Demand for Gold

Posted on 19 May 2015 by VRS  |  Email |Print

Gold has actually been one of the flattest and least volatile investments over the last couple of years. It has been bumping around the $1,200 per ounce price level, just recently getting above $1,220.
While it hasn’t been an exciting investment, or a very profitable one, over the last couple of years, it has actually held up reasonably well considering the strength of the U.S. dollar. The World Gold Council recently released its latest report on gold holdings by country. The report stated that global demand dropped by about 1% in the first quarter on a year-over-year basis………………………………………..Full Article: Source

Q1 physical gold sales up 20% in Germany as gold price hits $1,233

Posted on 19 May 2015 by VRS  |  Email |Print

Gold prices began the week at their best for three months and immediately bounced higher again to $1,233 an ounce with silver outperforming with higher percentage gains at $17.74. Meantime, the latest World Gold Council data revealed that the total demand for gold bars and coins was up by 20 per cent in Germany in the first quarter in a rush to get out of the then slumping euro.
The German economy may be the best performing in Europe at the moment but that has been partly down to a devaluing currency, and one sure fire way to protect against devaluation was to buy gold which is priced in US dollars………………………………………..Full Article: Source

Are precious metals breaking out?

Posted on 19 May 2015 by VRS  |  Email |Print

There is some talk among traders about precious metals breaking out. Silver broke a trendline dating back to summer 2011 and will make its highest weekly close in more than three months. Gold will make its highest weekly close in three months and gold miners had a very strong week. However, do these moves really register as breakouts? Not quite yet, say the charts.
First let’s start with the miners. The weekly candle charts for GDX and GDXJ are shown below along with their 80-week moving averages (in blue) and lateral resistance (in red). For GDX and other indices, the 80-week moving average has perfectly defined bull and bear markets going back five years………………………………………..Full Article: Source

Finding Some Shine In This Gold Bear Market

Posted on 19 May 2015 by VRS  |  Email |Print

Two factors drive gold: the Love Trade and the Fear Trade. In 1997 and 1998, the bottom of the emerging market meltdown took place. Four years later, we saw China and Asia starting to take off and GDP per capita rise. This is an important factor in this whole run-up that I would characterize as the Love Trade. A strong correlation is rising GDP per capita, and in China, India and the Middle East, they buy gold and many gifts of love.
We saw the Fear Trade starting to take place after 9/11. The biggest factor behind the Fear Trade is negative real interest rates. So when you had both—negative real interest rates and rising GDP per capita in the emerging countries—you had gold demand going to record numbers………………………………………..Full Article: Source

Gold is now more important than ever

Posted on 19 May 2015 by VRS  |  Email |Print

The race by the world’s central banks to debase their currencies means holding gold bullion is vitally important in the current environment, according to star manager Sebastian Lyon, chief executive at Troy Asset Management.
Lyon, who heads up the highly popular Troy Trojan fund and Personal Assets Trust, recently told FE Trustnet that investors face the “particularly unpleasant” combination of very low returns and high volatility as years of extraordinary central bank monetary policy have left nearly all assets classes expensive and therefore highly correlated………………………………………..Full Article: Source

Will the Gold and Silver Surge Continue?

Posted on 19 May 2015 by VRS  |  Email |Print

Gold started off 2015 with a bang as safe haven buying mainly due to an increase in currency volatility, uncertainly over Greece’s future in the euro zone and expected quantitative easing in Europe. However, the gains fizzled out as gold prices again dropped on strong U.S jobs. Following which, gold prices fell to new six-week lows as equities recovered on hopes that Greece would work out a deal with its creditors.
The demand for yellow metal returned at the start of the second quarter on disappointing economic data. The weaker dollar and geopolitical tensions emanating from the Saudi Arabia-led coalition’s attack on Houthi rebels helped the price of gold move up. Again, early this month, rate hike expectations had dragged the gold price to a six-week low………………………………………..Full Article: Source

Weak dollar boosts bullion

Posted on 18 May 2015 by VRS  |  Email |Print

Gold prices could move higher as the greenback remains under pressure. It was a spectacular week for the yellow metal. Global spot gold price witnessed a sharp 3 per cent rally in the past week, its biggest since January. It went on to close on a strong note above the psychological $1,200 per ounce mark at $1,224.
Among the other precious metals, silver price rallied 6.3 per cent to close at $17.5 per ounce and platinum was up 2.3 per cent and has closed at $1,168 per ounce………………………………………..Full Article: Source

India, China account for 54% of total gold demand during Q1

Posted on 18 May 2015 by VRS  |  Email |Print

India and China accounted for 54 percent of the total global gold consumer demand in the first quarter of this year, according to a report. Global demand for jewellery, still the most significant component of overall demand, totalled 601 tonnes in the first quarter of 2015, three percent lower than the last year, said the Gold Demands Trends report prepared by the World Gold Council.
According to the report, conditions differed from market to market, but at an aggregate level these differences broadly balanced each other out. “Once again, consumers in Eastern countries dominated the market with China and India alone accounting for 54 percent?of total global consumer demand in the quarter,” said Alistair Hewitt, Head of Market Intelligence at the World Gold Council………………………………………..Full Article: Source

Oil Prices Will Find It Very Difficult To Go Over $70-75 In The Next 2 Years

Posted on 15 May 2015 by VRS  |  Email |Print

Crude oil has seen a massive recovery from mid-$40 levels just two months ago to above $60 where it is trading now. While some are bullish that this move will continue and prices will continue to move upwards till $100, Oppenheimer Energy analyst Fadel Gheit thinks that’s unlikely.
“We see oil prices moving higher,” Gheit said. “But we are not likely to see a repeat of the recovery that we have seen over the last eight weeks. Eight weeks ago oil prices were $44, today oil prices are around $60. We think that oil prices will start moving up again, but probably at much slower pace. I still believe that oil prices will probably try to seek an equilibrium really round $60 to $65.” ………………………………….Full Article: Source

Gold Prices Hit Three-Month High on Hopes Fed Will Delay Rate Increases

Posted on 15 May 2015 by VRS  |  Email |Print

Gold prices extended their rally to a three-month high on Thursday, as lower producer-price data fueled hopes the Federal Reserve will put off raising U.S. interest rates. The most actively traded contract, for June delivery, rose $7, or 0.6%, to settle at $1,225.20 a troy ounce on the Comex division of the New York Mercantile Exchange. That was the highest close since Feb. 13, when prices ended at $1,227.10 an ounce.
The U.S. producer-price index, a measure of prices businesses receive for their goods and services, fell 0.4% in April from March. Core prices, which exclude food and energy, fell 0.2%. Economists surveyed by The Wall Street Journal had expected both overall and core prices to climb 0.1%. ………………………………….Full Article: Source

Germans pile into gold amid Greek eurozone default fears

Posted on 15 May 2015 by VRS  |  Email |Print

Economic uncertainty in Europe and fear of a Greek default are turning people to buy gold bars and coins . German investors have piled into gold bars and coins in the first quarter of the year as a hedge against European Central Bank policy and the threat of a Greek default bringing down the eurozone.
Latest figures from the World Gold Council show that Germans increased their buying of gold coins and bars of bullion by 20pc to 32.2 tonnes in the last quarter, the highest rate of purchases seen in a year. ………………………………….Full Article: Source

banner
banner
May 2015
S M T W T F S
« Apr    
 12
3456789
10111213141516
17181920212223
24252627282930
31