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Commodities Briefing - Category | Bullion/Gold more

China clamours to set global gold prices

Posted on 03 July 2015 by VRS  |  Email |Print

A bored security guard walks around the entrance hall of an unremarkable 11-storey building in downtown Shanghai, desperate to kill time. The receptionist, a young Chinese woman, is flopped across her desk, half-asleep. It’s a mid-June afternoon at the Shanghai Gold Exchange (SGE), China’s one-and-only trading platform for the yellow metal, but the place is not exactly bustling with activity.
“We are quite recent, nothing like the century-old exchanges of London and New York. All trading transactions here are handled electronically. That’s why it’s quiet,” said Yang Ming, one of the first employees at the SGE. The SGE’s Main Board, where Chinese domestic investors buy and sell gold, occupies four floors of the building………………………………………..Full Article: Source

Indian gold still at heavy discount, inventories keep rising

Posted on 03 July 2015 by VRS  |  Email |Print

The heavy discount on physical gold remains intact across much of India this week while high inventories and dwindling demand continue to take their toll. Discounts are still averaging around $8 per ounce to the London spot price on .995 gold in Ahmedabad, a gateway for gold into Mumbai, although larger international dealers are still holding out for smaller discounts or even parity on some higher-quality brands, they said.
Large inventories have been amassed since late last year and a seasonal slowdown is in full effect, they added. The country has imported a sizeable volume of gold since the removal of the 80:20 legislation in November – around 63 tonnes in May, 81 tonnes in April and 125 tonnes in March. Sources suggest another 50-60 tonnes came in to India in June………………………………………..Full Article: Source

The real reason gold has been falling

Posted on 03 July 2015 by VRS  |  Email |Print

There is too much bullishness among gold market timers, and that’s why the yellow metal has failed to respond to the macroeconomic factors that otherwise should have caused it to rally. Imagine being told a month ago how the Greek debt crisis would unfold over the next few weeks. If you knew then that the country would default on its debt, you probably would have forecast that gold would rally.
That’s because bullion is a safe haven in times of geopolitical and economic crisis, and Greece’s default threatens the economic stability of the entire eurozone. Another reason you’d have been bullish is that gold is an inflation hedge, and it would have been a good bet that, if Greece did default, the European Central Bank would flood the eurozone with monetary stimulus in an effort to keep the Greek crisis from spreading………………………………………..Full Article: Source

Gold not getting boost from investors seeking safe haven from Greek crisis

Posted on 03 July 2015 by VRS  |  Email |Print

The precious metal stays in trading range as Greece lives on the edge of default due to tepid inflation, muted demand for gold from China and a strong U.S. dollar. Despite some early noise to the contrary, Greece’s financial woes are having almost no impact on gold prices, so far.
It’s not that the threat of the first country in the developed world to default is not a big deal, it’s just that investors have been well warned, and there are a lot of other forces currently holding down the price of gold………………………………………..Full Article: Source

Is Silver a Good Investment Today?

Posted on 03 July 2015 by VRS  |  Email |Print

With silver prices flat for the year, is silver a good investment to make right now? Silver has not performed nearly as well as its high-flying days of 2009-2011, when it quadrupled in price. But that doesn’t mean the metal doesn’t have value to your portfolio. Let’s delve into some relevant aspects of the silver market to determine whether now is a good time to invest in silver.
You can see the price bottoming around $15.25 in November, then after a spike to $19.25, dropping back to around $15.50 in March. We can also distinguish a rising trend channel that seems to be establishing itself (green lines). As for the 50-day moving average, it looks like it has stabilized, bouncing around the $16.50 level. Consider, though, that the 200-day moving average is still trending downward………………………………………..Full Article: Source

A Test Of $1,163 Is In the Cards For Gold– MKS

Posted on 03 July 2015 by VRS  |  Email |Print

While some commodity analysts have noted that the gold market hasn’t benefited from the ongoing Greek financial crisis as the price have continued to slide and remain near a three-week low, one analyst says it is important to shift your perspective .
Jessica Fung, commodity analyst at BMO Capital Markets, said that while gold hasn’t befitted from the crisis, it has helped support the market. She notes that gold is trading about $30 below the key psychological level of $1,200 an ounce. “That is really nothing,” she says. “You should look at it this way: if Europe wasn’t close to falling apart where would gold prices be right now?”……………………………………….Full Article: Source

Greece is in crisis—why no love for gold?

Posted on 02 July 2015 by VRS  |  Email |Print

People tend to flock to gold as a safe-haven investment during a crisis. So, why not in the case of Greece? There is no reason for gold to get any love now because this is a political crisis, not a currency crisis. The primary reason you buy the “barbarous relic” that is gold is fear of a global currency crisis.
In Greece, citizens and investors are not concerned about having a currency to use; the only unknown is which currency they will adopt or create. Currently, the Greek citizens have a currency, the euro, but using it is next to impossible with the banks closed………………………………………..Full Article: Source

Greece default: Why isn’t gold budging?

Posted on 02 July 2015 by VRS  |  Email |Print

Gold’s stubborn non-reaction to Greece’s default on its crucial 1.5 billion euro repayment ($1.7 billion) to the International Monetary Fund (IMF) couldn’t be more disappointing to bullion bugs. The yellow metal reversed slight gains to trade around 0.3 percent lower at $1,169 on Wednesday, despite heightened uncertainty around the fate of the heavily-indebted nation.
So, why isn’t the yellow metal catching a safe-haven bid? Here’s what commodities analysts are chalking it up to, in their own words: First off, investors expect the Greek crisis will be contained. Victor Thianpiruiyam, commodity strategist at ANZ: “The market seems a little more confident with the situation now. There seem to be reassurances from euro zone officials that the contagion risk from Greece will be relatively small if any at all………………………………………..Full Article: Source

UBS Asks, ‘Is Gold Ignoring Greece?’

Posted on 02 July 2015 by VRS  |  Email |Print

UBS strategist Edel Tully wondered why gold seemed to be so disconnected from the Greek crisis. He noted that “developments in Greece don’t seem to be impacting gold in any meaningful way,” at least relative to “how the market has reacted in the past.”
Typically, gold receives a boost from financial uncertainty, as wary savers seek to transfer their wealth to a more secure commodity. But Tully said that this effect has been dampened in recent years. He attributed this trend to “headline fatigue” resulting from heavy coverage of the Greek drama. He said, “the threshold for bad news is higher and it will probably take a lot more to trigger a significant wave of gold safe haven buying.”……………………………………….Full Article: Source

Russia has no gold market, expert says

Posted on 02 July 2015 by VRS  |  Email |Print

European investors have been buying gold coins actively against the background of the intensifying financial crisis in Greece. Restriction on cash withdrawals in Greece led to a sharp increase in demand for investment coins in Germany, France and in Greece. Pravda.Ru interviewed Finam’s analyst at the department for international markets, Vadim Sysoev, about the current state of affairs on the market of gold.
“Gold continues to consolidate near the level of approximately $1,200, even though many are fed up with the Greek story. Even if there were risks of default in Greece, gold was not growing in price. On the contrary, gold prices slide and do not show any signs of life………………………………………..Full Article: Source

World’s best gold forecaster is solidly bearish on bullion

Posted on 02 July 2015 by VRS  |  Email |Print

There will be no relief any time soon from gold’s worst losing streak in almost two decades, according to the most accurate forecaster for precious metals. After sliding about 1 per cent since December, prices will drop an additional 10 per cent by the end of 2015, reaching $1,050 (U.S.) an ounce – a five-year low – predicts Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore.
Gan topped 19 of his peers from banks including Standard Chartered PLC and ABN Amro Bank NV to become the most accurate analyst over the past two years, Bloomberg Rankings show. Gold has fallen for four straight quarters, the longest stretch since 1997. It has been more than two years of disappointment for bulls who had been piling into exchange-traded products (ETPs) backed by the metal, accumulating a record hoard by the end of 2012. Since then, more than $81.8-billion has been wiped from the value of the ETPs backed by bullion………………………………………..Full Article: Source

Investing in the Next Silver Bull Market

Posted on 02 July 2015 by VRS  |  Email |Print

There was a recent article on the SilverSeek website. It states that the paper market for silver futures is now over one billion ounces, most of which represents a naked short position in silver. The article says that the Comex silver market is the most corrupt in history, which is obviously quite subjective and a pretty tough accusation to prove.
As with many websites and articles that specialize in silver, it says that there is extreme manipulation in the silver market. The interesting part about this article was its case that the big banks are orchestrating something that will end up in a Comex default………………………………………..Full Article: Source

All Signs Point To Higher Gold Prices

Posted on 01 July 2015 by VRS  |  Email |Print

In the face of historic monetary stimulus from nearly every major central bank in the world over the past few years, an investment in gold would have seemed to be a “no-brainer.” Yet the precious metal’s price, around $1,178 per ounce, has barely budged. Now may be the time to give gold a fresh look. Fundamental drivers appear in place for long-term upside, and technical support could provide a near-term catalyst.
Moreover, shares of gold mining companies are selling at steep discounts to historical multiples and the slightest hint of stabilization could bring investors back in a big way. A confirmation of fundamentals for gold prices would send gold mining shares soaring………………………………………..Full Article: Source

Gold price unaffected by Greek crisis

Posted on 01 July 2015 by VRS  |  Email |Print

The situation on the gold market calmed down quickly again yesterday following the initial turmoil and the gold price shed all of its gains again. This morning sees gold trading at $1,175 and €1,050 per troy ounce respectively. Clearly, gold market participants are expecting Greece to remain in the Eurozone.
If the Greek population were to vote “Yes” in next Sunday’s referendum, we would doubtless see renewed negotiations with the EU on further aid payments. The Greek government announced yesterday evening that it would not be making the €1.6 billion repayment that is due to the IMF today, thus cutting Greece off from further financial assistance from the IMF………………………………………..Full Article: Source

China targets counterweight in gold trade with yuan fix

Posted on 01 July 2015 by VRS  |  Email |Print

A decade after China kicked off a series of gold market reforms, plans to establish a yuan price fix mark one of Beijing’s biggest step so far to capitalise on the country’s position as the world’s top producer and a leading consumer.
While no immediate threat to the gold pricing dominance of London and New York, the benchmark could ultimately give Asia more power over bullion trade, particularly if the yuan becomes fully convertible, industry sources say. The yuan fix is due to launch by the end of 2015 via the Shanghai Gold Exchange (SGE), which last year allowed foreign players to trade gold using offshore yuan………………………………………..Full Article: Source

Silver About to Turn More Volatile

Posted on 01 July 2015 by VRS  |  Email |Print

Silver has moved sideways for about nine months, after it moved sideways from a slightly higher level for about 14 months. Boring! The big events in the past 5 years have been: August 2010: Silver began a huge move from under $18 to nearly $50. April 2011: Silver hit a 30 year high just under $50.00.
May 2011: Silver crashed to about $34. HFT left fingerprints at the scene. January 2013: Silver dropped below $30. April 2013: President Obama met with a group of influential bankers in the White House. The price of silver crashed the next day and by June silver had dropped to about $19. (If it happens in politics, it was planned…) November 2014 & March 2015: Silver made a double-bottom at about $15. Few noticed………………………………………..Full Article: Source

With Greek Uncertainty, Investors Seek Safety in Gold and Bitcoin

Posted on 01 July 2015 by VRS  |  Email |Print

As Greece descends into financial crisis, its citizens and investors globally are turning to hedges old and new. European demand for the age-old safe haven of gold coins has risen in recent weeks, as has the relatively new concept of investments in digital bitcoins, market participants say.
As the situation in Europe grows more precarious, the price of both have risen in recent weeks as concerns have grown about the threat to banks in Greece and the risk that turmoil could spread to other countries in the eurozone and elsewhere………………………………………..Full Article: Source

Dollar gold price could go below $1,000/oz for short period: Natixis

Posted on 30 June 2015 by VRS  |  Email |Print

The dollar gold price still has room to move lower, below $1,000/oz for a short period of time, Natixis analyst Bernard Dahdah told Platts Monday. In an email Dahdah said that, “even under the stress of the situation in Greece, the price of gold hasn’t benefited much. The market is fixated on the potential interest rate hike by the Federal Reserve. As we get closer to this hike so we expect gold prices to drop gradually.”
Gold benefits from a low interest rate environment as a non-yielding asset class. The turmoil in Greece, where a potential default on national debt and in turn possible exit from the eurozone has had a near-zero knock-on effect to the gold price in dollar terms………………………………………..Full Article: Source

Gold price suggests investors not betting on Grexit

Posted on 30 June 2015 by VRS  |  Email |Print

Ultimate safe-haven asset fades after brief rally, as investors dismiss possibility of Greek exit from eurozone. A gold rush has failed to materialise as Greece edges closer to total financial collapse, suggesting investors aren’t betting on an imminent ‘Grexit’.
A brief rally in the precious metal in early trading faded towards the close in London, as investors discounted the possibility of Greece exiting the currency bloc, despite the government’s shut-down of the country’s banks and stock market. Gold – which is traditionally seen by markets as the ultimate safe-haven asset – initially gained 2.5pc, but by the afternoon in London it had fallen back to a level of $1,176 per ounce………………………………………..Full Article: Source

Gold price standoff despite confluence of positives

Posted on 30 June 2015 by VRS  |  Email |Print

Price has been remarkably steady over the past week despite a number of factors, which might have been expected to cause it to rise. The gold price has been trading in an extremely narrow range for the past few days, despite a number of seemingly positive pieces of news. It certainly seems that those who do not wish the price to rise back even to the $1,200 level or above have the markets firmly under control.
But it also appears that those who do not wish to see further falls are maybe helping prices stabilise too. In other words there is something of a standoff. So what are the positive pieces of news? First and foremost perhaps is the continuing lack of a real solution to the Greek debt crisis. Contrary to numerous reports that a settlement was about to be reached between Greece and its creditors it appears that no such thing has occurred………………………………………..Full Article: Source

Upside Momentum for Gold Looks Strong in Second Half of the Year

Posted on 30 June 2015 by VRS  |  Email |Print

The Shanghai Gold Exchange is expected to receive approval from its central bank for a yuan-denominated gold fix soon, according to Reuters. If the yuan fix takes off, China could draw buyers in the mainland and foreign suppliers to pay the local price, making the London fix less relevant in the world’s biggest bullion market.
Additionally, the Shanghai Gold Exchange is in discussions with the CME Group about listing each other’s contracts on their respective exchanges, according to the exchange’s vice-president. Trading volume on the Shanghai Gold Exchange for the benchmark contract soared this week to the highest on record, according to data on Bloomberg, going back to 2002. The Shanghai Composite Index dropped more than 10 percent in the last two trading days of this week and is down nearly 20 percent from its highs………………………………………..Full Article: Source

Jim Rogers Gold Correction Forecast

Posted on 30 June 2015 by VRS  |  Email |Print

A Jim Rogers gold prediction is taken seriously by investors. And today (Friday) we got a fresh Jim Rogers gold prediction courtesy of a MarketWatch interview. “Gold is in a correction, and the correction has gone on for four years,” Rogers said.
“Although I am not buying gold, I am expecting an opportunity to buy gold sometime in the next year or two. For instance, if gold goes under $1,000, I hope I’m smart enough to buy a lot more gold.” When Jim Rogers speaks, he is taken seriously by investors – and for good reason………………………………………..Full Article: Source

Gold will fall to $800 by end-2016

Posted on 29 June 2015 by VRS  |  Email |Print

The sad truth is that gold is trapped in a vicious bear market. Gold prices have fallen from $1,930 in September 2011 to barely $1,175 now, a time during which the US stock market has almost doubled. Gold was unable to even hold $1,200 an ounce when rumors of a Troika-Greece debt bust mesmerised the European stock markets. It is tough to be a goldbug, even in the cloistered banking counting rooms of Credit Suisse and UBS. True believers (and their poor clients!) in Dubai have been gutted by gold linked “structured notes”.
There are myriad factors that could cause gold prices to fall to $800 an ounce in the next two years. US economic momentum and the robust payrolls data makes a hawkish Federal Reserve interest rate cycle inevitable. This means the dollar will continue its rampage against the euro, yen, emerging markets currencies and crude oil. A surge in the US Dollar Index, up almost 20 per cent since last June, is the kiss of death for gold. ……………………………………….Full Article: Source

Gold Miners’ Strike No Cure for Price Woes

Posted on 29 June 2015 by VRS  |  Email |Print

Languishing gold prices could get some help as miners in South Africa enter wage negotiations with the industry’s labor unions. But it’s unclear how much difference even a significant strike will mean to prices.
South Africa, at one time the world’s top gold producer, is no longer the heavyweight it once was, but it remains a major player. Unions representing more than 80% of the country’s gold workers are demanding as much as double their current wages in negotiations that began June 22. Industry watchers predict the two unions will settle for much less but not before striking and reducing the country’s gold output. The potential for such an event could edge gold prices higher in weeks ahead………………………………………..Full Article: Source

Discount on gold prices widens in India

Posted on 29 June 2015 by VRS  |  Email |Print

Gold prices in India are now ruling at a discount to international prices. Thanks to weak demand, bullion dealers are quoting discounted prices for their inventory. Prices in the spot market quoted at a discount of $8/ounce to the London price last week. This is lower than a $0.5/ounce discount in the beginning of June.
Gold BeES, Goldman Sachs’ gold exchange-traded fund, closed at Rs2,422 on Friday on the bourses, a discount of 2 per cent to its NAV of Rs2,467.68. Spot gold prices declined 2 per cent to close at Rs2,634.9/gram. Bullion dealers, however, expect demand to catch up in the coming weeks as they expect good monsoon rains will cheer rural consumers………………………………………..Full Article: Source

Silver Prices About to Hit $50.00?

Posted on 29 June 2015 by VRS  |  Email |Print

Silver is one of the most underappreciated commodities around. Back in 2011, an ounce of gold was worth 32 ounces of silver. Today, that same ounce of gold translates to 74 ounces of the grey metal. Does that mean gold has gotten more valuable or that silver has gotten cheaper?
Since its peak a few years ago, silver prices have dropped nearly 70%. Gold prices have also fallen by an astonishing 35% during the same period, which convinces me that investors got overly pessimistic about silver during the pullback. So, what should the true price of silver be?……………………………………….Full Article: Source

China to launch yuan-denominated gold fix this year

Posted on 26 June 2015 by VRS  |  Email |Print

The Shanghai Gold Exchange will launch a yuan-denominated gold fix by the end of the year, a bourse official said on Thursday, in a move aimed at giving China more influence over the pricing of the precious metal.
“We will be introducing a renminbi-denominated fix at the right moment, we are hoping to introduce by the end of the year,” Shen Gang, vice president of the Shanghai Gold Exchange said at the LBMA Bullion Market Forum in Shanghai………………………………………..Full Article: Source

Here’s why gold will rally: RBC’s Gero

Posted on 26 June 2015 by VRS  |  Email |Print

Gold is in the midst of its longest losing streak since March, but one noted gold bug claims the selling could soon abate. “I’m probably one of the few people that believe there are too many bears in the woods,” metals strategist George Gero said.”
Gold closed Thursday’s session at $1,172.20 an ounce, its lowest level since June 5, but despite the selloff, Gero insists the precious metal is oversold. Gero attributed gold’s recent demise to a healthy stock market, strong dollar, uncertainty over a Fed rate hike and unrest in Greece………………………………………..Full Article: Source

ICBC interested in joining London gold price benchmark

Posted on 26 June 2015 by VRS  |  Email |Print

China’s Industrial and Commercial Bank of China (ICBC) is interested in participating in the London gold price benchmarking process, the bank said. “While many western banks are exiting the commodity business, Chinese banks see it as a great opportunity,” Zhou Ming, ICBC general manager, said on Thursday.
Last week, Bank of China (BOC) became the first Chinese bank to participate in the LBMA Gold Price, which formally replaced the near-century-old London Gold Fix on March 20. Standard Chartered and Morgan Stanley have also signed up, the LBMA said on Monday this week, bringing the total number of participants to 10 alongside JP Morgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs………………………………………..Full Article: Source

Gold Market Suppression: An Investor’s Perspective

Posted on 26 June 2015 by VRS  |  Email |Print

Gold price suppression results from central bankers’ desire to keep interest rates low. I provide an overview of the gold price suppression thesis as a statistical certainty and as continuous with post Bretton Woods history. While the topic of gold price suppression is commonly written about investment implications are rarely discussed.
We want to emphasize well run, low opex miners as positioned to withstand price weakness and to leverage price strength. The potential for a rapid revaluation of gold makes companies with low valuation to gold reserves ratios attractive as high risk/high reward speculation stocks………………………………………..Full Article: Source

Indian gold industry hoping for government to limit cheap imports, boost prices

Posted on 25 June 2015 by VRS  |  Email |Print

The gold industry in India is hoping the government will restrict cheap imports from Southeast Asian countries that have soared recently under free trade agreements, and help struggling dealers and jewellers suffering from low prices, sources said.
India’s finance ministry and foreign trade departments are currently in discussions over renegotiations of its free trade agreements with Thailand and ASEAN countries, which currently benefit from import duties as low as 1%, according to sources. “There are mixed reactions but most people are said to be on side for license/control for import of dore bars and jewellery,” said a dealer in Ahmedabad and a member of the city’s gold council………………………………………..Full Article: Source

Are gold imports really the bugbear they’re made out to be?

Posted on 25 June 2015 by VRS  |  Email |Print

Gold imports are looked upon by the authorities with fear and loathing. The insatiable appetite of the Indian buyer for the yellow metal has long been talked about, but is it really a very big problem at this point in time? Indian gold imports (in tonnes) increased at a compound annual growth rate (CAGR) of 1.3% between 2004-05 and 2014-15—from 770.5 tonnes in 2004-05 to 879 tonnes in 2014-15.
True, measures have been put in place to reduce imports, but a CAGR of 1.3% is hardly worth worrying about, is it? What, then was the problem? Gold imports were higher in 2011-12, bloating the country’s current account deficit, but circumstances were different at the time—gold had been enjoying a bull run, while inflation had spooked Indian savers, leading them to view the metal as a safe refuge………………………………………..Full Article: Source

Bank of China Joins London Gold Auction, Promises Boon for Domestic Market

Posted on 25 June 2015 by VRS  |  Email |Print

The Bank of China’s inclusion in the ICE Benchmark Administration (IBA) London Bullion Market Association (LBMA) Gold Price this week will positively, albeit gradually, affect the Chinese gold market, experts told Sputnik on Wednesday.
“The market participants’ diversification and internationalization will rationalize the gold costs. This will also promote the development of China’s gold market,” Beijing Gold Exchange Center chief gold analyst Zhang Lei said. ……………………………………….Full Article: Source

China likely to get central bank nod for yuan gold fix soon

Posted on 25 June 2015 by VRS  |  Email |Print

China is expected to receive approval from its central bank for a yuan-denominated gold fix “anytime now”, with more details about the scheme potentially set to emerge at a major industry conference this week, sources told Reuters.
The world’s top gold producer and one of the biggest consumers wants to be a price-setter for bullion and is asserting itself at a time when the global dollar-denominated benchmark, the century-old London fix, is under scrutiny for alleged price-manipulation. If the yuan fix takes off, China could compel buyers in the mainland and foreign suppliers to pay the local price, making the London fix less relevant in the world’s biggest bullion market………………………………………..Full Article: Source

China’s Gold Demand Seen Getting a Boost If Stock Rally Fades

Posted on 25 June 2015 by VRS  |  Email |Print

China’s gold demand may rise if the country’s stock market reverses its rally, according to the World Gold Council. Demand in the world’s largest user may rise as high as 1,000 metric tons, a nearly 3 percent increase from last year, Roland Wang, China director of the London-based group, told reporters in Shanghai on Wednesday.
Consumption sank in the first quarter as investors flocked to the Shanghai Composite Index’s 16 percent gain while bullion prices stalled. “We will be more confident to say China’s demand in 2015 will beat 2014 if we see an end of the stock market rally and a start of a gold price surge,” Wang said………………………………………..Full Article: Source

Bullish case for palladium price fading

Posted on 25 June 2015 by VRS  |  Email |Print

The bullish case for palladium appears to be fading, with the metal dropping back below $700 and speculators pulling out en masse. When gold and silver were struggling in 2014, investors increasingly turned to palladium – its fundamentals looked strong given growing Chinese demand for cars and a supply deficit that was set to widen after a five-month strike in South Africa.
The metal climbed from $696 in February to a peak of $911.50 in September and net longs on Nymex struck their highest since records began in 1986 at 30,090 contracts. Supporting the price was a 1.4-percent fall in supply of newly refined palladium to 9 million ounces in 2014 from 2013, CPM Group noted this week………………………………………..Full Article: Source

LBMA to start reporting OTC gold trade soon

Posted on 25 June 2015 by VRS  |  Email |Print

The London Bullion Market Association (LBMA) could soon take steps to report trades of the over-the-counter gold market, but the prospect of higher costs makes an exchange-traded model unattractive to participants for now, its chief executive said.
The LBMA had commissioned consultancy EY, formerly known as Ernst & Young, to review the London gold market and recommend further developments including the possibility of creating an exchange for gold trading in the city………………………………………..Full Article: Source

Gold Market To Watch Greece Turmoil, U.S. Dollar

Posted on 24 June 2015 by VRS  |  Email |Print

Gold is expected to remain caught in a tug of war between the U.S. dollar and safe-haven demand as Greece’s repayment deadline quickly approaches, according to commodity analysts. Gold is ending its second consecutive week in positive territory; the market managed to hold on to most of its gains from Thursday’s 1.5% rally. Comex August gold futures settled Friday’s session at $1,201.90 an ounce, up almost 2% since Monday.
The rally in gold also appears to have helped drive silver prices higher as it managed to end its four-week slump. Comex July futures settled Friday at $16.109, up 1.3% on the week. Looking ahead, despite gold’s strong late-week performance, retail investors are still negative on the metal while commodity analysts have moved to the sidelines, according to the results of Kitco News’ Wall Street vs Main Street Weekly Gold Survey………………………………………..Full Article: Source

Is Gold Actually Just Another Commodity?

Posted on 24 June 2015 by VRS  |  Email |Print

Gold is widely viewed as among the best hedges against inflation. It rose dramatically from $287 an ounce on September 11, 2001 to a record high of $1,895 during September 6, 2011. It’s down 37% since then. Gold bugs figured that the war on terror would widen government deficits and that central banks would help by keeping credit conditions loose.
The financial crisis of 2008 unleashed the major central banks to experiment with various forms of ultra-easy monetary policy including NZIRP and QE. Yet inflation remained subdued. The price of gold seemed to break when gold bugs were disappointed by the metal’s failure to rally on Abenomics, specifically the latest round of extremely easy money from the BOJ. So they started to sell………………………………………..Full Article: Source

Miners can make money at $1,200/oz gold

Posted on 24 June 2015 by VRS  |  Email |Print

Gold has traded this year in a range close to $1,200/oz. Do you expect gold to maintain this range for the rest of the year? Yes. Our 2015 outlook is $1,250/oz, and thereafter we project a flat outlook to manifest a more agnostic view on the commodity. We employ this approach as it facilitates greater correlation between cash flow expectations and our view of operational performance.
What are the factors keeping gold at $1,200/oz? We see gold demand support predominantly arising from Asia, particularly in India and China, but also note recent rhetoric from Russia outlining the potential of increasing the country’s metal inventory………………………………………..Full Article: Source

Gold Still Hasn’t Found the Right Level for Investors, Trader Says

Posted on 24 June 2015 by VRS  |  Email |Print

Gold bulls had a rough start to the week as the yellow metal has been selling off due to the strength of the U.S. dollar and signs that Greece is nearing a deal with creditors. For most of 2015, gold has been trading in a range around $1,200, struggling to find conviction to the upside or downside as fundamentals are trumped by speculation of an interest-rate hike and Greece’s ability to pay debt.
It 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 the inverse applies due to the strong correlation in the moves. Commodities move on other fundamentals such as supply and demand in addition to the U.S. dollar………………………………………..Full Article: Source

Bullish case for palladium price fading

Posted on 24 June 2015 by VRS  |  Email |Print

The bullish case for palladium appears to be fading, with the metal dropping back below $700 and speculators pulling out en masse. When gold and silver were struggling in 2014, investors increasingly turned to palladium – its fundamentals looked strong given growing Chinese demand for cars and a supply deficit that was set to widen after a five-month strike in South Africa.
The metal climbed from $696 in February to a peak of $911.50 in September and net longs on Nymex struck their highest since records began in 1986 at 30,090 contracts. Supporting the price was a 1.4-percent fall in supply of newly refined palladium to 9 million ounces in 2014 from 2013, CPM Group noted this week………………………………………..Full Article: Source

Investors may bond with gold, but not part with yellow metal

Posted on 23 June 2015 by VRS  |  Email |Print

Investors would opt for the gold bonds to be offered by the government, but are not likely to part with their jewellery under its monetisation scheme. The government’s efforts at curbing the insatiable demand for gold would only succeed in halting the purchase of the yellow metal for investment purposes to an extent, say experts.
“The gold monetisation scheme (GMS) will not take off as people have an emotional attachment with gold. They aim to get back the same piece of jewellery even when they pledge gold for raising money,” says Suresh Sadagopan, founder, Ladder7 Financial Advisories………………………………………..Full Article: Source

Will Chinese Investors Rotate to Gold?

Posted on 23 June 2015 by VRS  |  Email |Print

Gold traders are the most bullish in a month on the prospect of slower U.S. interest rate increases. Gold saw a second weekly advance after efforts to secure a Greek bailout faltered and the Federal Reserve signaled a more dovish stance on interest rate increases. Shanghai Gold Exchange withdrawal volume in the week to June 12 came in at a strong 46.2 metric tonnes.
The Bank of China will become the first Chinese bank to join the auction process that sets gold prices in the London market. The bank, along with seven other lenders, will start participating in the twice-daily electronic auction. The addition of a Chinese bank is another sign that China is increasing its influence in gold and currency markets worldwide………………………………………..Full Article: Source

Seasonal Strength Could Push Gold To $1,300 Level

Posted on 23 June 2015 by VRS  |  Email |Print

Our gold forecast for the rest of 2015 shows three big factors affecting the direction of the yellow metal. First, let’s look at where gold prices are now. After hitting a four-week high Thursday, the gold price paused in early trading Friday. At last check, the yellow metal was up $0.80 at $1,202.80 an ounce.
After trading as high as $1,207.00 an ounce, gold ended Thursday’s U.S. session up $24.50, or 2.08%, at $1,201.40. Thursday’s gain in the gold price put the precious metal back in positive territory for the year. The yellow metal is up 1.5% year to date. So, what’s the longer-term gold forecast? There are a few factors affecting the rest of the year’s gold price forecast………………………………………..Full Article: Source

Gold mine cost cutting not allaying margin falls – GMP

Posted on 23 June 2015 by VRS  |  Email |Print

An analyst’s report from GMP points to declining profit margins among the world’s top and mid-tier gold miners. Some interesting research from analysts at Canadian headquartered GMP Securities builds on a theme we covered here in these pages around six weeks ago. This suggested that, if anything, the cost cutting programmes entered into by most major and mid-tier gold mining companies may have largely gone as far as they can go.
Indeed in its latest mid-year report the Canadian brokerage and investment bank points out that despite some seemingly effective cost cutting, profit margins have been continuing to fall regardless………………………………………..Full Article: Source

‘Umpteenth’ Greek Summit Sees Gold Prices Fall

Posted on 23 June 2015 by VRS  |  Email |Print

Gold Prices erased two-thirds of last week’s 1.5% jump against a rising US Dollar on Monday, dropping back from $1200 per ounce as Eurozone stock markets held strong gains amid hopes of a quick deal at the latest emergency summit on Greece’s debt crisis.
Five years after the first such summit, “We are approaching an absolutely decisive moment,” French radio was told by the European Union’s economic affairs commissioner Pierre Moscovici today. Greece’s proposals “go in the right direction [and make] a good basis for an agreement,” he said………………………………………..Full Article: Source

New Silver Price Forecast for the Rest of 2015

Posted on 23 June 2015 by VRS  |  Email |Print

The silver price forecast for the rest of 2015 is getting a big bullish sign right now…Just look at what silver prices are doing today. silver price forecastThe white metal was up $0.12, or 0.72%, at $16.30 just before noon today. One thing keeps pushing silver higher: Greece.
The broke country met with Eurozone officials Monday in attempts to finalize a debt-restructuring deal. In a proposal sent early on Monday, Greece moved to yield to lenders’ demands for tax increases and pension reforms. Greece offered to raise the country’s retirement age gradually to 67 and limit early retirements. It also offered to reform the value-added tax system to set the main rate at 23%………………………………………..Full Article: Source

Platinum Slammed by Supplies, Dollar

Posted on 23 June 2015 by VRS  |  Email |Print

Glut of platinum comes partly from South African rand’s sharp depreciation against the dollar. A strong dollar is pressing down on platinum. The precious metal, whose uses range from car-exhaust filters to jewelry, tumbled to a six-year low on Monday, weighed down by a surge in supplies that stems in part from the South African currency’s sharp depreciation against the U.S. dollar.
Last year, a mineworkers’ strike crippled output in South Africa, the world’s biggest platinum producer. The speed of the industry’s recovery, stoked by the South African rand falling to a 14-year low against the dollar in early June, has taken investors and analysts aback………………………………………..Full Article: Source

Yellen Surprises Gold Bulls in Retreat by Reigniting Price Rally

Posted on 22 June 2015 by VRS  |  Email |Print

Janet Yellen took the gold market by surprise. Bullion had its biggest rally in a month after Federal Reserve Chair Yellen and her fellow policy makers cut their long-term projections for U.S. interest rates. Money managers had anticipated officials would tighten monetary policy faster and reduced their net-long position in gold to a five-week low the day before the central bank’s statement.
The outlook for gradual rate increases sparked renewed investor interest, and more than $880 million was added last week to the value of assets in exchange-traded products backed by the metal. Higher rates curb bullion’s allure because the commodity doesn’t pay interest or give returns like other assets such as bonds and equities. The Bloomberg Dollar Spot Index fell for two straight weeks………………………………………..Full Article: Source

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