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Commodities Briefing - Category | Bullion/Gold more

Investors are kissing gold goodbye - for now

Posted on 22 July 2016 by VRS  |  Email |Print

Gold prices hit a 3-week low as investors decided to plough into riskier asset classes - like stocks. Basically, investors decided they did not need to hide in safe haven asset classes like gold because data shows that the world’s largest economy, the US, is performing pretty well and the Federal Reserve is literally to hike interest rates again later this year.
At one point on Thursday, gold fell to a low of $1,310.70 a troy ounce, a level not seen since June 24. It has since retraced some of those losses but price gains are still under pressure……………………………………….Full Article: Source

Is Gold Set To Hit $1,500 Per Ounce?

Posted on 22 July 2016 by VRS  |  Email |Print

Following several years of significant price weakness, gold appears to be well-and-truly back! The yellow metal’s 12-year bull run came to a spectacular end in 2013, prompting many market experts to warn of a painful collapse in the years ahead.
Gold had shed a third of its value during the course of 2013, but that was just the beginning — indeed, bullion prices came within a whisker of moving back into triple digits just last December, and represented a far cry from the record highs above $1,900 struck back in 2011………………………………………..Full Article: Source

Gold to hit $1,500 in 2016 $5,000 in 2020: Analysts

Posted on 22 July 2016 by VRS  |  Email |Print

Gold has been the biggest outperformer among all asset classes this year. Amid dismal global growth outlook, bullish sentiment for the gold remains intact with precious metal experts predicting that the yellow metal would rise 10 per cent short-term as they expect it to close in on 1,500 per troy ounce by end of this year, and eventually hitting 5,000 by 2020.
Gold, which has been the biggest outperformer among all asset classes this year, up 26 per cent, is now headed for 1,500 per ounce while silver will overshoot to 30 per ounce with the global economic growth now expected to be slower at three per cent in 2016, versus 3.4 per cent at beginning of year, the global research team at Bank of America Merrill Lynch said………………………………………..Full Article: Source

Charts, Not Fear, Guide Gold Market

Posted on 21 July 2016 by VRS  |  Email |Print

The eight-day $120 rally in gold in reaction to the Brexit vote cleaned out those who remained on the short side and caused a new flood of buying as the long side of the gold market became even more crowded .
As I pointed out on July 9th “The latest data from the CFTC shows that the long positions of money managers have made another new high even though margins were recently raised. In my experience this is a dangerous combination and I continue to think the long side is risky now.”……………………………………….Full Article: Source

Gold Fields forecast sparkles on strong dollar gold price

Posted on 21 July 2016 by VRS  |  Email |Print

In some rare good news from the gold-mining industry, Gold Fields reported on Tuesday that it expected its output for the year to June to increase marginally to 1.044-million ounces. One analyst said the company, which is headed by Nick Holland, would be increasingly attractive to investors if it continued to reduce its costs.
Citing a slightly stronger US dollar gold price, and an Australian dollar that has weakened 5% year-on-year against the greenback, the company said on Tuesday that it expected its half-year earnings per share to be 14 US cents higher than the zero cents reported in the same period in 2015………………………………………..Full Article: Source

This Gold Miner Says Rally Will Go On

Posted on 21 July 2016 by VRS  |  Email |Print

Gold’s rally is set to endure, with the U.S. presidential election seen as the next big catalyst for prices, according to a producer whose shares have almost doubled this year as financial-market turmoil, slowing growth and Britain’s vote for Brexit pumped up bullion.
“The overall trend is up,” Bill Beament, managing director at Northern Star Resources Ltd., said on a conference call on Wednesday after the Australian company reported record cash flow. The U.S. vote will have more of an impact on bullion than the U.K. referendum, according to Beament………………………………………..Full Article: Source

Something Big Happening in the Gold Market this year

Posted on 21 July 2016 by VRS  |  Email |Print

Something BIG happened in the gold market this year and very few investors understand the significance. While precious metal analysts debate whether the huge gold rally since the beginning of the year is sustainable, I am beginning to wonder if certain indicators are no longer reliable.
I’ll get into that in a moment, but wanted to share a few things as it pertains to my views on the precious metals. A few weeks ago I was able to get away on a short vacation with my family. We stayed at a nice Bed & Breakfast and at night I enjoyed listening to several different guests talking about their jobs and past-times………………………………………..Full Article: Source

Silver to Hit $50

Posted on 21 July 2016 by VRS  |  Email |Print

The last major bull market for silver (prior to 2009–2011) was in the 1970s. In the decade of disco, the price of silver climbed from $1.25 to $43. The signs are clear… silver prices have been steadily climbing again. We’re headed toward another “golden” age for silver.
Another bullish sign for silver prices is the gold-to-silver ratio. When Rome ruled the world, the g/s ratio was set at 12 to one. One piece of gold was equal to 12 pieces of silver. In 1792 the g/s ratio in the United States was fixed by law at 15 to one. Today the g/s ratio is at 67.96. That means gold is expensive and silver is cheap in comparison………………………………………..Full Article: Source

IMF Global Growth Downgrade Not Impact Gold Prices

Posted on 20 July 2016 by VRS  |  Email |Print

Gold prices are not seeing much of a boost following the International Monetary Fund’s (IMF) downgrading its global growth forecasts for 2016. In its latest report, the IMF said it expects worldwide growth to expand 3.1% this year and 3.4% in 2017; both estimates were cut 0.1% from the previous outlook.
The biggest influence on the fund’s downgrade was the approval of the Brexit vote last month. IMF chief economist Maurice Obstfeld said in the report that “Brexit has thrown a spanner in the works,” Obstfeld said”……………………………………….Full Article: Source

Gold retains status as safest asset

Posted on 20 July 2016 by VRS  |  Email |Print

Since the start of this month and in the aftermath of the Brexit vote, the markets have been largely range bound. The British pound went through a brief renaissance in large part because the Bank of England (BoE) held benchmark interest rates unchanged at 0.50 per cent – the markets had been expecting a cut to 0.25 per cent.
Perhaps more surprising was how strongly the bank’s monetary policy committee voted in favour of keeping rates unchanged (8 to 1). This led to a short-term resurgence in the pound, which moved higher against the greenback before finding stiff resistance just below 1.35. Sterling looks to remain entrenched between 1.30 and 1.35 against the greenback………………………………………..Full Article: Source

Gold and Other Precious Metals’ Brexit Bounce Has Legs

Posted on 20 July 2016 by VRS  |  Email |Print

Gold and most precious metals are still gaining from the bounce they received after the U.K. voted to leave the European Union and most bankers and analysts expect that to continue. In contrast, European aluminum premiums are falling.
Britain’s vote to leave the European Union has led analysts to raise their gold price forecasts again this year, after the decision shook up financial markets and sparked a rally in the precious metal to two-year highs………………………………………..Full Article: Source

Silver is the best performing commodity of 2016

Posted on 20 July 2016 by VRS  |  Email |Print

Silver has surged over 40% since the beginning of 2016, making it the number performing commodity of 2016. But is the surge of the precious metal just the beginning of things to come? Historically the price of silver tends to track the price of gold as both are seen as monetary metals.
Silver is often more volatile, however, experiencing larger up and downswings with market movements. Essentially, silver could be explained as gold on steroids………………………………………..Full Article: Source

Climbing Gold and Silver’s Wall of Worry

Posted on 20 July 2016 by VRS  |  Email |Print

Confidence is slippery, even when you are a metals investor sitting atop the best performing assets of 2016. It doesn’t help when 4 years of a miserable bear market remains fresh in our memories. Any weakness in prices and it can feel like markets are getting ready to plunge right back to $13 silver and $1,000 gold.
That feeling is called the “Wall of Worry”, and bulls are going to have to climb it by staying in the market even if their emotions are telling them to bail. Let’s review the last 6 weeks because they are quite instructional………………………………………..Full Article: Source

Precious metals performers: Shiny but scary

Posted on 20 July 2016 by VRS  |  Email |Print

It’s expected of a fund tracking precious metals to experience volatility, with holdings in ETFs climbing almost 21% earlier this year and then gold prices jumped as much as 8.1% after U.K.’s Brexit vote, the most since the height of the global financial crisis in 2008, according to Bloomberg News.
Short-term data depicts just how essential a quick flood to the category can be. Those who selected gold, silver or other precious metal funds in light of recent market volatility have been able to profit handsomely all of the category’s top YTD performers raked in triple digit returns while the same funds over the long-term all experienced double-digit negative returns………………………………………..Full Article: Source

ABN, RBC up their gold price calls

Posted on 19 July 2016 by VRS  |  Email |Print

Bears of the precious metal are getting very rare as global uncertainties combine to lift forecasts. Just under a year ago Dutch bank ABN AMRO was even more bearish of gold than Goldman Sachs. Back then Goldman was expecting a price of $1,000 per ounce, but ABN was looking for $800 by the end of this year.
Today the metal is firmly above $1,300 – almost 70% higher than ABN’s old target price. Admittedly, the bank fairly quickly reversed its course just a few months after it made that fateful forecast. But its new target price of $1,200 was all-but immediately hit in the tumultuous early weeks of 2016………………………………………..Full Article: Source

Why a 500% Jump in Gold Prices Isn’t Far-Fetched

Posted on 19 July 2016 by VRS  |  Email |Print

One doesn’t have to be gold bug, think that a financial apocalypse is around the corner or know that predicting anything will increase 500% in value sounds a little crazy to think that history suggests that the precious metal’s price could soar.
The decade that brought us disco music, velour jumpsuits and Pong also saw a 2,300% jump in gold prices. Gold traded at $35 an ounce in 1971, but by the beginning of 1980, it had reached $850 an ounce. Meanwhile, stock markets were volatile but with ultimately flat returns, it was a lost decade………………………………………..Full Article: Source

Gold Price Forecast: Long-Term Pattern Targets $2,700

Posted on 19 July 2016 by VRS  |  Email |Print

Gold has been hot recently. Even now during the summer months, which is typically the slowest time of year for the shiny yellow. Yet, even with the $110 intraday surge on June 24th after the affirmative Brexit vote, gold still has some work to do to convince the remaining bears that a change in the down trend from 2011-2015 is officially upon us.
In this article, we present the critical technical crossroads that gold finds itself in…and what the ramifications of a breakout from this level will signal for long-term investors………………………………………..Full Article: Source

Silver shinier than gold

Posted on 19 July 2016 by VRS  |  Email |Print

Following Britain’s decision to leave the European Union (EU), investors are turning to “safety” assets. What is notable is that the price of silver is rising steeper than gold. Silver traded at $40.40 an ounce on the New York Mercantile Exchange on July 6, surpassing $20 for the first time since August 2014.
Cho Byung-hyun, a market analyst at Yuanta Securities, noted that the market’s interest in precious metals such as gold and silver has been strong since early this year _ gold has risen 27 percent this year while silver has risen 45 percent………………………………………..Full Article: Source

Silver Prices Rose Over 40% in 2016: Will the Bull Market Continue?

Posted on 19 July 2016 by VRS  |  Email |Print

Silver prices have already appreciated over 40% in 2016, with the metal climbing on renewed safe haven demand. There is the argument that there is always the need for investors to have some safe haven investments in their portfolio, and silver is an attractive addition due to its affordability when compared to the other typical safe haven assets, which include gold and platinum.
So far in 2016, there have been many reasons to purchases safe haven investments, and combined with the fact that the Fed has delayed its interest rate hikes, silver prices have accelerated since June………………………………………..Full Article: Source

Gold to hit $3,000 to $5,000 an ounce - analysts

Posted on 18 July 2016 by VRS  |  Email |Print

The bullion proved to be a lucrative asset class when it rallied substantially last month, reaching its highest level since the global recession in 2008, after the controversial Brexit vote. Although signs became apparent over the last few days that the rally started to ease, the yellow metal again moved higher on Friday when reports of a Turkish coup attempt broke out.
With all the turmoil in the world, gold is seen to continue doing well this year and over the next few years. By the end of 2016, the precious metal could reach $1,500 and by 2020, signs point to the metal hitting a new record high in excess of $3,000 per ounce………………………………………..Full Article: Source

Analyst Boosts Price Target for Gold by 75%

Posted on 18 July 2016 by VRS  |  Email |Print

Less than one year ago, Dutch bank ABN AMRO has put itself on the map by being more bearish on gold than Goldman Sachs. Whereas the latter was expecting to see a gold price of $1000/oz, the head analyst responsible for precious metals at ABN AMRO said she was expecting a gold price of $800 per ounce by the end of this year.
Gold is trading firmly above the $1300/oz, and almost 70% higher than ABN’s target price. But of course, just like any other ‘analyst’, the bank quickly reversed its course just a few months later when the market started to turn around………………………………………..Full Article: Source

Why is the gold price rising? Five forces driving the precious metal

Posted on 15 July 2016 by VRS  |  Email |Print

Hoarding gold is a centuries-old reaction to times of crisis, and the aftermath of the EU referendum vote is no different. The yellow metal has soared in value since Britain voted to leave the European Union as investors shoot towards traditional “safe haven” assets. Prices have reached a three-year high as Brexit worries intensify.
An ounce of gold is now worth $1,327 (£1,003), up from $1,257 on June 23. However, the spike follows a sustained rally in the gold price throughout the year. The metal is now worth a quarter more an ounce than it was at the end of 2015………………………………………..Full Article: Source

Gold declines as investors await stimulus from policy makers

Posted on 15 July 2016 by VRS  |  Email |Print

Gold dropped as equities rallied ahead of potential stimulus measures from policy makers, while silver in China fell from its highest level in almost three years.
Bullion for immediate delivery lost as much as 0.8 per cent to US$1,331.52 an ounce and traded at US$1,333.04 by 3.37pm in Singapore, according to Bloomberg generic pricing. The metal had added 0.7 per cent on Wednesday, snapping two days of declines. On the Shanghai Futures Exchange, silver futures dropped 0.8 per cent………………………………………..Full Article: Source

Silver Prices Could Triple

Posted on 15 July 2016 by VRS  |  Email |Print

Respected metals and mining analyst John Embry wasn’t shy about his prediction for silver prices on Thursday, noting the precious metal could triple, quadruple, or even more in the coming months and years.
Said Embry in an interview with KWN: “…Silver is now performing more positively, despite the best efforts of the usual suspects to suppress the price. And this is confirmed by the Open Interest being near all-time record levels, which just shows how hard they are working to keep the price at low levels………………………………………..Full Article: Source

Silver Institute: Silver Investment Sharply Higher In 2016

Posted on 15 July 2016 by VRS  |  Email |Print

Silver investment has soared in 2016 as investors sought the metal as a safe haven and leveraged exposure to the sharp rally in gold, says the Silver Institute. “Investors actively accumulated silver in the first six months of the year, including both the physical and paper markets,” the organization says.
Exchange-traded-product holdings rose by 44.3 million ounces, or 7.2%, to a record high of 662.2 million.
Investors have also raised their net-long positioning in Comex silver futures and options to a record high of 80,522 contracts as of July 5th, after this was 6,282 contracts at the end of 2015, the Silver Institute says. ……………………………………….Full Article: Source

Diamonds Seen as ‘Next-Best’ Commodity After Gold Rally

Posted on 14 July 2016 by VRS  |  Email |Print

Commodity investors concerned that gold’s rally will sputter may want to consider another luxury item: diamonds.
With odds of a U.S. rate hike creeping higher and long positions in bullion soaring, “it may make even more sense to look at a next-best commodity exposure such as diamonds, where there has been limited investor flow and presumably less downside in case the bear case unfolds,” Citigroup Inc. analysts including Barry Ehrlich said in a note. The bank recommends shares of Alrosa, the world’s largest rough-diamond producer………………………………………..Full Article: Source

Gold still glitters but how high can it go?

Posted on 14 July 2016 by VRS  |  Email |Print

Amid global uncertainty, volatility and bad economic news, key investment trends seem to be heading in the right direction for gold speculators, with demand already near record highs. Gold demand reached 1,290 metric tons during the first quarter of 2016, a 21% increase compared to a year ago, making it the second best quarter on record.
The increase was driven by huge inflows into exchange traded funds, amounting to 394 metric tons, as investors bet on price rises driven by global demand and continued buying by central banks, led by the People’s Bank of China, according to the World Gold Council’s quarterly report………………………………………..Full Article: Source

How High Can Gold Prices Go? Experts Weigh In

Posted on 14 July 2016 by VRS  |  Email |Print

Gold prices have been locked into a year-long bullish pattern, despite hitting multi-year lows in January. The question on everyone’s mind is: how much further can they rise? Let’s take a look at several expert predictions.
Some gold watchers are bearish on the metal, others are bullish. Still others are ultra bullish, while some are insanely bullish. With gold currently sitting around $1,342 per ounce, here’s a rundown of some recent predictions: Goldman Sachs analyst Andrew Quail – $1,250/oz – Goldman has been bearish on gold for quite some time, despite its recent run-up………………………………………..Full Article: Source

Gold Price Of $1,400 Is Just The Start - VanEck

Posted on 14 July 2016 by VRS  |  Email |Print

Although gold prices are down from last week’s two-year high, one investment firm sees $1,400 an ounce as just the start as the market remains in a new bull uptrend.
In a report released Tuesday, Joe Foster, gold strategist at VanEck, said that the firm is expecting gold prices to reach $1,400 an ounce in the second half of the year, adding “and we do not believe it will end there.” Tuesday, August gold futures have seen renewed selling pressure with prices last trading at $1,336.50 an ounce, down almost 1.5% on the day………………………………………..Full Article: Source

Gold to hit $1,500 in 2016; $5,000 in 2020: Analysts

Posted on 14 July 2016 by VRS  |  Email |Print

Amid dismal global growth outlook, bullish sentiment for the gold remains intact with precious metal experts predicting that the yellow metal would rise 10 per cent short-term as they expect it to close in on $1,500 per troy ounce by end of this year, and eventually hitting $5,000 by 2020.
Gold, which has been the biggest outperformer among all asset classes this year, up 26 per cent, is now headed for $1,500 per ounce while silver will overshoot to $30 per ounce with the global economic growth now expected to be slower at three per cent in 2016, versus 3.4 per cent at beginning of year, the global research team at Bank of America Merrill Lynch said………………………………………..Full Article: Source

Silver prices surge nearly 50%, but beware of the devil’s metal

Posted on 14 July 2016 by VRS  |  Email |Print

Silver prices have leapt nearly 50 percent so far this year, reversing three years of losses, but history shows investors hoping to hop aboard the bandwagon should be wary. A surge in gold and upbeat prices of industrial metals, along with prospects for yet more monetary stimulus from leading central banks, have prompted some heart-stopping moves.
“I’ve lost hair this year,” one silver trader said after the market shot up by almost a third in one month alone. “And about 20 pounds.” On the face of it, silver has a lot of appeal. It tends to track gold prices, but its low liquidity usually leads it to outperform the move in gold by around 1.5 times………………………………………..Full Article: Source

Watch gold prices to profit from silver

Posted on 13 July 2016 by VRS  |  Email |Print

Gold prices are up 25 percent in 2016 while the surge in silver has seen prices rally 46 percent this year. Early in 2016, the silver price behavior stopped leading the gold price behavior. Silver reverted to its previous behavior of following the gold behavior but it has remained a very profitable trade.
Silver has an upside target of $26.00. That’s 30 percent higher from the current price near $20.00. Gold has an upside target near $1580, which gives a 16 percent gain from the current price near $1360………………………………………..Full Article: Source

Silver Takes the Gold

Posted on 13 July 2016 by VRS  |  Email |Print

Commodities’ performance is quite a reversal from the weakness we’ve seen lately, particularly last year, but we shouldn’t expect another 2004 or 2005, when global trade was humming. Conditions are still not ripe for a real takeoff, with manufacturing activity in China and the eurozone struggling to gain momentum.
But there’s hope. Many of the challenges standing in the way of growth were exposed when Britain voted last month to leave the European Union (EU), which I’ve been writing about for the past few weeks. Most recently, I highlighted some of the winners to emerge from Brexit, among them gold investors, U.S. homeowners and British luxury goods makers………………………………………..Full Article: Source

TDS: $1,500 Gold Possible If Fed Downgrades Rate Forecast

Posted on 13 July 2016 by VRS  |  Email |Print

TD Securities sees $1,400 gold and says $1,500 may even be possible if the Federal Reserve further cools market expectations for interest rates. The metal has benefited from the “disarray” caused by the U.K. after its vote to leave the European Union, as well as global disinflation and low interest rates.
“Given that there are likely to be significant flows into gold and other precious metals seeking protection from the current turmoil, the record amount of net-long exposure should not impede the yellow metal from trending toward $1,400/oz,” TDS says. “If we see the Fed downgrade its rate forecast in the not-too-distant future, a move toward $1,500/oz is also very possible, particularly if the negative yield narrative grows even louder.”……………………………………….Full Article: Source

Gold Is Not ‘Crowded’ Yet; Here’s Why

Posted on 13 July 2016 by VRS  |  Email |Print

Is gold a crowded trade yet? Bulls are growing more optimistic by the day. Gold futures have climbed 26% to $1,333 an ounce this year (despite a 1.7% drop on Tuesday as risky assets rallied).
Nicholas Colas, chief market strategist at New York brokerage Convergex, notes that gold-tracking ETFs have pulled in $16.2 billion this year, reversing the $2.7 billion of outflows from the second half of 2015. Demand for gold ETFs is basically the same as demand for U.S. stock ETFs, which have pulled in $16.9 billion. Meanwhile, gold ETFs demand, at 364 tonnes in the first quarter of this year, the highest since the start of 2009………………………………………..Full Article: Source

Why investors should expect the gold price to continue to rise

Posted on 13 July 2016 by VRS  |  Email |Print

Despite the move towards more ‘risk-on’ assets in recent days, investors should continue to expect the gold price to rise, according to Nitesh Shah, commodity strategist at ETF Securities.
Positive economic data from the US, coupled with the view that the Bank of England will boost stock markets, and maybe economic growth with an interest rate cut and perhaps more quantitative easing, has pushed many investors back into equities, with the US S&P 500 hitting an all time high, and the UK FTSE 100 advancing significantly from the lows achieved immediately after the EU referendum result………………………………………..Full Article: Source

Gold price rally helps producers climb world’s top 25 mining companies list

Posted on 12 July 2016 by VRS  |  Email |Print

Gold has consolidated its post-Brexit gains this month and continues to be the best-performing commodity so far this year, filling the pockets of most producers of the precious metal, a new study shows.
According to SNL Metals & Mining, gold-focused companies have climbed the most in the ranking of the world’s top 25 mining companies by market capitalization from April to June this year, helped by rising gold prices, declining mining costs and, most recently, global economic uncertainty as a result of the UK’s decision to leave the European Union in June………………………………………..Full Article: Source

Post-Brexit gold rush pushes price to two-year high

Posted on 12 July 2016 by VRS  |  Email |Print

Gold has proven a popular investment after Britain’s vote to exit the European Union. Investments sold as “safe” are often anything but, however. If you thought the Brexit vote was scary, check out the full page newspaper ad that recently appeared in The New York Times recounting all the horrors in the present tense, as if they were still unfolding: The vote “topples” the British government, “crushes” the pound and “wipes away” billions in stock market wealth.
Then came the purpose behind all the panicky prose. “Buy Gold Now!” Investors have done just that, pushing up the price of the metal to a two-year high………………………………………..Full Article: Source

Could gold rally end in a rout?

Posted on 12 July 2016 by VRS  |  Email |Print

I always find it curious how investors react to political crises. As Brexit fever was in full throttle, thousands of perfectly sensible folk decided to dump their cash into gold coins. Why on earth would anyone think that Brexit would make any difference to gold prices?
I suspect I am missing the point. Brexit was almost perfectly timed to fan the flames of already growing alarm among investors about impending recession, diminishing returns for QE, and a more general sense the debt bubble may burst soon………………………………………..Full Article: Source

The relationship between gold and silver has changed dramatically

Posted on 12 July 2016 by VRS  |  Email |Print

While gold has soared this year, silver has skyrocketed, leading to a big move in a key measure of relative strength often used by traders. In the beginning of 2016, an ounce of gold was worth as much as 77 ounces of silver; by the end of February, that number would rise above 83.
Yet on Monday, with gold trading at $1,357 per troy ounce and silver at $20.40, the gold/silver ratio is down to 66.5. While this the lowest this indicator has been since September 2014, the ratio is actually still above historical norms………………………………………..Full Article: Source

Silver outperforms YTD, but likely to correct lower - Citi

Posted on 12 July 2016 by VRS  |  Email |Print

Silver may be the best performing metal in the year to date, boosted by safe-haven flows and end-use demand, but Citi expects profit-taking to take the price lower over the rest of 2016, it said. It sees the metal correcting to average $18.30 per ounce in the third quarter and to average $16.95 over the whole of the year, it said in a note.
Spot silver prices breached $20 for the first time since April 2014 this year. At $20.345/20.370 recently, it was little changed from the previous close. Citi expects more of the same in the second half of the year because the market is arguably already positioned heavily long, it said………………………………………..Full Article: Source

Platinum and palladium to find price support from deficits in 2016: Citi

Posted on 12 July 2016 by VRS  |  Email |Print

Supplies of platinum and palladium, key ingredients in autocatalysts, are forecast to be in deficit for full-year 2016, with the dollar platinum price averaging $985/oz this year and $1,040/oz in 2017, Citi said Monday.
Strategist at the bank David Wilson said platinum is likely to register a 172,000 oz deficit with palladium short by 847,000 oz. “We expect platinum to average $1,120/ounce in 2018. For palladium, we expect $570/oz (up 7% from previous estimates), $640/oz (up 2%), and $690/oz (unchanged) in 2016, 17, and 18 respectively,” he said………………………………………..Full Article: Source

Gold outshines all commodities in 2016

Posted on 11 July 2016 by VRS  |  Email |Print

A more than 20 per cent growth in global gold demand during the first quarter of 2016 made the precious metal the best-performing commodity so far this year, the Dubai Chamber of Commerce and Industry said in its latest analysis. Global gold demand jumped by 21 per cent to 1,289.8 tonnes in the March quarter of this year, according to the World Gold Council.
Gold prices, along with other precious metals, such as silver, had been on a declining trend between 2011 and 2015 due to recurring worries about the global economic recovery, strong dollar, cheap energy cost and the consequent low levels of inflation………………………………………..Full Article: Source

UBS: Gold Set For Bull Run But…

Posted on 11 July 2016 by VRS  |  Email |Print

The latest gold forecasts from UK-based UBS investment strategist Joni Teves open with the sentences: “We think gold has entered a new phase. Gold has likely entered the early stages of the next bull run.” Teves goes on to forecast an average gold price for the year of $1,280 (up $55 from the previous forecast), which may look rather less than bullish at first sight given the current gold price in the $1,360s, but points out that the average price this year so far has only been $1,222.
Thus the new average price prediction suggests an H2 average of around $1,340 - conservative but perhaps realistic if gold sticks in the $1,350-$1,400 range for the remainder of the year………………………………………..Full Article: Source

Investors pin hopes on Hummingbird striking gold

Posted on 11 July 2016 by VRS  |  Email |Print

“Civilised people don’t buy gold. They invest in productive businesses,” Charlie Munger, Warren Buffett’s partner, said in 2012. Farmland trumps gold nuggets any day, the Sage of Omaha opined.
Tell that to the markets. The gold price keeps hitting new highs following the vote on Brexit. Last week, it rose above $1,375 an ounce, up from $1,050 at the start of the year. Bank of America Merrill Lynch now predicts that economic uncertainty will drive the price above $1,500………………………………………..Full Article: Source

Japanese Buying Physical Gold, Storing it in Switzerland

Posted on 11 July 2016 by VRS  |  Email |Print

Japanese investors are buying Bullion and storing it in Switzerland because of negative interest rates and fears JPY will depreciate as the government grapples with the heaviest public debt burden in the developed world, according reports.
The number of buyers jumped 62% in 1-H of Y 2016 Vs 2-H of Y 2015 the data show. The Bank of Japan (BOJ) has embarked on unprecedented bond buying to bolster the economy, prompting speculation that JPY could plunge if stimulus efforts fail………………………………………..Full Article: Source

Why This Aussie Firm Says Gold to ‘Certainly’ Hit $1,500, Maybe Even $1,900

Posted on 11 July 2016 by VRS  |  Email |Print

Another bullish call on gold. Surprise, surprise. But, this Sydney-based firm sees the potential of a $200-500 rally in gold because of what’s happening in Asia. “You have to look at the long term in gold…more people are coming into the market looking for gold and there’s not much there, so gold’s has got the potential to rally quite strongly,” Barry Dawes of Paradigm Securities said.
“I think we’re certainly going to see $1,400 quite soon and I think we’ll certainly see $1,500 by year end and maybe even that $1,900.” Positive sentiment towards the yellow metal has been prevalent with Bank of America Merrill Lynch being the latest among a slew of banks to up their gold price forecast for this year………………………………………..Full Article: Source

These 4 Banks Are Bumping Their Gold Forecasts

Posted on 08 July 2016 by VRS  |  Email |Print

UBS has increased its short-term target to $1,400 an ounce. For this year, the Swiss bank has increased its yearly average to $1,280 an ounce, up from $1,225; for the second half of the year, gold analyst Joni Teves said in her note that she expects prices to average $1,340 an ounce.
Commodity analysts at Commerzbank do not see gold’s safe-haven appeal coming to end anytime soon as they increase their year-end forecast by $100 to $1,350 an ounce. The bank also sees more potential for gold as analysts expect the Federal Reserve will not be in a hurry to raise interest rates in these current market conditions………………………………………..Full Article: Source

Gold Prices Pull Back From Two-Year High

Posted on 08 July 2016 by VRS  |  Email |Print

Gold prices fell from a two-year high on Thursday as investors took profits ahead of the release of widely anticipated jobs data on Friday. Gold for August delivery settled down 0.4% at $1,362.10 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as low as $1,352.00 earlier in the session.
June nonfarm payrolls are expected Friday, which could give further clues on the strength of the U.S. economy and affect the likelihood that the Federal Reserve will raise rates this year. A rate increase could weigh on the price of gold, since the precious metal doesn’t bear interest and can struggle to compete against yield-bearing investments when interest rates rise………………………………………..Full Article: Source

Gold Headed For $1500 And This Time It Really Is Different

Posted on 08 July 2016 by VRS  |  Email |Print

Gold has made quite a run and some bears argue that it will correct at least 300 points because of a commodity bear super cycle. Despite the long-term double top pattern in gold, one should not automatically presume that crowd behavior will react in a similar manner.
This time it really is different as the underlying economic fundamentals support higher gold prices. Currently, gold is in the midst of a bullish Fibonacci retracement and its next target is $1500………………………………………..Full Article: Source

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