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Gold price languishes after Indian surprise

Posted on 05 March 2015 by VRS  |  Email |Print

The gold price failed to recover this morning after two days of losses resulting from India’s surprise decision to maintain an import duty on the metal.
Traders believe that US jobs data due on Friday might lead to a rally, reversing the downward trend that has seen the gold price drop from $1,300 per ounce at the end of January to little over $1,200 today. At noon, gold was trading at $1,204.02 per ounce, down 53 cents on Tuesday’s close………………………………………..Full Article: Source

Timid silver does not mean bad economic news

Posted on 05 March 2015 by VRS  |  Email |Print

Gold’s relationship with silver and the stock market seems to have changed. The mint ratio is the gold price divided by the silver price. Assuming supply stays reasonably stable, the mint in recent times has tended to rise when equities fall.
When the S&P 500 hit its post-dotcom bubble low in 2003, the mint breached 80. Just before Wall Street’s credit crunch trough in early 2009, the mint brushed 90. The inverse correlation is explained by investors lowering the price of silver relative to gold as the tougher economic times hurting stocks are seen reducing demand for the grey metal. Gold has hardly any industrial uses………………………………………..Full Article: Source

Gold market open to wide-ranging OTC trade reform: LBMA

Posted on 05 March 2015 by VRS  |  Email |Print

The London Bullion Market Association (LBMA) believes the gold industry is ready for wholesale reform, including a tailor-made mechanism to report daily turnover and potential clearing following 2014’s shake-up of benchmarks. The transparency of financial markets has been a focus of global regulators after evidence of price manipulation in lending rates between banks with the LIBOR scandal in 2012.
Both gold and silver were included in a list of seven benchmarks that will be regulated by Britain’s watchdog Financial Conduct Authority (FCA) from April. New rules on over-the-counter derivatives are expected in Europe by 2016, while a broader review of UK markets is now evaluating the introduction of mandatory clearing and transaction-reporting obligations for precious metals………………………………………..Full Article: Source

India’s failure to cut duty hurts gold prices

Posted on 04 March 2015 by VRS  |  Email |Print

India’s decision to maintain an import duty on gold surprised investors, dealing a fresh blow to a metal that has been hit hard this year by a strengthening U.S. dollar and a series of policy shifts around the globe. Gold for April delivery, the most actively traded contract, sank $4.90, or 0.4%, to $1,208.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Investors had been hoping India would reduce the duty, likely boosting demand for gold from the world’s largest consumer. The decision adds to broad crosscurrents for gold, which tends to appreciate at times of economic uncertainty but does less well in more placid periods because it offers buyers no periodic payments, or yield……………………………………….Full Article: Source

Gold – Selling Pressure Resumes on Support at $1200

Posted on 04 March 2015 by VRS  |  Email |Print

Gold has done well over the last few days to enjoy some support at $1200 and rally higher to a one week high to finish last week, before dropping a little in the last 24 hours and placing its attention firmly back on the support at $1200. For the last month now gold has drifted steadily lower down to a one month low near the key $1200 level before finding solid support at this key level over the last couple of weeks.
Earlier last week gold moved back and forth and teased the $1200 level a little however the demand kicked in and brought it right back above the key $1200 level before moving a little higher to close last week. A few weeks ago it rallied higher after dropping through $1220 before running into some resistance around the key $1240 level……………………………………….Full Article: Source

Gold & Silver Investing Strong, Sellers Vanish

Posted on 04 March 2015 by VRS  |  Email |Print

Gold investing sentiment jumped in February, writes Adrian Ash at BullionVault, surging from a half-decade low to the strongest level since Spring 2013. That’s according to our new Gold Investor Index today. It tracks the number of buyers vs. sellers on BullionVault, the low-cost gold and silver market online. Used by 55,000 people worldwide, it saw $1.2 billion of metal (£740m, €920m) exchanged in 2014.
And last month, BullionVault’s Gold Investor Index jumped from 50.5 to read 54.5 as the number of people starting or adding to their gold holdings rose, but the number of sellers sank by two-thirds. A reading of 50.0 would signal a perfect balance of net buyers and net sellers across the month. The Gold Investor Index peaked at 71.7 in September 2011……………………………………….Full Article: Source

Is Silver a Good Investment Right Now?

Posted on 04 March 2015 by VRS  |  Email |Print

The prevailing silver price volatility and surging stock market has investors asking, ” Is silver a good investment right now?” Silver prices have ranged from $15.785 an ounce to $18.31 in 2015. This is the norm for silver. Last year it was as high as $21.965 and low as $15.315.
The current price of silver is around $16.20 an ounce. It’s up about 3.4% on the year, but has been up as high as 16.7%. It can be hard as an investor to stomach that kind of volatility. But even with all these violent price swings, the reasons that make silver a good investment still hold true. ………………………………………Full Article: Source

Platinum buyers seek to limit SA output risk

Posted on 04 March 2015 by VRS  |  Email |Print

Additional platinum metal sourced from recycling is one of the major reasons why the platinum market remains weak and this source of metal is being actively promoted by customers as an alternative to primary supply from South Africa.
That’s according to Royal Bafokeng Platinum (RBPlat) CEO, Steve Phiri, who told financial media and analysts during a presentation of the company’s financial results for 2014 in Sandton today that “… this is a worrying development”. Phiri added: “Secondary platinum from recycling is being viewed as a substitute for primary supply from South Africa because we are no longer seen as a reliable and sustainable supplier of the metal for various reasons including labour issues and regulatory issues……………………………………….Full Article: Source

India’s Gold Buying to Pick Up After Budget

Posted on 03 March 2015 by VRS  |  Email |Print

Traders are bracing for a short-term bump upward in India’s gold demand after the world’s largest consumer of the precious metal maintained an import duty in a budget unveiled Saturday. In the weeks leading up to the budget announcement, India’s gold imports slowed. Some wholesalers delayed purchases, anticipating that the government would announce a cut in taxes on gold imports.
Imports in January totaled around 39 metric tons, according to Macquarie Group Ltd. That compares with a monthly average of 81 tons in the second half of 2014. Data for February isn’t available, but traders and analysts said imports remained subdued last month………………………………………..Full Article: Source

Gold Extends Gains On Seasonal Demand, Global Cues

Posted on 03 March 2015 by VRS  |  Email |Print

Gold prices maintained its upward journey for the second day with a gain of another Rs 180 to Rs 27,300 per 10 gm, supported by increased buying and a firming trend overseas. Silver also moved up by 400 to 37,600 per kg on increased offtake by industrial units and coin makers.
Traders said increased buying by jewellers and retailers, triggered by wedding season demand and a firming global trend, mainly kept precious metals higher. Globally, the precious metal advanced to the highest level in almost two weeks, after China announced a second interest-rate cut in three months and the U.S. reported a slower pace of economic expansion than estimated, traders said………………………………………..Full Article: Source

Gold market ‘is booming’ in Bahrain

Posted on 03 March 2015 by VRS  |  Email |Print

Bahrain’s gold market has been booming over the last two years, according to official figures. The amount of gold jewellery, bars and other items sent for testing at the Gem and Pearl Testing Laboratory of Bahrain (GPTL) more than doubled from 6,000 at the end of 2013 to 13,000 at the end of last year.
Precious Metals and Gemstones Testing Directorate acting director Abeer Al Alawi said the number of items tested was much higher than any of the previous five years. “We maintained an average pace of around 5,000 items tested every year until 2012 and then there was a hike to 6,000 in 2013,” she told the GDN………………………………………..Full Article: Source

Speculators Continue To Shed Gold Futures But At Slower Pace — CFTC

Posted on 03 March 2015 by VRS  |  Email |Print

Speculative traders continue to be bearish the gold market but the pace of selling appears to be slowing, according to the latest data from the Commodity Futures Trading Commission.
According to the CFTC commitment of traders disaggregated report, futures gold net long positions declined for the fourth straight week, as of Feb. 24. Money-managed speculative gross long positions declined by 4,000 contracts, to 124,595. At the same time, speculative gross short positions increased by 2,205 contracts to 35,108. Gold’s net length now stands at 89,487 contracts………………………………………..Full Article: Source

Will 2015 Be Gold’s Year?

Posted on 03 March 2015 by VRS  |  Email |Print

A volatile beginning to 2015 is helping gold to regain some of its mojo. The U.S. stock market got off to a shaky start in January, and instability in currency markets initially lifted the price of gold bullion. The SPDR Gold Shares (GLD) is already up around 7% year-to-date. Likewise, ETFs that leverage exposure to gold and related assets like the ProShares Ultra Gold ETF (UGL) and the Direxion Daily Gold Miners Bull 3x Shares (NUGT) have soared 14.6% and 72% respectively.
A swift decline in the euro and the recent move by the Swiss National Bank to end the cap on the franc are reminders that currency values can change dramatically. Will Denmark be forced off its krone peg to the euro as well? Amid recent currency ups and downs, gold looms as an alternative………………………………………..Full Article: Source

Australia’s gold output at decade high as miners cash in on currency drop

Posted on 02 March 2015 by VRS  |  Email |Print

Australia recorded its highest annual rate of gold production in a decade in 2014, accelerating the depletion of high-grade mine reserves, a survey released on Sunday said. Gold output in Australia, the second highest producing nation after China, rose to 284 tonnes in 2014, up 11 tonnes or four percent on 2013, mining consultants Surbiton Associates Pty said in its latest survey of Australian gold mining.
This is the highest annual figure tallied by Surbiton since 2003. Output for the fourth quarter 2014 reached 73 tonnes, up three tonnes on the previous quarter, according to Surbiton………………………………………..Full Article: Source

Analysts see gold price recovery ahead

Posted on 02 March 2015 by VRS  |  Email |Print

Analysts are warming up, albeit cautiously, to gold after more than three years of falling prices that put the great majority of Canadian gold exploration companies in the deep freeze. CIBC World Markets senior economist Peter Buchanan is predicting an uptick this year to $1,300 US from $1,200 in 2014, and a modest gain to $1,325 in 2016.
Scotiabank’s Commodities Price Index, taking note of last year’s price drop, has suggested that physical demand for the metal is recently bolstered by “general economic uncertainty.” ……………………………………….Full Article: Source

India Announces New Gold Schemes: What to Know

Posted on 02 March 2015 by VRS  |  Email |Print

Investors who want to buy gold will soon have a new option. This was among a number of proposals announced by Finance Minister Arun Jaitley in the Budget to reduce India’s import of gold as well as put to work the vast amount of gold deposits held in the country.
The Finance Minister said a Sovereign Gold Bond would be introduced as an alternative to purchasing physical gold. The bond or financial instrument will carry a fixed rate of interest and when investors sell the bond they will get the value of the gold………………………………………..Full Article: Source

India’s new gold scheme may hit Qatar market

Posted on 02 March 2015 by VRS  |  Email |Print

India’s new “gold monetisation scheme”, announced by country’s Finance Minister Arun Jaitley in his annual budget speech yesterday, is expected to hit hard Qatar’s gold market, especially the demand for gold bars and coins (bullion, sold in 24 and 22 carats), according to trade sources.
“The scheme will definitely have an impact on Qatar’s bullion market. Many Indian expatriates who used to invest in gold may now prefer to buy gold bonds or gold coins back home,” Azim Abba, Managing Director of Al Sulaiman Jewellery and Watches,said………………………………………..Full Article: Source

Analysts see gold price recovery ahead

Posted on 27 February 2015 by VRS  |  Email |Print

Analysts are warming up, albeit cautiously, to gold after more than three years of falling prices that put the great majority of Canadian gold exploration companies in the deep freeze. CIBC World Markets senior economist Peter Buchanan is predicting an uptick this year to $1,300 US from $1,200 in 2014, and a modest gain to $1,325 in 2016.
Scotiabank’s Commodities Price Index, taking note of last year’s price drop, has suggested that physical demand for the metal is recently bolstered by “general economic uncertainty.”……………………………………….Full Article: Source

What To Make Of Gold Prices In 2015

Posted on 27 February 2015 by VRS  |  Email |Print

For much of the past decade, gold has been viewed as one of the most stable and predictable investments in existence. The price of gold was rising slowly but steadily, and crises in world politics and financial markets continually proved that the precious metal had value as a protective hedge.
And yet, in mid-2012, this popular outlook began to change as gold prices became more volatile than most modern investors are used to seeing. Take a look at the 10-year gold pricing chart at online precious metal market BullionVault.com, and you’ll see the trend as clear as day. While gold today remains at a significantly inflated per ounce price than what we saw a decade ago, the steady rise that investors got used to between 2005 and 2012 is no more………………………………………..Full Article: Source

China’s new Shanghai-Hong Kong gold link-up hope to rival Western competition

Posted on 27 February 2015 by VRS  |  Email |Print

China is set to launch a link between gold markets in Shanghai and Hong Kong this year following a landmark stock connect scheme, aiming to enhance its pricing power of gold contracts and ultimately challenge its competitors in the West.
While China is the world’s largest consumer of the precious metal, having surpassed India, daily trading of gold in financial centre Shanghai is small compared with London. The move to develop gold trading comes as more trade flows to Asia and is in line with Beijing’s efforts to open up its domestic markets to foreign investors. China wants more market players to use its yuan currency when settling trade contracts and for making investments………………………………………..Full Article: Source

Platinum Dives to 5-Year Low

Posted on 27 February 2015 by VRS  |  Email |Print

For more than a year, you must have heard hundreds of analysts arguing that investors were moving money into precious metals and that global economic uncertainty would push these metals higher. Well, that hasn’t happened.
If we look back in time, periods of economic concern do not always translate into higher rising precious metals price. Furthermore, the market is just fine in spite of all the economic news that keep coming up talking about global economic concerns………………………………………..Full Article: Source

Gold trade coming back, if you can wait 2 years: BofA

Posted on 26 February 2015 by VRS  |  Email |Print

Gold will come under further pressure over the course of the year as the Federal Reserve moves closer to lifting rates, but prospects for the precious metal looks far more promising in the next few years, according to Bank of America Merrill Lynch.
“Right now, investors are not in the mood for holding gold because they see the Fed raising rates. So, I think in the next three months you’ll see downside risk, $1,100 an ounce is likely,” Francisco Blanch, commodities analyst at Bank of America Merrill Lynch told CNBC. “But if you look out 2-3 years, things are a lot brighter for gold,” he said………………………………………..Full Article: Source

Can platinum regain its premium over gold in Q2-Q3?

Posted on 26 February 2015 by VRS  |  Email |Print

On the positive side, precious metals consultancy, Metals Focus, in its latest Precious Metals Weekly, reckons that there’s a good chance that platinum will regain its premium over gold, perhaps as soon as in Q2 this year and possibly get back to a premium level during the year averaging as much as $100 over the gold price (which is pretty much the normal situation).
However there’s little in their opinion on the fundamentals side to support this argument, the key factor, being in their view, that when the U.S. Fed eventually ceases shilly-shallying and starts to raise interest rates, it will be the gold price which bears the bulk of any adverse reaction in the markets and platinum less affected………………………………………..Full Article: Source

Gold and silver prices: The next bank rigging scandal?

Posted on 25 February 2015 by VRS  |  Email |Print

US authorities open investigations into banks including HSBC and Barclays over possible rigging of precious metals benchmarks. The world’s biggest banks are still reeling from the consequences of the Libor and foreign exchange scandals, but US authorities are now investigating the possibility of more rigging.
Several banks are being scrutinised over how they set influential benchmarks in the markets for gold, silver, platinum and palladium in London, with at least 10 under investigation from the Department of Justice (DoJ) and Commodities and Futures Trading Commission (CFTC), according to reports………………………………………..Full Article: Source

Hedge funds raise bearish gold price bets by 44%

Posted on 25 February 2015 by VRS  |  Email |Print

Large scale speculators in gold futures added massively to short positions – bets that prices will fall – ahead of Greek bailout deal. On Monday the gold price fell sharply at the open as markets continued to digest the implications of the Greek debt deal reached on Friday, but soon recovered to hover around $1,200 for most of the day.
In thin volumes on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – ended the day at $1,201.30 an ounce, down $3.60 or 0.3% from Friday’s close after earlier slumping to near its lowest for the year at $1,190.85………………………………………..Full Article: Source

Platinum price puzzles

Posted on 25 February 2015 by VRS  |  Email |Print

Despite a big perceived supply deficit, platinum prices have remained depressed. How can this be? If anything demonstrates the illogicality of the precious metals markets, it appears to be platinum. But is this really the case?
Currently the metal is languishing at around a five-year low, yet most analysts put global platinum supply as being in a substantial deficit situation ever since last year’s South African platinum mine strikes, which took a substantial hunk of the metal out of the markets. Platinum is also selling at a lower price than gold – around $40 an ounce lower at the moment – which is a relatively rare, but not unknown, occurrence………………………………………..Full Article: Source

Gold Fever Fading as $4 Billion Erased From Funds: Commodities

Posted on 24 February 2015 by VRS  |  Email |Print

Judging by the barometer of hedge-fund interest, there’s less to get excited about in gold these days. Even as Greece battled with its creditors to avoid default and keep the euro zone intact, speculators retreated from the metal used as a haven from economic and political upheaval. Money managers cut their net-long wagers by the most in 15 weeks, U.S. government data show.
The strengthening dollar and record valuations for global equities are diminishing bullion’s appeal as a store of wealth. As the combined market capitalization of stocks thundered through $67 trillion last week and the dollar traded at its highest level in at least a decade, this month’s losses in exchange-traded products backed by gold reached almost $4 billion………………………………………..Full Article: Source

Should You Buy Gold Mining Stocks Now?

Posted on 24 February 2015 by VRS  |  Email |Print

Gold has historically proven to be a very desirable metal, never losing its appeal. This precious metal’s attributes, including malleability, resistance to corrosion and tarnishing, and glitter, makes it ideal for all kind of jewelries. But there is certainly more to gold, which is also a ripe investment option.
Gold investors buy gold bullion and official coins as a hedge against inflation or a safeguard against the collapse of paper assets such as stocks, bonds and other financial instruments. Even though gold seems to have lost its luster in recent times as an investment option, there are plenty of reasons to be optimistic about the gold mining industry for both the short and the long term………………………………………..Full Article: Source

Gold Fever Fading as $4 Billion Erased From Funds: Commodities

Posted on 23 February 2015 by VRS  |  Email |Print

Judging by the barometer of hedge-fund interest, there’s less to get excited about in gold these days. Even as Greece battled with its creditors to avoid default and keep the euro zone intact, speculators retreated from the metal used as a haven from economic and political upheaval. Money managers cut their net-long wagers by the most in 15 weeks, U.S. government data show.
The strengthening dollar and record valuations for global equities are diminishing bullion’s appeal as a store of wealth. As the combined market capitalization of stocks thundered through $67 trillion last week and the dollar traded at its highest level in at least a decade, this month’s losses in exchange-traded products backed by gold reached $4 billion………………………………………..Full Article: Source

Why Gold Is Looking Lustrous Once Again

Posted on 23 February 2015 by VRS  |  Email |Print

Since peaking above $1,900 an ounce in September 2011, gold prices have declined by nearly 40%, settling at around $1,200 an ounce on Friday. I became bearish on gold in January 2013 and discussed why this January 25, 2013 global macroeconomic commentary, citing: 1) the passing dangers of a euro zone breakup (after Spain, Portugal and Greece were bailed out by their richer peers), 2) the recovering U.S. economy, and 3) that gold was highly vulnerable to a major decline after a 12-year bull market.
I slapped a 12- to 18-month price target of $1,100-$1,300 an ounce—when gold traded at $1,660 an ounce. It now appears that the decline in gold prices is nearly over, and that there will be a great long-term buying opportunity in gold this year………………………………………..Full Article: Source

We like the fundamentals for gold

Posted on 23 February 2015 by VRS  |  Email |Print

Medium to long term, we like the fundamentals for gold. On the supply side, although mine production was up for the sixth consecutive year due to mines that were developed over the last decade, we do not believe there is a large enough pipeline of new projects to satisfy future demand.
This is due to a cost structure that is approaching (or even exceeding) the current spot price. On the demand side, we see continued strength in Asia and throughout the emerging markets, central banks and the investment sector as price goes up — hence a real “push/pull” phenomenon in the years ahead………………………………………..Full Article: Source

India’s gold imports set to rise as RBI eases curbs ahead of budget

Posted on 20 February 2015 by VRS  |  Email |Print

Gold imports to top consumer India are set to jump in coming months after the Reserve Bank of India (RBI) eased gold import curbs, ahead of an expected cut in import duty in next week’s budget.
The Reserve Bank of India said on Wednesday banks would again be allowed to import gold on a “consignment basis”, under which they act as intermediaries and don’t pay for the stock until a buyer has been found, which is usually quickly. Trading houses will be allowed to bring in gold with no conditions attached………………………………………..Full Article: Source

Gold – Forming a base as selling abates

Posted on 20 February 2015 by VRS  |  Email |Print

Gold remained under pressure in the final quarter of 2014 on dollar strength and growing demand for higher-yielding risk assets. Technical selling was also a feature after gold breached double bottom chart support around $1,180. The price weakness stimulated physical demand as gold entered its seasonal peak demand period.
Demand is expected to remain strong early this year while Chinese demand is boosted by New Year-related purchases. Further asset diversification among emerging market central banks has also been evident, absorbing continued liquidation from western institutional investors, also a trend we expect to continue in 2015………………………………………..Full Article: Source

Intercontinental Exchange to launch new LBMA Gold Price in March

Posted on 20 February 2015 by VRS  |  Email |Print

Intercontinental Exchange, the network of exchanges and clearing houses, has announced that ICE Benchmark Administration (IBA) expects to launch the new LBMA Gold Price, which replaces the long established London Gold Fix, on 20 March 2015.
Finbarr Hutcheson, president, ICE Benchmark Administration said: “Under the administration of IBA, the new LBMA Gold Price will benefit from increased transparency, and the robustness of the data used to calculate the benchmark will give a better representation of the market price. We would like to thank the London Bullion Market Association and the precious metals industry for their work and support in the transition of this globally important benchmark.”……………………………………….Full Article: Source

Silver Prices Preparing For A Strong Rally

Posted on 20 February 2015 by VRS  |  Email |Print

In September, we alerted readers to watch Gold and Silver prices for a development that could signal a market low. We believe that low arrived on November 30, and prices are now tracing an upward pattern that should continue until the middle of 2015 or beyond. For several reasons, we expect the current price area to serve as a base for both precious metals to rally. This article presents our forecast for silver prices, which we believe will test targets in the 20’s in coming months.
Even though we are watching for higher silver prices, we expect the rally to take a three-wave corrective form. The monthly silver chart below shows some of the context around that prediction. For both gold and silver, there are numerous signs that the price decline from 2011 was merely the first part of a larger corrective structure………………………………………..Full Article: Source

India: Banks allowed to import gold on consignment basis

Posted on 19 February 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Wednesday said nominated banks were now permitted to import gold on consignment basis. “All sale of gold domestically will, however, be against upfront payments,” said the RBI, adding, “Banks are free to grant gold metal loans.”
In a notification to banks, the central bank also said that Star and Premier Trading Houses can “import gold on documents against payment basis as per entitlement without any end use restrictions. While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed, it added………………………………………..Full Article: Source

Gold Edges Higher After Fed Minutes Reveal Rate Worries

Posted on 19 February 2015 by VRS  |  Email |Print

Gold reversed losses Wednesday after minutes from the Federal Reserve’s last meeting showed some central bank officials were worried about raising rates too soon. Gold for April delivery, the most actively traded contract, was recently up 0.2% at $1,211 a troy ounce in electronic trading on the Comex division of the New York Mercantile Exchange. Gold prices ended floor trading down 0.7% at $1,200.20 an ounce, the lowest settlement since Jan. 2.
Minutes from the Fed’s Jan. 27-28 policy meeting showed some officials believed it would be prudent to delay raising interest rates, fearing that financial markets may overreact to tighter monetary policy. Other Fed officials continue to argue for a rate increase in the near term, the minutes showed………………………………………..Full Article: Source

Gold Price $250 Forecast - Dear Harry Dent: Wanna Bet?

Posted on 19 February 2015 by VRS  |  Email |Print

Some of you may be aware that investment guru Harry Dent has publicly stated that gold will fall to $250-$400. He specifically predicted: Around $700/ounce is a certainty in gold by 2015 to 2016, and $250 is a possibility well down the line by 2020–2023.
His forecast is largely based on his belief that deflation will prevail. Governments are fighting deflation. If government stimulus fails, we will have deflation, not inflation. And he claims that gold bugs are wrong about gold’s future price because they don’t understand how markets work………………………………………..Full Article: Source

Gold price starting to look ‘vulnerable’ on seasonality: UBS

Posted on 19 February 2015 by VRS  |  Email |Print

The price of gold is starting to look vulnerable as the market heads into the “seasonally weak period” with the Lunar New Year around the corner, UBS said. New Year holidays in China begin Wednesday, and participants will be out through to Tuesday next week.
“The absence of this key physical market in a sense removes a natural cushion and therefore increases gold’s downside potential should negative catalysts emerge in the coming days,” analyst Joni Teves said in a research note. The price of gold had been enjoying a solid run in recent weeks spurred by a myriad of bullish factors including the unpegging of the Swiss franc against the euro and concerns about a possible exit by Greece from the eurozone and any potential ramifications………………………………………..Full Article: Source

Gold demand and supply trend in 2014 stands fundamentally bullish for gold prices

Posted on 18 February 2015 by VRS  |  Email |Print

Today we make a short break from the news from the main financial markets in order to analyze the gold demand trends for the full 2014 year, published a few days ago by the World Gold Council. How did the demand for gold behave last year?
A full year gold demand amounted to 3,923.7 tons, which means a 4 percent drop. It was caused by a10percent decline in jewelry demand. The decline is not surprising given the price-driven jewelry demand surge in 2013, however the 33 percent plunge in Chinese demand is substantial (on the other hand, Indian demand for jewelry was up 8 percent)………………………………………..Full Article: Source

Misconceptions About Gold

Posted on 18 February 2015 by VRS  |  Email |Print

Few markets are as widely misunderstood and subject to as many misconceptions as the gold market. Many of these misconceptions stem from gold’s dual characteristics as a commodity and money. Is it actually correct to claim that “gold is money”? After all, it is not used as official money anywhere and barring isolated instances of payments made from digital gold accounts, it is unlikely that one will ever make payments in gold these days.
In addition to this, central banks have been intent on “demonetizing” gold, and many of the biggest central bank holders of gold (except the US) have unloaded their gold reserves for years, ostensibly in order to earn the higher returns provided by bonds. It has always struck us as odd that they would be selling gold for this reason………………………………………..Full Article: Source

Gold price 2015 rally evaporating

Posted on 18 February 2015 by VRS  |  Email |Print

Negative sentiment swamped the gold market on Tuesday as traders bet on a positive outcome for Greek debt negotiations and the breach of key technical levels put further pressure on the metal. In heavy post-holiday volumes on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – plunged to $1,202.71 an ounce in mid-morning trade, down $24 or 2% from Monday’s close.
Gold gapped down shortly after the open and after breaking through its 100-day moving average, succumbed to more weakness. After a big bounce on Friday, silver’s stellar 2015 also ran into trouble with March contracts falling as much as 6% or more than $1.00 to $16.26 an ounce………………………………………..Full Article: Source

Gold price starting to look ‘vulnerable’ on seasonality: UBS

Posted on 18 February 2015 by VRS  |  Email |Print

The price of gold is starting to look vulnerable as the market heads into the “seasonally weak period” with the Lunar New Year around the corner, UBS said Tuesday. New Year holidays in China begin Wednesday, and participants will be out through to Tuesday next week.
“The absence of this key physical market in a sense removes a natural cushion and therefore increases gold’s downside potential should negative catalysts emerge in the coming days,” analyst Joni Teves said in a research note. The price of gold had been enjoying a solid run in recent weeks spurred by a myriad of bullish factors including the unpegging of the Swiss franc against the euro and concerns about a possible exit by Greece from the eurozone and any potential ramifications………………………………………..Full Article: Source

Paulson holds gold ETF in Q4 but cuts back on some miners

Posted on 18 February 2015 by VRS  |  Email |Print

Hedge fund Paulson & Co kept its stake in the gold-backed exchange-traded fund SPDR Gold Trust unchanged for a fifth straight quarter in the three months ending Dec. 31, a filing with the U.S. Securities and Exchange Commission showed on Tuesday.
The New York-based fund, led by longtime gold bull John Paulson, owned more than 10.2 million shares worth $1.16 billion in the ETF at year-end as bullion prices fell. The stake’s value was cut from $1.19 billion in the third quarter………………………………………..Full Article: Source

Gold has bullish hopes, sobering current reality

Posted on 17 February 2015 by VRS  |  Email |Print

The price of gold appears caught in a holding pattern, stuck between what is actually happening to demand and what potentially may happen. The World Gold Council’s latest quarterly report provides a snapshot of the different dynamics at work in the gold market, and goes some way to explain why the precious metal has been marooned in a fairly narrow range for almost two years.
The broad picture from the council’s Gold Demand Trends 2014 report is that last year was the weakest since 2009. This fits in with spot gold’s modest 1.8 percent decline over the year, but the breakdown of that demand shows where the pressure points are located………………………………………..Full Article: Source

Gold falls back out of favour as hedge funds retreat: Commodities

Posted on 17 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Gold gains ahead of Chinese New Year

Posted on 17 February 2015 by VRS  |  Email |Print

Gold enjoyed its third straight session of gains on Monday with industry experts predicting a little more shine for the precious metal with the Chinese holiday period just around the corner. The price of spot gold rose by around $6 at the start of the session before easing back a little as European trading hours got under way. The price was at $1,232.40 per ounce by 12.30 p.m. GMT and has clocked a gain of over 4 percent since the start of the year.
Brad Gordon, the CEO of Acacia Mining - a gold mining business operating in Tanzania - said that the feeling in his industry was generally subdued but it is still optimistic that the price was about to head higher in the short-term………………………………………..Full Article: Source

Gold Falls Back Out of Favor as Hedge Funds Retreat: Commodities

Posted on 16 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Global Demand for Gold Fell in 2014

Posted on 16 February 2015 by VRS  |  Email |Print

Global demand for gold fell last year as buying plunged in two important markets, China and India, the World Gold Council said Thursday. Total demand in 2014 weighed in at 3,924 tons, compared with 4,088 tons the previous year. However, growth in demand increased into the end of the year: Fourth-quarter demand was 988 tons, up 6% from the year-earlier quarter.
Last year “was a year of stabilization…after the record-breaking level of buying seen in 2013,” said Marcus Grubb, managing director of investment strategy at the World Gold Council………………………………………..Full Article: Source

Turkish banks capitalize on savers’ preference for gold

Posted on 16 February 2015 by VRS  |  Email |Print

From the outside, it looks like any other automatic bank machine on the streets of Istanbul. But rather than notes, this one distributes small pieces of gold. Gold is hugely prized in Turkey not just for ornamentation or investment by banks but as a secure way for private individuals to hold their savings.
Many people in Turkey – which has one of the lowest private savings rates among major economies – keep gold as security for a “rainy day” rather than products offered by banks. According to estimates, Turks hold some 3,500 tons of gold. Banks have sought to capitalize on the tradition by offering accounts denominated in gold………………………………………..Full Article: Source

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