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Gold price to average $1135/oz in Q3 – GFMS

Posted on 29 July 2015 by VRS  |  Email |Print

The gold price will average $1,135 per ounce in the third quarter of this year, GFMS said in its latest Gold Survey report, and $1,175 in the fourth quarter. This compares to a second quarter average of $1,192 per ounce and current spot gold price of $1,095.
The third quarter is widely expected to see the first increase to US interest rates since 2008. Higher interest rates in theory would push many gold investors into more yield-bearing assets such as bonds. GFMS on the other hand believes that much of the action has already been priced into gold, and that the first increase will in actual fact push the metal’s price higher………………………………………..Full Article: Source

Gold Demand Lowest Since 2009

Posted on 29 July 2015 by VRS  |  Email |Print

Demand for gold fell to its weakest level since 2009 in the second quarter, as Chinese buyers shunned purchases, the metals consultant GFMS said. “Almost all major physical gold markets suffered in the second quarter,” the London-based research firm, a unit of Thomson Reuters, said Tuesday in commentary published with its latest GFMS Gold Survey.
Physical gold demand fell 14% from a year ago, with demand for bars and coins falling 12%, and demand for jewelry declining 9%, it said. The decline in consumption came despite a 7.5% fall in average U.S. dollar gold prices. A cheaper dollar makes it more affordable for people with other currencies to buy gold………………………………………..Full Article: Source

Gold continues to shine in India, loses sheen in world

Posted on 29 July 2015 by VRS  |  Email |Print

World gold demand hit a six-year low in the April-June quarter of the current calendar year on weak demand from China. A survey conducted by global research firm Thomson Reuters GFMS showed that the world gold demand nose-dived 14 per cent during April-June 2015 at 858 tonnes compared with 1,000 tonnes in the corresponding quarter last year.
Gold demand in the April-June 2015 quarter showed a decline of 15 per cent from the previous quarter. Jewellery consumption in India rose 2.5 per cent year-on-year (y-o-y) to 158 tonnes. Retail investment was steady y-o-y at 50 tonnes. However, it surged from the first quarter on buying related to Akshaya Tritiya………………………………………..Full Article: Source

HSBC downgrades 2015 gold price forecast by six percent

Posted on 29 July 2015 by VRS  |  Email |Print

HSBC has significantly downgraded its 2015 average gold price forecast, following the brutal sell-off seen in the market one week ago. HSBC now predicts that gold will average $1,160 per ounce in 2015 from $1,234 previously. The bank has also lowered its 2016 forecast by five percent from $1,275 per ounce to $1,205.
Nonetheless, the bank still believes that in the end, gold will recover from current levels, it said. Gold recently slumped to levels not seen since March 2009 at $1,077 per ounce, following a bear-raid on the market during early trading hours in Asia and what was the most illiquid period of business in the week. ……………………………………….Full Article: Source

As Commodities Tumble, Don’t Count Out Gold

Posted on 28 July 2015 by VRS  |  Email |Print

The commodity collapse is undeniable. Just look to 2015 year-to-date returns: Oil has shed 16%, Nickel is down 25%, wheat has lost 15%, and sugar has plunged 28%. Yet the plunge in commodity prices doesn’t seem to be occurring in unison with the pace of global economic activity.
Precious metals seem the most oversold as judged by CFTC managed money speculative positions – perhaps the reasoning for Monday’s $9 bounce in COMEX August futures, which have gold at $1094.50, or $22.20 higher than Friday’s contract low price of $1072.30………………………………………..Full Article: Source

Gold price recovers from five-year lows

Posted on 28 July 2015 by VRS  |  Email |Print

The price of gold is hovering around the $1,100 mark after hitting five-and-a-half year lows last week. Gold mining stocks bounced back on Monday morning after gold prices recovered from five-and-a-half year lows. On Friday, gold prices plunged to an intra-day low of $1,077 as investors offloaded the metal amid expectations that the US Federal Reserve will soon raise interest rates, thus making it a less attractive investment.
But after five consecutive weeks in negative territory, the gold spot price crept back towards the $1,100 mark on Monday morning as the weaker dollar helped it recover. However, investors and analysts indicated they were not convinced by the improving gold price………………………………………..Full Article: Source

HSBC cuts 2015, 2016 gold price forecasts

Posted on 28 July 2015 by VRS  |  Email |Print

HSBC strategists on Monday lowered their average annual gold price forecasts for this year and next, warning that gold prices are likely to remain under pressure in the short term and may “move within striking distance of $1,000″ an ounce before recovering. HSBC lowered its 2015 average annual price forecast to $1,160 from $1,234 and for 2016 to $1,205 from $1,275.
Among the reasons for gold’s recent selloff is the “drift towards Fed tightening and the associated USD strength, low global inflationary pressure, weak gold demand from India and China and market positioning and momentum,” HSBC strategists said………………………………………..Full Article: Source

Deutsche Bank says gold’s fair value is $US750 an ounce

Posted on 28 July 2015 by VRS  |  Email |Print

Gold prices may need to fall another 30 per cent to reach fair value, according to Deutsche Bank, with cheap oil the only potential lifeline for the battered precious metal. Gold is currently trading around $US1096, just above last week’s fresh five-year low of $US1072.30.
But Deutsche’s paper Estimating fair value for gold argues the price of the precious metal needs to drop substantially to bring valuation levels back towards historical averages. “Gold would need to fall towards $US750 per ounce to bring prices in real terms back towards long-run historical averages,” said Deutsche………………………………………..Full Article: Source

Silver Prices to Hit $50.00?

Posted on 28 July 2015 by VRS  |  Email |Print

Despite the massive outflow of capital from commodities, a leading indicator suggests that silver prices are about to skyrocket. The last time silver priced approached $50.00 per ounce, it was preceded by a corresponding rise in this key metric.
The grey metal has depreciated by over 30% in the last 12 months. It’s a steep fall for silver, especially in light of the NASDAQ gaining nearly 15%. The pattern seems to indicate a clear direction for capital; out of commodities and into stocks. However, following the trend is the exact opposite of what investors should be doing………………………………………..Full Article: Source

Signals from gold prices

Posted on 27 July 2015 by VRS  |  Email |Print

The yellow metal dominated the world market scene all of last week. Gold slumped to a five-year low, slipping to an intra-day low-point of $1,072.30 by Friday. A late rally that day, however, pushed prices back to around $1,100 an ounce. At best, it helped pare losses from last Monday when the price slid to its lowest since March 2009, to $1,088.05 an ounce.
The Comex gold futures for August still ended their fifth consecutive week in negative territory. Though the rally suggests that there could be an improvement in market sentiment, the bearish undertone persists among retail investors. At the moment, everyone in the international marketplace is wary of gold. Indeed, price movement is set for an uncertain phase, at least in the near-term………………………………………..Full Article: Source

Here’s why gold is doomed

Posted on 27 July 2015 by VRS  |  Email |Print

A little less than four years ago, the world looked like it was about to end and gold hit an all-time high of $1,895 an ounce. The United States had manufactured a debt crisis, and Europe hadn’t been able to manufacture a solution to its actual debt crisis, so panicky investors sought safety in the same place they had for 5,000 years: a shiny rock.
The only problem, as you might have noticed, is that the world did not, in fact, end. It’s still here, so gold prices aren’t. The yellow metal has fallen 42 per cent from its peak and 8 per cent in just the last month, despite the fact that the Federal Reserve has printed more than $1.5 trillion in this time. That, after all, is what gold aficionados said would make its price go to the moon, if not infinity and beyond. So what’s happened? Well, exactly what economists said would happen………………………………………..Full Article: Source

Gold price meltdown points to its waning lustre

Posted on 27 July 2015 by VRS  |  Email |Print

Historically, gold buying has been fuelled in a scenario when the U.S. dollar has been weakening. This is how gold came to be bestowed a ‘safe haven’ status. The sharp decline in gold price early last week and the subsequent tepid buying of the metal in international markets point to gold’s clear falling out of favor among investors at least for now.
Gold fell below the $1,100 per ounce level and sought its lowest point since April 2010 while in India, it slid below Rs 25,000 per 10 gram levels, falling to its 5-year lows. An improving U.S. economy, a consequently stronger dollar, an expected rise in interest rates by the U.S. Federal Reserve and an expected slowing of demand for gold from China have been attributed as key factors for the bearish streak last week………………………………………..Full Article: Source

Gold Slump Not Over as Speculators Go Net-Short for First Time

Posted on 27 July 2015 by VRS  |  Email |Print

The slump in gold that took prices to a five-year low may have further to run after hedge funds swung into a net-short position for the first time. The shift in New York futures and options came as speculators increased their bearish wagers to the highest since the U.S. government data begins in 2006. Long holdings declined for a fourth week.
Gold fell to the lowest since 2010 last week, and futures in New York are poised for the biggest monthly loss in two years. Prices are plunging amid mounting speculation that U.S. interest rates will climb this year, curbing the appeal of bullion because it doesn’t pay interest like competing assets. At the same time, China bought less of the metal than analysts were expecting, and the dollar is strengthening………………………………………..Full Article: Source

India must determine own gold price, feels IBJA

Posted on 27 July 2015 by VRS  |  Email |Print

Gold prices are fixed internationally by the London Bullion Market Association (LBMA) and these are indicated to importers by banks and nominated agencies in India. Now industry body IBJA (formerly Bombay Bullion Association) wants to play a larger role and is tying up with CME Group, London for deriving a price mechanism similar to LBMA.
“Given our industry size, the industry should be able to derive its own price for gold in India and we should be in a position to dictate price to the world. It is a cause for concern and we too want to be able to have our own bullion price,” Mr. Mehta said. IBJA is awaiting approval from the regulatory authorities………………………………………..Full Article: Source

2017 could prove to be gold’s ‘magic’ year

Posted on 24 July 2015 by VRS  |  Email |Print

Gold might have lost 40 percent of its price over the last four years, capping a stellar 10-year bull run, but analysts are already predicting a possible bottom for the precious metal. Hovering around a five-year low on Thursday at $1,102 an ounce, gold has been hit by low inflation, a stronger dollar and fears over Chinese demand.
The precious metal has recently seen its longest losing streak in nearly two decades and a rout on Monday led to its deepest losses in nearly two years. Many analysts like Sandy Jadeja, chief market strategist at Signal Pro, see more short-term bad news for bullion. But, he told CNBC this week that 2017 would be where he starts “stepping in” to add more to his portfolio………………………………………..Full Article: Source

Gold: The Unusual Commodity

Posted on 24 July 2015 by VRS  |  Email |Print

Gold has had a challenging week. Its price has been very volatile due to the nature that it is driven by investor sentiment and economic confidence. Gold it is a peculiar commodity, in so far that it is very light considering its value and doesn’t spoil. Unlike corn or coffee it cannot be consumed, therefore it doesn’t have a kind of fundamental demand.
Yes, it is true that it can be demanded to be transformed into jewellery, but they are also a store of value. Therefore investors tend to seek shelter in gold, when times appear destitute………………………………………..Full Article: Source

Falling gold prices boost demand in India: World Gold Council

Posted on 24 July 2015 by VRS  |  Email |Print

A fall in gold prices has boosted demand in India, the world’s second largest consumer, despite the summer months being a traditional quiet period, World Gold Council (WGC) said. It also said that fall in the gold prices are not universally perceived as “negative”. According to WGC, gold prices have fallen by 3.2 per cent in India, 3.6 per cent in China and 1.2 per cent in Turkey.
“Here, consumers will view lower prices as a buying opportunity,” it said in its market report. “As a result, despite the summer months being a traditionally quiet period, retailers in these price sensitive markets have seen an uptick in consumer interest. Consumer interest in India has increased too,” it noted………………………………………..Full Article: Source

Investors pulling back as gold prices plunge

Posted on 24 July 2015 by VRS  |  Email |Print

With gold prices tumbling to a five-year low, investors aren’t just getting out of gold, they’re betting against it. Speculators in July amassed record short holdings in the metal, meaning they’re wagering that the price has further to fall. Also telling, the number of hedge funds that are hoping to profit from declines is near a record high.
Altegris Investments’ $513 million Futures Evolution Strategy Fund has increased its bets that gold will fall. “The only place to be right now is short,” said Lara Magnusen, a La Jolla, California-based portfolio strategist at Altegris. “We’ve been in persistently downward price action for gold, but it’s been exacerbated, certainly, this year by a host of fundamental reasons.”……………………………………….Full Article: Source

Gold Price Headed to $450.00? $2,000 is More Likely

Posted on 24 July 2015 by VRS  |  Email |Print

A friend recently said to me, “No matter how you look at it, the gold price is going down to $450.00.” He argued that there’s simply no reason for the yellow metal to trade at $1,100 now.
He also added, “All the problems everyone was worried about are slowly diminishing and the precious metal is simply reacting to it.” Here’s a little background: he’s a trader. He looks for opportunities on a short-term basis and rarely bothers holding any position for longer than one month………………………………………..Full Article: Source

Gold isn’t even close to being the biggest loser among commodities

Posted on 23 July 2015 by VRS  |  Email |Print

Gold’s collapse to five-year lows is dominating headlines, but it has been a rough year so far for commodities in general. Expectations the Federal Reserve will move later this year to raise rates, potentially leading to more strength for the U.S. dollar, gets much of the blame.
Most commodities are priced in dollars, making them more expensive to users of other currencies as the greenback strengthens. The ICE dollar index a measure of the U.S. unit against a basket of six major rivals is up by around 7.8% year-to-date………………………………………..Full Article: Source

Gold price in worst losing streak since 1996

Posted on 23 July 2015 by VRS  |  Email |Print

On Wednesday, gold dropped to the lowest level since March 2010 as negative sentiment overwhelms the sector and analysts predict a return to triple digits for the metal. Futures contracts in New York with August delivery dates were priced as low as $1,087.10 an ounce down more than $15 or over 1% from yesterday’s close.
It’s the tenth straight day of losses and the 6% decline over the period is the worst losing streak for gold since September 1996 when gold was worth around $380 an ounce. Last week large gold futures investors such as hedge funds slashed long positions – bets on a rising price – to the lowest since 2006 when the Commodity Futures Trading Commission first started to collect the data………………………………………..Full Article: Source

Gold price: six reasons it slumped – and why it could stay low

Posted on 23 July 2015 by VRS  |  Email |Print

The gold price mounted a modest recovery yesterday following a sharp fall on Monday, but after closing below $1,100 for the first time in five years it is still hovering around this key threshold. Analsts once predicted that gold prices would surge to $5,000 an ounce, but now many are saying that the precious metal could fall back through the $1,000 mark before the end of the year – and a slump into three figures could well trigger more falls.
Investors are beginning to take notice. Listed funds tracking the metal, which have been growing in popularity, saw the biggest outflow in two years on Friday, The Times reports. So what is driving the recent slump and is it likely to continue?……………………………………….Full Article: Source

If it doesn’t glitter, it is gold! Time to look at other assets?

Posted on 23 July 2015 by VRS  |  Email |Print

Gold has been consistently falling and was trading around its five-year low on Wednesday, reflecting sustained pressure on the metal. Experts feel that investors who are looking to get back into the yellow metal should wait for some more time as there is more downside left.
Besides, there are are other asset classes that have emerged more attractive since the global risks in the form of Greece, and China are fading and the US Fed is on course to begin raising rates this year itself………………………………………..Full Article: Source

Is gold’s 50% bull market fall the launchpad for $8,800 an ounce?

Posted on 23 July 2015 by VRS  |  Email |Print

Will the author of ‘Hot Commodities’ and the man who spotted the boom in the sector before anybody else, Jim Rogers now start buying gold? He said earlier this year that he would when the bull market showed a 50 per cent retracement. That is to say the gold price had fallen to halfway between the $287 an ounce it was in 2000 to the $1,923 it reached in 2011.
Rogers astutely noted that he did not know a commodity market that had not corrected in this way before powering very much higher, and that has now happened. Perhaps he has already been out bargain hunting. After all that’s how this ex-hedge fund manager made another fortune in the 2000s, ahead of everybody else. He parked his money in commodities and went off for a three-year holiday with his then girlfriend and now wife………………………………………..Full Article: Source

Silver Price Forecast: Here’s Why Silver Prices Could Hit $30

Posted on 23 July 2015 by VRS  |  Email |Print

Yes, silver prices have been plunging since 2011. But know this: demand for silver is booming while supply is shrinking. The grey metal is due for a big squeeze. The nice thing about the grey metal is that, unlike gold, a substantial amount of demand comes from industries.
Silver has been a staple component in industries for many decades. Its outstanding electrical conductivity makes it a necessary component in a many electronic devices. Silver oxide batteries have also been gaining popularity. In addition, silver has a significant presence in the automotive industry, with more than 36 million ounces being used annually in automobiles………………………………………..Full Article: Source

Palladium under siege but strong fundamentals may end carnage

Posted on 23 July 2015 by VRS  |  Email |Print

Palladium investors are keeping record bets on a further slump in the market as broad-based weakness plagues the precious metals complex, but some analysts say the metal’s slide to 3 1/2-year lows is overwrought and a supply deficit will help the metal reclaim lost territory.
Spot prices of palladium, mainly used in emissions control systems for cars, trucks and other vehicles, have dropped more than 22 percent this year – the most among precious metals. Gold has fallen 7.6 percent, silver is down 6.1 percent and platinum has tumbled 20 percent. The commodity backlash has been fuelled by the prospect of higher U.S. interest rates, a stronger dollar and weaker Chinese demand. Short positions in palladium futures on the New York Mercantile Exchange have hit all-time highs since June………………………………………..Full Article: Source

Gold tumbles on global commodities rout, falling prices ahead of Fed’s rate hike prospects

Posted on 22 July 2015 by VRS  |  Email |Print

The rout in commodities deepened with prices heading for the lowest close since 2002 as the prospect of higher US interest rates sent gold tumbling. Raw materials are losing favour with investors as the dollar gains amid signals from Federal Reserve Chair Janet Yellen that the central bank may raise rates this year on the back of an improving US economy. Higher borrowing costs curb the attractiveness of commodities such as gold, which doesn’t pay interest or give returns like assets including bonds and equities.
The Bloomberg Commodity Index dropped as much as 1.1 per cent, falling for a fifth day in the longest stretch of declines since March.Gold futures sank to the weakest in more than five years while industrial metals, grains, Brent crude and US natural gas also slid as a measure of the dollar climbed to the highest since April 13………………………………………..Full Article: Source

3 trends that are burying gold prices

Posted on 22 July 2015 by VRS  |  Email |Print

Gold bugs are getting squished. Prices for the precious metal hit a five-year low on Monday, closing at $1,107 a troy ounce on the New York Mercantile Exchange, its lowest level since March 2010. Prices fell for a number of reasons, including weaker-than-expected demand in China and expectations that the metal won’t make an attractive haven for investors in a rising interest rate environment.
Analysts as such as David Song, a currency strategist at DailyFX, and Robert Haworth, senior investment strategist at U.S. Bank Wealth Management don’t expect prices to rebound anytime soon. But that’s fine with Keith Trauner, a co-founder of GoodHaven Capital Management, which has $500 million in assets under management………………………………………..Full Article: Source

Gold Falls to Five-Year Low as Traders Continue to Exit

Posted on 22 July 2015 by VRS  |  Email |Print

Gold prices lurched lower on Tuesday, extending the losing streak to nine consecutive trading days, as investors continued to stream out of the market amid expectations of higher interest rates in the U.S.
The most actively traded contract, for August delivery, fell $3.30, or 0.3%, to settle at $1,103.50 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the lowest settlement since March 25, 2010, when prices closed at $1,102.90 an ounce………………………………………..Full Article: Source

Bearish gold sentiment sees ABN Amro forecast end-2015 $1,000/oz

Posted on 22 July 2015 by VRS  |  Email |Print

With sentiment towards gold turning increasingly cold — and the dollar price hitting 5-year lows Monday — ABN Amro is forecasting an end-2015 price of $1,000/troy oz, the bank said Tuesday. During Asia trade the dollar spot price got as low as $1,082/oz Monday and again overnight Tuesday.
The London Bullion Market Association Gold Price settled Tuesday morning at $1,108/tr oz from $1,115/tr oz Monday morning. The Dutch bank put the decline down to a handful of factors including expectations of a US rate hike later this year, technical follow through as the price broke lower and thin liquidity………………………………………..Full Article: Source

How Low Can Gold Prices Go? Maybe $700/Ounce

Posted on 22 July 2015 by VRS  |  Email |Print

Gold prices just hit a five-year low, with the precious metal and related gold ETFs down more than 40% from their 2011 peaks and looking to decline further. That’s bad news to those investing in gold. Worse news? The next level of support for gold prices is at $1,000 an ounce — and if that is breached, we could be looking at $700 an ounce for gold prices, the lowest levels since 2008.
At the beginning of 2015, some investors had hoped that the rout was over after gold prices rallied about 10% to start the year. But gold bullion prices couldn’t hold, and the jump at the beginning of the year can now clearly be seen as a head fake………………………………………..Full Article: Source

How Low Can Gold And Silver Go?

Posted on 22 July 2015 by VRS  |  Email |Print

On Sunday afternoon, I published a viral piece called “Did A Major Gold And Silver Breakdown Just Begin?” in which I explained that gold and silver may be on the verge of an imminent sell-off if key technical levels were broken. I showed that wedge patterns had formed in gold and silver for the past two years, and these patterns may indicate the resumption of the 2011 to 2013 bear market when broken.
Amazingly, when gold and silver opened for trading on Sunday night, they experienced stunning flash crashes that caused them to slice clearly below the $1,130 and $15 technical levels I showed in the piece………………………………………..Full Article: Source

Gold Price: This is how events in China and Greece have contributed to plummeting prices

Posted on 21 July 2015 by VRS  |  Email |Print

What’s happened to the price of gold? Gold is now the cheapest it’s been for more than five years. You can buy an ounce of gold for $1,088 (£697) – a drop of 4 per cent. This is the first time gold has traded below $1100 since March 2010. Some analysts are predicting that the price of gold will fall below $1000 an ounce by the end of the year.
Why? Gold is getting cheaper because people are choosing to invest in assets that might increase in value – like currency. Janet Yellen, the chair of the US Federal Reserve, said that interest rates might rise by the end of the year. This gives people confidence that the US economy is going to continue to improve – and that the dollar is going to strengthen with it………………………………………..Full Article: Source

Why is the gold price falling and where is it going next?

Posted on 21 July 2015 by VRS  |  Email |Print

The gold price has been falling since 2011 and this trend will be difficult to reverse. The US Federal Reserve plans to raise interest rates this year on the back of an improving American economy, and that is taking the shine off gold. Why? Because gold is a store of wealth for investors, but generates no returns from regular interest payments or dividend income.
Investors have been happy to park their money in gold over the past six years while returns from other ’safe haven’ assets have remained low and the economic backdrop has remained volatile. But, with borrowing costs set to rise, commodities, such as gold, are losing favour with investors, as higher returns can start to be generated elsewhere………………………………………..Full Article: Source

Why the gold price is tumbling

Posted on 21 July 2015 by VRS  |  Email |Print

The bear market in gold took a rather dramatic turn for the worse yesterday when the price gapped down to its lowest level in five years due a big sell order in Shanghai. Since peaking at above $US1800 an ounce in September 2011 it has been downhill all the way; the strategy of hedging exposure to fiat currencies and financial assets by buying gold bullion in one form or another after the financial crisis has turned out to be a very bad idea.
The non-appearance of inflation and the non-collapse of the US dollar have produced a bear market in all commodities, with the Bloomberg Commodity Index yesterday touching its lowest level since 2002. But gold, as always, has been a special case………………………………………..Full Article: Source

The biggest secret in the gold market for the past six years is revealed

Posted on 21 July 2015 by VRS  |  Email |Print

One big mystery in the gold market has kept anyone interested in the precious metal guessing for the past six years: how much gold does China hold? Well, now we know. At the end of last week, China revealed the scale of its current gold holdings. And judging by the market reaction, it was a massive anti-climax… China’s hanging on to a lot less gold than anyone thought.
In 2009, China held 1,054 tonnes of gold. Now China is holding 1,658 tonnes of gold. That’s a jump of nearly 60% on 2009. By sheer size of stash, this makes China the fifth-biggest holder of gold in the world, overtaking Russia. (France, Italy, Germany and the US hold more, with the US holding the most)………………………………………..Full Article: Source

Asteroid passing by Earth may hold $5 trillion in precious metals

Posted on 21 July 2015 by VRS  |  Email |Print

Forget the Pluto flyby. Metals bugs were buzzing Monday after a metallurgically rich asteroid rocketed past Earth on Sunday evening, boasting an out-of-this-world cache of precious metals. Astronomers speculated that the asteroid, known as 2011 UW-158, which passed about 1.5 million miles from Earth, might have carried as much as $5.4 trillion worth of precious metals and minerals, according to Slooh, which connects telescopes to the Internet.
Slooh quoted Astronomer Bob Berman as saying this in a news release: “Can it be mined someday, perhaps not too far in the future?” Mining.com reported that scientists believe the half-kilometer-wide asteroid contains up to 90 million metric tons of platinum and other precious metals………………………………………..Full Article: Source

Gold Speculators Least Bullish on Record as Rate Rise Approaches

Posted on 20 July 2015 by VRS  |  Email |Print

Janet Yellen’s optimism about the U.S. economy is making gold speculators the least bullish on record. Money managers are holding the smallest net-bullish bet on gold since the U.S. government data begins in 2006. They’re also dumping silver, platinum and palladium, and combined net-long wagers across the metals are the lowest ever.
About $2.1 billion was erased from the value of exchange-traded products tracking the commodities last week, the most since March. Gold futures dropped to the lowest level since 2010 on Monday, and Barclays Plc recommends that investors short the metal and go long on the dollar. With Federal Reserve Chair Yellen repeating that she’s ready to raise U.S. interest rates this year, investors are dumping precious metals that don’t pay interest or offer returns like competing assets………………………………………..Full Article: Source

China’s Been Hoarding Gold And It Isn’t Likely to Stop

Posted on 20 July 2015 by VRS  |  Email |Print

With China finally coming clean that it’s been the second-biggest buyer of gold over the past six years, analysts and traders say the purchases will continue. In the first update since 2009, the People’s Bank of China said on Friday that it owns about 1,658 metric tons, implying purchases of 100 tons a year. The stockpile may eventually reach more than 5,000 tons, according to Robin Bhar, an analyst at Societe Generale SA in London.
“China hasn’t been very open about its strategy, so what matters now is whether the market believes they intend to continue buying,” said Joni Teves, an analyst at UBS Group AG in London. “They do appear to leave the door open to further purchases, which should limit the downside for gold.”……………………………………….Full Article: Source

China’s gold reserves underestimated

Posted on 20 July 2015 by VRS  |  Email |Print

Pull the other one, Beijing. Various analysts put it more politely, but there was a wave of scepticism washing over Friday’s announcement that the people’s Bank of China had increased its official gold holdings, adding 604 tonnes since 2009, making the present total 1658 tonnes.
Being more measured than Pure Speculation, Bernard Dahdah, precious metals analyst at French bank Natixis put this view thus: “It begs the question of what’s been happening to the gold produced that hasn’t been taken by the central bank”. One London broker said he did not believe the Chinese announcement, and wondered why Beijing was playing down its gold purchases. Another said: “The timing (of the announcement) is as expected; it’s just the amount that makes no sense”……………………………………….Full Article: Source

Did A Major Gold And Silver Breakdown Just Begin?

Posted on 20 July 2015 by VRS  |  Email |Print

In late-June, I wrote a piece called “Why You Should Watch This Giant Chart Pattern In Gold And Silver.” In this piece, I showed that gold and silver have been building a two year-old wedge pattern – a chart pattern that often leads to sharp moves in the direction of the breakout.
Since then, precious metals have fallen sharply due to the calming of Greece-related fears, the stronger U.S. dollar, and lower oil prices. The latest gold and silver breakdown brings the metals dangerously close to breaking down from the wedge patterns, so I will analyze them further in this piece………………………………………..Full Article: Source

Gold Prices Headed to $2,000? Gruesome Supply and Solid Demand Say So

Posted on 17 July 2015 by VRS  |  Email |Print

It can’t be stressed enough; gold prices are setting up to provide big gains to investors. Just pay attention to supply and demand; you will notice how the precious metal’s market is improving fundamentally. We have been tracking what’s happening in the major gold-producing regions closely. To say the least; conditions are getting outright worse. Producers aren’t producing the yellow metal.
Consider this; between 2013 and 2014, gold production from U.S. mines declined roughly eight percent. U.S. mines produced 212,000 kg of gold in 2014 compared to 230,000 kg in 2014. This year, it looks like the mine production from the U.S. will be much lower than the 2014 figures. For instance, in the first three months of 2015, U.S. mines have produced 47,700 kg of the yellow metal. ……………………………………….Full Article: Source

Are the shares of gold mining companies a ‘buy’?

Posted on 17 July 2015 by VRS  |  Email |Print

A gold mine is a hole in the ground with a liar standing on top of it.”- unverified quote attributed to Mark Twain. Gold can’t seem to catch a break. Despite a parade of potential market roiling news, the reaction of the shiny yellow metal has been one of benign indifference.
After Federal Reserve Chair Janet Yellen’s testimony about the likelihood of an interest rate increase sometime this year, gold fell for a fourth consecutive day. Gold now trades at about $1,142 an ounce. Aside from a three-day stretch in November 2014, gold hasn’t been below $1,150 since 2009………………………………………..Full Article: Source

Not a great scenario for gold bugs

Posted on 17 July 2015 by VRS  |  Email |Print

The dollar is rallying again and US borrowing costs — as measured by benchmark bond yields — are nudging to the top of their recent range. As we’ve mentioned before, that’s not a great scenario for gold. Because the main quote for the yellow metal is in dollars, the bullion price tends to fall as its cost is adjusted when the buck strengthens.
Gold is also seen by some as a competitor to the greenback, so the idea that the market wants dollars can mean investors see less need to shift out of fiat currency and into bullion. Higher interest rates increase the “opportunity cost” of holding the non-yielding metal………………………………………..Full Article: Source

How Large Was US Gold Market Trade Deficit In Q1 2015?

Posted on 17 July 2015 by VRS  |  Email |Print

While the global financial system remained subdued in the first quarter of 2015, the U.S. Gold Market still suffered a large trade deficit. Matter-a-fact, the U.S. Gold Market deficit in 2015 may surpass its full-year shortfall in 2014 by a wide margin. Furthermore, with the heightened financial turmoil stemming from the Greek situation in Europe during the summer, I would imagine U.S. gold market deficits may be even higher in the second and third quarter.
Before we look at the data for the first quarter of 2015, let’s take a peak at the U.S. gold supply and demand situation for the full-year 2014: Last year, the U.S. imported a total of 308 metric tons (mt) of gold, had domestic mine supply of 212 mt and scrap of 90 mt (my estimates based on GFMS 2014 World Gold Survey). ……………………………………….Full Article: Source

India further cuts gold, silver import tariff value

Posted on 17 July 2015 by VRS  |  Email |Print

Government today further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices. The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement………………………………………..Full Article: Source

Gold is on the cusp of a ‘major breakdown’: Technician

Posted on 17 July 2015 by VRS  |  Email |Print

Gold bugs simply can’t catch a break. After starting 2015 with a bang, bullion made a new year-to-date low this week as Fed Chair Janet Yellen reiterated plans to raise interest rates later this year. The precious metal is now more than 12 percent from its January high, and according to one technical analyst, it could be on the “cusp of a major breakdown.”
“I think we need to be prepared for what the biggest casualty of a rate hike could be, and that’s gold,” Todd Gordon said Thursday on CNBC’s “Trading Nation.” By Gordon’s chart work, gold has broken through a key trendline that’s been in place since 2001………………………………………..Full Article: Source

Gold falls as precious metals hit by stronger dollar

Posted on 17 July 2015 by VRS  |  Email |Print

Gold has fallen to an eight-month low as precious metals struggle in the face of a strengthening US dollar. As bullion declined to $1,142.9 a troy ounce on Thursday, platinum — used in jewellery and catalysts in diesel cars — hit a six-year low, while palladium touched levels last seen in late 2012.
Analysts say the weakness for gold is being driven by expectations of a US central bank interest rate increase, bolstering the dollar, while weak physical demand in China, the world’s largest consumer, has also hurt sentiment. Traditionally a haven investment, gold has also failed to react to uncertainty in Greece or the slump in China’s stock markets in the past month………………………………………..Full Article: Source

Gold price falls to within sight of 5-year low

Posted on 16 July 2015 by VRS  |  Email |Print

On Wednesday, gold dropped to the lowest level since November last year after the US Federal Reserve said the world’s largest economy favours a rate rise this year. Futures contracts in New York with August delivery dates were priced as low as $1,141.90 an ounce down more than $10 from yesterday’s close following comments by Fed chair Janet Yellen in testimony to US politicians.
That was the lowest since November 7 when gold briefly dipped to $1,135 an ounce before recovering to end that day at $1,173 an ounce. For a sustained period below $1,150 an ounce you have to go back to April 2010………………………………………..Full Article: Source

Gold Price Forecast: Here’s Why Gold Prices Could Be Going a Lot Higher

Posted on 16 July 2015 by VRS  |  Email |Print

Some people are saying that the yellow metal is losing its shine. They have a point, as gold prices have plunged quite dramatically during the past few years. However, we shouldn’t be too fixated on the current gold prices. They are a result of emotional trading, extreme speculation, and possible manipulation. Looking ahead, the fundamentals of gold will eventually be priced in.
Let’s look at inflation first. The money printing by the Federal Reserve was at unprecedented levels. Since the Great Recession started in 2008, the Fed has increased money supply by 67%, or more than $5.0 trillion! Intuition suggests that when more money is chasing the same basket of goods, each good is going to command a higher price. But why don’t we see it happening?……………………………………….Full Article: Source

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