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Commodities Briefing - Category | Bullion/Gold more

Will gold tarnish or shine in 2015?

Posted on 19 December 2014 by VRS  |  Email |Print

Resurgence in gold demand from China and India, the world’s biggest consumers, is set to restore some shine to the yellow metal in 2015 after a lackluster year. “Physical gold demand in China and India were held back in 2014 amid high stocks and import controls, respectively,” said Victor Thianpiriya, commodity strategist at ANZ. “Both these shackles have been removed, putting demand on a solid footing as we head into 2015.”
In China, physical gold demand will return because stocks are depleting, said Thianpiriya, who sees the precious metal ending 2015 at $1,280 an ounce, up from $1,200 currently………………………………………..Full Article: Source

Gold to average $1,145/oz in 2015, platinum the favoured trade

Posted on 19 December 2014 by VRS  |  Email |Print

The gold price still has room to drop further given continued strength in the dollar and the possibility that the Federal Reserve will raise interest rates some time in 2015, Natixis said. Platinum is the more favourable trade next year, it said in a research note on Thursday.
“The strengthening dollar will continue pushing gold prices down. As the dollar strengthens so the need for gold as a safe haven ‘in times of crisis’ dissipates,” Natixis said. “Moreover, the yen and euro are expected to weaken on the back of expanding central bank balance sheets.” ……………………………………….Full Article: Source

Gold still on hold

Posted on 19 December 2014 by VRS  |  Email |Print

Gold prices did not show a huge reaction to the FOMC meeting announcement today in which the Fed appeared to sound more dovish–and perhaps a bit confusing as well. The metal is now hovering around the $1,200 area, and it is likely that no significant changes in price action are seen until the new year.
The central bank left in its language the phrase “considerable time” when referencing interest rate policy and the notion of beginning the tightening cycle. Other parts of the central bank’s statement were considered to be more hawkish, however, and some investors feel that the Fed gave some mixed signals with regards to its intentions………………………………………..Full Article: Source

Credit Suisse cuts 2015 gold price, bullish on zinc

Posted on 19 December 2014 by VRS  |  Email |Print

“Gold prices we see as stabilized at current levels,” said the Credit Suisse Global Metals & Mining Team, “we now expect a $1,100-$1,300/oz trading range, we reduce our gold price forecast for 2015 to $1,225/oz and our long term price from $1,250/oz from $1,300/oz.”
“We see gold price supported at the $1,200/oz level by a lower mine supply and continued global physical investment demand,” the analysts advised. However, they observed, “We see potentially bearish factors for the gold market including the bullish consensus USD outlook and market expectations for higher rates in balance with more bullish fundamental factors that drove gold from 2002-2008; shrinking mine supply, central bank buying and Asian demand.”……………………………………….Full Article: Source

Gold Declines to Two-Week Low on Outlook for U.S. Interest Rates

Posted on 18 December 2014 by VRS  |  Email |Print

Gold prices fell to a two-week low on concern that the Federal Reserve is moving closer to raising U.S. interest rates, reducing the precious metal’s appeal as a store of value.
Fed officials dropped a pledge to keep borrowing costs near zero percent for a “considerable time,” replacing it with a promise to be “patient,” according to a statement at the conclusion of a two-day meeting. Last month, gold touched a four-year low as the dollar extended a rally to a five-year high, eroding the investment appeal of gold…………………………………….Full Article: Source

Gold price to see better base in 2015 - ANZ Bank

Posted on 18 December 2014 by VRS  |  Email |Print

The gold price is likely to see a stronger potential for recovery in 2015 despite the prospect of rising US rates, a report from ANZ Bank forecasts. The bank forecasts gold price to average $1,238 per ounce next year, about 3.5 percent higher than the current spot gold price at $1,197 per ounce.
Continuing recovery in Chinese physical gold demand will help to sustain higher gold prices, given that subdued import levels during the second half of 2014 likely indicates a run-down of stocks from previous years. “The pullback in demand over the past three quarters should put demand on a better footing through 2015,” said ANZ Bank’s analyst Vicor Thianpiriya…………………………………….Full Article: Source

Gold Miners ‘Don’t Think Price Will Fall’, Hedging ‘Still Isolated’

Posted on 18 December 2014 by VRS  |  Email |Print

Gold Miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices. “There is not yet compelling evidence to indicate an extended rise in the volume of hedging by gold miners,” says Matthew Piggott, senior precious metals analyst at Thomson Reuters GFMS, introducing the consultancy’s Q3 2014 report for French investment bank and bullion market maker Societe Generale on Tuesday.
Growing 57 tonnes by weight in the first 9 months of 2014, the global gold mining hedgebook – the amount of unmined production effectively sold in advance to lock in prices – fell between July and October, says GFMS, dropping some 6 tonnes as new output was delivered to meet existing contracts…………………………………….Full Article: Source

Silver Prices to Outperform Gold in 2015

Posted on 18 December 2014 by VRS  |  Email |Print

I know it’s a bold prediction: silver prices are going to surprise investors and provide them with better returns than gold bullion. I say this because both the fundamental and the technical pictures for silver continue to improve. The supply of silver produced continues to dwindle, while demand for the metal is robust. This is the perfect recipe for higher prices.
In Canada, a major gold-producing country, in the first nine months of 2014, mines produced 373,828 kilograms of silver. In the first nine months of 2013, Canadian miners produced 510,390 kilograms of silver—representing a 26% decline in silver mine production…………………………………….Full Article: Source

PGMs Seen Gaining Upward Momentum By End Of 2015; More Supply Deficits Expected

Posted on 18 December 2014 by VRS  |  Email |Print

Platinum group metals might start slowly but eventually should gain upside momentum in 2015, with most analysts expecting rises for the year. Large existing above-ground stockpiles, potential for higher U.S. interest rates and a stronger U.S. dollar are expected to provide obstacles in the early part of 2015. But eventually, further supply/demand deficits are expected to help the market tick higher.
Platinum could remain under pressure early in the year, said Bart Melek, head of commodity strategy with TD Securities. While the market is already in a supply/demand deficit, there are nevertheless considerable inventories already built up. Further, Europe’s economy remains soft, especially important to platinum since it is required for auto catalysts in the diesel-powered vehicles popular on the continent…………………………………….Full Article: Source

Gold capped at $1238

Posted on 17 December 2014 by VRS  |  Email |Print

After breaking through a bearish trendline at the beginning of last week, Gold benefited from some USD profit-taking and managed to climb its way back up the charts. However, the yellow metal found resistance at $1238 preventing entry to $1240 and current technicals indicate this could be a psychological ceiling in the current Gold market.
The $1238 level also represents a 50.0 fib level from the previous high ($1344) to the previous low ($1131) and the metal finding resistance at the 50.0 fib level twice last week does suggest the Fibonacci levels are in play. If this is the case, technical traders would likely be bearish below $1238 and looking at a potential entry opportunity if Gold manages to break through this resistance. …………………………………….Full Article: Source

Get Ready for Gold Prices to Break Out

Posted on 17 December 2014 by VRS  |  Email |Print

Gold is unquestionably the most frustrating trade I’ve ever tried to make in 20 years of investing. The main problem is there is simply no way to predict gold prices or even attempt to ballpark where gold prices might go in any given time period. Gold prices are subject to so many crosscurrents that trying to trade the yellow metal has always flummoxed me.
About the only thing you can count on with respect to gold prices are a few indicators that might give you a leg up in trading. We may have confirmation of direction from those indicators in the next few days. You just need to decide if you want to go long, go short or stay away from gold altogether. I suspect that whichever way gold breaks, it is likely to be for a significant time period……………………………………..Full Article: Source

Is the end of QE bearish for gold?

Posted on 17 December 2014 by VRS  |  Email |Print

The conventional view is that Fed money creation is necessarily bullish for gold and that a tightening of monetary conditions beginning with the cessation of Fed money creation is necessarily bearish for gold. It’s strange that this view is popular given that gold was clearly hurt more than helped by the QE program that extended from October of 2012 through to October of this year.
If gold is now going to be hurt by a ‘tighter’ Fed, the implication is that regardless of what the Fed does it’s bearish for gold. If the Fed aggressively pumps money into the economy, it’s bearish for gold. If the Fed stops pumping money, it’s bearish for gold. If the Fed not only stops pumping money but starts hiking interest rates, it’s astronomically bearish for gold!…………………………………….Full Article: Source

Gold and Silver Outlook for 2015

Posted on 17 December 2014 by VRS  |  Email |Print

In the past 12 months, gold has traded as high as around $1,380 an ounce and as low as about $1,140 an ounce. From its starting point at around $1,220, though, the change is just $10 an ounce at the current price around $1,210. Since June, when oil prices started falling and the dollar began strengthening, gold has lost about $100 an ounce.
Silver is down about $5 an ounce, from around $21 to around $16 since June. From their June prices, then, gold is down about 8% and silver is down about 25%. The story is significantly different for gold and silver mining companies. Rising mining costs and low prices have plagued the miners for more than two years, and share prices have dropped by 50% to 75% over that time for the firms we are looking at now…………………………………….Full Article: Source

Gold price sinks below $1,200

Posted on 16 December 2014 by VRS  |  Email |Print

A stronger dollar and fresh five-year lows for oil saw bears return to the gold market on Monday with the metal sinking through the psychologically important $1,200 an ounce level in relatively quiet trade.
On the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,193.30 an ounce in afternoon trade, down $29.20 or 2.4% from Friday’s close and near the bottom of its trading range. The oil price, which usually move in tandem with gold, tanked again on Monday to trade at $55.28 a barrel on Thursday, hitting the lowest level since May 2009………………………………………Full Article: Source

How Will Fed Meeting Impact Gold Price?

Posted on 16 December 2014 by VRS  |  Email |Print

The US Federal Reserve will hold 2014’s last policy meeting on 17-18 Dec. How the meeting will impact the gold market? “The gold market will point upward in the short term if the Fed announces to leave its rate unchanged at lows for a considerable period at its final policy meeting of 2014,” an analyst from Jinyou Futures said.
The recent rally in gold price was due mainly to weakness in global equities markets, growing risk aversion sentiment, and short covering, the analyst added. “The gold price, however, will fall in the medium and long term due to pressures from market expectations towards the hike in US’s interest rate,” the analyst predicted………………………………………Full Article: Source

A Bull Market in Bear Market Gold Demand

Posted on 16 December 2014 by VRS  |  Email |Print

A glance at any gold price chart reveals the severity of the bear mauling it has endured over the last three years, writes Jeff Clark at Casey Research’s Big Gold letter. More alarming, even for die-hard gold investors, is that some of the fundamental drivers that would normally push gold higher, like a weak US Dollar, have reversed.
Throw in a correction-defying Wall Street stock market and the never-ending rain of disdain for gold from the mainstream and it may seem that there’s no reason to buy gold; the bear is here to stay. If so, then I have a question. Actually, a whole bunch of questions. To start, if we’re in a bear market, then…Why Is China Accumulating Record Amounts of Gold?……………………………………..Full Article: Source

Silver Price Bottom?

Posted on 16 December 2014 by VRS  |  Email |Print

Silver broke out of its 5-month downtrend last week as expected, but, as with gold, the move was unfortunately not confirmed by action in stocks, which have continued to drift lower. When this fact is combined with the ramping of Commercial short and Large Spec long positions over the past couple of weeks, it starts to look like this breakout was false. Certainly a reaction is looking a lot more likely now.
On its 6-month chart we can see the breakout move last Tuesday, and how there has been no follow through, increasing the risk of it turning lower again. However, the high volume bull hammer at the start of the month continues to have bullish implications, so what may happen here is that silver backs off to do more base building work before a sustained advance can get underway………………………………………Full Article: Source

Price of Gold in 2014: Why It’s Gone Nowhere

Posted on 15 December 2014 by VRS  |  Email |Print

From 2001 to 2012, gold enjoyed 12 straight years of consecutive rising prices, and many investors hoped that the yellow metal would be able to sustain its bull market well into the future. Yet 2013’s $475 per ounce plunge in gold prices dashed those hopes, and this year’s failure for gold to regain any of that lost ground suggests that investors could have to wait a long time before prices start moving upward again.
Looking at how the price of gold in 2014 moved shows the crosscurrents that plagued investors throughout the year, as bouts of optimism gave way to the harsh realities of the mining industry and the supply and demand picture for gold………………………………………..Full Article: Source

Hedge Funds’ Bullish Gold Bets Defy Goldman Outlook: Commodities

Posted on 15 December 2014 by VRS  |  Email |Print

Hedge funds are the most bullish on gold since August, defying Goldman Sachs Group Inc.’s prediction that the rally in prices will fade. The net-long position in New York futures and options climbed for a fourth week, the longest stretch of increases since July, government data show.
Futures jumped 2.7 percent last week, the most since June, as a plunge in global equities erased about $2 trillion from the value of stocks. Holdings in exchange-traded funds backed by gold rose for the first time since October as investors sought protection from the rout………………………………………..Full Article: Source

Precious Metals Starting To Show Bullish Signs

Posted on 15 December 2014 by VRS  |  Email |Print

We’ve believed that Gold would need to break $1100 before we thought a bottom could start to develop. While that could still be the case, we are starting to see building evidence that precious metals could be forming a bottom.
In the past we’ve written about the importance of Gold’s performance against other asset classes. Relative strength in Gold has preceded important bottoms in the Gold price during 2001, 2005 and 2008. That relative strength is starting to show. Below we plot Gold against various asset classes, which are noted in the chart. Several days ago Gold against foreign currencies (and the EUR) closed at a 15-month high………………………………………..Full Article: Source

Do oil and gold mix?

Posted on 12 December 2014 by VRS  |  Email |Print

Has gold finally bottomed out? And what does its prospects tell us about the outlook for oil? Three weeks ago, you may recall, I reached a bearish conclusion from my array of gold timing indicators that are based on the performance of the top-performing advisers.
Gold today is $33 higher than where it stood then, or 2.8%—largely on the basis of a big rally on Tuesday of this week, when bullion shot up by more than $40 an ounce. Have any of the top performers changed their minds because of recent action? As always in Hulbert On Markets, I turn to the top performers for answers………………………………………..Full Article: Source

Gold forecasts for 2015 - Scotiabank mining panel

Posted on 12 December 2014 by VRS  |  Email |Print

The most direct question to Scotiabank’s gold panel came from the audience at the end of a wide-ranging discussion of the gold market at the bank’s recently held mining conference: where would the price of gold go by the end of 2015?
Most of the panel cringed at the request, but nonetheless made their wagers (or almost so). Andy Montano, ScotiaMocatta director, went first. “If I give you a forecast, I guarantee you one thing it will be wrong,” he said. Still, he added, “I would say right where we are now.” Next up was Marcus Grubb, the World Gold Council’s (WGC) managing director of investment and strategy………………………………………..Full Article: Source

Gold Prices Manipulated for Past Two Years?

Posted on 12 December 2014 by VRS  |  Email |Print

Since the beginning of 2013, gold’s price action has been irrational. The fundamentals are getting better for gold in respect to demand and supply, but we see sudden, wild swings, often to the downside, on no news and for no apparent reason.
Those who closely follow precious metal prices will agree with me on this: many times in 2014, it was common to wake up in the morning to new gold prices that are sharply down. When you look into the price action, you find a mysterious seller. He sells a significant amount of gold contracts on the paper market at times when not many participants are around to buy…so prices plunge………………………………………..Full Article: Source

Three Events Driving Gold Prices Higher in 2015

Posted on 12 December 2014 by VRS  |  Email |Print

Uncertainty and fear are two of the biggest factors that move gold prices. If they increase, investors buy the yellow metal to hedge and protect their wealth. Going into 2015, I see these two factors coming into play and taking the precious metal’s prices higher.
At the very core, I am watching three events that will bring uncertainty and fear going into next year: The Federal Reserve’s move towards normalizing monetary policy and raising interest rates, Problems in the eurozone and the European Central Bank’s quantitative easing and China………………………………………..Full Article: Source

Industrial demand for Silver will surge by 27%: Silver Institute

Posted on 12 December 2014 by VRS  |  Email |Print

The total silver industrial demand is forecast to grow 27 percent, adding an additional 142 million ounces of silver demand through 2018 compared with 2013 levels, according to a new report issued today by the Silver Institute.
Half of this growth will be accounted for by the electrical and electronics sector, but additional demand will be due to growth in other industrial applications, as highlighted in the report entitled, “Glistening Particles of Industrial Silver.”……………………………………….Full Article: Source

Gold forecasts for 2015 - Scotiabank mining panel

Posted on 11 December 2014 by VRS  |  Email |Print

The most direct question to Scotiabank’s gold panel came from the audience at the end of a wide-ranging discussion of the gold market at the bank’s recently held mining conference: where would the price of gold go by the end of 2015?
Most of the panel cringed at the request, but nonetheless made their wagers (or almost so). Andy Montano, ScotiaMocatta director, went first. “If I give you a forecast, I guarantee you one thing it will be wrong,” he said. Still, he added, “I would say right where we are now.”……………………………………….Full Article: Source

Gold Prices Manipulated for Past Two Years?

Posted on 11 December 2014 by VRS  |  Email |Print

Since the beginning of 2013, gold’s price action has been irrational. The fundamentals are getting better for gold in respect to demand and supply, but we see sudden, wild swings, often to the downside, on no news and for no apparent reason.
Those who closely follow precious metal prices will agree with me on this: many times in 2014, it was common to wake up in the morning to new gold prices that are sharply down. When you look into the price action, you find a mysterious seller. He sells a significant amount of gold contracts on the paper market at times when not many participants are around to buy…so prices plunge………………………………………..Full Article: Source

Gold eyes $1,260/oz target after near-$40 rally

Posted on 11 December 2014 by VRS  |  Email |Print

The gold price remained well supported in the US on Wednesday, with the long-neglected bulls hoping a pullback in the dollar will be the catalyst for another leg higher. Gold for February delivery on the Comex division of the New York Mercantile Exchange was last up 60 cents at $1,232.60 per ounce, building on Tuesday’s $37.10 of gains.
“Gold rallied yesterday, helped by several factors: short-covering; the dollar came off the highs; equities edged lower; and headlines suggested that there might be further changes to India’s gold import rules,” UBS’ Edel Tully said, adding that the increase caught many market participants on the wrong foot, which further amplified the move………………………………………..Full Article: Source

7 Questions Gold Bears Must Answer

Posted on 11 December 2014 by VRS  |  Email |Print

A glance at any gold price chart reveals the severity of the bear mauling it has endured over the last three years. More alarming, even for die-hard gold investors, is that some of the fundamental drivers that would normally push gold higher, like a weak US dollar, have reversed.
Throw in a correction-defying Wall Street stock market and the never-ending rain of disdain for gold from the mainstream and it may seem that there’s no reason to buy gold; the bear is here to stay. If so, then I have a question. Actually, a whole bunch of questions. If we’re in a bear market, then………………………………………….Full Article: Source

Industrial silver use will jump 27% by 2018 - CRU

Posted on 11 December 2014 by VRS  |  Email |Print

More and more applications for silver are being invented, discovered, and, importantly, commercialized, said a new report from the Silver Institute and CRU Consulting, stoking the growth potential from several of the most important industrial silver applications.
Total industrial silver demand is forecast to reach nearly 680 million ounces annually by 2018, according to the “Glistening Particles of Industrial Silver” report scheduled for public release Wednesday morning………………………………………..Full Article: Source

Gold price to average $1,225/oz in 2015, silver $18.88 – BoA ML

Posted on 10 December 2014 by VRS  |  Email |Print

Gold will average $1,225 per ounce in 2015, Bank of America Merrill Lynch predicted, although it could trade as low as $1,100 at some stage. Gold faces many challenges at present, with dynamics in rates, equities and the dollar all bearish factors, the bank said in a note on Tuesday.
“The macro headwinds are exacerbated by developments on the physical market, with China for instance purchasing fewer ounces than last year, when substantial pent-up demand was released during the sharp price correction,” it said. From a supply and demand perspective, prices will continue to be well supported around $1,200, particularly given current levels of jewellery demand. But this implies that a meaningful pick-up of investor sales is necessary to push prices down to $1,000, it added. ……………………………………….Full Article: Source

India should allow banks to hold gold as reserves: WGC

Posted on 10 December 2014 by VRS  |  Email |Print

India should allow banks to use gold as part of their liquidity reserves, which would let them make more use of gold inside the country and reduce the need for imports, an industry body said on Tuesday, seeing that as an alternative to import curbs.
The world’s second-biggest consumer of the metal should also consider setting up an exchange for transparent gold pricing and to streamline trade, according to a report commissioned by the World Gold Council (WGC). “We have made our points to the government and some of these recommendations are in consideration,” said Somasundaram PR, head of the WGC’s India operations. He did not elaborate………………………………………..Full Article: Source

Gold Sees Safe-Haven Demand as World Stock Markets Sell Off

Posted on 10 December 2014 by VRS  |  Email |Print

Gold prices are solidly higher and have pushed well above the $1,200.00 level in early U.S. trading Tuesday. Safe-haven demand, short covering and bargain hunting are featured in the yellow metal. It’s a “risk-off” day in the market place Tuesday.
World stock markets were under pressure overnight, led by sharp declines in Asian shares, and the U.S. stock indexes are also lower in early dealings. February Comex gold was last up $22.00 at $1,216.00 an ounce. Spot gold was last up $13.30 at $1,218.00. March Comex silver last traded up $0.429 at $16.705 an ounce………………………………………..Full Article: Source

Is Gold Really the World’s Biggest Economic Bubble?

Posted on 10 December 2014 by VRS  |  Email |Print

One economist recently declared that gold in all shapes and sizes is “a 6,000-year-old bubble” and suggested that it “can be viewed as shiny Bitcoin,” or something similar to a pet rock. And the reality is: He’s right.
In the latest Global Economics View report, Citigroup global chief economist Willem Buiter provided his own perspective on the “Save Our Swiss Gold” initiative in Switzerland that would’ve required the Swiss National Bank to hold at least 20% of its assets in gold. The question on the minds of many in Switzerland was whether this would be a worthwhile initiative. Buiter was blunt. “The short answer is: no. The slightly longer answer is: absolutely not.”……………………………………….Full Article: Source

Gold Miners: 3 Reasons to Buy This ETF Before 2014 Ends

Posted on 10 December 2014 by VRS  |  Email |Print

Gold has a reputation for being a contrarian investment, and for more than a decade, returns for gold have generally diverged from what the stock market has brought investors. From 2000-2009, stocks suffered two bear markets while gold soared.
After topping out at $1,900 per ounce in 2011, however, gold has plunged even as the stock market has climbed to countless new record highs. As gold has fallen, it has taken gold mining stocks down with it, sending the popular exchange-traded fund Market Vectors Gold Miners ETF to levels it hasn’t seen since the worst of the financial crisis………………………………………..Full Article: Source

Is There A Gold Shortage?

Posted on 09 December 2014 by VRS  |  Email |Print

Gold bulls are making a big deal out of negative Gold Forward Offer Rates (GOFO) rates, and they think this means there is a shortage. This simply isn’t the case, and the panicked scramble to get physical gold–while something to fear in the near future–simply doesn’t exist.
There are, however, other signs that it is beginning, and GOFO may be a useful tool in predicting this in the context of additional information………………………………………..Full Article: Source

Who’s Forcing Gold’s Price to Dip?

Posted on 09 December 2014 by VRS  |  Email |Print

In a blatant and massive market intervention, the price of gold was smashed on November 28. Right after the Commodity Exchange Market (Comex) opened on that morning, 7,008 paper gold contracts representing 20 metric tons of gold were dumped in the New York Comex futures market at 8:50 a.m. EST. At 12:35 p.m. EST, 10,324 contracts representing 30 metric tons of gold were dropped on the Comex futures market.
No relevant news or events occurred that would have triggered this sudden sell-off in gold. Furthermore, none of the other markets experienced any unusual movement (stocks, bonds, currencies). The intervention in the gold market occurred on the Friday after the U.S. had observed its Thanksgiving Day holiday. It is one of the lowest volume trading days of the year on the Comex………………………………………..Full Article: Source

Not much change likely in Indian gold demand

Posted on 09 December 2014 by VRS  |  Email |Print

India’s gold demand might, it is believed, rise by no more than three per cent in 2015 over this year. Data compiled by rating agency ICRA forecasts the demand at 850 tonnes, compared to the 825 tonnes estimated in 2014.
The World Gold Council (WGC), which represents the mining industry, puts India’s demand between 850 and 950 tonnes in 2014. Easing import curbs, the government early this month withdrew the 16-month-old ‘80:20’ scheme, under which at least a fifth of any import consignment had to be supplied to jewellery exporters………………………………………..Full Article: Source

Gold jumps above $1,200 on chart-based buying surge

Posted on 09 December 2014 by VRS  |  Email |Print

Gold jumped more than 1 percent on Monday on a brief surge of late-day technical buying as it breached the $1,200-per-ounce level long after the U.S. dollar dropped from a more than five-year high.
Spot gold was up 1 percent at $1,203.51 an ounce after briefly rising to $1,208.19. The metal lost 1.1 percent on Friday when U.S. data showed employers added the largest number of workers in nearly three years in November and that wages picked up. U.S. gold futures for February delivery rose 0.4 percent to settle at $1,194.90 an ounce………………………………………..Full Article: Source

Gold Prices Rise As Market Eyes Easing Efforts

Posted on 09 December 2014 by VRS  |  Email |Print

Gold futures rose for the first time in three days as signs that money supplies will increase in Europe and Asia revived investor demand. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, climbed 0.5% last week, the most since August. Money managers raised their bullish wagers for a third straight week, the longest expansion since July, government data showed Dec. 5.
While European Central Bank policy makers refrained from increasing asset purchases at a meeting last week, President Mario Draghi pledged to assess the need for more stimulus early next year. China last month lowered interest rates to spur economic growth, while Japan has expanded its unprecedented stimulus program………………………………………..Full Article: Source

Opec: Big oil’s problem isn’t falling prices, it’s Ed Davey

Posted on 08 December 2014 by VRS  |  Email |Print

Energy secretary Ed Davey’s assault on oil and resource companies for climate change misses the point… and chickens are equally to blame. Investors in Britain’s biggest oil companies Royal Dutch Shell and BP have endured a torrid end to the year as the falling value of crude has eroded the value of their holdings in a sector long viewed as a safe bet.
If sentiment wasn’t already bad enough across the industry after a 35pc slump in Brent since June, then remarks made by the energy secretary Ed Davey suggesting that pension funds should dump the sector have only added to the sense of foreboding………………………………………..Full Article: Source

Gold Bulls Return as Wagers on Stimulus Accumulate: Commodities

Posted on 08 December 2014 by VRS  |  Email |Print

Speculators boosted bullish gold bets to a three-month high on signs central banks will act to counter low inflation, reviving the allure of bullion as a hedge. The net-long position in New York futures and options climbed for a third week, the longest expansion since July, government data show. Short holdings fell to a 14-week low.
Futures rebounded 5.3 percent since touching a four-year low on Nov. 7. European Central Bank President Mario Draghi said last week that policy makers “won’t tolerate” a prolonged period of low inflation, as officials consider increasing asset purchases. China lowered interest rates to spur economic growth, while Japan has expanded its unprecedented stimulus program………………………………………..Full Article: Source

Gold price may fluctuate till X’mas

Posted on 08 December 2014 by VRS  |  Email |Print

Despite the fluctuations and confusion over the price trend, customers have continued to purchase the precious metal. Investing in gold these days is quite like playing the stock market with volatile shares. The price of gold has been oscillating over the past few weeks, with highs followed by dips.
Despite the fluctuations and confusion over the price trend, customers have continued to purchase the precious metal. Jewellers like S. Santhakumar attributed the volatility to a dip in international gold prices. But, customers are yet to reap the benefit entirely, as the demand for this commodity has gone up in the stock market. The sales have gone up by 20-30 per cent since November-end………………………………………..Full Article: Source

India shows link between crude oil and gold prices

Posted on 05 December 2014 by VRS  |  Email |Print

A common theme in recent gold market reports is the link between price movements in the precious metal and crude oil. While there certainly appears to be a valid correlation in recent years, one that has strengthened in recent months, events in India show a different, unexpected link between the two commodities.
The Indian authorities caught the gold market by surprise on Nov. 28 by scrapping the so-called 80-20 rule, under which 20 percent of all imported gold had to be re-exported in the form of jewelry. Gold traders had been expecting a tightening of restrictions on gold rather than a loosening, and while a 10 percent customs duty remains, the likelihood is that India will now import more of the yellow metal and reclaim from China its title as the world’s top importer………………………………………..Full Article: Source

Gold Price Will Regain Its Shine in 2015

Posted on 05 December 2014 by VRS  |  Email |Print

For all the talk of gold sinking remorselessly to $1,000 an ounce, the metal has risen to $1,200 per ounce and has held its ground. Have we seen the bottom? Money managers Doug Loud and Jeff Mosseri of Greystone Asset Management say that if we haven’t seen the bottom, we will soon.
I’m not sure that the shorts can get gold down to $1,000/oz. There is tremendous physical buying, particularly in Asia, and central banks are buying as well. The U.S. and Canadian Mints have stopped making silver coins because they’ve run out of silver. Demand for gold and silver bullion is quite high, but the paper market is about 50 times the size of the physical market. So games can be played in the paper market………………………………………..Full Article: Source

Platinum will be in deficit for full year: Barclays

Posted on 05 December 2014 by VRS  |  Email |Print

The first quarterly platinum supply and demand data show the platinum market swung into a surplus in Q3 14 to the magnitude of 155koz, as platinum prices fell by 13% over the quarter to close at $1293.1/oz. Producer inventory is estimated to have fallen by 15koz,according to Barclays.
The newly formed World Platinum Investment Council released the first quarterly analysis of platinum supply and demand fundamentals today. This is the first time quarterly data has been presented for platinum; historically, balances have been presented on an annual basis………………………………………..Full Article: Source

Market Manipulation of the Gold Market: US Resorts to Illegality to Protect Failed Financial Policies

Posted on 04 December 2014 by VRS  |  Email |Print

No relevant news or events occurred that would have triggered this sudden sell-off in gold. Furthermore, none of the other markets experienced any unusual movement (stocks, bonds, currencies). The intervention in the gold market occurred on the Friday after the U.S. had observed its Thanksgiving Day holiday. It is one of the lowest volume trading days of the year on the Comex.
A rational person who wants to short gold because he believes the price will fall wants to obtain the highest price for the contracts he sells in order to maximize his profits when he settles the contracts. If his sale of contracts drives down the price of gold, he reduces the spread between the amount he receives for his contracts and the price at settlement, thus minimizing his profits, or if the price goes against him maximizing his losses………………………………………..Full Article: Source

Gold price holds above $1,200/oz as market stabilises

Posted on 04 December 2014 by VRS  |  Email |Print

The gold price drifted gently either side of $1,200 in the US on Wednesday as the breakneck volatility of the past several sessions temporally subsided. The gold price for February delivery on the Comex division of the New York Mercantile Exchange was last up $4.20 at $1,203.60 per ounce.
“In comparison to the last few days, [it is] a very quiet day in the wonderful world of precious. Gold took a breather and traded around the $1,200 level, with a bit of profit taking seen early in the day, moving it down to $1,192 briefly,” Marex Spectron’s David Govett said. “With the dollar strengthening and the stock market remaining firm, precious metals took a back seat and I suspect, with the occasional silly move, will stay that way until the figures later this week,” he added………………………………………..Full Article: Source

What’s Driving Gold Now?

Posted on 04 December 2014 by VRS  |  Email |Print

Gold enthusiasts around the world are trying to figure out what just happened in the gold market. The price action has been dramatic, and I think I can shed some fairly bright light on the situation. The general consensus is that the price of gold fell on Friday, due to anticipation of a Swiss citizen rejection of the “Save Our Gold” campaign. The Swiss vote went as anticipated, but by Monday morning, gold had soared $80, and Silver surged $2.
How can this bizarre price action by explained by the events in Switzerland? The likely answer is: It can’t. In the big picture, events in India have always been a key driver of gold prices. It appears that India is also now becoming the main short term driver of the price, and rightly so, in my professional opinion………………………………………..Full Article: Source

Don’t let gold’s rally take you for a ride

Posted on 04 December 2014 by VRS  |  Email |Print

Gold is unlikely to embark on a sustainable rally any time soon. That is the conclusion of a contrarian analysis of gold-market sentiment. Take gold’s extraordinary volatility over the past few days, with gold plunging as much as $50 on Sunday before rallying just as much on Monday. Journalists and analysts struggled to provide rationales for the market’s behavior, and largely came up short. This is a dead giveaway that the market is being held up more by hot air than by fundamentals.
Sunday’s plunge, for example, was attributed to the failure of the Swiss initiative to require the Swiss National Bank to hold 20% of its reserves in gold. But a “no” vote was largely expected, so it’s hard to see why this outcome should have caused gold to fall by so much. Likewise, there was little to explain Monday’s big rally………………………………………..Full Article: Source

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