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Commodities Briefing - Category | Bullion/Gold more

Analysts eye gold price rise as geopolitics outweighs policy tightening

Posted on 24 July 2014 by VRS  |  Email |Print

The price of gold is expected to rise over the coming months even if US Federal Reserve progresses with plans to tightening its monetary policy, according to analysts. Fed chair Janet Yellen recently suggested that the central bank could move to raise interest rates sooner than the market expects, assuming US economic indicators continue to show sustained improvement.
Capital Economics points out that any tightening of US monetary policy would act as a negative for the gold price “at face value”. Rising interest rates would be expected to hurt the price of gold and other non-yielding assets………………………………………..Full Article: Source

Safe-haven bids keep gold price above $1,300

Posted on 24 July 2014 by VRS  |  Email |Print

Gold price held steady on Wednesday in Asia after dipping overnight, and looked likely to hold above $1,300 an ounce in the near term as geopolitical tensions from crises in Ukraine and the Gaza strip brought safe-haven bids.
But sluggish physical demand in Asia in the seasonally quiet summer period could weaken support for any price rally and even fail to provide a floor if prices were to decline. Spot gold was little changed at $1,306.61 an ounce by 0627 GMT, after losing 0.4 percent in the previous session, pressured by firmer equities. U.S. gold edged up slightly to $1,308.40………………………………………..Full Article: Source

Will Gold Prices Fall Even Further?

Posted on 24 July 2014 by VRS  |  Email |Print

Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg on July 21 that investors should be buying gold and gold miners to take advantage of the rally he expects in the price of the precious metal.
Faber recommends that investors protect the value of their assets by taking positions in gold and gold stocks to hedge against the negative impacts of worsening geopolitical situations and unrestricted money printing. The idea is that global investors will soon flock to gold again to protect against currency devaluation, inflation, and the unknown fallout of major global conflicts………………………………………..Full Article: Source

Gold: If The Worst Is Over, What’s Next?

Posted on 24 July 2014 by VRS  |  Email |Print

1. A number of top bank economists have turned bullish on gold in the past few months. That’s helping to boost confidence amongst thousands of Western gold community investors.
2. Scotiabank and HSBC have lead the way on that front, and now top metals strategist Mike Widmer at Merrill Lynch has thrown his weight behind the bulls as well………………………………………..Full Article: Source

Could Silver Reach $100 By 2017?

Posted on 24 July 2014 by VRS  |  Email |Print

An upward trend is afoot in the silver space, says Sean Rakhimov, editor of SilversStrategies.com. Rakhimov believes that at $26/ounce the reversal of the downward trend in silver will be confirmed and silver investors should set their sights on the next resistance level—$32/ounce. And if that threshold is breached, silver will test $50/ounce and more.
My outlook for silver for the next two or three years is somewhere between $50 and $100/oz. It could be shorter; it could be longer, but that’s not critical. I’m going to stay with it for the cycle; it could be another 10 years to the end of the cycle. I do not expect this next leg to be final but I expect it to be a substantial run comparable to 2010–2011 when silver went from roughly $10 to $49.50/oz. The next move could go from about $20 to roughly $100/oz, but that will take time………………………………………..Full Article: Source

Where is gold headed?

Posted on 23 July 2014 by VRS  |  Email |Print

Half way through 2014, markets remain confused where gold prices are headed. Investors are still in dilemma and are now looking at fresh set of factors that will drive the price trajectory for rest of the year. While there was no real sign of sustained economic strength in 2013 for the world economy, just the idea of Federal Reserve in the US may start tapering at some point was enough to send gold bullion prices lower and the “bull run” in gold ended losing around 30 per cent of its value last year.
Investors lean toward gold and other precious metals as a hedge against both a weak dollar and inflation. A tapering of the Federal Reserve’s monetary policy suggests that the US economy is getting stronger………………………………………..Full Article: Source

Gold price to roll back H1 gains, average below $1,300/oz in 2014

Posted on 23 July 2014 by VRS  |  Email |Print

Gold will drift lower in the second half of 2014, leading to a second yearly drop in the average price after a dizzying decade-long rally, as U.S. monetary policy returns to normal and Asian demand is weak, analysts forecast in a Reuters poll.
The survey of 31 analysts and traders this month returned an average forecast for the third quarter at $1,270 an ounce, down from the average first-half price of $1,290 an ounce. In the last three months of the year, it is seen averaging $1,255………………………………………..Full Article: Source

Gold price gains on geopolitical uncertainty

Posted on 23 July 2014 by VRS  |  Email |Print

Weakness on equity markets helped gold prices rise slightly on Monday as heightened geopolitical tensions in Ukraine and Gaza boosted the demand for safe-haven assets. Gold for August delivery was 0.3% higher at $1,313.90 per troy ounce on the Comex division of the New York Mercantile Exchange.
The metal declined by 2% last week as comments from Federal Reserve Chair Janet Yellen about a possible sooner-than-expected rise in interest rates sent the dollar to a four-week high against 10 major currencies………………………………………..Full Article: Source

Respite for gold investors as metal enjoys strong 2014

Posted on 23 July 2014 by VRS  |  Email |Print

Gold investors are enjoying some respite in 2014 after a long period of falling prices, with the precious metal emerging as one of the year’s best plays to date.
Since the start of the year to 11 July, the price of bullion has firmed by 11% to nearly $1,339 per ounce. Silver, which typically mirrors the fortunes of gold, has also enjoyed strong gains, moving 10% higher to $20.75 per ounce. In contrast, global equities, as measured by the MSCI AC World index, have risen 6%………………………………………..Full Article: Source

Middle East grabs gold

Posted on 23 July 2014 by VRS  |  Email |Print

The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion.
MKS (Switzerland) SA, a Geneva-based bullion trader and refiner, expanded into Dubai three years ago and employs 25 people there, with the gold trade an “important market,” said Frederic Panizzutti, chief executive officer of MKS Precious Metals DMCC in the emirate. A spot gold contract due to start on the Dubai Gold & Commodities Exchange this year will draw business from London, said Gerhard Schubert, head of gold and commodities at Arab Banking Corp., a Bahrain-based bank………………………………………..Full Article: Source

Gold gains set to reverse as hedge funds cut bets on rally

Posted on 22 July 2014 by VRS  |  Email |Print

Money managers trim net-long positions as gold price rally snaps, but investors are still adding to holdings through ETPs backed by metal. Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011.
Money managers trimmed their net-long position by 8.5 per cent in the week to July 15, US government data showed. Prices dropped 2 per cent last week, the first loss since May and helping to erase US$1.38 billion from the value of exchange-traded products (ETPs) backed by the metal………………………………………..Full Article: Source

Gold over $1,300; conflicts spur safe-haven bids

Posted on 22 July 2014 by VRS  |  Email |Print

Gold stabilized near $1,310 an ounce on Tuesday as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal’s safe-haven appeal. Spot gold was little changed at $1,311.16 an ounce by 0009 GMT, after ending flat in the previous session.
The United States, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500………………………………………..Full Article: Source

Geopolitics Keeps Safe-Haven Bid in Gold Market

Posted on 22 July 2014 by VRS  |  Email |Print

Gold prices are moderately higher in early U.S. trading Monday as heightened geopolitical tensions keep a safe-haven bid in the market. August Comex gold was last up $8.70 at $1,318.00 an ounce. Spot gold was last quoted up $5.60 at $1,317.00. December Comex silver last traded up $0.261 at $21.205 an ounce.
Geopolitics remains on the front burner of the market place early this week. Last week’s downing of a Malaysian airliner on the Russia-Ukraine border and Israel’s ground offensive against Hamas on the Gaza strip are the dominant fundamentals in the markets Monday morning………………………………………..Full Article: Source

3 More Reasons to Invest in Gold Right Now

Posted on 22 July 2014 by VRS  |  Email |Print

Gold is typically perceived to be a hedge against inflation, and with better than expected U.S. economic growth along with the European Union and China implementing economic stimulus packages, inflation is expected to grow. Furthermore, ongoing instability in the Middle East is driving crude prices higher, making economic growth more expensive, which will translate into higher global inflation.
Growing inflationary pressures coupled with increasing economic volatility, as witnessed with the emerging markets sell-off earlier this year, and mounting geopolitical uncertainty will drive demand for gold higher………………………………………..Full Article: Source

Will Gold price crash below $1,200?

Posted on 22 July 2014 by VRS  |  Email |Print

Over the past few weeks we have seen mining stocks make a transition out of a stage one base and into a new bull market. This transition is likely to be complete this week.
Since May they have been going higher. Two weeks ago they had a nice surge up to their March highs and the 250 level on the HUI. Last week though they dipped for a few days below that level………………………………………..Full Article: Source

Precious metals dealers search for better benchmarks

Posted on 22 July 2014 by VRS  |  Email |Print

Amid pressure from regulators, a new system for determining benchmark silver prices will be put in place from mid-August, while reforms are also under discussion in the gold market. Industry observers say increasing participation will be crucial to restoring confidence in the benchmarks.
The daily silver and gold fixings represent two of the oldest commodity benchmarks in the world, dating back to 1897 and 1919, respectively. But now, their long lives appear to be coming to an end. The silver fix is to be held for the last time in mid-August, while industry discussions were underway aimed at ‘modernising’ the gold fix as Energy Risk went to press. In both cases, the developments will bring significant changes to the way benchmark prices are set for precious metals………………………………………..Full Article: Source

Top 3 Silver Miners For $30 Silver

Posted on 22 July 2014 by VRS  |  Email |Print

Silver mining companies offer big leverage to a rising price of silver and should be considered by silver bulls. Investors should look for low-cost producers in politically stable mining jurisdictions.
Great Panther Silver, Endeavor Silver and Coeur Mines are three of my favorite silver miners to play a rally………………………………………..Full Article: Source

Silver ETFs Are Having a Good Summer

Posted on 22 July 2014 by VRS  |  Email |Print

Gold gets all the glory, but silver’s no slouch. The price of silver has risen 10 percent since the end of May, more than double the gains in gold, bonds and stocks. This comes after a three-year slump when silver was down 50 percent, trailing gold by 30 percent and the S&P 500 Index by 100 percent. Until recently, it had a dubious distinction as one of the few things left in the investment universe that hadn’t rallied in recent years.
Silver suffered a 2.2 percent price drop on July 14 — gold fell as well — on fears that the Fed may raise interest rates sooner than expected. Both metals have since rebounded. And the fundamentals look solid: Silver is benefiting from a drop in total supply, a pickup in manufacturing and increased demand from China………………………………………..Full Article: Source

Hedge Funds Cut Bullish Gold Wagers as Rally Snaps: Commodities

Posted on 21 July 2014 by VRS  |  Email |Print

Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011. Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.
Gold climbed 9 percent this year, outpacing gains for commodities, equities and Treasuries, partly as tensions between Ukraine and Russia increased demand for a haven. The gains are set to reverse as the economy improves and the Federal Reserve “eventually” increases U.S. interest rates, the World Bank said in a report July 17………………………………………..Full Article: Source

Gold to head north on geo-political tensions

Posted on 21 July 2014 by VRS  |  Email |Print

In the international market, spot gold prices dropped two per cent to $1310.8 per troy ounce. The metal touched a high of $1324.7 on Friday but came off the peaks soon on profit booking. News of the shooting down of a Malaysian Airlines plane in Ukraine increased geopolitical tensions and helped gold — a classic haven — to edge up.
However, the sharper drop in price in the initial part of the week on fears of an early increase in interest rates in the US made gold close in the negative zone for the week………………………………………..Full Article: Source

Gold spikes on Malaysia Airlines crash

Posted on 18 July 2014 by VRS  |  Email |Print

The price of the safe haven metal surged amid market nervousness over the crash in Ukraine. Safe-haven gold spiked and stocks fell as investors took fright at the loss of a passenger jet in Ukraine near the border with Russia.
Gold, a shelter for investors in times of uncertainty, surged as much as 1.9pc on reports the Malaysia Airlines aircraft, which was carrying 295 people, had been shot down………………………………………..Full Article: Source

Gold edges above $1,300/oz as Russia sanctions hit equities

Posted on 18 July 2014 by VRS  |  Email |Print

Gold rose on Thursday, extending the previous day’s recovery from four-week lows as investors took advantage of lower prices to buy and as a fresh round of U.S. sanctions on Russia weighed on stock markets. The sanctions, the toughest yet imposed by the United States, also helped send palladium to 13-1/2-year highs. The metal is chiefly sourced from Russia.
Spot gold was up 0.4 percent at $1,303.60 an ounce at 1340 GMT, while U.S. gold futures for August delivery were up $4.90 an ounce at $1,304.70. Spot prices fell more than 3 percent over the first two days of this week to their lowest since mid-June, at $1,291.70………………………………………..Full Article: Source

The Return of Gold Hedging

Posted on 18 July 2014 by VRS  |  Email |Print

It’s baaack… That’s right, I’m talking about gold hedging, the gold stock investor’s bane. You see, gold miners “hedge” by agreeing to sell a portion of their future gold production at a fixed price. That way, if prices fall, they’re guaranteed a better profit.
Hedging was all the rage during the late 1990s and early 2000s, a period in which gold lost more than half its value. At the time, even mining company executives didn’t think gold prices would move up. But with most of their production hedged at relatively low prices, many miners missed out on the gold price boom of the last decade………………………………………..Full Article: Source

Metals exchanges eye gold price fix mandate

Posted on 18 July 2014 by VRS  |  Email |Print

Gold tender process follows silver fix mandate won by CME and Reuters.The world’s top commodities exchanges are already circling in the hope of securing a potentially lucrative new mandate to run the gold price fixing process.
The London Gold Market Fixing (LGMF) said on Wednesday it wanted to appoint a third party administrator to assume responsibility for the administration of the gold price discovery process. ……………………………………….Full Article: Source

Sticking around for $50-$100/oz silver - Rakhimov

Posted on 18 July 2014 by VRS  |  Email |Print

Precious metals characteristically start going up after a prolonged decline, yet early in the reversal they rarely inspire any confidence because the last dozen or so similar moves fizzled after a 10–20% move. This could be one of those. Silver is at $21 per ounce ($21/oz) now, maybe next week it will test $18/oz again. It’s anybody’s guess but I believe that toward the end of the year we’ll probably see higher numbers—maybe substantially higher.
This new replacement for the silver fix would, at least for the next year or two, have less tinkering with it than had historically been going on with the fix. On that basis, the price should become more volatile. On balance it’s probably going to be positive for the silver price………………………………………..Full Article: Source

A Look At Gold Prices And Quantitative Easing

Posted on 17 July 2014 by VRS  |  Email |Print

Gold has been a bit reactionary over the past days bouncing around on geopolitical stress and words from the US Federal Reserve Chief. Mario Draghi just a month ago sent the metals market on a whirlwind when the central bank moved to help the eurozone recovery moving to negative interest rates. Lately global stress shifted from Iran to Ukraine and then to Iraq.
With tensions between Palestine and Israel reaching war, Iraq has been pushed off the front pages of the papers. Gold peaked just a week ago close to 1350 and tumbled yesterday to below 1295 and stands flat this morning at 1297.10 after Fed Chair Janet Yellen’s testimony before the US Senate. Yellen said U.S. labor markets are far from healthy and signaled the central bank would not be in a hurry to hike interest rates………………………………………..Full Article: Source

Gold is still looking good – but watch this price level closely

Posted on 17 July 2014 by VRS  |  Email |Print

Just before New York’s opening bell on Monday somebody dumped 14,000 gold contracts onto the market. That’s 1.4 million ounces (a contract is 100 ounces), or $1.8bn worth – around a 65th of annual global production.
And it followed a 6,000-contract dump earlier in the day as markets opened in Europe. Is somebody trying to get the price down? Gold ended last week at $1,340 an ounce. Then, on Monday afternoon, it touched $1,302. That near-$40, 2.5% drop was its biggest daily plunge since December 2013 – the nadir (so far at least) of gold’s bear market………………………………………..Full Article: Source

Gold demand to rise?

Posted on 17 July 2014 by VRS  |  Email |Print

Gold held above a one-month low on speculation the biggest decline this year may spur demand as holdings in the largest exchange-traded product backed by the metal expanded to the highest level since April.
Holdings in the SPDR Gold Trust climbed this year, rebounding from a 41 percent contraction in 2013, even as the Federal Reserve pressed on with cuts to stimulus. The assets rose 8.68 metric tons to 808.73 tons yesterday, the biggest tonnage gain since October 2012, data from the company’s website showed. Fed Chair Janet Yellen testifies to lawmakers today and may offer clues on the timing of rate increases………………………………………..Full Article: Source

New silver price is ‘improvement’ on fix

Posted on 17 July 2014 by VRS  |  Email |Print

The unfortunate name will disappear. So too will the private teleconference, as well as the ownership by a handful of banks that have run the London Silver Fix – the global benchmark price – since 1897. And the cloak of secrecy over the trading volumes will be lifted.
But anyone thinking there has been a complete change in the way the daily snapshot of the silver market is conducted would be mistaken. The new benchmark, to be administered jointly by Thomson Reuters and the CME Group from August 15, keeps some of the main features of the silver fixing, in particular the auction-style process used to calculate the reference price………………………………………..Full Article: Source

World’s Largest Silver Producing Countries: Peru

Posted on 17 July 2014 by VRS  |  Email |Print

Peru was once a world leader of silver mine supply but has now fallen to third globally. While the country does boast some large primary silver producing mines, Antamina, the country’s largest silver producing mine is primarily a copper mine, with silver constituting as by-product.
Chungar, also one of the largest silver producing mines in Peru, is primarily a zinc producing mine. Peru’s production peaked in 2009 at 126 million ounces of silver followed by three consecutive years of decline. The country bounced back in 2013 and is expected to produce nearly 120 million ounces of silver in 2014………………………………………..Full Article: Source

Yellen Testimony Described As Mostly Neutral For Gold; Prices Decline Anyway

Posted on 16 July 2014 by VRS  |  Email |Print

Traders and analysts are characterizing Federal Reserve Chair Janet Yellen’s congressional testimony Tuesday as largely neutral for the gold market.
About an hour into her testimony, prices suddenly slipped below $1,300 an ounce for the first time since June 19. But most observers said they did not feel that the Fed chief had suddenly sounded more hawkish – other than suggesting rates could rise sooner than expected if the labor market keeps improving rapidly………………………………………..Full Article: Source

Did Goldman Sachs just blatantly manipulate the gold price down?

Posted on 16 July 2014 by VRS  |  Email |Print

If the gold market was a horse race then after yesterday’s sudden fall for no apparent reason observers would be calling for a stewards’ enquiry. Certainly those looking at a replacement for the London gold fix ought to be paying attention.
Just days after Goldman Sachs renewed its propaganda onslaught against the precious metal in a long article on Bloomberg the price dropped by 2.3 per cent, its biggest one day drop this year. Did it fall or was it pushed?……………………………………….Full Article: Source

Gold Prices Poised to Continue Their Breakdown

Posted on 16 July 2014 by VRS  |  Email |Print

It’s the proverbial pie in the face for traders who were sure gold was destined for higher highs. On Monday, gold prices, along with the SPDR Gold Shares (GLD), plunged a stunning 2.3% — the biggest one-day dip of the year — when Portugal’s debt crisis didn’t cause the country to sink into the ocean and drag the rest of Europe down with it.
The closing price of gold on Monday was $1,306.70 per ounce, pulling the commodity’s price to its lowest level since June 18. That was the day before gold prices soared after Janet Yellen vowed to keep interest rates low, and thereby keep the U.S. dollar suppressed………………………………………..Full Article: Source

Gold and silver smashdown: More to come?

Posted on 16 July 2014 by VRS  |  Email |Print

Well, hardly had our article yesterday on a potential smashdown in gold and silver been published on site for a couple of hours than, hey presto, it seems to have happened. Or at least started. According to reports a massive $1.37 billion sale of gold futures hit the market at New York open.
This initially drove the gold price down by around $20 before it recovered a little maintaining a level just above $1300 an ounce where it stayed overnight and in choppy morning trade in Europe. This morning has seen some strength on a rebound, though, taking the yellow metal back up above $1310 at the time of writing suggesting greater resilience than yesterday’s heavy seller(s) may have contemplated. Silver has been following gold’s lead as it is wont to do. ……………………………………….Full Article: Source

Is There A Silver Conspiracy?

Posted on 16 July 2014 by VRS  |  Email |Print

It’s now going on close to 30 years since I first discovered that silver was manipulated by excessive and concentrated short selling on the COMEX. I remember the exact moment like it occurred yesterday. It’s hard to believe I was in my 30’s when this started.
As I’ve explained previously, I was looking for an answer to Izzy Friedman’s question as to how and why silver prices remained so low when the market was in a supply/demand deficit………………………………………..Full Article: Source

3 Ways to Bet Like George Soros on a Recovery in Precious Metals

Posted on 16 July 2014 by VRS  |  Email |Print

The billionaire investor who famously broke the Bank of England has been making some big bets on a recovery in precious metal prices of late. This has seen him take some big positions in three of the industry’s hottest plays.
These bets are also in harmony with the increasingly positive outlook for the price of gold, silver, and platinum with a range of macro-economic, geopolitical and industry specific factors set to drive their prices higher. Let’s take a closer look at three of Soros’s biggest bets in the beaten-down precious metals mining industry………………………………………..Full Article: Source

The Bears Are Wrong, Wrong, Wrong on Gold ETFs

Posted on 16 July 2014 by VRS  |  Email |Print

Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with modestly depreciating currencies.
Theoretically, tactics designed to devalue a currency as well as push borrowing rates into the basement should strongly benefit precious metals like gold. And in the first three years of ultra-accommodative policies (e.g., zero-percent overnight lending, quantitative easing, etc.), the SPDR Gold Trust roughly doubled in price………………………………………..Full Article: Source

3 Ways to Cash in on Higher Gold Prices

Posted on 15 July 2014 by VRS  |  Email |Print

There are growing signs the rally in gold will be sustained, with gold prices continuing to defy the bearish predictions of a number of analysts and investment banks, including Goldman Sachs.
Furthermore, with gold prices remaining above $1,300 per ounce, growing demand and falling supply and a number of billionaire investors including George Soros making large bets on the precious metal and beaten down gold miners, now may just be the time to make a bet on gold. But the key question for investors is how to make that bet, so let’s take a closer look at three ways to invest in gold………………………………………..Full Article: Source

What’s Behind Gold Prices’ Biggest Daily Drop of 2014

Posted on 15 July 2014 by VRS  |  Email |Print

Gold prices (Monday) fell sharply by 2.3% for the biggest one-day drop of 2014. U.S. gold futures for August delivery were down $30.70 at $1,306.70 an ounce – their biggest one-day drop since December. Spot gold fell $33.50 at $1,305.50 an ounce.
The sell-off happened quickly following the Comex futures market open in early U.S. trading according to Kitco, suggesting a big sell order hit the futures market at that time………………………………………..Full Article: Source

Why gold just posted its biggest drop this year

Posted on 15 July 2014 by VRS  |  Email |Print

Gold’s $30-plus drop today — the biggest daily decline of the year — serves as a powerful reminder that the market for the yellow metal remains vulnerable to shifts in investor mood. And that does not bode well for gold’s near-term prospects. That’s because there’s more bullishness than bearishness today among the gold traders I monitor, which, in turn, means it’s more likely that shifts in mood will cause gold to fall than to rise.
Consider the average recommended gold-market exposure among a subset of short-term gold-timing newsletters tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). The average currently stands at 23.3%………………………………………..Full Article: Source

Gold looks bullish toward $1370, 1430: Barclays

Posted on 15 July 2014 by VRS  |  Email |Print

Gold appears bullish towards $1370 per ounce and then $1430 an ounce levels, according to Barclays. It said that recent gains in precious metals look toppy. Therefore, selling on any gold price rallies is suggested especially when it is expected that legs of support to give and to expose gold on the downside.
“We caution against interpreting recent strength in investor flows as a long-term shift in sentiment, as gold still represents healthy selling opportunity,” according to Barclays………………………………………..Full Article: Source

London gold fix still does the job

Posted on 15 July 2014 by VRS  |  Email |Print

The Chinese expression “Real gold is not afraid of the melting pot” suggests that if you have genuine quality, then you will not fear adversity. Well, in that sense, the London gold fix, an institution with a history going back nearly 120 years, is facing its own test as regulators question whether or not the process is “fit for purpose”.
The gold fix is in essence a benchmark price that is derived twice a day from actual trades all concentrated into a short space of time to determine an objective price for gold. Of course, prices are also being set in trading outside the London fix, but these prices are subjective, as they are posted by individual banks………………………………………..Full Article: Source

Citi Looks For Stabilization In Gold Prices, Upbeat On Palladium

Posted on 15 July 2014 by VRS  |  Email |Print

Citi Research looks for gold to stabilize for the rest of 2014 and is most bullish on palladium among the precious metals. The bank has revised its forecast to $1,300 gold in 2014, followed by $1,365 next year.
“Essentially we see stabilization in gold prices through this year in a $1,290/oz.-$1,350/oz. range, with stronger physical market activity from retail investors, ETF (exchange-traded-fund) flows and central banks essentially limiting any potential downside moves,” the bank said………………………………………..Full Article: Source

Palladium Is The Best Performer Among Precious Metals In 2014

Posted on 15 July 2014 by VRS  |  Email |Print

The first half of the year 2014 is history. Time for a quick evaluation of the metals’ performance. Obviously, Sharelynx offers the best in class charts to answer our question. Palladium is by far the best performer among the precious metals. Since the start of this year it’s price has increased with 18% (approximately) while the second performer (silver) added 10% to its price.
The other three metals have a very similar percentage rise over 6 months. Silver has been the laggard till early June when it accelerated its rise in a very short time span. This is the “restless” characteristic of silver………………………………………..Full Article: Source

Goldman Stays Gold Bear as Bullish Wagers Increase: Commodities

Posted on 14 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc.’s Jeffrey Currie isn’t backing down from his bearish call on gold. As bullion’s 11 percent rally this year beats gains for equities, commodities and Treasuries, he’s sticking with the view that the metal will be lower by the end of December as the economy improves.
Currie, who last year got ahead of the biggest gold collapse since 1980, is an undeterred bear even as hedge funds add to their bullish holdings for a fifth straight week and assets in exchange-traded products advance………………………………………..Full Article: Source

BofA-ML raises 2014 gold price forecast citing a lack of mine supply growth

Posted on 14 July 2014 by VRS  |  Email |Print

Bank of America Merrill Lynch has raised its 2014 gold price forecast, citing a lack of mine supply growth and steady demand for the yellow metal from emerging markets. The bank lifted its gold price forecast for this year by 0.8 per cent to $1,308 per ounce from $1,298, and kept its 2015 price outlook unchanged at $1,375 an ounce.
“We believe the continued monetary easing, accompanied by asset price inflation in many countries causes some apprehension that should bring investors back into the market,” BofA analyst Michael Widmer said………………………………………..Full Article: Source

What Wall Street Is Saying Gold Prices Will Do in the Second Half of 2014

Posted on 14 July 2014 by VRS  |  Email |Print

We here at TheStreet don’t claim to know where the gold price is headed tomorrow or next week, but we talk enough to the Wall Street pros to give you a sense of which direction the yellow metal is trending. The first half of 2014 was surprisingly strong for gold.
We say “surprisingly” because gold is coming off its worst full-year performance in more than three decades after a market crash in April 2013 fueled a 30% drop. But a drop of more than 9.5% from January through June of 2014 left many retail investors to wonder if the rise was a sign that $1,900 gold — where the market topped out in September 2011 after a decade-long bull run — was soon to return………………………………………..Full Article: Source

To Hedge or Not to Hedge; The Dilemma for Gold Mining Companies

Posted on 14 July 2014 by VRS  |  Email |Print

A major Russian gold producer earlier this month entered into the gold mining industry’s biggest hedging transaction in six years. According to analysts at Thomson Reuters GFMS, gold producers will return to net hedging this year for the first time after 2011. Hedging future production certainly has its benefits.
It guarantees future cash flows, especially during a volatile period like the one seen in 2013 when gold prices fell nearly 30%. However, it also limits the upside potential for mining companies………………………………………..Full Article: Source

Rigging of Silver prices and the plight of investors

Posted on 14 July 2014 by VRS  |  Email |Print

Silver is not just any old commodity. It is old money. Despite massive efforts and price fixing, clipping and manipulation, it has remained central to monetary and political systems for centuries. Today it is small and relatively dark in the context of modern investing.
Desperate times call for desperate measures. And the desperation to buy and hold metal should simply be proportional to the desperation of the will of the monetary powers to maintain the status quo………………………………………..Full Article: Source

Thomson Reuters group wins London silver pricing deal

Posted on 14 July 2014 by VRS  |  Email |Print

Thomson Reuters and CME Group have won the deal to run the new platform that will replace the London silver price fix in a blow to the London Metal Exchange (LME) which had hoped to scupper the deal.
The existing pricing mechanism for the silver market ends next month and the London Bullion Market Association named the Reuters bid on Friday ahead of several other interested operators, including the LME………………………………………..Full Article: Source

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