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Gold could be set for a strong breakout

Posted on 30 June 2016 by VRS  |  Email |Print

The British voters’ decision to leave the EU has badly shaken markets– although the dollar remained relatively calm while investors rushed into the safety of gold. Gold prices reached the long-term resistance target projection level of $1,340 before retreating. This is a rally within the context of a longer-term uptrend breakout.
Technically, this breakout is strong and there is a strong probability gold will move above $1,340 and move towards resistance near $1,580. However, there are important changes in the structure of the gold market that make the move above $1,350 and towards $1,580 more hazardous and volatile……………………………………….Full Article: Source

Gold is about to drop, and this play will let me cash in big when it does

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s run is almost done, according to gold trader Andrew Keene of AlphaShark, and he has just the way to profit from an expected slide in the precious metal. The yellow metal has had an incredible year, and that has sent most gold-mining stocks soaring. But with market uncertainty appearing to settle amid the post-Brexit vote rebound, Keene thinks the metal is due for a turn lower.
Keene has picked one gold stock that he sees following an expected downtrend for the metal in the coming months. Barrick Gold (ABX), the world’s largest gold-mining company, has seen its shares on the rise since September of last year, following the gold rally……………………………………….Full Article: Source

Gold is back

Posted on 30 June 2016 by VRS  |  Email |Print

Significant downturn in economic growth and rising uncertainty over the political developments have helped gold become a new emerging bull market, with the price expected to rise to US$2,300 within the next 24 months, according to a Liechtenstein-basesd asset and wealth management firm.
Incrementum AG’s study, “In Gold we Trust”, said that the first step had already been taken and early this year gold celebrated an impressive comeback, exhibiting strong vital signs, and recording its strongest quarterly performance in 30 years, which was fuelled by fears over ‘the recovery of the post-Lehman economy’……………………………………….Full Article: Source

Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s investment case has been strengthened by the U.K.’s vote to quit the European Union as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring bullion, according to Marc Faber, publisher of the Gloom, Boom & Doom Report.
The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said……………………………………….Full Article: Source

‘Going long on fear’: Analysts hike gold price forecasts after Brexit

Posted on 29 June 2016 by VRS  |  Email |Print

Gold prices ran up after Britain’s decision to quit the European Union, climbing sharply last Friday and yesterday as the referendum results rippled through global markets, pummelling stocks and some currencies.
Gold has pulled back from its Friday high, and dipped about 1 per cent amid today’s stock market rally. “We are revising our gold price assumptions as we believe that the fundamental macro backdrop for gold prices provides significant runway for gold price appreciation from current levels despite an appreciation of 25 per cent [year to date],” Clarus Securities said this week………………………………………..Full Article: Source

Gold price could rise on another big post-Brexit shock, Stifel says

Posted on 29 June 2016 by VRS  |  Email |Print

There may be some more upside for safe-haven gold after the Brexit shock, but the upside is likely to be limited, said experts. “To buy gold at these levels, you’d have to be betting that a lot more goes wrong and I’m really not sure that’s going to be the case,” Hans Olsen, Stifel’s global head of investment strategy, said.
Olsen said his firm made a “fair amount of money” from gold’s recent rally but the “big disruptions” were already over………………………………………..Full Article: Source

Gold Veteran Says Brexit May Be Start of ‘Major Bull Market’

Posted on 29 June 2016 by VRS  |  Email |Print

Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.
With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said………………………………………..Full Article: Source

Gold Retreats, Copper Climbs as Post-Brexit Markets Stabilize

Posted on 29 June 2016 by VRS  |  Email |Print

Gold fell back and copper soared as global markets stabilized on speculation that policy makers will do more to curb the post-Brexit fallout. Bullion fell after its biggest two-day surge in seven years as European and U.S. equities and the pound climbed for the first time since the U.K. voted to leave the European Union.
Concern that an exit will disrupt the global economic recovery had caused market turmoil and boosted gold by 5.4 percent in just two days as investors sought a haven………………………………………..Full Article: Source

Hedge Funds Push Gold Bullish Bets To Record Level

Posted on 29 June 2016 by VRS  |  Email |Print

Hedge funds and money managers were buying gold as prices were dropping, ahead of the British referendum on the future of its EU membership, according to the latest trade data from the Commodity Futures Trading Commission. Friday’s report showed that gold’s speculative net length reached historic highs last week.
The disaggregated Commitments of Trader report (COT), for the week ending June 21, showed money managers increased their speculative gross long positions in Comex gold futures by 17,436,contracts to 274,936. At the same time, short bets fell by 3,732 contracts to 24,528. The latest data shows the gold market is net long by 250,408 contracts………………………………………..Full Article: Source

Gold’s upside from here is limited, says Goldman’s Currie

Posted on 28 June 2016 by VRS  |  Email |Print

Investors are flocking to gold as a safe haven trade after the U.K.’s vote to leave the European Union, but the upside from here is rather limited, the global head of commodities research at Goldman Sachs said. “One of the key reasons for that is the market is incredibly long. We’ve also seen a sharp decline in interest rates, particularly U.S. Treasurys, which suggests that we probably are topping out here,” Jeffrey Currie said.
Goldman Sachs upped its gold price forecast to $1,300 on Friday after Thursday’s Brexit vote sent the price soaring. The precious metal was trading around $1,330 in afternoon trading Monday………………………………………..Full Article: Source

Gold still the star among commodities after Brexit

Posted on 28 June 2016 by VRS  |  Email |Print

As far as commodities go at the moment, there’s gold, and then there’s pretty much everything else. The yellow metal, which enjoys a reputation as a haven in times of volatility and crisis, is up 0.8 per cent this morning at a two-year high of $1,326.80 an ounce.
It has been one of the stars of the show, rallying 4.7 per cent on Friday as the UK voted in favour of leaving the EU and the plunging British pound sent financial markets into a tailspin. Gold should also benefit if central banks, particularly the Federal Reserve, refrain from tightening monetary policy………………………………………..Full Article: Source

10 reasons why gold price will go up in the future

Posted on 28 June 2016 by VRS  |  Email |Print

The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011. Globally, too, following the UK votes favouring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon.
After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce. There are several factors that suggest gold will be a preferred asset for all kind of investors — retail, institutional or even central banks………………………………………..Full Article: Source

Gold: Bears Are Trapped, Next Stop $1,400

Posted on 28 June 2016 by VRS  |  Email |Print

Gold posted a massive weekly gain Friday of over 4%, despite the largest one day advance for the U.S. Dollar in 2 years. Gold is up over 14% this year as we head into its strongest half of the year seasonally.
Brexit was a black swan event for gold bears, and most shorts were caught completely flat footed with commercial short positions in gold near all time highs………………………………………..Full Article: Source

Investors Keep Piling Into Gold Funds

Posted on 28 June 2016 by VRS  |  Email |Print

As the price of gold has soared, funds that track the precious metal are also reaching new heights. The two largest gold funds, SPDR Gold Trust and iShares Gold Trust, now own more physical gold combined than all but seven nations, according to analysis from Convergex.
With about 1,037 metric tons altogether, the amount of gold in the two funds outpaces reserves of notable holders such as the European Central Bank and Saudi Arabia. Following Britain’s vote to exit the European Union, the third largest U.S. gold ETF, ETFS Physical Swiss Gold Shares, announced on Monday that its assets have surpassed $1 billion………………………………………..Full Article: Source

Exit signs lead to gold

Posted on 27 June 2016 by VRS  |  Email |Print

There was no place to hide when Brits did what all the smarties of the financial world said they would be mad to do when they voted to leave the European Union. But there was one big ­exception — the gold price.
The barbarous relic’s now informal role in the world’s monetary system as an effective hedge and safe haven was on full display when it became clear that the “leave’’ vote would carry the day, driving gold to as high as $US1358 an ounce………………………………………..Full Article: Source

What next for gold after Brexit?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold prices surprised investors with a sharp rally on Friday (up 4.7 per cent at close), hitting a high of $1,358.5/ounce. Prices finally ended at $1,315/ounce, up 1.3 per cent for the week.
Demand for the yellow metal in the spot market in London has been surging through the week, say reports. The Royal Mint was reported saying that the number of visitors on its bullion trading platform had surged by over 500 per cent since Thursday, while new account openings had trebled………………………………………..Full Article: Source

Brexit’s impact on gold: Will prices hit $1,400?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold’s massive rally following the Brexit vote over the weekend has created a new range for the precious metal but analysts are split on whether or not the $1,400 level will be breached anytime soon.
The bullion surged to a two-year high on Friday, trading as much as $1,362.60 an ounce, after the majority of British voters chose to leave the European Union (EU). The outcome of the Brexit polls had caught the financial markets off- guard and sent investors running toward the precious metal………………………………………..Full Article: Source

Hedge Funds Win World-Beating Rally With Record Gold Holdings

Posted on 27 June 2016 by VRS  |  Email |Print

Unlike most of the world, gold investors got it right when it came time to betting on the Brexit vote. They were rewarded with a world-beating rally. Hedge funds boosted their bets on price gains for bullion to an all-time high just two days before U.K. voters took to the polls and decided to leave the European Union, sending global markets roiling.
Gold futures climbed to a two-year high after the referendum. The metal’s wild ride isn’t over yet. Prices could jump another 7.7 percent by the end of the year, a Bloomberg survey showed………………………………………..Full Article: Source

Gold Price and Brexit - Correlation and reactions (Video)

Posted on 24 June 2016 by VRS  |  Email |Print

Phil Carr, Co-founder and Director of The Gold & Silver Club, comments his vision on Gold and its correlation with Brexit polls and possible outcomes. When the odds of the Brexit increase, so do gold prices. While when the odds fall, so do gold prices.……………………………………….Full Article: Source

Gold settles lower for fifth day ahead of Brexit result

Posted on 24 June 2016 by VRS  |  Email |Print

Gold futures settled with their fifth-straight session loss Thursday, holding ground at two-week lows, as major global stock markets gained ahead of a historic decision on the U.K.’s membership in the European Union. Gold for August delivery declined $6.90, or 0.5%, to $1,263.10 an ounce. Over the past five days, gold has declined 2.7%. The SPDR Gold Trust ETF was down 0.4% on Thursday.
Although referendum polls remained tight, the Ipsos Mori poll for the Evening Standard newspaper, showed 52% of U.K. respondents in the “remain” camp compared with 48% backing the “leave” side. European stocks and the pound extended gains after the poll. Ipsos Mori’s June 16 survey had the “leave” side ahead………………………………………..Full Article: Source

What Could Brexit Mean For Precious Metals?

Posted on 23 June 2016 by VRS  |  Email |Print

The recent narrowing of the Brexit polls has sparked retail gold buying in the UK, according to data from the GFMS team at Thomson Reuters. Additional expectations for precious metals around the EU Referendum follow below: Market uncertainty, such as the conditions experienced around Brexit, is likely to benefit the price of safe havens, crucially the U.S. Dollar and gold.
A more difficult call at this juncture is whether gold or the U.S. Dollar is seen as the chief beneficiary, with the latter being the case in the Greek crisis in 2011. On balance, GFMS expect gold to gain even in Dollar terms as any strength in the U.S. Dollar for this reason will lessen the chances of any imminent U.S. interest rate rises as the Fed would rapidly become concerned about the adverse trade effects of these exchange rate movements………………………………………..Full Article: Source

Gold: Why You Should(n’t) Care About Brexit

Posted on 23 June 2016 by VRS  |  Email |Print

Right now, global markets are dancing to the Brexit beat. Traders plow money into equities and sell gold every time a poll leans toward the UK staying in the EU. Fifteen minutes later they are reversing because a poll says it’s a tossup. We feel if you are invested in Gold you shouldn’t care. If you are trading Gold you should.
First: let’s quickly look at the logic behind the market’s gyrations on Brexit perception. The UK Leaves: GBP Gets Slammed- Sterling devalues quickly from what can best be called “separation anxiety”. Stocks are Sold- in a riskoff frenzy. Gold Rallies- as a hedge against uncertainty………………………………………..Full Article: Source

Why Gold, Why Now?

Posted on 23 June 2016 by VRS  |  Email |Print

During my most recent webcast a couple of weeks ago, I had the pleasure of being joined by the CEO of the World Gold Council (WGC), Aram Shishmanian. As expected of someone of his stature, Aram brought another level of insight and expertise to our discussion of gold’s Love Trade and Fear Trade.
You might wonder what the WGC does exactly. In Aram’s words, it focuses on “innovation and integration to create the gold market” around the world. Among other important endeavors, the group “lobbies governments to make their countries appropriately pro-gold” and is the only agency in the world to “train central bankers in the use of gold.”……………………………………….Full Article: Source

Brexit gold rush: Scared Brits stockpile bars & coins, just in case

Posted on 23 June 2016 by VRS  |  Email |Print

UK citizens worried about the potential fallout of a Brexit are stockpiling gold bars and bullion coins in their safes at home. Searches for the phrase “home safe” have skyrocketed on Google, coming in at 61 percent higher than the previous peak in November 2008 during the global financial crisis, according to data obtained by the Telegraph.
The UK’s official producer of gold and silver coins, Royal Mint, said its sales have soared by 32 percent in June, with customers desperate to buy signature gold bars and Britannia bullion coins………………………………………..Full Article: Source

Silver is significantly underpriced

Posted on 23 June 2016 by VRS  |  Email |Print

Silver is used in many different sectors, including manufacturing, technology, jewellery, and tableware. It’s a good bet to place, when worry over the economy is rampant, due to a disappointing jobs report in May, confusion from the Fed, and concern over the Brexit vote taking the United Kingdom out of the EU.
Investors are flocking toward things with more value than paper currency, and one of those things is silver. With precious metals prices soaring this week, month, and year on the back of flailing Fed credibility, it is not entirely surprising that assets in exchange-traded funds backed by silver have swelled as investors seek a haven from global economic and political risk………………………………………..Full Article: Source

The yellow metal is all aglitter

Posted on 22 June 2016 by VRS  |  Email |Print

After falling six per cent in May, gold prices have gained momentum in June, recovering from the low of $1,199.60 per ounce on May 30 to $1,286 at present, rising around 7 per cent.
The recent rally is a combination of two key events that dominated the price trajectory of the yellow metal. The prime driver was the US Federal Reserve meeting, which was scheduled on June 14-15; the other event is the Brexit referendum on June 23………………………………………..Full Article: Source

Gold prices could rise almost 10% on Brexit

Posted on 22 June 2016 by VRS  |  Email |Print

Gold prices could swing both ways, depending on whether Britain votes to leave or remain with the European Union (EU). With fears of Britain’s exit (Brexit) receding in the past few days, gold prices have fallen and stock markets have rallied. However, should Brexit happen, gold prices could hit as high as $1,400 per ounce from Tuesday’s $1,283, according to an analyst.
“While it (Brexit) may also support the dollar thereby creating some headwind giving the negative correlation we see an increased risk that gold could be propelled towards $1400, the 2014 high,” the Khaleej Times quoted Ole Hansen, head of Commodity Strategy at Saxo Bank, as saying………………………………………..Full Article: Source

Switzerland gold exports jump 20% to 177.3 mt in May, highest this year

Posted on 22 June 2016 by VRS  |  Email |Print

Gold exports from Switzerland totaled 177.3 mt in May, up 20% from 147.8 mt reported in April, and the highest level since December, Swiss federal customs data showed Tuesday. The figure is 69% higher than 105.1 mt reported a year earlier.
Exports to China were 36% higher on the month at 19 mt in May, while exports to Hong Kong were 2.5-times as large at 24 mt. Exports to the US were also up on the month, to 18.9 mt in May, from just 2.3 mt in April………………………………………..Full Article: Source

Why gold could crash or soar this week

Posted on 22 June 2016 by VRS  |  Email |Print

Britons will go to the voting booth on 23 June in what could mark a historic date for the country, while the outcome could have a lasting impact on the global economy as a whole. Although much has been said and written about the potential Brexit, the consequences of a ‘leave’ decision are still unclear.
Overnight, for instance, George Soros warned that an exit from the EU risks ‘Black Friday’ for the United Kingdom, as reported by The Guardian, while others suggest that Brexit would be a complete non-event. One way or another, the upcoming referendum vote has created much uncertainty………………………………………….Full Article: Source

HSBC: Gold May React ‘Vigorously’ To Polls Ahead Of U.K. Referendum

Posted on 22 June 2016 by VRS  |  Email |Print

Gold may respond “vigorously” this week to any perceived changes in how U.K. citizens may vote Thursday in a referendum on whether to leave the European Union, says HSBC. The metal rose last week on polls showing the “leave” camp was ahead, but has given up some ground now with more recent polls showing the “remain” camp just might win after all.
Polls remain tight, however. “The U.K. referendum presently appears the most influential factor in the gold market and as opinion polls shift and investor perceptions of the likely referendum outcome change, even slightly, we expect the gold market to respond, possibly vigorously,” HSBC says. ……………………………………….Full Article: Source

Is silver next for Chinese speculative investors?

Posted on 22 June 2016 by VRS  |  Email |Print

The roulette game all started in the fall of 2014, about two years after Chairman Xi Jinping came to power and became the general secretary of the Communist Party of China. Xi Jinping had campaigned for socialist economic reform, including a sweeping anti-corruption drive, cutting excess production capacity, tightening of housing credit, and clamping down on gaming in Macau.
Public feedback was initially positive. However, largely as a result of those policies, Beijing was facing an increasingly grim economic growth outlook which was the worst in more than two decades*. Manufacturing activity in China slowed along with the global economy and the construction sector stagnated………………………………………..Full Article: Source

Will Trump or Hillary Be Good for Precious Metals Prices?

Posted on 22 June 2016 by VRS  |  Email |Print

This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.
There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we can’t even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country………………………………………..Full Article: Source

How Brexit vote will shape the price of gold

Posted on 21 June 2016 by VRS  |  Email |Print

Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.
Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16………………………………………..Full Article: Source

Brexit Fears Boost Gold Price

Posted on 21 June 2016 by VRS  |  Email |Print

As the world awaits Britain’s referendum vote to the leave the European Union, investors are flocking to safe havens. Gold jumped to a month-high last week with uncertainty over the coming election leaving investors anxious. Additionally, the much anticipated Federal Reserve meeting this month is adding to the uncertainty.
British voters will decide on the 23rd of this month whether the UK should stay in the EU. The debate over the consequences of a Brexit has raged over the past several months………………………………………..Full Article: Source

Safe haven demand adds sheen to gold

Posted on 20 June 2016 by VRS  |  Email |Print

Gold continues to remain on a strong footing. The “Brexit” fear in the market is helping the yellow metal regain its safe haven status. Bullion prices surged for the third consecutive week. The global spot gold price rose 1.9 per cent last week to close at $1,298.65 per ounce.
Gold prices have skyrocketed 7 per cent over the last three weeks. Gold broke above the psychological $1,300 mark last week to make an intraweek high of $1,315. But prices reversed lower on Thursday after the campaigning in the UK for the referendum was stopped following the murder of Labour MP, Jo Cox. However, gold bounced back once again from the low of $1,276 on Friday to close just below $1,300………………………………………..Full Article: Source

Uncertainties of Brexit making gold attractive as safe asset

Posted on 20 June 2016 by VRS  |  Email |Print

The outcome of Thursday’s Brexit referendum will chart the price of gold in the next six to 12 months, but, in the longer term, investors and analysts agree that bullion is an asset to hold. The immediate trigger for any gold price moves will come in the wake of the referendum, which could see Britain leave the European Union.
Robin Tsui, exchange traded fund (ETF) gold specialist of Asia-Pacific at State Street Global Advisors, said: “If Britain does decide to vote for an exit, this would trigger more uncertainties. There are also risks that other countries may follow Britain to vote for an exit………………………………………..Full Article: Source

Brexit Alarms Propel Gold Investors to Near Record Rally Wagers

Posted on 20 June 2016 by VRS  |  Email |Print

The turbulence sweeping global markets has reignited investors’ passion for gold. Global central bankers have sounded the alarm that a British exit from the European Union could be disruptive to the global economy.
Anxiety about the June 23 vote contributed to more than $1 trillion of value being wiped from global equities last week as bullion futures reached the highest in almost two years. Hedge funds are holding the second-biggest bet ever that the metal will rally further, falling just short of a record reached in 2011………………………………………..Full Article: Source

Silver Sleeping On the Job

Posted on 20 June 2016 by VRS  |  Email |Print

In the time of the ancient Babylonians - long before the periodic table - there were seven sacred metals: gold, silver, copper, iron, tin, lead and mercury. In Roman and Greek Mythology, the First Age was called Golden, the Second Age Silver. Apollo, the god of truth and light, and teacher of medicine, carried a silver bow.
The hieroglyph of Isis (Egyptian moon goddess) is a crescent and images of her are usually reproduced with her standing on the Crescent. This has also become the symbol for silver – on old maps a crescent shows the location of a silver mine………………………………………..Full Article: Source

Gold price nears two-year high

Posted on 17 June 2016 by VRS  |  Email |Print

Gold prices soared to their highest level in nearly two years Thursday, a day after the Federal Reserve lowered projections for how much they expect to tighten monetary policy in the next few years. Gold for August delivery closed up 0.8 per cent at $US1,298.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices hit $US1,318.90 a troy ounce earlier in the session, the highest level since August 2014. An uneven recovery in the US and slow growth abroad appear to have eroded the Fed’s hawkishness, with a greater number of officials now seeing scope for just a single rate increase this year, rather than two………………………………………..Full Article: Source

Gold price bulls kept faith as hedge funds wavered

Posted on 17 June 2016 by VRS  |  Email |Print

A big factor supporting the gold rally – the best start to the year in more than a decade – have been investors in physical gold-backed exchange traded funds. Global vault holdings have swelled to 1,883 tonnes, the highest since December 2013 following net inflows of more than 400 tonnes so far this year – a dramatic reversal of the trend during the last three years when a staggering 1,198 tonnes left funds.
As the chart shows the more than 6% decline in the price of gold in May did not deter ETF investors from picking up more metal and doubling down on their conviction of a rising gold price………………………………………..Full Article: Source

Understanding Gold And Silver ETFs

Posted on 17 June 2016 by VRS  |  Email |Print

If you have begun recently to consider investing in gold or silver — congratulations for thinking outside the box of conventional asset classes. Whether you’ve arrived at this point due to the recent turbulence in the stock market, or you’d like to diversify into an asset class that will always maintain some intrinsic value, or you’d simply like to profit from an increase in the price of gold or silver, you’ve made an important step toward protecting your wealth and profiting in the future.
And if you’ve followed our analysis in other articles, you know why we anticipate significant rises in the price of both metals in the coming years………………………………………..Full Article: Source

European investors buy heavily into gold ahead of Brexit poll

Posted on 16 June 2016 by VRS  |  Email |Print

Gold prices are spiraling with a rise in uncertainty in the developed world. In America, the ongoing meeting of the Federal Reserve is expected to decide on whether to raise policy rates. And, there is the June 23 referendum in Britain on whether to leave the European Union (’Brexit’).
If rate increase in the US and Brexit does happen, European investors will look for hedging in a safe haven, gold at present. SPDR, the largest exchange traded fund for gold, has seen its holdings rise nearly 40 per cent since January and 9.7 per cent since April. Since the beginning of May, its gold holdings have risen on a net basis by 94 tonnes, indicating investor buying. For, recessionary conditions will accelerate in Britain if it chooses to opt out of the EU, which is positive for gold………………………………………..Full Article: Source

HSBC: Gold will explode if Britain votes for a Brexit

Posted on 16 June 2016 by VRS  |  Email |Print

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time.
Gold is seen as a haven for cash. It does not pay a coupon like a bond, and it does not pay a dividend from a stock, but it does mean you own ounces in a physical precious metal that you can hold onto………………………………………..Full Article: Source

The Brexit Vote Could Push the Price of Gold to $1,400

Posted on 16 June 2016 by VRS  |  Email |Print

Ahead of the June 23 Brexit vote, analysts at the Australia and New Zealand Banking Group (ANZ) have said the price of gold could reach as high as $1,400 an ounce. From today’s opening gold price of $1,288.10, that’s an 8.6% increase. And hitting that mark would be a gain of 31% from when the bull run started at the end of 2015.
We know that investors are going to be flooded with Brexit news over the next few days. But we also know the mainstream media won’t analyze the impact of a Brexit on gold prices………………………………………..Full Article: Source

Fitch: Gold Price Assumptions Raised amid Global Uncertainty

Posted on 16 June 2016 by VRS  |  Email |Print

Fitch Ratings raised its gold price assumption to $1,100/oz from $1,000/oz as uncertainty, driven by negative interest rates in parts of Europe and elsewhere, combined with reduced US rate hike expectations, have driven investment sentiment for gold in first-half 2016.
Our updated global gold price assumptions incorporate upward revisions for all forecast years, reflecting the current market price environment and evidence of price support during the forecast period. Gold prices are expected to continue to be supported by strong retail investment demand, continued central bank purchasing and global financial turmoil. (Press Release)

Should investors be seeking safety in gold?

Posted on 16 June 2016 by VRS  |  Email |Print

Global gold investment shot up to the equivalent of 617.6 tonnes in Q1 this year, the second highest quarter on record, according to figures from the Global Gold Council and equivalent to $27.2bn (£18.8bn) based on prices of $1,250 an ounce. The industry body attributed the upsurge in demand to negative interest rates, stock market volatility and concerns about global growth.
ETFs were the “main engine” of this growth, according to the organisation, seeing inflows of 363.7 tonnes following three years of almost uninterrupted outflows. At BlackRock, one of the largest ETF providers, gold-based ETPs saw $4.1bn (£2.8bn) of inflows in May, second only to bond funds for net flows at the asset manager, while its gold miners ETFs saw inflows of $1.3bn………………………………………..Full Article: Source

Commerzbank: Supply Deficits To Underpin Prices Of Platinum, Palladium

Posted on 16 June 2016 by VRS  |  Email |Print

Supply deficits in platinum group metals are likely to continue, thereby supporting prices, says Commerzbank. Analysts project platinum will average $1,000 an ounce in the third quarter, $1,050 in the fourth and $1,100 in the first quarter of 2016. They see palladium at $575 in the third quarter, $625 in the fourth and $650 in the first three months of 2016.
“Supply is unlikely to be sufficient to cover demand yet again this year on both the global platinum and palladium markets,” Commerzbank says. “Both markets thus look set to record their fifth consecutive year in deficit, which in our opinion points to higher platinum and palladium prices. There are likely to be some limits to the anticipated price rises, however.”……………………………………….Full Article: Source

How gold prices can top $1,300 an ounce for good

Posted on 15 June 2016 by VRS  |  Email |Print

Gold’s narrow trading range — already four months old and counting — is likely to continue for awhile. That’s because current sentiment conditions don’t support a rally that will take gold significantly above the upper end of that range, currently around $1,300 per ounce.
To be sure, gold-market enthusiasm has risen steadily over the last two weeks as gold bullion has rallied $75 per ounce and gathered momentum that, in some eager gold bugs’ eyes, is enough to propel it above the $1,300 level for good………………………………………..Full Article: Source

Gold Prices: 3 Reasons Gold Prices Could Be About to Skyrocket

Posted on 15 June 2016 by VRS  |  Email |Print

Gold prices are up by more than 20% year-to-date, but the gain for gold bullion could be just getting started. There are three events that every gold investor should pay attention to, because they have the ability to cause a super spike in gold prices.
On June 23, Britain will be voting on whether the country should leave the European Union (EU) or stay. As it stands, it looks like the “Leave the EU” movement is surging. According to the Opinium Poll, commissioned by the Brexit-backing think tank Bruges Group, 52% of the respondents said they would prefer to leave the EU………………………………………..Full Article: Source

Is Gold-to-Silver Ratio Too High?

Posted on 15 June 2016 by VRS  |  Email |Print

The gold-to-silver-ratio is an indicator that shows how many silver ounces are required to purchase an ounce of gold. The gold-to-silver ratio is one of the most important parameters in the precious metals market, as it measures the relative value of gold and silver. Therefore, it is a useful tool indicating whether gold or silver is undervalued or overvalued relative to each other.
Investors can use the ratio as a timing indicator deciding when to buy gold or silver, or which metal to buy at any given time. When the ratio is low, it means that silver is overvalued relative to gold (and vice versa)………………………………………..Full Article: Source

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