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Commodities Briefing - Category | Bullion/Gold more

What is the best way to buy gold?

Posted on 29 September 2016 by VRS  |  Email |Print

Should I look at miners, bullion or exchange-traded products? Many investors perceive it to be a haven during times of market turmoil, so it can do well during financial crises. Historically, it has also traded in a way that shows a low correlation to other financial assets.
Our current guidance is for gold to make up between 3 per cent and 5 per cent of a balanced portfolio. It has been a popular commodity investment in 2016, and the price has risen by 26 per cent in the year to date……………………………………Full Article: Source

How Gold Came to South Korea’s Rescue

Posted on 29 September 2016 by VRS  |  Email |Print

Nineteen years ago, South Korea came precipitously close to bankruptcy. The Asian financial crisis had spread like a virus. Thailand, Malaysia, Singapore and other Southeast Asian countries were all affected, inciting fears of a global economic meltdown if the crisis couldn’t be contained.
Before 1997, South Korea had been held up as a textbook example of economic reversal and resilience. Once a poor Japanese colony, the country underwent an unbelievably rapid transformation in the second half of the 20th century, propelled by smart policy reforms and heavy investment in education. Many called it the “Miracle on the Han River.”…………………………………..Full Article: Source

Whom is gold voting for? A market puzzle

Posted on 29 September 2016 by VRS  |  Email |Print

If Donald Trump manages to win the presidential election, will that be good or bad for gold? This proves to be an interestingly controversial issue, which goes to the multifaceted nature of the precious metal as an investment.
Some market participants say that a surprise Trump victory will cause considerable market anxiety, leading safe havens like gold to surge. Others say that Trump’s antipathy for stimulative monetary policies will mean more rate hikes down the line, spiking the dollar and consequently hurting gold prices……………………………………Full Article: Source

Gold Ends Lower On Chart-Based Selling

Posted on 29 September 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session weaker Wednesday, on mostly technical selling amid a lack of fresh, markets-moving fundamental news on this day. Some U.S. economic data released Wednesday did not significantly impact the metals or other markets. Also, Fed Chair Janet Yellen spoke on banking issues before Congress, but did not address U.S. monetary policy.
Traders and investors worldwide were watching the OPEC oil cartel meeting in Algiers, which began Wednesday. Most energy market watchers do not believe OPEC at this meeting will make any significant moves to reduce their collective crude oil output, or to forge an agreement with Russia to stabilize world oil prices……………………………………Full Article: Source

Gold Could Soar Quickly to $1750 or even $2000 with a Trump Win

Posted on 29 September 2016 by VRS  |  Email |Print

The Presidential election is taking place in the United States just six weeks from now. So far, the gold market is expecting a victory by Hillary Clinton on November 8. Her win means “more of the same” Obama-style policies coming out of the White House.
Hillary Clinton is the favored candidate of the “establishment” in Washington, DC as well as in big business and the media. The latest polls show her slightly ahead of Donald Trump but her slim edge over Trump could shrink further as the election nears……………………………………Full Article: Source

SocGen Sees Gold Improving To $1,350 Average In 4Q

Posted on 29 September 2016 by VRS  |  Email |Print

Societe Generale looks for gold to rise moderately for the remainder of 2016 on expectations for a slow pace of Federal Reserve monetary tightening, even if the central bank hikes interest rates in December. Analyst Robin Bhar listed a fourth-quarter price average of $1,350 an ounce.
Gold has been underpinned this year by investor buying, with exchange-traded-trade fund interest spurred by a move from zero to negative interest rates in many nations, ongoing uncertainty surrounding this summer’s U.K. Brexit vote, the U.S. presidential election and concerns about a slowing Asian economy, Societe Generale said……………………………………Full Article: Source

Gold Lower as Trump Presidency Seems Less Likely After Debate

Posted on 28 September 2016 by VRS  |  Email |Print

The price of gold edged lower Tuesday as investors concluded that the first U.S. presidential debate made a Donald Trump presidency less likely. Gold for December delivery was recently down 0.9% at $1,331.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold has gained recently on the belief that a Trump presidency would add uncertainty to an already shaky global economic and geopolitical picture. The precious metal is likely to remain volatile ahead of the November U.S. election and as investors debate the direction of the Federal Reserve’s monetary policy, which has been the market’s key driver……………………………………Full Article: Source

Gold Price Predictions: Can Gold Reach $1,900 per Ounce?

Posted on 28 September 2016 by VRS  |  Email |Print

Gold prices have hovered well above $1,300 an ounce since mid-2016, but can it really reach $1,900 an ounce by the end of the year? No doubt, it’s been an eventful year for the gold price, having increased significantly from $1,076.30 per ounce to $1,337.00 as of 4:09 p.m. EST on Monday (September 26, 2016).
Year-to-date, the yellow metal has rallied 25.41 percent overall, peaking in July at $1,365.40 per ounce. Much of the success the gold price has had can be attributed to the United Kingdom’s decision to leave the European Union in June, although that hasn’t been the only driving force behind its pricing moving up……………………………………Full Article: Source

Mitsubishi: Gold Headed For Quarterly Gain On Investment Demand

Posted on 28 September 2016 by VRS  |  Email |Print

Gold is on track for its third straight quarterly price gain thanks to investment demand, reports Mitsubishi. While down from the July high for the year, spot gold is still higher than on the final day of the second quarter. “Gold is likely to register a third successive quarter of…gains – its best performance since 2011 when bullion was on the run-up to its all-time nominal high,” Mitsubishi says.
“Though the pace of gains has slowed, its performance has remained impressive – it has remained above $1,300 throughout this quarter, a level that is roughly coincident with the 50% retracement of the 2008 low to 2011 high, and has remained above the 500-day moving average since February…………………………………..Full Article: Source

Gold Mining ‘Needs New Discoveries’ as M&A Rejected on Bad Memories, 2016 Price Jump

Posted on 28 September 2016 by VRS  |  Email |Print

Gold prices in China – the world’s No.1 gold mining, importing and consumer market – held firm overnight, fixing at the Shanghai Gold Exchange little changed from before the weekend, but edging down to a $2.85 per ounce premium above comparable Dollar quotes for metal settled in London.
“To keep the gold industry supplied we need to discover 90 million ounces a year,” said gold mining CEO Mark Bristow of Randgold Resources to journalists in Johannesberg yesterday, ” [but] we are only discovering 10 million to 15 million ounces a year. “We either have to discover more quality ounces or reduce the life of mines.”…………………………………..Full Article: Source

Can the Rally in Silver Continue?

Posted on 28 September 2016 by VRS  |  Email |Print

Commodities like gold and silver have surged this year, thanks to geopolitical uncertainty like “Brexit,” the Federal Reserve’s reluctance to raise its main interest rate and foreign buyers. But with the price of silver up nearly 40% year-to-date, investors are wondering whether it can continue. Experts say it may have more room to run, particularly as global interest rates continue to stay negative.
“I think there are several driving forces, but the rampant rise in the amount of negative interest rate sovereign debt around the world is a major factor,” said Andrew Chanin, CEO of Pure Funds, of the rise in silver……………………………………Full Article: Source

Silver Prices Fall Deeper into Narrowing Range

Posted on 28 September 2016 by VRS  |  Email |Print

While the price of silver oscillates back-and-forth in the converging range, so do we in examining the metal from varying time-frames. Today we will take a close up look to see where it is likely headed in the very short-term.
After putting in a small reversal day off the trend-line running back to the July peak , silver is weakening towards the middle of the narrowing daily range. Broadly speaking, this is setting up nicely so far for the bulls as long as it continues to coil and hold support. It could be a big October……………………………………Full Article: Source

Sberbank gets international membership at Shanghai Gold

Posted on 28 September 2016 by VRS  |  Email |Print

Sberbank (Switzerland) AG has become an international member of the Shanghai Gold Exchange (SGE), Sberbank CIB, the corporate and investment banking business of Sberbank, said on Tuesday.
The membership will open the opportunity for the company to participate in a greater capacity as a supplier to the world’s largest consumer of gold, Andrey Shemetov, managing director and head of global markets department at Sberbank CIB, said……………………………………Full Article: Source

Citi Sees $1,320/Oz Gold In 4Q, Resilient Indian Demand In Coming Years

Posted on 27 September 2016 by VRS  |  Email |Print

Citi Research sees gold easing slightly in the fourth quarter to an average of $1,320 an ounce as the Federal Open Market Committee hikes U.S. interest rates for the first time in a year. Meanwhile, in a special section of the bank’s quarterly commodity forecast released overnight, Citi said Indian demand for gold and certain other commodities – such as crude oil and power — is likely to be helped by rising incomes during the next half of a decade.
Financial markets do not expect the central bank to act in November, to avoid influencing the U.S. presidential election, and is split on the chances for a rate hike in December…………………………………….Full Article: Source

Gold price: ‘Buying fatigue’ could be a turning point

Posted on 27 September 2016 by VRS  |  Email |Print

Bullish bets on price rising fall as US presidential election and possible interest rates rise add to pressure. Gold could be facing a turning point at the end of what has so far proved to be one of its best years for four decades.
The yellow metal, seen as a safe haven in times of economic strife, benefits from low interest rates, which reduce the relative value of other income-yielding assets. Consequently, this year has been one of its most successful since 1980, says Mining.com, with the price up around 26 per cent, or $280, and hitting a two-year high in July of $1,380 an ounce……………………………………..Full Article: Source

Gold Will Likely Soar To A Record

Posted on 27 September 2016 by VRS  |  Email |Print

“Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven”, reported Bloomberg last week, quoting Old Mutual Global Investors’ Diego Parrilla.
The metal is at the start of a multi-year bull run with a “few thousand dollars of upside” in a world of “monetary policy without limits” where central banks print lots of money and low or negative interest rates prevail, said Parrilla, who joined the firm as managing director of commodities last month. He’s worked at Goldman Sachs Group Inc. and Bank of America Merrill Lynch……………………………………..Full Article: Source

Investing in gold is the best ‘speculative’ bet there is today

Posted on 27 September 2016 by VRS  |  Email |Print

Gold, simply put, is an investment. And I try to view it as such, based on the current macro and market conditions. It’s moderately risky as far as investments go, sure. But anyone who tries to paint the precious metal as a bulwark against disaster or a pitfall to be perpetually avoided is missing a key piece of the market puzzle.
Because through the end of 2016 and into the start of 2017, gold could be poised for a big leg up even as stocks risk running out of gas. If you think gold is risky, you’re right. But there is no risk-free return in any market, especially in this one……………………………………..Full Article: Source

Gold price: Hedge funds, ETF investors show buying fatigue

Posted on 27 September 2016 by VRS  |  Email |Print

Gold touched a two-year high in July around $1,380 an ounce and year to date the metal is up 26% or close to $280 an ounce, one of its best annual performances since 1980. But there are signs that buying fatigue has set in for both hedge funds active on the derivatives market and institutional and retail buyers of physically-backed gold exchange traded funds.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data……………………………………..Full Article: Source

Citi Warns on Gold as Bank Boosts Odds of Trump Win to 40%

Posted on 26 September 2016 by VRS  |  Email |Print

Gold may be in for a bumpy ride in the final quarter as Republican candidate Donald Trump now has a 40 percent chance of winning the presidential election and investors will be preparing for the possibility of higher U.S. interest rates, according to Citigroup Inc.
Volatility in bullion and foreign-exchange markets may increase, according to a commodities report from the bank as it raised the odds on a Trump victory over Democrat Hillary Clinton in November from 35 percent. There would probably be a single U.S. hike by year-end, it said……………………………………Full Article: Source

Significant Upside In Gold ‘Less Likely’ – Nouriel Roubini

Posted on 26 September 2016 by VRS  |  Email |Print

Although gold prices didn’t actually hit $1,000 as one famed economist predicted, he continues to remain bearish on the yellow metal. This was Nouriel Roubini’s main message in his keynote address at CME Group’s annual dinner in New York.
“Significant upside to gold is less likely than last year,” he told a crowd in Gotham Hall Wednesday night. Known as Dr. Doom for his often gloomy outlook on the global economy, Roubini’s comments were a little less pessimistic, noting that the Federal Reserve will likely raise interest rates this year as the economy moves along……………………………………Full Article: Source

Russia Bought 24 Tons of Gold in August

Posted on 26 September 2016 by VRS  |  Email |Print

In the face of everything that is going on during this insane election cycle, it is easy to forget that there are forces operating behind the scenes, regardless of what the news cycle is reporting on.
The elections, which are to showcase the first debate on Monday between Donald Trump and Hillary Clinton and is speculated to be the most-watched election event in U.S. history, is important and captivating indeed, but still, the world continues on, no matter what the results of that night bring……………………………………Full Article: Source

Africa gold reserves now worth $1.5 trillion

Posted on 23 September 2016 by VRS  |  Email |Print

A new report by SNL Metals and Mining shows Africa at the top of tables when it comes to the value of gold still in the ground. Using the combined value of reserves and resources reported by explorers and mining companies active on the continent, the research company, calculated a figure of $1.48 trillion for primary gold projects.
Canada and the US came in second with gold in situ values as at September 8 of $1.26 trillion. For gold in non-gold primary projects, Asia-Pacific was the key contributor in terms of resource value, accounting for $692 billion of the total according to SNL………………………………………Full Article: Source

Russia Targets China for Gold Sales as VTB, Sberbank Expand

Posted on 23 September 2016 by VRS  |  Email |Print

Russia’s gold sales in China are set to expand as VTB Capital boosts sales and Sberbank PJSC prepares to enter the market, chasing demand in the world’s biggest consumer of bullion.
Sberbank CIB plans to register on the Shanghai Gold Exchange and eventually to sell up to 100 tons (3.2 million ounces) a year, according to an e-mail from the investment arm of Russia’s largest bank. VTB Capital, a unit of the second-biggest lender, is targeting sales of as much as 20 metric tons of gold in China in 2017, Sergey Nenashev, the bank’s head of precious metals, said by e-mail. Sales may reach a rate of 100 tons a year near the end of 2018, he said………………………………………Full Article: Source

Jim Grant: Gold is the play off a confusing Fed

Posted on 23 September 2016 by VRS  |  Email |Print

Contrarian investor and widely followed author Jim Grant joined CNBC’s Kelly Evans to discuss the potential trajectory of gold and other assets after the Fed’s decision to leave interest rates unchanged.
“I think gold will really be interesting when people stop asking what the Fed is going to do, and begin asking, who is the Fed and what can they know?” said Grant, who’s the founder of Grant’s Interest Rate Observer, a bimonthly newsletter. “We are the prisoners of a very dubious set of pseudo-scientific pretensions that are part of the people who manage our monetary affairs,” he added………………………………………Full Article: Source

Analyst: Gold Could Fall Below $1,000 in 2017

Posted on 23 September 2016 by VRS  |  Email |Print

Most investors vividly remember the frenzy about gold during the Brexit. Everyone and his uncle was talking about gold, and mainstream media were excessively optimistic. We warned our readers at that time, as sentiment was extreme right at a time when the secular bear market trend was being tested.
Now we start seeing the confirmation of our observations. Gold’s chart is looking increasingly weak, buyers ran out of steam, and our ‘fear’ (given that we, somehow, are gold bulls) is that gold is pointing south. We do not exclude the scenario of gold testing $1000 an ounce in 2017………………………………………Full Article: Source

Big gold miners see muted M&A as bullion’s rise limits bargains

Posted on 23 September 2016 by VRS  |  Email |Print

The world’s biggest gold miners will stay shy of big acquisitions, top executives said this week, noting that a jump in the price of bullion has made potential purchases pricey, and memories of failed deals linger.
The need for financial discipline was the dominant theme at the Denver Gold Forum this week, an annual conference for top miners, as the sector emerges from a deep, four-year slump. Executives met as the spot gold price surged by 30 percent in the first seven months of the year to as high as $1,374 an ounce. It has since slid to $1,326, still up 25 percent………………………………………Full Article: Source

Gold Seen Entering a Long-Term Bull Cycle

Posted on 22 September 2016 by VRS  |  Email |Print

Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven, according to Old Mutual Global Investors’ Diego Parrilla.
The metal is at the start of a multi-year bull run with a “few thousand dollars of upside” in a world of “monetary policy without limits” where central banks print lots of money and low or negative interest rates prevail, said Parrilla, who joined the firm as managing director of commodities last month. He’s worked at Goldman Sachs Group Inc. and Bank of America Merrill Lynch…………………………………….Full Article: Source

Emerging markets hold key to gold’s renaissance

Posted on 22 September 2016 by VRS  |  Email |Print

Central bank decisions on gold holdings will shape yellow metal’s long-term outlook. The rebuilding of central bank gold reserves since the financial crisis in 2008 marks the latest phase in a two centuries-long cycle of changing policies on the yellow metal, which fall into seven distinct periods or ages.
The Seven Ages of Gold have each lasted an average of around 30 years. And the current, “Rebuilding” period is the longest protracted spell of gold accruals since 1950 to 1965, when central banks and Treasuries acquired a net total of more than 7,000 tonnes during the economic recovery after the second world war…………………………………….Full Article: Source

Gold Miners Look Past Fed ‘Headwind’ to Stay Upbeat on Price

Posted on 22 September 2016 by VRS  |  Email |Print

Not even the prospect of the Federal Reserve raising interest rates is enough to crush gold executives’ enthusiasm. Prices will reach $1,385.63 an ounce by the end of the year, according to the average estimate in a survey of 16 participants at the Denver Gold Forum, the 27th annual gathering of mining executives, hedge funds, bankers and analysts that attracted more than 1,100 attendees. The forecast is 5.1 percent above Tuesday’s closing futures price.
Investors piled into gold in the first half of the year as yields fell below zero on more than $8 trillion of government debt in developed markets…………………………………….Full Article: Source

The ultimate gold investing primer

Posted on 22 September 2016 by VRS  |  Email |Print

When it comes to investing in gold, there’s more than one way to skin a cat. The form in which you hold this yellow metal will largely depend on why you own it in the first place. The way that is most sensible for you will depend on a variety of factors, including liquidity needs, tax status and privacy concerns, among others.
With the Federal Reserve itching to raise rates and with inflation still very muted, I’m not particularly bullish on the yellow metal. In fact, I’m actually short gold as a short-term tactical trade…………………………………….Full Article: Source

Trump and Clinton Are “Positive For Gold” – $1,900/oz by End of Year

Posted on 22 September 2016 by VRS  |  Email |Print

Trump or Clinton are “positive for gold” and prices could rise to between $1,700 and $1,900 per ounce by year end according to Canadian gold mining magnate Rob McEwen. Gold “is a currency that doesn’t have a liability attached to it,” McEwen said Tuesday in an interview with Bloomberg at a gold conference in Colorado Springs.
“A store of value that has gone for millennia. And the big argument against gold used to be it costs you money to store it. Right now, it’s costing you money to store your cash.”……………………………………Full Article: Source

Is this the most undervalued commodity in the world?

Posted on 21 September 2016 by VRS  |  Email |Print

This year has seen solid gains posted by precious metals. Gold has been one of the best performing assets in the world this year posting a 23% rise. However, silver has vastly outperformed gold and has gained over 38% year-to-date. I’m a precious metals bull and I think that silver may be the most undervalued asset in the world.
It’s well known that precious metals outperform in recessions and periods of economic uncertainty. This year gold and silver prices have been spurred on by the Chinese economic slowdown, the Federal Reserve delaying interest rate hikes in the USA and Brexit to name a few factors………………………………………Full Article: Source

Gold Bull McEwen Sees Prices as High as $1,900 by End of Year

Posted on 21 September 2016 by VRS  |  Email |Print

Robert McEwen, one of the gold’s industry’s most unabashed bulls, is predicting prices could surge as much as 44 percent by the end of the year as confidence in the economy buckles. The metal could trade in a range of $1,700 an ounce to $1,900 by the end of 2016 as uncertainty builds around the stability of global currencies and sovereign debt, said McEwen, who’s so enamored by bullion that he’s founded two producers: McEwen Mining Inc. and Goldcorp Inc.
Record-low global interest rates will cause a “huge amount of anxiety” for investors, who will turn to gold as a store of value and an alternative asset, he said………………………………………Full Article: Source

Is the gold price set to crash?

Posted on 21 September 2016 by VRS  |  Email |Print

Shareholders of gold producers such as Newcrest Mining Limited, St Barbara Ltd, Northern Star Resources Ltd, and OceanaGold Corporation are likely to have a nervous day ahead of them.
Following the conclusion of its comprehensive assessment of monetary policy the Bank of Japan will announce its next move later today. To begin with the central bank will announce its latest interest rate decision at lunch, then later in the afternoon Governor Kuroda is expected to advise on its review of monetary policy in his press conference………………………………………Full Article: Source

Why gold won’t hit US$1,900 an ounce

Posted on 21 September 2016 by VRS  |  Email |Print

It must be a full moon. That’s when the crazy predictions seem to come out. A spot gold price as high as US$1,900 an ounce is just one of those. That’s the prediction from renowned gold bull Robert McEwen.
Speaking at a gold conference yesterday, McEwen says that record low global interest rates will cause a huge amount of anxiety for investors and they will be forced to turn to gold as a store of value and an alternative asset. Unfortunately, that’s exactly why the gold price is currently trading at around US$1,318 an ounce………………………………………Full Article: Source

Gold Hits Snooze Button Ahead of Fed Rate, BOJ Policy Decisions

Posted on 21 September 2016 by VRS  |  Email |Print

Gold traders are taking a snooze a day before Federal Reserve and the Bank of Japan announce their monetary policy decisions. The precious metal’s 60-day historical volatility has fallen to the lowest in 13 months.
Aggregate trading on the Comex in New York slumped 45 percent below the 100-day moving average for this time of day, data compiled by Bloomberg show. Open interest, a tally of outstanding contracts, is down 14 percent from a record in July. Gold and copper prices swung between small gains and losses………………………………………Full Article: Source

Economic anxiety sustains gold rush

Posted on 20 September 2016 by VRS  |  Email |Print

Financial markets have seen considerable volatility this year with global growth concerns, political events and questions over the next stages of central bank policies all adding to uncertainty.
Investors are scrutinising each pronouncement by the US Federal Reserve, as the Fed carefully monitors data points on the US and international economies. Despite a strong rebound in US non-farm payroll data in June following a weak reading prior to that, interest rates were held steady in July in part because of the UK’s Brexit vote in the EU referendum, which has reduced global growth expectations………………………………………..Full Article: Source

Central banks boost gold reserves as low interest rates bite

Posted on 20 September 2016 by VRS  |  Email |Print

Nations are ditching currencies to buy gold again, raising stocks by 10% since financial crisis as metal becomes a safe haven. Central banks have boosted their gold stocks by almost 10% since the financial crash, reflecting its renewed attractiveness as a safe haven in an environment of uncertainty and low or negative interest rates.
China and Russia have led the switch to gold away from foreign currencies, especially the US dollar, to shore up their reserves. Western nations, including the UK, have halted several decades of mass sell-offs………………………………………..Full Article: Source

Gold Advances as Traders Pare Bearish Bets Before Fed Meeting

Posted on 20 September 2016 by VRS  |  Email |Print

Gold had the biggest gain in almost two weeks as traders pulled back bets on further declines before meetings of the U.S. Federal Reserve and Bank of Japan this week.
Investors who have been betting on price declines are accumulating protection ahead of the Fed’s meeting Tuesday and Wednesday, where a decision to hold rates steady would give gold a boost, said George Gero at RBC Wealth Management. Odds of a move this week are at 18 percent, Fed fund futures show. The probability rises above 50 percent by December………………………………………..Full Article: Source

Gold steady as investors remain cautious ahead of central bank meetings

Posted on 20 September 2016 by VRS  |  Email |Print

Gold was little changed early on Monday, after touching a two-week low on Friday, as investors remained cautious ahead of central bank meetings in Japan and the United States this week. Spot gold was steady at $1,310.06 an ounce by 0055 GMT. The yellow metal dropped 0.3 per cent to $1,306.26 on Friday, its lowest since September 1.
US consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32-1/2 years, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year………………………………………..Full Article: Source

Barclays: Investor Demand For Gold ‘Likely To Persist’

Posted on 20 September 2016 by VRS  |  Email |Print

Barclays anticipates investor demand for gold will persist on concerns about the global economy, with the bank also saying investment in commodities generally should hold up. The bank reports that some $54 billion has flowed into commodity exchange-traded products and index investments so far in 2016.
“However, if expectations were to shift suddenly, then a rush for the exit could send prices sharply lower,” Barclays says, referring to commodities in general. “Although we cannot rule out that risk entirely, we think the key themes that have supported commodity investments in the year to date should ensure continued inflows over the next few years and that the risk of large-scale liquidation, even if commodity markets disappoint in Q4, is limited.”……………………………………….Full Article: Source

Brexit drives up gold prices

Posted on 16 September 2016 by VRS  |  Email |Print

The trajectory of gold prices in the months after Brexit improved what was already an accommodating climate for the precious metal. Lest we forget, on one Thursday in late June, most journalists were poised around midnight with articles half at the ready about the victory for a Remain vote in the UK referendum. The result caught almost everyone off guard, after it emerged a small majority wanted out.
The pound crashed, panic ensued, and yet few were surprised to hear gold prices had soared. As unexpected as the referendum result was, the sudden spike is largely in keeping with a rally going back to before the start of the year………………………………………..Full Article: Source

Gold Prices Hit Two-Week Low

Posted on 16 September 2016 by VRS  |  Email |Print

Gold prices fell to a two-week low on Thursday, as lower safe haven demand and uncertainty surrounding Federal Reserve policy led investors to sell positions.
Gold for December delivery settled down 0.6% at $1,318.00 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as low as $1,312.10 earlier in the session. Prices closed at the lowest level since Sept. 1. The release of lackluster economic data, including weak retail sales, helped boost gold prices briefly Thursday morning………………………………………..Full Article: Source

Spooked Gold Bull Cohen Trims Holdings as Yields Rise

Posted on 16 September 2016 by VRS  |  Email |Print

The Federal Reserve is giving some gold investors a case of the jitters. Cohen & Steers Capital Management, which oversees $61 billion in assets, was overweight on gold until last week, when comments from some Federal Reserve officials boosted speculation that the central bank will tighten monetary policy as soon as this month.
With the interest-rate decision due next week, the asset manager opted to play it safe, paring its gold allocation. The New York-based firm isn’t alone. Over the past week, investors pulled $698 million from SPDR Gold Shares, the largest exchange-traded fund backed by the metal, taking their holdings to the lowest since June, data compiled by Bloomberg through Tuesday show……………………………………….Full Article: Source

Platinum: The Understated Precious Metals Opportunity?

Posted on 16 September 2016 by VRS  |  Email |Print

Platinum has had an ambivalent history as a precious metal. While it has been used sporadically through the centuries, it only came to be seen as a metal with value in the 1800s. Initially considered inferior to silver by the Spaniards (calling it Platina, or “little silver”), this special metal has seen an increase in demand since WWII.
While silver is known for its use in medicine and technology, platinum is the greenest of the precious metals. Since the 1970s the automobile industry has relied on platinum as the essential component in catalytic converters. These small devices fight air pollution and larger versions scrub the air in many industrial applications………………………………………..Full Article: Source

Is it Time For Billionaires Like Warren Buffett To Protect Themselves With Gold

Posted on 15 September 2016 by VRS  |  Email |Print

It has not been a good week for equity markets, nor billionaire investors. After Tuesday’s selloff, the S&P 500 is down 3% from its all-time highs, which were seen just one month ago. According to Bloomberg, leading the losses among the billionaires is the Oracle of Omaha Warren Buffett who, thanks to his stake in Wells Fargo, lost $1.4 billion Tuesday.
The U.S. bank saw significant selling pressure, falling more than 3% Tuesday after it was revealed that bank employees opened up accounts without clients’ permission. Of course, Buffet isn’t alone. Bloomberg noted that according to its index, billionaires lost a total of $37.3 billion yesterday………………………………………..Full Article: Source

Gold Market – Evaluating The “Rally”: How Long To Get To $10,000/oz?

Posted on 15 September 2016 by VRS  |  Email |Print

There’s a “rally” in the gold market right now, and (to a lesser extent) in silver. We’re told this by the mainstream media – in between its salvos of gold-bashing. Sadly, we have also seen this parroted by numerous Alternative Media commentators. So let’s examine this “rally” yet again.
The rally started almost precisely on the first day of the year (nothing suspicious about that). In the 8 ½ months since then, the price of gold has risen by roughly $250, or a little below $30/month. For convenience, let’s say that the price has been advancing by about $1 per day………………………………………..Full Article: Source

Indian Wedding Season Is a Golden Opportunity

Posted on 15 September 2016 by VRS  |  Email |Print

The fact that gold prices have one of the more reliable annual price patterns isn’t an obvious one because it is a mined commodity. Nevertheless, ’tis the season for the gold bulls to shine. Gold generally finds strength through early- to mid-September prior to the Indian wedding season, which runs from October through December.
Elaborate weddings in India date back thousands of years and have consistently been a driver in the gold market. Traditional Indian weddings involve a bride draped in gold, helping India to become the world’s largest consumer of gold jewelry. India accounts for roughly a third of global gold demand, with half of that being spent on jewelry for the average 10 million weddings held there each year………………………………………..Full Article: Source

Gold Would Perform Well Under Trump Presidency - Gartman

Posted on 14 September 2016 by VRS  |  Email |Print

Gold would do well under a Trump presidency because the metal likes confusion, said market commentator Dennis Gartman. “[G]old likes political descent and would do rather well in a Trump administration,” Gartman said. He explained that Trump is a bit more hawkish and more likely to make a protocol mistake and this would be price supportive for gold.
On the other hand, “[A] Trump presidency would be enormously bearish for stocks,” Gartman said. “He’s a wild card and the market hates wild cards.”……………………………………….Full Article: Source

Gold Caught Between Drop In Equities And Potential Rate Hikes - Analysts

Posted on 14 September 2016 by VRS  |  Email |Print

Weaker U.S. equity is helping gold prices to stay in the green but hyper-sensitivity to U.S. interest rates expectations is keeping the yellow metal from seeing a bigger rally, according to some analysts.
“The market is completely wild and unpredictable right now because of next week’s Federal Reserve decision,” said Sean Lusk, director of commercial hedging Walsh Trading, “On a day when the Dow [Jones Industrial Average] is down 200 plus points you would expect to see gold higher but it’s not.”……………………………………….Full Article: Source

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