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Gold prices may surge if Swiss vote on reserves passes

Posted on 26 November 2014 by VRS  |  Email |Print

Global gold prices may surge in the coming week if Swiss voters approve a controversial measure that would force their country’s central bank to keep at least a fifth of its assets in gold. If the referendum Sunday passes and the Swiss government is forced to start beefing up its reserves, the price of gold could jump to more than $1,350 an ounce — an increase of 18%, Bank of America predicts.
Spearheaded by the right-wing Swiss People’s Party, the so-called Save Our Gold law would compel the Swiss National Bank, the country’s central bank, to increase its gold reserves from the current 7.7% to 20% within five years……………………………Full Article: Source

6 reasons to be bullish on gold

Posted on 26 November 2014 by VRS  |  Email |Print

Despite gold prices rising as high as US$1,380 in mid-March, the precious metal hasn’t exactly been a good place to be in 2014. After starting the year around US$1,200, spot prices are essentially flat. However, here are some reasons to be optimistic about gold’s prospects in 2015, according to analysts at RBC Capital Markets.
ETF holdings: Exchange-traded-fund liquidations are a major culprit for the weakness in gold prices as an estimated 33 million ounces have been sold in the past two years. That brought gold ETF holdings to a level not seen since prices were near US$1,000 an ounce in 2009. However, the pace of sales has slowed recently……………………………Full Article: Source

Will Swiss Politics Cause Gold Price to Rally?

Posted on 26 November 2014 by VRS  |  Email |Print

Referendums are a way for democracies to put an issue directly to the electorate to decide. The issue might be a constitutional amendment; a vote on independence; the legalisation of marijuana; or the legality of bear baiting. In the rarified world of central banking, a Swiss referendum on November 30 mandating the country’s central bank to hold a large portion of its assets in gold captured my attention.
In the post-Great Crisis age, central banks are the apex player in economic and financial matters. Consequently, an effort to materially limit a central bank’s degree of freedom is a noteworthy event…………………………..Full Article: Source

Why Gold Stocks Remain a Good Bet?

Posted on 26 November 2014 by VRS  |  Email |Print

When gold and silver producer McEwen Mining released its Q3 results, Founder and Chief Owner Rob McEwen was candid, describing performance at the company’s El Gallo 1 mine as “nothing short of awful” and quipping, “[w]hat an incredibly ugly market and share price.” That openness continued following the release, with the company acknowledging after its conference call on the results that given today’s tough market, shareholders were due a broader conversation.
With that in mind, McEwen scheduled a second conference call, billing it as an outlet for the discussion of “the current gold price, market conditions and the mining industry.” Held on November 21, it definitely provided some food for thought, not only for McEwen shareholders, but for gold bugs in general……………………………Full Article: Source

Gold holds around $1,200/oz

Posted on 26 November 2014 by VRS  |  Email |Print

Gold rose to around $1,200 an ounce on Tuesday as the dollar was steady ahead of US economic data, and the market looked to forthcoming Swiss referendum on central bank gold reserves for more trading cues. A right-wing Swiss party called the November 30 vote, aiming to prevent the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20% of its assets in gold, compared with 8% last month.
While opinion polls showed that support among Swiss voters for the initiative was fading, a ‘yes’ vote could boost prices in the longer term, traders said. The spot gold price fell to a four-and-a-half-year low earlier this month……………………………Full Article: Source

Has the Silver Correction Hit Bottom?

Posted on 26 November 2014 by VRS  |  Email |Print

It has been a tough year for investors in silver with the lustrous white metal plunging 17% over that period. This was on the back of recent weakness across all precious metals as the U.S. dollar continued to strengthen on positive economic data coming out of the U.S.
Of even greater concern for investors, are claims silver still has further to fall, with some analysts predicting further weakness among precious metals because of a stronger U.S. economy which cause the U.S. dollar to continue appreciating in value. But in recent days silver has rebounded – after hitting its lowest point in almost five years – to be trading at over $16 per ounce and I believe there is further gains ahead with the silver having already bottomed……………………………Full Article: Source

Why Gold Price is Headed Much Higher

Posted on 25 November 2014 by VRS  |  Email |Print

What really drives the price of gold? Some say it’s a fear gauge. Others prefer to look at the demand coming from the Indian wedding season. But the silliest of all conclusions to reach is that the dollar price of gold should be determined solely by its value vis-à-vis another fiat currency.
The truth is the primary driver of gold is the intrinsic value of the dollar itself, not its value on the Dollar Index (DXY). The intrinsic value of the dollar can be determined by the level of real interest rates. Real interest rates are calculated by subtracting the rate of inflation from a country’s “risk free” sovereign yield. Right now the level of real interest rates in the U.S. is a negative 1.55%………………………………….Full Article:

Is The Gold Turning The Corner?

Posted on 25 November 2014 by VRS  |  Email |Print

Gold miners’ costs are mostly higher than current spot prices, increasing the likelihood of writedowns next year. Senior gold miner gold cash costs surged 226% to $707 an ounce, according to a study. Shanghai Gold Exchange deliveries last week were up 20% to 54.2 tonnes.
All over the world, gold has emotional, cultural and financial value, which supports demand across generations. Gold is fashioned into jewelry and used to manage risk in financial portfolios and protect the wealth of nations………………………………….Full Article: Source

Gold may see ‘decent recovery’ to $1,400

Posted on 25 November 2014 by VRS  |  Email |Print

Gold futures wavered around the break-even mark Monday, largely holding on to Friday’s gains that were sparked by central-bank news from China and Europe. Despite gold’s lackluster moves over the past several months, at least one analyst speculated that the yellow precious metal may recover to $1,400 an ounce by 2016.
December gold futures were last up 20 cents, or less than 0.1%, to $1,197.90 an ounce, while December silver edged up a penny, also less than 0.1%, to $16.41 an ounce………………………………….Full Article: Source

Hedge funds catching up to gold, silver price rally

Posted on 25 November 2014 by VRS  |  Email |Print

On Monday gold futures again flirted with the psychologically important $1,200 an ounce level, consolidating at three-week highs. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery – the most active contract – was changing hands for $1,198.80 an ounce after bouncing off resistance at $1,208.
March 2015 silver contracts gained slightly to trade at $16.50 an ounce on Monday, up just over a dollar since hitting 55-month lows November 6. Gold is now up 6% since touching a four-year low little over two weeks ago and it appears large investors are now beginning to catch up to the rally………………………………….Full Article: Source

Swiss Central Bank Chief Warns on Impact of Gold Vote

Posted on 24 November 2014 by VRS  |  Email |Print

The head of the Swiss National Bank reiterated concerns that a popular vote on requiring the central bank to keep a fifth of its assets in gold would hinder its ability to conduct monetary policy.
In text of a speech to be delivered Sunday, SNB Chairman Thomas Jordan said the initiative, known as “Save Our Swiss Gold,” would limit the central bank’s “room for maneuver.” That would make it harder for the bank to intervene during crises and fulfill its mandate of price stability………………………………..Full Article: Source

Swiss to Vote on Central Bank’s Gold

Posted on 24 November 2014 by VRS  |  Email |Print

Swiss voters will decide Nov. 30 on an initiative that would force the country’s central bank to more than double its gold holdings, a prospect that has rattled markets and drawn opposition from the government, lawmakers and business groups.
The “Save Our Swiss Gold” initiative would require the Swiss National Bank to hold a fifth of its assets in gold within five years. It would also prohibit the bank from selling any of its gold in the future and require that Swiss gold held overseas be repatriated…………………………………Full Article: Source

Why Gold Should Rise And Exceed Previous Highs

Posted on 24 November 2014 by VRS  |  Email |Print

Are Russia and Europe buying more Gold? Will the Swiss vote ‘yes’ in its gold referendum? Is there a chance for QE4? Peter Schiff is on Kitco News to comment on some of the most recent headlines surrounding the gold market and also to share his thoughts on the U.S. economy. The Euro Pacific CEO says the U.S. recovery isn’t real and adds that the dollar is only strong because all other currencies are weak.
The dollar isn’t really strong, it’s just that temporarily other currencies are weaker. I think people are worried about the yen, they’re worried about the euro, and so the dollar wins by default. They say, ‘Well it’s the cleanest shirt in the hamper.’ But it’s actually not. It’s actually the dirtiest shirt in there, people just don’t appreciate that yet. It’s only because the euphoric effects of our last round of QE haven’t worn off yet…………………………………Full Article: Source

Gold Prices Anticipated to Increase Next Week

Posted on 24 November 2014 by VRS  |  Email |Print

Don’t call it a comeback. Participants in a recent survey believe gold prices are positioned to make a comeback next week as prices are expected to rise. Out of 36 participants, 14 see gold prices going up, while six see the precious metal to decline and three believe prices will remain unchanged, according to the Kitco News Gold Survey.
Participants included bullion dealers, investment banks, future traders and technical chart analysts. On Friday, Comex December gold was up about $15 an ounce for the week as a stronger dollar and rising open interest in the futures market continue. Gold has finally reached the all-important $1,200 an ounce level…………………………………Full Article: Source

Gold rally gathers momentum

Posted on 24 November 2014 by VRS  |  Email |Print

China’s surprise rate cut helped the yellow metal breach the $1,200 mark. Gold prices rallied last week and closed higher for the third consecutive week. The surprise rate cut announcement from China helped the yellow metal breach the psychological $1,200 per ounce mark last week.
All through the week, spot gold prices were range-bound between $1,175 and $1,205. China’s rate cut boosted sentiment and pushed gold prices as high as $1,207 before closing at $1,201.55, up 1.1 per cent for the week…………………………………Full Article: Source

How Long And How Much Can Silver Rally?

Posted on 24 November 2014 by VRS  |  Email |Print

November 5th likely marked a turning point for silver. My working assumption is that spot silver and the iShares Silver Trust made a significant bottom on November 5th. Since then, silver has rallied over 7%. I believe it was a significant bottom due to several reasons:
Silver mining stocks have significantly outperformed silver since then. SIL closed at $8.23 on November 5th and closed above $10 on Friday, which is a gain of over 21%. Usually, when silver is in rally mode, silver miners will outperform. Investors become more optimistic and take on more risk by buying the miners…………………………………Full Article: Source

Buy gold on dips to $1,175-78/oz

Posted on 21 November 2014 by VRS  |  Email |Print

Comex gold futures were higher on Thursday but limited by dollar strength after Federal Reserve minutes suggested the United States is still likely to raise interest rates next year. Gold also fell sharply on Wednesday after a poll showed weaker support among Swiss voters for a referendum proposal that would force the central bank to boost its gold reserves. Selling by gold funds resumed after a brief pause this week.
Comex gold futures moved perfectly in line with expectations. As anticipated, favoured view initially expects a rebound to $1,185-90 an ounce levels. Prices have once again tested the psychological resistance at $1,200. However, if it fails to follow-through higher as cautioned earlier, could see another round of selling which could take prices lower to recent lows or even lower. Momentum in the short-term picture looks favourable for a push higher towards $1,235-40 levels………………………………….Full Article: Source

Gold rises as price drop tempts physical buyers

Posted on 21 November 2014 by VRS  |  Email |Print

Gold rose on Thursday on data showing rising U.S. inflation, and after the previous day’s 1-percent drop triggered renewed physical interest by price-sensitive Asian buyers. Bullion investors focused on U.S. Labor Department data which showed underlying inflation pressures rose in October, even though that also bolstered expectations of a mid-2015 interest rate hike from the Federal Reserve.
The gold market also ignored other data that showed a strengthening U.S. economy, including rising existing home sales and lower weekly jobless claims………………………………….Full Article: Source

Gold price stuck under $1,200/oz as FOMC fail to surprise

Posted on 21 November 2014 by VRS  |  Email |Print

The gold price was stuck under $1,200 per ounce during Thursday morning sessions, as the FOMC minutes released yesterday failed to surprise or ignite the market. The spot gold price was last at $1,185.20/1,186 per ounce, up $3.40 on the previous day’s close.
“After gradually rising from rather depressed levels since the beginning of November, prices are finally approaching the psychologically important $1,200 level. The market tested this level several times on Wednesday but failed to break decisively higher,” said Credit Suisse………………………………….Full Article: Source

Gold extends losses as Swiss vote concerns weigh

Posted on 21 November 2014 by VRS  |  Email |Print

Gold prices extended losses for a second session Thursday, continuing to feel pressure from news that a proposal which could require the Swiss central bank to ramp up its holdings in bullion is losing support.
Gold for December delivery fell $3 to settle at $1,190.90 an ounce, reducing an earlier loss that saw it down as much as $16. December silver was off 16 cents to $16.14 an ounce. When interest rates rise, demand for gold weakens since it does not pay interest………………………………….Full Article: Source

Investors maintain interest in gold

Posted on 20 November 2014 by VRS  |  Email |Print

A precipitous fall in the price of gold to a four-year low has done little to damage sentiment to the asset class as investors have gone bargain hunting. The precious metal has been caught up in the general decline in commodity prices in recent months, dropping below $1,200 (£766) per troy ounce, after having traded at values closer to $1,300 for most of this year.
But the drop in the price of gold has seemingly left investors undeterred and data shows that both sentiment to the asset class is holding up well and inflows have started to pick up into gold exchange-traded funds (ETF)………………………………Full Article:

Gold Price Drops $20 on Swiss Gold Vote “No” Opinion Poll

Posted on 20 November 2014 by VRS  |  Email |Print

Gold Prices sank 1.7% late in London trade Wednesday, erasing most of the last week’s gain as the latest opinion poll of the upcoming Swiss referendum put the “Yes” camp well short of a majority.
Prompted by a petition under Switzerland’s “direct democracy” rules, the referendum will on Sunday 30 November ask voters whether the country’s central bank should boost its gold holdings to 20% of reserves from the current 8%. The Swiss National Bank could then neither sell gold in future, nor store any of its holdings – likely swollen from 1040 tonnes today to nearer 2,500 or more – outside the country………………………………Full Article: Source

The ECB’s gold buying idea is a non-starter

Posted on 20 November 2014 by VRS  |  Email |Print

Bullion bulls, desperate for positive news amid prevailing negative sentiment on the gold market, latched onto pronouncements by Yves Mersch, member of the ECB’s executive board, earlier this week. Mensch said the European Central Bank may “theoretically” look at purchasing gold, equities and exchange-traded funds as part of a quantitative easing program as it tries to find ways to stoke inflation and stimulate economic growth.
The economic bloc only just escaped tilting back into recession during the third quarter and price inflation has been well below the 2% target for a considerable time………………………………Full Article: Source

India mulling stricter control on gold imports

Posted on 20 November 2014 by VRS  |  Email |Print

The Indian government is considering a further crackdown on gold imports, as New Delhi tries to control the country’s yawning trade deficit. Officials from the ministry of finance and the central bank have met in the past week to discuss the current restrictions on gold imports, reports Avantika Chilkoti.
“They have not taken the final decision so far,” said D.S. Malik at the ministry of finance. The move comes as imports of the yellow metal begin to tick up once more. Official data released this week show gold imports reached 106.3 tonnes, or $4.2bn, this October, almost four times the shipments in the same period a year earlier………………………………Full Article: Source

Silver demand to fall 7 percent in 2014 -Thomson Reuters GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Demand for silver will post a 7 percent decline in 2014 because of a slower pace of buying by jewelers and industrial fabricators in the first three quarters of the year, metals consultant Thomson Reuters GFMS said on Tuesday.
Harmonized European sales tax rates that started in January have driven up retail silver investment product prices, reducing demand on the continent, the Thomson Reuters unit said in an interim market review. Thomson Reuters GFMS said it expected total physical demand, which includes jewelry, coins and bars, silverware and industrial fabrication, to fall 6.7 percent to 1,004.5 million troy ounces (31,243.44 tonnes) in 2014 from a record high of 1,077 million ounces (33,498.44 tonnes) last year………………………………Full Article: Source

Silver Physical Demand Forecast to Drop 6.7% in ’14: GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Physical demand for silver will decline 6.7 percent this year, driven by a slump in coins and bars, as prices headed for the second straight yearly decline, Thomson Reuters GFMS said.
Consumption will fall to about 1 billion ounces from 1.08 billion in 2013, according to a Thomson Reuters GFMS report released today on behalf of the Washington-based Silver Institute………………………………Full Article: Source

Gold heading to $700 but other commodities set to bounce: Ramsey

Posted on 19 November 2014 by VRS  |  Email |Print

Commodities prices have seen a sharp decline in the second half of this year. The price of crude oil has dropped below $80 a barrel and is hovering around four-year lows. Platinum, copper and silver are all trading sharply lower as well since June. The Bloomberg commodity index is down 15%.
Increased supply and slowing global demand is pushing down prices. The slowing Chinese economy in particular is weakening commodities because demand for everything from corn to cotton to copper is down……………………………………Full Article: Source

Credit Suisse: ‘We Are Bearish Gold’

Posted on 19 November 2014 by VRS  |  Email |Print

“We are bearish gold.” Credit Suisse is newly out with a huge report on its outlook for 2015, and among its 10 best trade ideas for next year: short gold.
The firm’s technical analysis team puts a price target of $950 on the precious metal for the end of next year, and Credit Suisse’s David Sneddon says that from a technical analysis standpoint, and his team that gold’s recent break below $1,180 confirmed a bearish “triangle” continuation pattern……………………………………Full Article: Source

Could Gold Really Jump 15% in December?

Posted on 19 November 2014 by VRS  |  Email |Print

The Swiss might be responsible for bringing early holiday cheer to gold bulls this year by delivering a big boost to bullion demand. On November 30, the people of Switzerland will vote on a referendum that could force the Swiss National Bank (SNB) to reverse a selling spree of the country’s gold reserves.
Switzerland still has large bullion holdings, but the country used to own a lot more of the precious metal. The SNB began selling its gold around the year 2000 when prices were extremely low. The selling continued through 2008 and the Swiss gold reserves now represent just 8% of the Swiss National Bank’s assets……………………………………Full Article: Source

Elliott Wave analyst sees big gold and silver price surge ahead

Posted on 19 November 2014 by VRS  |  Email |Print

As usual the bank analysts are great at making forward price predictions based almost entirely on the current performance of whatever commodity they are analysing. It means they almost all inevitably miss any major turning points in price performance.
This is particularly true of those forecasting precious metals prices and recently, given the sharp price falls which took gold down to around $1140, silver to $15 and platinum to below $1180, many of the banks have been rapidly adjusting their forward price predictions ever lower……………………………………Full Article: Source

The Fund that Reshaped the Gold Market

Posted on 19 November 2014 by VRS  |  Email |Print

The first U.S. exchange-traded fund to give investors a stake in gold was the fastest-growing financial product of its kind when it launched 10 years ago. Today, SPDR Gold Trust , better known by its ticker symbol GLD, is the fastest-shrinking.
The fund’s trajectory mirrors the metal’s appeal as an investment. GLD’s holdings swelled in the wake of the financial crisis, reflecting the wave of investors seeking a haven who drove gold prices to record highs in 2011……………………………………Full Article: Source

Hedge Funds cut gold bets in fastest exit this year

Posted on 19 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a five-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Swiss yes vote won’t really boost gold price

Posted on 18 November 2014 by VRS  |  Email |Print

Gold was trading sideways on Monday after last week’s recovery from four-and-half-year lows, but traders hoping for a stronger showing following a Swiss referendum on gold may be disappointed. The Swiss go to the polls on November 30 in a referendum that will lay down new rules for the country’s central bank concerning its gold reserves.
Surveys are divided about support for the “Save Our Gold” camp that would force the Swiss National Bank to hold 20% of its reserves in gold, repatriate bullion held outside its borders and halt all sales, and not everyone even agrees that a yes vote would lift gold prices…………………………………Full Article: Source

Gold miners’ pain could be investors’ gain

Posted on 18 November 2014 by VRS  |  Email |Print

It looked like gold-mining stocks finally bottomed out about a year ago. After prices for the yellow metal peaked in the summer of 2011 at around $1,900 an ounce, they crashed almost 40% to around $1,200 at the start of 2014. Gold miners were brutalized, with the Market Vectors Gold Miners ETF plummeting 65% from September 2011 through January of this year.
But in 2014, the sector regained its footing as gold prices firmed. The Gold Miners ETF bounced back about 30% from January to mid-March. It didn’t last: Gold prices crumbled again and now lie at their lowest levels in 4 1/2 years. And gold miners have caved in as a result…………………………………Full Article: Source

ECB could buy gold to revive economy

Posted on 18 November 2014 by VRS  |  Email |Print

Declining economic data may “theoretically” leave the door open for the European Central Bank to buy assets including gold and shares. Gold, shares, and exchange-traded funds (ETFs) - the European Central Bank (ECB) may turn to buying any or all of these in an attempt to boost inflation in the currency bloc.
Yves Mersch, a member of the ECB’s executive board, said that the purchase of these assets was “theoretically” an option for the central bank, which earlier this year resolved to “take further unconventional measures to counteract a lengthy period of lower inflation”…………………………………Full Article: Source

Gold Price Golden Bottom?

Posted on 18 November 2014 by VRS  |  Email |Print

If commodities and gold are ready to reverse then the first thing that has to happen is the dollar needs to form a top. I think that may have occurred on November 7th when the last employment report was released. Notice how the dollar formed a key reversal on that day, that was retested Friday and failed, forming a bearish engulfing candlestick.
Considering that the daily cycle is now on day 22 and late in the cycle timing band, the odds are good that the reversal Friday marked at least a daily cycle top in the dollar index. If that’s the case then the euro’s daily cycle should have bottomed………………………………..Full Article: Source

‘Modi effect’ aids surge in gold import

Posted on 18 November 2014 by VRS  |  Email |Print

India’s gold import bill for October rose 280 per cent over a year before, to $4.18 billion. Imports of silver surged 136 per cent, to $686 million. These import bills are the highest since May 2013. Apart from marriage and festival-related demand, imports are also rising due to lower prices of both precious commodities.
The World Gold Council (WGC) said the rise in demand for gold over recent months — it has picked up pace since June — was due to the “Modi effect”. It said in a report on the demand trend for the quarter ended September: “General sentiment among the Indian populace is on the up, aided by confidence in the new government…………………………………Full Article: Source

Chen Lin Says Gold Miners Need to Produce at $1,000/oz or Less to Survive

Posted on 18 November 2014 by VRS  |  Email |Print

How low can gold go? Chen Lin expects a probable near-term low of $1,000/ounce. The author of the What is Chen Buying? What is Chen Selling? newsletter says that at that price we can expect a bloodbath of companies, both large and small. Gold cannot be kept down forever, however, and once the bottom is in, those miners that have survived will be in an enviable position, able to buy lucrative assets at bargain prices.
I am not a big fan of conspiracy theories, but Goldman published a report in early September calling for $1,000/oz gold by the end of 2014. As I saw it, this call was quite aggressive. Goldman will lead and probably has been leading a group shorting gold aggressively. Kitco has published a report arguing that should gold fall to $1,000/oz, this would be catastrophic for most gold miners. The shorts, unfortunately, probably don’t care about gold mining companies and the jobs of those who work for them. They just want to make money. If the gold miners go under, they’ll be very happy…………………………………Full Article: Source

Hedge funds cut gold bets as demand eases

Posted on 18 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 per cent, US government data showed. Holdings tumbled 49 per cent over three weeks, the most since December last year. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009 as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 per cent from this year’s peak in March. Investor appetite for bullion has diminished as the US dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, US equities reached records and inflation failed to accelerate…………………………………Full Article: Source

Hedge Funds Cut Gold Bets in Fastest Exit This Year: Commodities

Posted on 17 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM

Posted on 17 November 2014 by VRS  |  Email |Print

“Finally!” in English, “Por fin!” in Spanish and “About bloody time!!” in Australian. The belated rally in gold and silver finally got underway when it was least expected. The contrarian wins again!
The final bear market rally in gold and silver kicked off after a fake out move lower and should end with a fake out move higher. That’s the way I see it anyway. Of course the permabulls will be back out in force again calling the next great bull market now in progress and this rally should terminate when those calls reach fever pitch……………………………………Full Article: Source

Are You Preparing For $10,000 Gold?

Posted on 17 November 2014 by VRS  |  Email |Print

If someone told you back in the year 2001, when gold was below $300, that within 10 years it would approach $2000, would you have thought them to be crazy? What if someone now tells you that gold can go from the $1000 region to $10,000 within the next 10-15 years? Sounds just as crazy, right? Well, since many of you already think I am crazy, then I guess this will just be par for the course.
Yes, this article is being written by one of the very few who came into 2014 exceptionally bearish on the precious metals. Remember my line that “2014 will be the year of the whipsaw and the year the bulls die?” Again, the market has followed through very nicely on both. But, not all the bulls have been vanquished just yet, and it should only be a matter of time until they are……………………………………Full Article: Source

Could Gold Reach $800?

Posted on 17 November 2014 by VRS  |  Email |Print

They say beauty is in the eyes of the beholder. And what could be more beautiful than bullions of pure gold? Gold has always held a special allure for jewelry lovers. But it has also been a key investment commodity. Gold has been regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge.
Since 2011, however, gold has topped out and has fallen almost 40 percent from its all-time highs, far below bulls’ anticipated targets. Silver, too, has crashed, along with many other base metals. Growth in developed and underdeveloped economies has slackened considerably of late, a reflection of the slowdown in the manufacturing industries around the world. In fact, at this point, there is no good reason for investors to hold gold in the U.S……………………………………Full Article: Source

India regains position as world’s top gold consumer

Posted on 14 November 2014 by VRS  |  Email |Print

India regained its position as the world’s top gold consumer overtaking China in the third quarter as demand for jewellery surged almost 60 per cent, according to new data from the World Gold Council.
Lower prices, the new administration of Prime Minister Narendra Modi, and better prospects for economic growth provided an “encouraging backdrop” for gold demand, the industry group said in its latest quarterly report………………………………..Full Article: Source

Global Demand for Gold Declines as China’s Appetite Wanes

Posted on 14 November 2014 by VRS  |  Email |Print

China’s demand for gold plunged in the third quarter, the latest setback for a market already suffering from waning investor appetite. The 37% slide in China acted as a drag on global demand, which fell 2% from the year-earlier period, industry group World Gold Council said in report released Thursday.
Gold prices are 39% below record highs hit in August 2011 with the latest leg of the selloff tied to expectations that the U.S. economy will continue to pick up speed in the coming months. Many money managers believe that could prompt the Federal Reserve to raise short-term interest rates next year. Higher rates are likely to further dim the allure of the precious metal, which yields nothing and costs money to hold…………………………………Full Article: Source

Don’t rush to invest in gold

Posted on 14 November 2014 by VRS  |  Email |Print

With gold prices having fallen about 20% in the past year, many investors wonder whether it is a good time to by gold or further fall is expected. The answer to both is ‘yes’. Gold prices are likely to be under pressure for some more time.
“With favourable conditions for an appreciating dollar, and given the strong correlation between gold and the dollar, we would not be surprised if the price of gold dropped below $1,100/ounce during the first half of 2015,” says a report from Natixis Commodities Research…………………………………Full Article: Source

Gold: The One Commodity Buffett and Bernanke Just Don’t Understand

Posted on 14 November 2014 by VRS  |  Email |Print

The Royal Mint gets it. Because I see such deep value in gold today, I was exploring various national mints last week, looking to buy some bullion — maybe some Austrian Philharmonics, some Canadian Maple Leafs or a few Britannia’s from the U.K.
And while reading through the bullion site for Britain’s Royal Mint, I came across some highly unexpected commentary. While the likes of Ben Bernanke, Warren Buffett and others here in the States offer inane commentary on the uselessness of gold, the 1,100-year-old Royal Mint had this to say: Gold is the ultimate store of value. Gold is the original and still the most far-reaching global currency…………………………………Full Article: Source

Geopolitical pressure and physical demand buoy gold prices

Posted on 14 November 2014 by VRS  |  Email |Print

The gold price remained range-trading, consolidating its recent gains amid a lack of directional cues due to a quiet data calendar. Elsewhere, news that Russian tanks and military vehicles are pouring into Ukraine may aid safe haven support in the near term, as well as sporadic physical buying providing buoy to prices.
The political conflict between Russia and Ukraine which had gone quiet in recent months threatened to flare as NATO accused Russia of sending troops and military equipment into Ukraine in the past week. General-Major Igor Konashenkov, a Russian Defense Ministry official, dismissed the comments as anti-Russian “hot air” and said “there was and is no evidence” behind the NATO accusations…………………………………Full Article: Source

Here’s why gold could be headed to $800

Posted on 13 November 2014 by VRS  |  Email |Print

Over the last several years, gold has been simultaneously regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge. Gold’s beauty, it seemed, was in the eye of the holder. But in the absence of a full-scale geopolitical crisis, economic collapse, or other “black swan” event, there is no good reason to hold gold — at least here in the U.S.
Since 2011, gold topped out and has fallen almost 40 percent from its all-time highs, failing to meet the bulls most aggressive targets. Silver, too, has crashed, as have many base metals, used in manufacturing around the world, reflecting much slower than expected growth in both developed, and developing, economies………………………………………..Full Article: Source

Investor Exit Shakes Off Gold Boredom as Volatility Rises

Posted on 13 November 2014 by VRS  |  Email |Print

The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility that’s giving some investors more reason to sell.
The metal’s 30-day volatility is close to the highest since January, according to data compiled by Bloomberg. The measure in October touched the lowest since 2010, with investors ignoring gold in favor of equities for most of the year………………………………………..Full Article: Source

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