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Gold price: The world’s wealthy are snapping up bullion

Posted on 30 September 2014 by VRS  |  Email |Print

Gold may be lingering at nine-month lows but demand for the precious metal is growing among the super rich. The world’s wealthy are buying record numbers of gold bars, similar to the ones held in reserve banks across the globe and featured in the 1969 British caper film, The Italian Job.
But don’t expect a convoy of Mini Coopers hauling their precious cargo through sewer drains. This is no heist. According to BullionByPost, sales of the 12.5 kilogram bars – worth about $US537,000 each based on current gold prices - have soared 243 per cent this year, The Telegraph in London reports………………………………………..Full Article: Source

Golden opportunity

Posted on 30 September 2014 by VRS  |  Email |Print

The recent slide in global crude oil and gold prices offers India a reprieve on the current account deficit (CAD), presenting an opportune time for policymakers to ease up on the numerous gold import restrictions. The circumstances which contributed to the unprecedented surge in gold imports in 2011/2012 and resulted in a runaway CAD, have since dramatically changed.
This may be the right time to do away with the 80:20 rule imposed last year, requiring gold importers to compulsorily export a fifth of each consignment. Apart from limiting raw material supplies to the jewellery trade, the rule has created needless hassles for banks tasked with enforcing it………………………………………..Full Article: Source

Gold prices may revert to long-term trends

Posted on 30 September 2014 by VRS  |  Email |Print

In times of uncertainty, investors typically flock to gold. But the commodity has fallen out of favour among them, in spite of recent economic turmoil. According to figures from the World Gold Council, between April and June 2014, total global gold demand was 964 tonnes, down 16 per cent on the same period a year earlier. It attributes this drop to consumers and investors pulling back and consolidating their activities.
Jewellery remains the largest component of gold demand but global jewellery demand was down 30 per cent year on year in the second quarter of 2014, to 510 tonnes. The World Gold Council does, however, point to a recovery in western markets, with jewellery demand up in the US by 15 per cent to 26 tonnes in the quarter and the UK by 21 per cent to 4 tonnes, citing the increasing popularity of yellow gold………………………………………..Full Article: Source

Bearish investor sentiment may pin down Gold prices: Barclays

Posted on 30 September 2014 by VRS  |  Email |Print

It appears as if bearish investor sentiment has indeed set in, and it may continue to pin down Gold prices, a report by Barclays said. Over the longer term, expectations for rising rates and a stronger dollar will continue to pressure gold, keeping the price-negative macro backdrop too large a burden for any seasonal uptick in physical consumption to overturn.
Gold tumbled recently but last week it largely oscillated in a range around $1220/oz. This trend could be sustained in Q4 before once again turning lower, in line with the Barclays’ 2015 price forecast and tactical short recommendation, the report said………………………………………..Full Article: Source

China gold demand surging again

Posted on 30 September 2014 by VRS  |  Email |Print

We cannot emphasise more strongly that gold followers should ignore the mainstream media reports, based on Hong Kong gold export figures to mainland China, that Chinese gold demand has plummeted by anything between 30% and 50% this year. As we pointed out in an article last week, Hong Kong is now no longer the principal port of entry for gold into the Chinese mainland.
When it was still so, gold exports into China were extremely high at the beginning of the year, but since then the Hong Kong figures have tailed off as China effectively opened up gold import routes through other entry points – notably Shanghai and Beijing , resulting in the Hong Kong net gold exports falling back month by month from a peak of 111 tonnes in February to a mere 21 tonnes in August. This is thus no longer an indicator of overall Chinese gold demand………………………………………..Full Article: Source

Gold prices may revert to long-term trends

Posted on 30 September 2014 by VRS  |  Email |Print

In times of uncertainty, investors typically flock to gold. But the commodity has fallen out of favour among them, in spite of recent economic turmoil. According to figures from the World Gold Council, between April and June 2014, total global gold demand was 964 tonnes, down 16 per cent on the same period a year earlier. It attributes this drop to consumers and investors pulling back and consolidating their activities.
Jewellery remains the largest component of gold demand but global jewellery demand was down 30 per cent year on year in the second quarter of 2014, to 510 tonnes………………………………………..Full Article: Source

China spurns gold, adding to price woes

Posted on 29 September 2014 by VRS  |  Email |Print

The slump in the gold price that has occurred in recent months shows no signs of letting up, and the latest import data from China will not give any joy to gold bugs. As gold closed at $1,219.40 in New York on Friday, a report out the same day by Commerzbank stated that Chinese gold imports will “fall well short” of last year. Hong Kong’s Census and Statistics Department shows China imported only 27.5 net metric tons in August.
“This puts net imports only slightly above the previous month’s low level, which constituted the lowest figure since June 2011,” Commerzbank said. The bank notes that net gold imports from Hong Kong are down by a third from the corresponding period last year, to 497 tons. August was the sixth straight month that Chinese gold imports have fallen………………………………………..Full Article: Source

Worst isn’t over yet for gold, says Goldman Sachs

Posted on 29 September 2014 by VRS  |  Email |Print

Gold has erased almost all of this year’s gains and looks set for its first quarterly decline in 2014. According to Jeffrey Currie, Head-Commodoties Research Team at Goldman Sachs, the worst is not yet over for gold . The yellow metal is likely to slide down further.
According to Jeffrey, gold had taken much of its support from the political deadlock in Ukraine and geo-political tensions in the Middle East. Having those concerns seems to have faded at least for the time being, gold prices are likely to collapse further. The strengthening US economy has spiked a rally in dollar and stock markets. The S&P 500 index has surged to record highs during this month. Goldman Sachs sees lucid exodus of wealth from gold to other risky assets going forward………………………………………..Full Article: Source

Will gold fall off the $1200 precipice?

Posted on 29 September 2014 by VRS  |  Email |Print

As I write the gold price is sitting at around US$1225, but it fell at one time yesterday to around US$1206 and it may not take much to drive it down below the key US$1200 psychological support level. If it breaches this level the price could well fall sharply further with computer based stop loss sales coming in strongly. The fall could then become something of a rout.
And with gold bears like Jeffrey Currie at Goldman Sachs getting in there keen to generate further downwards momentum so his end- year US$1050 gold price might actually come about, then who’s to say it won’t freefall to US$1100 or below………………………………………..Full Article: Source

Platinum Prices Skid on Car-Demand Worries

Posted on 29 September 2014 by VRS  |  Email |Print

Platinum prices have fallen to the lowest in almost five years, as slowing growth outside of the U.S. has aroused concerns about demand for the precious metal. It has been a bumpy year for platinum, used in jewelry and automobile exhaust filters. A five-month-long strike in South Africa, the longest ever for the nation’s platinum miners, curbed supplies earlier this year and sent prices to a near 10-month high in July.
But the end of the strike, and lackluster economic performance in Europe and Japan, have brought platinum prices down 14% from their July peak of $1,517 a troy ounce. On Friday, platinum for October delivery, the most actively traded contract, shed 0.9%, or $12.20, to end at $1,302 an ounce. That is a level not seen since Oct. 5, 2009………………………………………..Full Article: Source

India: Driven by demand gold imports likely to double this October

Posted on 29 September 2014 by VRS  |  Email |Print

India’s gold imports are likely to double in October, driven by demand from consumers who purchase jewellery during the festival season. But investment demand, usually in the form of coins and bars, is likely to be less this year, which in turn may reduce the volume of gold entering the country through illegal routes, say industry executives.
The bullion industry pegs gold imports at 80 tonnes next month. “Last year during October, we had imported around 35-40 tonnes of gold. Gold availability was under pressure due to the 80:20 rule,” Prithviraj Kothari, vice-president of the Indian Bullion & Jewellery Association, told ET………………………………………..Full Article: Source

Price-fixing of gold, oil to become a crime in U.K.

Posted on 26 September 2014 by VRS  |  Email |Print

The U.K government plans to make fixing the price of gold and six other benchmarks a criminal offense, the Treasury department said Thursday, as it announced a consultation into extending laws regulating LIBOR.
By the end of 2014, those rules will be put in place for: London Gold Fixing, the LMBA Silver Price, ICE Brent futures contract, Sterling Overnight Index Average (SONIA), Repurchase Overnight Index Average (RONIA), WM/Reuters 4 p.m. London Fix (for foreign exchange), and ISDAFix, which covers interest-rate swap transactions. ……………………………………….Full Article: Source

Gold likely to fall further, says Goldman’s Currie

Posted on 26 September 2014 by VRS  |  Email |Print

Goldman Sachs’ Jeffrey Currie says the worst isn’t over yet for gold after prices for the metal erased almost all of this year’s gain. “Risks are significantly skewed to the downside,” said Currie, who told investors to sell last year before gold’s biggest collapse since 1980.
“Much of the support was coming from political uncertainty in Ukraine and what was going on in Middle East,” and those concerns have faded, he said. Currie heads the bank’s global commodities research team. After bullion’s rally in the first half of the year beat gains for commodities, equities and US Treasuries, the metal is heading for its first quarterly decline in 2014………………………………………..Full Article: Source

Gold price tipping point threatens mining operations

Posted on 26 September 2014 by VRS  |  Email |Print

The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations.
Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces………………………………………..Full Article: Source

Gold Rebounds From Eight-Month Low As Dollar Eases

Posted on 26 September 2014 by VRS  |  Email |Print

Gold prices moved higher, rebounding from eight-month lows hit earlier Thursday, as the dollar pared its gains. Gold for December delivery, the most active contract, was recently up $2.60, or 0.2%, at $1,222.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold fell to $1,206.60 an ounce as the ICE Dollar Index rose to its highest level in four years. But a reversal in the dollar sparked a rush by bearish investors to close out their bets on lower gold prices, propelling gold higher in late morning trade………………………………………..Full Article: Source

Pressure on gold market as dollar strengthens

Posted on 26 September 2014 by VRS  |  Email |Print

The gold market is trying to take a stand following recent weakness. Thus far, the gold market has bottomed out around the $1210 level. The market does, however, appear headed towards another retest of the $1185-$1200 areas. The gold market has held this area on two occasions already in the last year or so, but may not be able to take the pressure another time around.
A breach below this area could potentially ignite a new, significant leg lower in gold prices. Of importance is the fact that gold is in the midst of completing a large descending triangle. A break down out of this technical pattern could potentially see gold fall another $200 from current levels………………………………………..Full Article: Source

Some Traders See Potential For ‘Severely Oversold’ Silver To Now Outperform Gold

Posted on 26 September 2014 by VRS  |  Email |Print

Some traders and analysts are wondering if the gold/silver ratio got out of whack after silver was beat up worse than gold during a recent downdraft in the two precious metals. If so, there might be potential for silver to now outperform or at least hold up better than the yellow metal going forward. Traders who share this view could try to exploit this in a ratio trade, they say.
Others, however, look for silver to keep underperforming as long as the precious metals complex remains in a downtrend. The gold/silver ratio measures how many ounces of silver it takes to buy an ounce of gold. As the ratio falls, it means silver is outperforming gold, and vice-versa………………………………………..Full Article: Source

A Rational Look At Gold

Posted on 26 September 2014 by VRS  |  Email |Print

The fundamentals that drive Gold prices higher are in full force and improving. Central banks are buying more of the precious metal — to reinforce their reserves — while countries that are known to be big consumers of gold bullion post increased demand. According to the India Bullion & Jewellers’ Association, India’s monthly gold bullion imports are expected to rise by as much as 50% in the coming few months — in the range of 70 to 75 tonnes per month compared to an average of 50 to 60 tonnes now.
That is mainly due to the festival/wedding season fast approaching in India. If India continues to import 70 tonnes of gold bullion each month, then the total imports just to India will be 31% of all world gold mine production (based on 2,700 tons in annual mine production)………………………………………..Full Article: Source

Platinum and palladium struggle despite positive fundamentals

Posted on 26 September 2014 by VRS  |  Email |Print

Platinum and palladium prices continue to struggle amid a dwindling precious metals market, despite support from strong fundamentals that should be driving the price upwards, particularly in palladium.
Palladium is currently trading amongst near-perfect fundamentals, the market remains in a deficit for the third year running, major strikes across South Africa this year, no new mining facilities online and demand from China climbs higher as the country looks to meet emissions targets in auto catalysts. However, spot palladium dropped below $800 today, continuing on the downside to the lowest level since April. ……………………………………….Full Article: Source

The Better Inflation Hedge: Gold or Treasuries?

Posted on 26 September 2014 by VRS  |  Email |Print

Rightly or not, gold is widely viewed as an inflation hedge — a reliable measure of protection against purchasing power risk. The precious metal may not be the best option for that purpose, though. Some gold investors fail to consider its volatility as well as its opportunity cost, while others fail to anticipate storage needs and other logistical complexities of gold ownership.
For these and other reasons, some view U.S. Treasury bills as a superior safe haven alternative to gold. Both asset classes have their own sets of pros and cons; here’s a look at them………………………………………..Full Article: Source

Capital Economics Sees $1,400 Platinum At Year-End, $1,500 By End-2015

Posted on 25 September 2014 by VRS  |  Email |Print

Capital Economics has lowered its end-of-year platinum forecast to $1,400 an ounce but listed an upbeat outlook for the medium term, calling for $1,500 platinum by the end of 2015. “Disappointing growth in demand at a time of high stocks is weighing on the price of platinum,” the firm said in a report Wednesday.
“We expect lower prices to encourage some buying, notably of jewelry, but a sustained recovery is only likely when stocks are depleted, possibly some time next year.” October platinum futures settled at $1,319.40 an ounce on the New York Mercantile Exchange Wednesday………………………………………..Full Article: Source

Gold: The Bewitching Hour Of A Triple Bottom Nears

Posted on 25 September 2014 by VRS  |  Email |Print

The last time gold sparkled was in the summer of 2011 when an all-time record of $1900/oz was achieved. Alas since then it has been a torturous journey as gold prices has trekked south arriving at today’s price of $1216/oz, registering a loss of 36%. However, for the year to date gold is still trading above its low of $1180/oz as it grimly hangs on to a modest gain of 3%.
The question we face now surrounds gold’s direction; will it test the previous low of $1180/oz and bounce to higher levels or will it penetrate this support level and set the stage for sub $1000/oz gold prices………………………………………..Full Article: Source

Reasons Gold Neared $2,000 Still In Place - Frank Giustra

Posted on 25 September 2014 by VRS  |  Email |Print

There is a reason to hold gold but patience is a virtue, said Frank Giustra, renowned resource investor and co-founder of the Clinton Giustra Enterprise Partnership. “All the reasons why gold went to $2,000 in the first place are still there, and in spades,” he said during an interview with Kitco News’ Daniela Cambone at the Clinton Global Initiative annual meeting on Tuesday.
Gold is currently stuck in a ‘no one cares phase’ but his views on the metal remain unchanged he said on the sidelines of the annual meeting in New York………………………………………..Full Article: Source

Gold Speculation Interest Rising - Gold Price Falling

Posted on 25 September 2014 by VRS  |  Email |Print

Recent Seeking Alpha articles take very opposite postures on gold commitments, but the more optimistic, flamboyant, promotional approach seems to draw larger attention. Old saying: You catch more flies with honey than with vinegar.
When I started in the late 1950s just out of B-school as an investment researcher for one of the top NYC investment counsel firms my assignment was the metals stocks. It was apparent then, as it has continued to be since, that making forecasts about gold and gold stocks was an entertainment activity graced with results drawn from a random number table………………………………………..Full Article: Source

What the Charts Are Saying About Gold, Precious Metals

Posted on 25 September 2014 by VRS  |  Email |Print

As bad as conditions have been for gold and precious metals stocks in recent weeks, they could be on the verge of getting much worse. Some key indices, exchange-traded funds and individual stocks are nearing critical support levels, leaving little room for further weakness before the sector breaks down completely.
Here are the levels you need to watch to determine whether to position for a bounce or stay out of the way: The SPDR Gold Shares (GLD) ETF has been falling with virtually no let up since the beginning of August, bringing it within striking distance of its 52-week low of $114.46. The last time GLD traded below this level was 2010, about the midpoint of what would prove to be a three-year rally………………………………………..Full Article: Source

World Gold Council: ETFs ‘Good For Investors – And For Gold’

Posted on 25 September 2014 by VRS  |  Email |Print

Gold-backed exchange-traded funds “have been good for investors — and for gold,” said the World Gold Council in a report Wednesday. “Over the past decade, gold-backed exchange-traded funds have transformed the gold investment market,” the report said. “Yet, their rise has not been universally popular. They may have put pressure on gold vendors’ margins, and some investors believe that they have led to an increase in volatility of the gold market.
“As we see it, ETFs may not be an answer to every gold investor’s needs, but the gold market has benefited more broadly since their launch. Overall, we believe that ETFs have reduced total cost of ownership, increased efficiencies, provided liquidity and access, and brought new interest – and demand – into gold as a strategic investment.”……………………………………….Full Article: Source

How low can gold and silver go?

Posted on 25 September 2014 by VRS  |  Email |Print

A word of warning – if you’re a gold or a silver bug, you’re not going to like what I have to say. Gold looks absolutely awful. It’s up the proverbial creek and there’s no paddle in sight. Silver looks even worse.
Just how much more ugly can all this get? What’s the worst-case scenario for silver? We’ll start with silver. Last week, Reuters reported that silver holdings in exchange-traded funds (ETFs) were at all-time highs. That is incredibly bearish – and it was worrying me a few weeks back………………………………………..Full Article: Source

Silver prices hit 4-year low as US dollar soars

Posted on 25 September 2014 by VRS  |  Email |Print

Asian shares slipped on Tuesday as a periodic bout of angst over China combined with the U.S. dollar’s recent meteoric run to pile pressure on silver prices and other commodity prices. Brent oil was near lows last seen in mid-2012, while gold came off a nine-month trough and copper a three-month low on fears a survey out on Tuesday could show stalling factory growth in China.
The HSBC flash reading on manufacturing (PMI) for September is expected to dip to the flat level of 50.0 from August’s microscopically expansionary 50.2, though the market is braced for an even weaker number………………………………………..Full Article: Source

What’s behind the current silver disconnect?

Posted on 25 September 2014 by VRS  |  Email |Print

Something strange is happening in the silver markets. While the silver price has crashed along with gold – not in itself an unusual occurrence – the biggest of the silver ETFs have been seeing very large inflows, while the gold ETFs are seeing sales. What is happening here? Surely if silver investors are piling in because they see it as oversold and at bargain price levels then surely gold investors would be doing so too?
Taking SLV as a proxy for all silver ETFs it has taken in 650 tonnes since the beginning of August, while the biggest gold ETF – GLD – has bled 26 tonnes over the same period and has fallen back to a level last seen in December 2008. True, the total GLD falls this year have only been around 20 tonnes and thus only a fraction of what we saw last year, but they are falls nonetheless. The gold:silver ratio is currently sitting at close to 69 which is above the top of its recent range too………………………………………..Full Article: Source

Rigged Gold Price Distorts Perception of Economic Reality

Posted on 24 September 2014 by VRS  |  Email |Print

The Federal Reserve and its bullion bank agents (JP Morgan, Scotia, and HSBC) have been using naked short-selling to drive down the price of gold since September 2011. The latest containment effort began in mid-July of this year, after gold had moved higher in price from the beginning of June and was threatening to take out key technical levels, which would have triggered a flood of buying from hedge funds.
The Fed and its agents rig the gold price in the New York Comex futures (paper gold) market. The bullion banks have the ability to print an unlimited supply of gold contracts which are sold in large volumes at times when Comex activity is light………………………………………..Full Article: Source

Gold prices: Who has the Midas touch?

Posted on 24 September 2014 by VRS  |  Email |Print

The glint of gold has caught the eye of Business Middle East. It was a golden week for buyers of bullion as prices continued to drop. Prices slid to their lowest level in nearly nine months, as the dollar rose to its highest in four years against a basket of major currencies. Why gold fell: There were several influences at play, but the biggest was higher borrowing cost expectations from the Federal Reserve.
After the latest meeting of the Fed’s policy committee, Chair Janet Yellen said interest rates in the US will remain near zero for a “considerable time,” but she also projected a faster rate of increases when they do occur………………………………………..Full Article: Source

Silver Reached A New Low - What Is Next?

Posted on 24 September 2014 by VRS  |  Email |Print

The silver market cooled down again last week. Last week’s FOMC meeting may have provided the fuel to drag down the price of silver to its lowest level in recent years. Let’s examine the latest developments in the silver market and see what’s next for this precious metal.
During the previous week, the price of silver decreased by 4.13% to reach $17.79 - its lowest level since 2010. The silver ETF, iShares Silver Trust, also tumbled down by 3.9%. Silver related companies, including Silver Wheaton and Pan American Silver also fell by 7% and 4.8%, respectively………………………………………..Full Article: Source

Silver to $14/oz, but discounting QE end - analysts

Posted on 24 September 2014 by VRS  |  Email |Print

Silver prices are headed significantly lower in a stronger dollar market, some analyst now forecast. “Silver prices have returned to the levels seen before the financial crisis that started in 2008, and before quantitative easing (QE) was introduced,” noted Scotiabank analysts in a recent report. “It might, therefore, well be into the process of discounting the prospects of an end of the QE. For now, however, that seems to be one of the reasons behind the price weakness.”
Scotiabank added that the weakness was also justified by weak fundamentals, which show a large supply surplus . “Now that investors are not buying much silver through exchange-traded fund (ETFs), less of the supply surplus is being absorbed. That means more of the surplus has weighed on prices,” it added………………………………………..Full Article: Source

Gold-silver price ratio may fall as gold cools faster

Posted on 23 September 2014 by VRS  |  Email |Print

The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons.
ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013. This means 55.71 kg of silver is needed to purchase a kilogram of gold. But, year-to-date, this ratio has climbed to 65.26, as silver has become more undervalued. The ratio was calculated based on average annual prices of front month gold and silver contracts on Multi Commodity Exchange………………………………………..Full Article: Source

Gold bullion offer prompts investment warning

Posted on 23 September 2014 by VRS  |  Email |Print

Investment analysts have urged investors to be cautious after the Royal Mint launched a new website selling gold and silver coins. On offer are single gold Sovereigns costing £197, larger gold Britannias at £800 and £19 silver coins.
The Mint is trying to expand the bullion business by selling what it calls “relatively affordable” coins online. It is also offering to store them for larger investors. The World Gold Council has estimated that there is a £4bn untapped market for gold among savers in the UK………………………………………..Full Article: Source

Gold eyes 1175 as USD does it like 2005

Posted on 23 September 2014 by VRS  |  Email |Print

Gold’s 10% decline to fresh 8-month lows from its July highs and its 16% drop from its August 2013 highs, and intensified in late August as the end of the Fed’s QE3 became inevitable. The simultaneous rally in bond yields and the US dollar since early September helped accelerate gold’s downward momentum below $1270 to reach a new low for the year at $1208. Considering the US dollar is rallying in ways not seen since 2005, gold weakness is here to stay.
The current dollar momentum continues to show signs of a rally not seen since 2005. Why 2005? Back then, the US dollar index, as measured by the 6-currency basket of EUR, JPY, GBP, CAD, CHF & SEK, rallied against each of those two currencies, particularly the Japanese yen………………………………………..Full Article: Source

Gold Mining “Hurt Long-Term”, Output “Peaking in 2014″

Posted on 23 September 2014 by VRS  |  Email |Print

Gold mining output worldwide is set to peak and then “plateau” in 2014, according to the leading data analysts, as today’s lower prices force producers to cut exploration spending in a bid to boost profit margins. “It seems inevitable,” says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry’s response to 2013’s gold price crash “will be detrimental to mine supply levels in future years.”
Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), “The mining sector is increasing production this year,” says the consultancy, “with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher.”……………………………………….Full Article: Source

Silver hammered to 4-year low as gold and base metals retreat

Posted on 23 September 2014 by VRS  |  Email |Print

Silver prices slid to their lowest in four years on Monday, with the prospect of rising U.S. interest rates undermining precious metals and industrial commodities dented by worries over Chinese demand.
Caught on both counts with dual roles as an industrial metal, widely used in electronics, and as an investment vehicle, silver tumbled more than 3 percent in just 40 minutes in early Asian trade to hit its lowest since mid-2010 at $17.30 an ounce………………………………………..Full Article: Source

Gold Bulls Extend 2014 Exit as Slump Erases $6.7 Billion

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, U.S. government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

“Gradual” Gold Bull Market to Start 2015, “Next Floor at $1200″ Says GFMS

Posted on 22 September 2014 by VRS  |  Email |Print

Gold’s decade-long bull market is set to resume in 2015, albeit “gradually” from a new bottom according to a new forecast from the market’s leading data analysts, Thomson Reuters GFMS. Thanks to gold’s rally over the first half of 2014 from $1200 to $1400, the consultancy says today in the first Update to its Gold Survey 2014, “Price sensitive [consumer] markets have seen sales slow.
“We believe it will take prices in a $1200-1250 range in order for physical buying from Middle Eastern, East and South East Asian markets to begin to increase.” Low volatility and gold’s tightening price range form “the other defining feature” of the 2014 market to date, GFMS adds, noting that volatility on a 100-day basis has fallen to its second-lowest level since 2005, “undermin[ing] trade volumes.”……………………………………….Full Article: Source

Gold prices tumble, ‘no compelling reason’ to buy

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $US6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, US government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

India: 40 Years Ago…and now: Gold - From control to seamless trade

Posted on 22 September 2014 by VRS  |  Email |Print

In 1963, when then finance minister Morarji Desai banned gold futures, as part of the Gold Control Act, members of the Bombay Bullion Association didn’t know what hit them. In the crisis that followed, the association had to sell its front building at Zaveri Bazaar to pay for its members’ losses.
The Gold Control Act was in place between 1963 and 1990. It was implemented following the Indo-China war, owing to a felt need to control foreign exchange outflows. The Act allowed individuals and families to only hold up to two and four kg of gold, respectively and only in the form of jewellery. One required a licence to open a jewellery shop or make jewellery………………………………………..Full Article: Source

China’s long term gold plans

Posted on 22 September 2014 by VRS  |  Email |Print

The launch of Shanghai Gold Exchange trading yuan denominated contracts in the China (Shanghai) Pilot Free Trade Zone Thursday, which has enabled foreign investors to invest in China’s physical gold bullion market, is yet another one of China’s overt moves to dominate the global gold sector long term.
It may make a slow start but aims to become the world’s biggest physical gold exchange and is thus is in itself a move towards reducing the influence of COMEX and the LBMA on global gold trade and pricing and move the centre of gravity for this eastwards. Similar moves to set up new international gold contracts in Singapore and Hong Kong will further accelerate the move in gold trade to east Asia………………………………………..Full Article: Source

China Opens Gold Market to Foreigners Amid Price Ambition

Posted on 19 September 2014 by VRS  |  Email |Print

China will give foreign investors direct access to its gold market for the first time today as the biggest-consuming nation seeks to exert more influence over prices while boosting the yuan’s global use.
The Shanghai Gold Exchange will start trading contracts in the city’s free-trade zone that will be linked to its domestic spot market and available to about 40 international members including Goldman Sachs Group Inc. and UBS AG. Access was previously limited to some Chinese units. Gold in China this year cost as much as $31 an ounce more and $42 less than the London spot price, according to data compiled by Bloomberg……………………………………..Full Article: Source

International gold trading launched in Shanghai free-trade zone

Posted on 19 September 2014 by VRS  |  Email |Print

The Shanghai Gold Exchange officially launched its international trading platform in the city’s free-trade zone (FTZ) last night, the first such board in the zone, with hopes of setting benchmark prices for the precious metal in Asia. It could pave the way for the launch of crude oil futures and other key commodities including iron ore in the testing ground for mainland economic reform.
Premier Li Keqiang made an inspection tour of the 28 square kilometre zone yesterday following a no-show on September 29 last year, when it was inaugurated. “The free-trade zone in Shanghai will have a brighter future and Shanghai will have a brighter future,” the premier told officials and others during the tour, Xinhua reported. “I wish the FTZ to be prosperous and developed.”…………………………………….Full Article: Source

There is such a thing as too much gold

Posted on 19 September 2014 by VRS  |  Email |Print

Goldcorp Inc., the Canadian producer starting up three new mines to boost output 50 percent, says there’s such a thing as too much gold. The largest producer by market value, which expects annual output to reach as much as 4 million ounces by 2016, would prefer to fine-tune its mining assets to increase profitability than just keep growing to a point where it’s difficult to replace reserves, Chief Executive Officer Chuck Jeannes said.
“That means constantly trying to add high-quality things and, as we do that, dispose of the non-core things,” Jeannes said in an interview this week at the annual Denver Gold Forum. “We don’t want to be 7 or 8 million ounces.”…………………………………….Full Article: Source

Will gold face another downward move?

Posted on 19 September 2014 by VRS  |  Email |Print

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September meetings, not much has changed. Ms. Yellen seemed to sound as dovish as ever and she played down the threat of any chasm emerging between FOMC participants. The market continues to feel that the Fed will be forced into raising interest rates sooner-rather-than-later, which is keeping a bullish trend intact for the U.S. dollar.
It is generally trading higher against most major alternatives with the exception of the British pound as the Scots go to the polls to determine whether they should remain part of the 307-year old Union. In the current environment, even as the Fed holds a steady hand on the wheel, commodity prices are suffering. Gold prices are fading in response to the manner in which bond traders sense the Fed will have to throw the towel in on holding rates steady……………………………………..Full Article: Source

Barclays Lowers Gold Price Forecast, Raises Palladium Outlook

Posted on 19 September 2014 by VRS  |  Email |Print

Barclays on Wednesday lowered its price forecast for gold, citing “an increasingly bearish macro backdrop developing for gold,” while raising its outlook for palladium. “Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,” the bank said.
Barclays lowered their fourth-quarter average gold price forecast to $1,220 an ounce. They now expect prices to average $1,270 an ounce in 2014. Their 2015 forecast calls for an average gold price of $1,180. Palladium’s “sizable” deficit “will likely overpower the downside risk presented by a weaker gold price and a stronger dollar and reinforce the longer-term support for prices,” Barclays said……………………………………..Full Article: Source

Barclays Cuts 2014 and 2015 Gold Price Forecasts

Posted on 18 September 2014 by VRS  |  Email |Print

Barclays plc has reduced its Q4 gold price forecast to $1,220 per ounce. For the whole of 2014, the firm believes gold will average $1,270. In 2015, Barclays sees the price of the yellow metal averaging just $1,180.
Barclays bearish view on gold is linked to rising rates and the dollars strength. ‘Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,’ said Barclays’ analyst Suki Cooper…………………………………….Full Article: Source

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken

Posted on 18 September 2014 by VRS  |  Email |Print

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken Gold’s slide to eight-month lows over the last week has brought it within sight of a cluster of chart support lines near its 2013 lows, a breach of which could set up a slide back to $1,000 an ounce.
Analysts who study past price patterns for clues on the next direction of trade say a breach of support around the metal’s June 2013 low of $1,180 an ounce could see it fall back towards triple figures as soon as early next year…………………………………….Full Article: Source

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