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Commodities Briefing - Category | Bullion/Gold more

Technician says fan pattern in gold price shows big breakout is coming

Posted on 10 February 2016 by VRS  |  Email |Print

The gold price has been wallowing around $1,050 to $1,180 since June 2013, sending plenty of confusing signals as it built a very broad consolidation base. Now, the rally in gold has the potential to develop into a breakout from the consolidation base and become a new uptrend. But the strength and sustainability of the gold rally is still not unclear.
The first step in analysis is to put the rally activity into context by using a weekly chart. The downtrend is well defined by the Guppy Multiple Moving Average (GMMA) indicator. The long-term group of averages are well separated and have not developed any compression in response to the recent rally………………………………………..Full Article: Source

$1200 Gold ‘Breaks Downtrends’, Defies 2016 Price Forecasts

Posted on 10 February 2016 by VRS  |  Email |Print

Gold prices recovered most of a 1.1% overnight drop from yesterday’s 8-month high of $1200 per ounce in London trade Tuesday, rising back to $1198 as European stock markets slumped again, and the Dollar fell on the FX market, following a 5% plunge in Japanese equities.
China and most of Asia remained shut for the Lunar New Year, the heaviest consumer gold-buying spree outside India’s autumn festival of Diwali. Major government bond prices rose, pushing 10-year US Treasury yields down to new 12-month lows at 1.73%, while US crude oil held below $30 per barrel – a level seen on the way up in 2002………………………………………..Full Article: Source

A Bullish Gold Price Forecast For The Next 6 Months

Posted on 10 February 2016 by VRS  |  Email |Print

Gold is on the move. As stocks are selling off big time, the gold market is the big beneficiary with a significant inflow of capital. Is that any coincidence? No, it is not, because the gold market was deeply oversold.
Next to that, and perhaps more importantly, sentiment hit rock bottom levels. When everybody and his uncle believes that stocks have only one way to go, i.e. up, the opposite usually happens. The same accounts to the precious metals market………………………………………..Full Article: Source

Why Gold Has Been on a Tear in 2016

Posted on 10 February 2016 by VRS  |  Email |Print

The stock market is having a horrible time so far in 2016, with the S&P 500 down more than 9%. Gold, on the other hand, is up nearly 10% year-to-date and hit a four-month high of just under $1200 per ounce on Monday before dipping 0.7% Tuesday to $1189.30.
It’s a bit of a cliché to say that people turn to gold in times of uncertainty: Sometimes that works, sometimes it doesn’t. Gold did phenomenally well from 2000-2011 but really suffered after hitting nearly $2000 per ounce in 2011. From 2011 to 2015, the yellow metal pretty much fell in a straight line amid the European financial crisis (remember Greece?), ISIS’s rise, Russia’s annexation of Crimea and quasi-invasion of Ukraine, among many other moments of ‘uncertainty.’……………………………………….Full Article: Source

3 Reasons You Shouldn’t Wait For $1,000 Gold

Posted on 10 February 2016 by VRS  |  Email |Print

Why? Because it may not happen. And even if it does, $1,000—or any price tag in your mind—won’t guarantee the actual bottom. The biggest risk is that you don’t pull the trigger at all.
It’s not supposed to be this way, but buying or selling an investment is usually an emotional thing. Let’s be honest, if gold hits $1,000 and everything you read is negative—the downtrend remains strong, TV pundits project $900, and even some gold bugs admit it could go lower—would you really buy? Most would hold off out of fear it might go lower………………………………………..Full Article: Source

Gold Prices Soar on Global Economic Worries

Posted on 09 February 2016 by VRS  |  Email |Print

Gold prices posted the biggest one-day gain in more than 14 months on Monday, as the continued tumult in global financial markets boosted the metal’s lure as a haven asset. In recent trade, gold futures jumped 3.5% to close at $1,197.90 a troy ounce–the highest settlement since June 19–on the New York Mercantile Exchange.
It represented gold’s largest percentage gain since November 2014. Gold has risen 13% since the start of the year amid turmoil in global markets and weak economic data signals, particularly from China………………………………………..Full Article: Source

Haven buying spurs gold to 8-month peak

Posted on 09 February 2016 by VRS  |  Email |Print

Gold climbed to an eight-month high as a weaker dollar and lower oil prices spurred haven buying and inflows from exchange traded funds. The precious metal rallied to $1,198.70 a troy ounce, the highest level since June last year.
Gold has risen 13 per cent since the start of the year, making it one of the top commodity performers so far in 2016. Brent, the international crude oil benchmark, is down 11 per cent, copper for three-month delivery on the London Metal Exchange is down 2 per cent, and CBOT corn is up 1.4 per cent year-to-date………………………………………..Full Article: Source

Gold’s surge continues amid gloomy global outlooks

Posted on 09 February 2016 by VRS  |  Email |Print

Gold prices are climbing quickly, bolstered by a troubled economic outlook in the U.S. and the Bank of Japan’s decision to adopt negative interest rates, in conjunction with financial market turbulence. Benchmark New York gold futures traded around $1,175 per troy ounce in premarket trading Monday, up $130 from a low around two months earlier. The price is the highest since late October.
Lackluster U.S. employment data released late last week raised concerns of trouble ahead, spurring buying of the metal as a substitute for dollars. Hedge funds moved to unwind short positions on gold, expecting that further hikes to U.S. interest rates will be postponed………………………………………..Full Article: Source

Are Gold Speculators Betting on ‘One and Done’?

Posted on 09 February 2016 by VRS  |  Email |Print

Amid carnage in most markets, traders have found a safe haven again in Gold. Gold mining companies and the underlying commodity have been sharply outperforming the broader market as the recession drumbeat grows louder and worries about global banks and credit markets reemerge. As an example, SPDR Gold Shares, the flagship ETF that tracks gold bullion, is up nearly 13% year-to-date.
The move in gold is somewhat counter-intuitive - in a raising rate environment the dollar should strengthen thereby weakening gold. However, this has not been the case, which suggests speculators are betting on ‘one and done’ from Fed Chairman Janet Yellen………………………………………..Full Article: Source

Silver Prices Continue to Rise, Stay below $15

Posted on 09 February 2016 by VRS  |  Email |Print

Silver prices have been through a roller coaster ride for the past few months. However, the new year brought some direction for silver. It continued to gain steadily. Silver rose by 7.7% on a year-to-date basis. It closed at $14.85 per ounce on February 4, 2016, after touching a high of $14.93.
Silver couldn’t reach the $15 mark. The boost for precious metals was likely due to the fall in the US dollar. The US dollar fell by 3% during the past five trading days. As the US dollar gets cheaper compared to other currencies, dollar-denominated assets become more affordable for foreign currency investors. Demand could rise. This would increase the prices………………………………………..Full Article: Source

Is the Gold Price Manipulated?

Posted on 08 February 2016 by VRS  |  Email |Print

The claim that the gold prices are manipulated is one of the most popular notions within the gold investing community. Probably, no other market (except the silver market) holds such a belief so strongly. The core argument goes as follows: an increase in price of gold signals inflation and the decline in the value of fiat currencies, especially the U.S. dollar, which undermines confidence in the contemporary monetary system.
Thus, governments, central banks and their collaborators from the financial system are heavily interested in suppressing the price of gold. Three insights support this theory: one theoretical and two empirical. First, the Austrian theory of money and business cycle says that gold was chosen as money by the free market and a monetary system based on fiat money is inherently unstable………………………………………..Full Article: Source

Gold Prices: The Surprising Reason to Be Bullish on Gold Prices

Posted on 08 February 2016 by VRS  |  Email |Print

Usually low inflation is bad news for gold prices. But according to one analyst, the economy’s recent bout of deflation could actually be bullish for precious metals. Gold prices are soaring. Year-to-date, the yellow metal is up more than seven percent. The move is unexpected, given most analysts expect gold prices to fall during periods of low inflation.
According to Boris Schlossberg, the reason is simple. In an interview with CNBC, the BK Asset Management currency strategist explained that investors can pile up their hard-earned banknotes under the mattress and get zero percent, which would be better than paying banks to keep their money………………………………………..Full Article: Source

China’s gold output dips on lower prices

Posted on 08 February 2016 by VRS  |  Email |Print

China’s annual gold output fell for the first time in 2015 due to lower prices in the global gold market, according to latest industry figures. The country produced 450 tonnes of gold last year, down 0.39 percent year on year, the China Gold Association said on its website.
International gold prices have shed nearly 40 percent since April 2013, squeezing producers’ profits and affecting output, the association said. However, China remained the world’s largest gold producer for a ninth year running and saw gold consumption recovering last year, the association said………………………………………..Full Article: Source

The Trade: Gold prices surging to start 2016

Posted on 05 February 2016 by VRS  |  Email |Print

Amid the market volatility in 2016, gold futures prices are already up nearly 8 percent this year. After posting three consecutive years of losses and falling to the lowest level in six years back in November, gold prices are once again on the rise as investors seek shelter from the global volatility in the commodity known for its safe haven appeal.
On Wednesday, bullion hit an intraday high of $1,146 per ounce, the highest level since October. What if prices keep rising over the next one month?……………………………………….Full Article: Source

Australian producers welcome back A$1600 an ounce gold price

Posted on 05 February 2016 by VRS  |  Email |Print

The price of an ounce of gold climbed again overnight in New York, adding 1.3% to US$1,156.20 an ounce. A falling U.S. Dollar did take the shine off a touch based in the local money, but the FX rate of AUD / USD 0.7196 has Aussie Dollar Gold back over A$1600 an ounce.
Not only are domestic Australian gold producers benefiting from higher gold prices in Australian Dollar terms, but they are also reducing costs from lower fuel bills and a greater access to labour………………………………………..Full Article: Source

London gold market wrestles over future

Posted on 05 February 2016 by VRS  |  Email |Print

There aren’t many places in the UK where you can walk in off the street and buy gold as a retail customer. A new store in London’s St James’s Street a stone’s throw from the Ritz wants shoppers.
“There is unquestionably a physical renaissance going on,” says Ross Norman, of Sharps Pixley, flanked by cabinets showing gold roses and gold watches under a large chandelier. “People want the physical [gold], they don’t want the paper. It’s suggestive of an environment where trust is less than it used to be.”……………………………………….Full Article: Source

Gold: No Silver Lining

Posted on 05 February 2016 by VRS  |  Email |Print

Gold is continuing its impressive 2016 rally into early February. The recent surge may be coming to the end of the line, at least for the short term. Gold has not only reached overbought levels, but it is also missing an important silver lining of support behind its advance.
Gold is continuing its impressive 2016 rally into early February. But the recent surge may be coming to the end of the line, at least for the short term. Gold has not only reached overbought levels, but it is also missing an important silver lining of support behind its advance………………………………………..Full Article: Source

Keeping an eye on bullion supply and demand

Posted on 05 February 2016 by VRS  |  Email |Print

A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty.
Endeavor Silver, one of the largest primary silver mining companies, announced last week that it expects to reduce production of the white metal by roughly 30%. The company’s El Cubo mine is not profitable despite efforts to reduce costs. Endeavor plans to halt development and exploration at the mine and process accessible ore only. By year end, the mine will be placed on “care and maintenance.”……………………………………….Full Article: Source

Gold Resilient as This Year’s Best Commodity

Posted on 04 February 2016 by VRS  |  Email |Print

Gold climbed to a three-month high, helping propel Newmont Mining Corp. to its biggest gain in seven years, as mining shares rallied amid diminishing expectations for more U.S. rate increases.
Futures broke above the 200-day moving average, while an index of 14 gold producers tracked by Bloomberg Intelligence climbed to the highest since October. Holdings in exchange-traded funds backed by bullion grew for a 12th day, the longest run in three years………………………………………..Full Article: Source

Why gold price will rise further ?

Posted on 04 February 2016 by VRS  |  Email |Print

Gold’s rally this year has been driven mainly by what may be termed Western factors, namely buying on the back of worries over the state of the global economy and the subsequent desire for safe haven assets.
Spot gold has jumped 6.3 per cent to around $1,127 an ounce since the start of year, bringing out bullish views that the yellow metal’s dark years since the peak near $2,000 in September 2011 are finally over. Falling equity markets, both in developed and developing markets, credit and currency worries in China and monetary easing from major central banks other than the U.S. Federal Reserve have made gold look more attractive………………………………………..Full Article: Source

Chinese Seen Buying More Gold as Investors Seek Haven Assets

Posted on 04 February 2016 by VRS  |  Email |Print

China’s gold demand will keep expanding as investors seek safe assets and jewelry buying increases, the China Gold Association said. Consumption in the country that vies with India as the world’s biggest user climbed 3.7 percent to 985.9 metric tons in 2015 from a year earlier, according to group data released on Wednesday.
Demand rose as prices declined and investors allocated more wealth to the safety of bullion than to other financial assets, according to the association, which represents jewelers, refiners, banks, brokerages and miners………………………………………..Full Article: Source

Gold to average $1,103 this year — LBMA

Posted on 03 February 2016 by VRS  |  Email |Print

Gold is unlikely to hold its gains this year, with a survey of 31 analysts predicting an average price of $1,103 a troy ounce, according to the London Bullion Market Association. That’s $57 below the average price in 2015 and just 1.1 per cent higher than the price in the first half of this year, commodities correspondent Henry Sanderson reports.
Joni Teves of UBS was the most bullish analyst surveyed, predicting an average gold price of $1,225 a troy ounce. The lowest forecast was $960, by Martin Squires at BNP Paribas………………………………………..Full Article: Source

Gold at three-month high as global economy concerns persist

Posted on 03 February 2016 by VRS  |  Email |Print

Gold touched a new three-month high on Tuesday as concerns about the global economy and a further drop in the oil price pushed investors towards safe-haven assets. Weak Chinese manufacturing data on Monday underscored the challenges for the world economy and increased volatility in oil and other assets is supporting gold.
“In the near term gold is finding some support in the dovish tone from central banks last week, notably the Fed and the Bank of Japan,” said Jens Pedersen, senior analyst at Danske Bank………………………………………..Full Article: Source

Gold Is Off to a Strong Start in 2016

Posted on 03 February 2016 by VRS  |  Email |Print

The price of gold has jumped 6% this year, making it the best-performing commodity of 2016. At $1,127 an ounce, that’s well below its 2011 high of nearly $1,900 an ounce, but still better than its six-year low of $1,051.60 an ounce just a few months ago. Gold exchange-traded funds also are on the rise too, growing at their fastest rate in over a year.
People flock to gold when they think there are tough economic times on the horizon. So it’s no surprise that the precious metal’s recent rise has corresponded with the stock market’s slide. The Dow is down more than 7% to date while the Nasdaq is off by about 10%. Falling oil prices and a slowdown in China have compounded fears about the economy………………………………………..Full Article: Source

Gold is Winning Believers in 2016

Posted on 03 February 2016 by VRS  |  Email |Print

It’s been a lonely few years for gold bulls. Extraordinary monetary stimulus from the Federal Reserve — a pairing of ultra-low interest rates and quantitative easing (bond buying) — was supposed to drive rampant inflation, which in turn was supposed to drive investors to the relative safety of gold.
It didn’t play out that way, of course. Gold prices finished 2015 near a six-year low and down more than 40% since 2011′s all-time high. But each passing day in 2016 seems to turn market watchers bullish………………………………………..Full Article: Source

Gold is 2016’s most beloved asset

Posted on 03 February 2016 by VRS  |  Email |Print

Gold bugs are among the only smiling investors these days. Prices have jumped 6% this year to $1,127 an ounce. That makes gold the best performing commodity and one of the only major assets to post a sizable gain in 2016.
By comparison, stocks have had a dismal start to the year: The Dow is down more than 1,000 points this year, while the Nasdaq has lost 8% of its value. These opposite moves actually make perfect sense. Gold tends to shine brightest during times of stress………………………………………..Full Article: Source

Gold lifts on growth fears

Posted on 02 February 2016 by VRS  |  Email |Print

Gold has risen to a three-month high, extending its recent rally on worries about global economic growth and hopes for easier monetary policy after weak factory data in Asia and Europe. China’s official measure of manufacturing in January fell to the lowest since mid-2012, while factory growth across the eurozone slowed.
“That China data was disappointing, very weak in both manufacturing and non-manufacturing, which coupled with the ongoing turmoil on global markets and uncertainties about growth going forwards have helped gold to get above the $US1,115/20 resistance level,” said Robin Bhar, head of metals research at Societe Generale in London………………………………………..Full Article: Source

Gold Has The Potential To Hit $1,200/oz: RBC Capital Markets

Posted on 02 February 2016 by VRS  |  Email |Print

Gold’s rally so far this year has the potential to move to the metal back up to $1,200, but it remains in an overall downtrend, notes one analyst. “The trend on gold tends to trade in trends that can last years, and is currently in a bearish trend that started four years ago, and is now approaching some long-term support around $1000 where it may level off for a few years in a bottoming range,” said Bob Dickey, technical analyst for RBC Capital Markets.
“The current bounce has the potential to reach the $1150 to $1200 area, but that would likely be another short-term peak within the overall downtrend. A true long-term buy point for gold could still be years away.”……………………………………….Full Article: Source

Time For a Good Gold-to-Silver Ratio Play For Traders? - Peter Hug

Posted on 02 February 2016 by VRS  |  Email |Print

Is a major upside number for gold in the cards? Or is the choppy action making investors wary? In the first trading day of February, gold has once again topped the $1,122 chart point. The metal is currently trading near a 3-month high. It has been a good start to the year for gold, with the market up nearly 6% in the past month.
‘You want to express a major upside number for gold but the choppy action makes investors wary,’ said Kitco Metals’ Global Trading Director, Peter Hug. Speaking with Kitco News, Hug added, ‘A scenario similar to 2008-2011 may yet develop but I cannot in good faith just throw out an absurd upside target. The cross-currents in the market continue to suggest upside momentum for gold, but the move is likely to be jerky.’……………………………………….Full Article: Source

Gold And Silver Outperforming Attracting Hedge Funds, Money Managers - CFTC

Posted on 02 February 2016 by VRS  |  Email |Print

After taking a bit of a break, hedge funds and money managers are starting to wade deeper into gold waters, according to the latest data from the U.S. Commodity Futures Trading Commission.
During the week through January 26, which is the period covered in the latest CFTC report, Comex February gold futures rose by nearly more than 3%, pushing back above $1,100 an ounce on the back of short covering and some modest new buying. Currently, April gold futures last traded at $1,126.20 an ounce, up $9.8 on the day………………………………………..Full Article: Source

Why LBMA’s Top Forecaster Slightly Upped His Gold Forecast

Posted on 01 February 2016 by VRS  |  Email |Print

Despite having slightly upped his 2016 gold forecast, the London Bullion Market Association’s 2015 top forecaster says not too get too excited. Natixis ’ precious metals analyst Bernard Dahdad, whose 2015 forecast was within $1 of the average gold price last year, said he expects prices to average around $990 an ounce, up just 2% from his previous call of $970.
“If you asked me back in November, I was slightly more bullish on the U.S. economy and the Fed rate hikes,” he told Kitco News in a telephone interview Friday. He said he expects the Federal Reserve to hike rates at a slower pace, which should slightly support gold prices………………………………………..Full Article: Source

Gold price continued dip in December, down 1.6% on month

Posted on 01 February 2016 by VRS  |  Email |Print

The average price of gold in December fell 1.6% to $1,068.25/troy oz, from a November average of $1,085.70/oz, the London Bullion Market Association said Friday. The volume of ounces transferred increased by 36.8 % to 23.6 million, its highest level since June 2013, with the corresponding value of gold transferred up nearly 35% to $25.2 billion.
This could signal buying interest at the lower price levels. “The number of transfers was broadly flat at 2,702 while the number of ounces per transfer increased significantly to 8,732, to its highest ratio since January 2012,” the LBMA said………………………………………..Full Article: Source

LBMA Silver Price: Trouble in Paradise?

Posted on 01 February 2016 by VRS  |  Email |Print

After being named “Exchange of the Year” by Risk Magazine Awards, the CME was rattled as the company saw its benchmark silver price disconnected from the actual price of the metal. According to media reports, the LBMA Silver Price — a benchmark used by producers and traders to settle silver products and derivatives contracts – was off by 84 cents compared to Comex March silver futures Thursday morning.
By the end of the online auction process, silver futures traded around $14.415 an ounce, while the LBMA Silver Price was set 6% under than price tag at $13.58 an ounce. Some media reports noted that it took about 14 minutes to finally settle the price………………………………………..Full Article: Source

Silver Price Breaks Higher on Rising Anxiety

Posted on 01 February 2016 by VRS  |  Email |Print

Echoing the perilous financial market volatility of late, silver prices have gradually moved to the highest levels since December as growing risk aversion and shifting sentiment see safety bids gain momentum. While not necessarily indicative of a resumption of the trend higher that began in the depths of the last financial crisis, several factors are pointing to increased potential gains in the precious metal as investors are forced to pivot from yield to quality in an effort to hedge against ongoing turmoil.
While inflation may remain low, dragging on prices over the medium-term, tightness in the physical supply chain alongside increased interest in hedging against uncertainty of monetary policy and central banking continue to contribute to upside in silver………………………………………..Full Article: Source

Barclays said to extend cutbacks by exiting precious metals

Posted on 01 February 2016 by VRS  |  Email |Print

Barclays Plc plans to eliminate its precious-metals business, including trading and research, as the bank looks to minimise losses amid declines in commodities, according to a person with direct knowledge of the plan who asked not to be identified as the decision hasn’t been made public.
The move follows the London-based company’s plan to reduce 1,200 jobs worldwide and shut securities operations across Asia, people with knowledge said at the time. Gold has dropped more than 40 per cent from an all-time high reached in 2011 as investors snubbed bullion as a store of value. The bank declined to comment on the exit from precious metals, which was reported earlier on Friday by Platts………………………………………..Full Article: Source

Gold ETF investors come roaring back

Posted on 01 February 2016 by VRS  |  Email |Print

Ole Hansen, chief commodity strategist at Danish bank Saxo, says gold has been the clear winner in 2016 as the uncertainty on financial markets reduce the likelihood of rate hikes in the US and geopolitical turmoil spur safe-haven buying.
Gold futures in New York were trading at $1,116.90 an ounce on Friday, up more than 5% since the start of the year, after hitting a near three-month high earlier in the week. Hansen says gold is following a similar pattern to January last year when the metal was boosted by the surprise currency move by Switzerland’s monetary authorities, speculation about quantitative easing by the European Central Bank and the Greek debt crisis………………………………………..Full Article: Source

Gold price unmoved as Fed masters the mixed message

Posted on 29 January 2016 by VRS  |  Email |Print

The gold price had been expected to settle markedly either up or down yesterday, after the US Federal Reserve issued its latest eagerly anticipated policy announcement on interest rates. In the event, it was all something of a damp squib.
Initially, the spot price of the yellow metal jumped to $1,127 an ounce, but it quickly retreated from that high and this morning was steady at $1,118 - a virtually identical level to where it has spent most of this week. This reflected the steadier sentiment that has taken hold across Europe’s equity markets in the wake of the Fed’s statement………………………………………..Full Article: Source

The gold market just lost its best measure of Chinese demand

Posted on 29 January 2016 by VRS  |  Email |Print

The Shanghai Gold Exchange has stopped publishing its weekly gold withdrawal figures, forcing the market to lose its “best measure of Chinese wholesale demand,” according to Koos Jansen, precious-metals analyst and blogger for Singapore-based bullion dealer BullionStar.
Jansen, well known for his analyses on the Chinese gold market, pointed out in a blog Jan. 26, that the SGE’s Chinese Market Data Weekly Reports on the first two trading weeks of this year don’t list gold vault withdrawal figures. He said the SGE told him those figures will no longer be published………………………………………..Full Article: Source

Investors chase gold bonds in falling stock market

Posted on 29 January 2016 by VRS  |  Email |Print

The second tranche of India’s sovereign gold bond received a better response than the first, a government official said, as a price discount and its safe haven appeal amid a slide in equities attracted investors. The world’s second biggest gold consumer plans to sell 150 billion rupees in bonds linked to the metal in the financial year ending March 31, to wean investors off buying physical gold and stem the outflow of foreign exchange spent on gold imports.
In the second tranche, 316,000 applications were received for 2,790 kg of gold worth 7.26 billion Indian rupees ($106 million), far higher than the 62,169 applications for the first tranche for 915.953 kg of gold in November………………………………………..Full Article: Source

Why The Gold Market Is Glittering Again

Posted on 29 January 2016 by VRS  |  Email |Print

It’s been tough finding winners in financial markets so far this year. Nearly every asset class is moving together in lockstep … to the downside. But one asset that’s been much maligned in recent years, practically given up for dead in fact, is glittering again: Gold! The Dow and S&P 500 are both down 8% year to date.
Small caps have it worse with a double-digit decline of 12.2%. China’s Shanghai Index plunged 20% in the last three weeks alone. And most commodities are still getting shellacked with nat gas down 6.7% and Oil plunging 15.1% already this year. But it looks like gold got its groove back in 2016!……………………………………….Full Article: Source

World Platinum Investment Council approved as Singapore Bullion Market Association member

Posted on 29 January 2016 by VRS  |  Email |Print

The World Platinum Investment Council (WPIC) announced it has been approved by the Singapore Bullion Market Association (SBMA) for foreign associate corporate membership. This marks the first in a series of strategic initiatives the WPIC is developing in 2016 to stimulate investor demand for physical platinum and increase the number and type of platinum investment opportunities available in Asia.
The SBMA was formed in 1993 to promote Singapore as a precious metals ‘hub’ in Southeast Asia and its existing members include ICBC Standard Bank Plc, Bank of Nova Scotia, J.P. Morgan, and UOB Bullion & Futures Ltd………………………………………..Full Article: Source

Bright prospects for gold in 2016: Survey

Posted on 28 January 2016 by VRS  |  Email |Print

The quantum of gold supply dropped seven per cent in the December 2015 quarter owing to a four per cent fall in global mine output, according to GFMS Thomson Reuters’ Gold Survey: Q4 2015 Review and Outlook, released on Wednesday.
This is the largest quarterly reduction since 2008 and an all-time high for fourth quarter demand. Producers and mines that hedge (selling future production when they see prices falling) have started de-hedging (buying back their forward sales as they expect prices to recover)………………………………………..Full Article: Source

The Financial Economics Of Gold Markets

Posted on 28 January 2016 by VRS  |  Email |Print

Gold is one of the most malleable, ductile, dense, conductive, non-destructive, brilliant, and beautiful of metals. This unique set of qualities has made it a coveted object for most of human history in almost every civilization, and there have been active gold markets for over 6,000 years Green (2007).
As money, as an investment, as a store and source of value, hundreds of papers have been written on Gold. This review provides a state of the art overview of this voluminous research, and acts as an introduction to this special issue of the International Review of Financial Analysis, while also assisting as a source of reference for future research………………………………………..Full Article: Source

Precious Metals Glitter as Haven in Rubble of Resources

Posted on 28 January 2016 by VRS  |  Email |Print

As oil’s slump prolongs the worst resources rout since the 2008 financial crisis, the allure of precious metals is at least giving some commodity investors a return on their money. The Bloomberg Commodity Index, which tracks returns from 22 raw materials, dropped to a 25-year low earlier this month as gauges of energy, industrial metals and agriculture slid.
By contrast, a measure of precious metals climbed. Gold’s appeal as a safe haven is “back in vogue” on concerns about further contagion from China, volatile stock markets and tensions in the Middle East, Citigroup Inc said in a Jan. 19 report………………………………………..Full Article: Source

Gold price likely to rise above $1 200/oz by year-end – GFMS

Posted on 27 January 2016 by VRS  |  Email |Print

The gold price is set for a gradual recovery this year, particularly in the second half, driven by improving fundamentals, Thomson Reuters GFMS said in its latest gold survey. The ‘Gold Survey 2015 Q4 Update & Outlook’ report, released on Tuesday, noted that the gold price would trade above $1 200/oz towards year-end and would average $1 164/oz.
“Once it becomes clear that the gold price is on the road to recovery, we are likely to see a rebound in investor interest from key Asian markets, particularly if concerns about the emerging market slowdown and weakening currencies persist,” the report noted………………………………………..Full Article: Source

Weaker Gold Price On Tempered Dovish Fed Statement

Posted on 27 January 2016 by VRS  |  Email |Print

The gold market — expecting extremely dovish comments from the Federal Reserve Wednesday, following its monetary policy meeting, could be disappointed, creating some selling pressure according to some analysts.
Comex February gold futures pushed to nearly a three-month high Tuesday as the U.S. central bank started the first day of its two-day meeting and last traded at $1,118.3 an ounce. According to some analysts, gold prices are benefiting in part because of shifting interest rate expectations. In December, the Fed indicated that they expected to raise interest rates four times in 2016 with the next rate hike scheduled for March………………………………………..Full Article: Source

Reuters Research Says Gold to Rebound in 2016

Posted on 27 January 2016 by VRS  |  Email |Print

Gold demand fell 2 percent last year, GFMS analysts at Thomson Reuters said on Tuesday, but is set to recover in 2016 as U.S. rate hikes arrive more slowly than expected, while concerns over economic growth and yuan weakness stimulate Chinese buying.
In 2016 GFMS sees gold prices, currently near $1,100 an ounce, recovering to above $1,200 an ounce by year-end, and averaging $1,164 an ounce in the full year. Gold demand is expected to grow by 5 percent this year, it said. Chinese consumers concerned about a falling yuan eroding their wealth may seek gold as an alternative store of value, GFMS said………………………………………..Full Article: Source

Price of Silver in 2016: Could It Bounce Higher?

Posted on 27 January 2016 by VRS  |  Email |Print

Silver lost ground in 2015, continuing a three-year losing streak that cut another 12% off the price of the metal to around $14.45 per ounce. The question going forward is whether silver can finally manage to bounce back in 2016, or whether the ongoing slide in commodities will keep its grip on the silver market.
The bullish argument for silver going forward hinges on the metal’s unusual combination of characteristics. On one hand, silver trades somewhat in line with gold and the rest of the precious metals complex, despite its obviously cheaper price compared to its peers………………………………………..Full Article: Source

LBMA plans central hub for London gold market

Posted on 27 January 2016 by VRS  |  Email |Print

The London Bullion Market Association is planning a central hub for posting trades in the $5 trillion a year London gold market, LBMA consultant David Gornall said in an editorial in the association’s trade magazine the Alchemist on Tuesday.
It has also agreed on the need for a voluntary reporting system for gold, silver, platinum and palladium spot transactions, as well as non-cash settled forwards, and favours the creation of a data warehouse to gather and store information on transactions, Gornall, a former chairman of the LBMA, said………………………………………..Full Article: Source

Gold forecast to fall for fourth straight year in 2016: Poll

Posted on 26 January 2016 by VRS  |  Email |Print

Gold is tipped to fall for a fourth straight year in 2016, a Reuters poll showed on Monday, extending 2015’s 10 percent slide, although some lost ground may be recovered next year.
The poll of 41 analysts and traders carried out by Reuters over the last two weeks returned an average gold price forecast for this year of $1,118 an ounce, the lowest annual average since 2009. ……………………………………….Full Article: Source

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