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Commodities Briefing - Category | Bullion/Gold more

Gold price to rise further, charts show, with a $1,340 upside target

Posted on 05 May 2016 by VRS  |  Email |Print

There are three key features to look out for in this breakout in the gold price, which also happens to confirm our analysis back in February. The first and most important feature on this chart is the breakout from the fan trend line pattern.
The second feature is the breakout confirmation from the Guppy Multiple Moving Average (GMMA) relationships; the long-term group has compressed and turned decisively upwards. The third feature is the way price has remained above the critical resistance level near $1,200, using it instead as support point………………………………………..Full Article: Source

Gold price at two-year high, demand to see new lows

Posted on 05 May 2016 by VRS  |  Email |Print

Gold demand in India, the world’s second-biggest user, will probably shrink in the second quarter as a surge in local prices to the highest in two years deters buying for a festival next week and weddings this month.
Purchases may slide to about 100 metric tonnes in the three months through June from 125 tonnes in the period to March and 154.8 tonnes a year earlier, said Bachhraj Bamalwa, a director with the All India Gems & Jewellery Trade Federation………………………………………..Full Article: Source

Beware Of The Fake Rally In Gold

Posted on 05 May 2016 by VRS  |  Email |Print

Everyone wants to see my head on a silver platter. Or make it a gold platter. Why? Because they think I’ve completely missed the gold rally and if I don’t tell them to get on board now, they will forever have lost their chance to get in as gold ultimately works its way to over $5,000 an ounce.
Well, sorry everyone. Gold isn’t going to $5,000 an ounce tomorrow. So let’s get things straight about the gold market right now. First things first. Gold has recently rallied up to its point of maximum resistance at the $1,306 level basis the June futures contract………………………………………..Full Article: Source

Gold Has Similar Pattern To 1999; Short-term Pressure Ahead Says Technician

Posted on 05 May 2016 by VRS  |  Email |Print

In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. ‘For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,’ said Wald in an interview with Kitco News.
‘Over the past few weeks, gold has rallied a lot in a short amount of time - in fact it is about 11% above the 200-day moving average along with being overbought and testing some resistance at the 2015 peak at $1,300,’ he explained. ‘It is due for a pause to refresh and with that pause, we can see downside risk, maybe to the March lows of $1,200.’……………………………………….Full Article: Source

3 Factors That Could Propel Silver Prices 270%

Posted on 05 May 2016 by VRS  |  Email |Print

Silver prices have soared roughly 27% since the start of 2016 on fears of a U.S. recession and weak global economic indicators. While most on Wall Street say fears of a recession are wildly overblown, the current price appreciation says investors are not so sure. And they are for good reason.
A raft of negative economic data continues to roll in suggesting silver prices will continue to climb in 2016. Silver is up around 27% year-to-date, near $18.00 an ounce. Trading at a 16-month high, many believe silver will run out of steam and simply trade sideways for the foreseeable future………………………………………..Full Article: Source

The Shine May Be About to Come Off Gold

Posted on 04 May 2016 by VRS  |  Email |Print

Gold’s gilded run may be about to end. The precious metal rallied past $1,300 a troy ounce for the second day in a row Tuesday, prompted by a weaker dollar and buying from speculative investors.
But with the dollar’s recent decline viewed as overdone by some analysts and the likelihood of short-term speculators cashing out of their investments, gold prices could slide lower in the next few weeks………………………………………..Full Article: Source

Jim Rickards says for gold prices will go higher as dollar weaken

Posted on 04 May 2016 by VRS  |  Email |Print

Gold prices, fresh from Monday’s 15-month high, look set for further gains as the dollar weakens, according to author and gold markets expert Jim Rickards. Spot gold hit $1,303.6 an ounce on Monday, its highest price since January 2015, and has since come off to trade around $1,295 an ounce on Tuesday morning in Asia.
But Rickards, who is the author of “The New Case for Gold,” published last month, as well as 2011 best-seller “Currency Wars: The Making of the Next Global Crisis,” said gold was “going to go a lot higher.”……………………………………….Full Article: Source

Gartman says gold is in a true bull market—and on its way to $1,500

Posted on 04 May 2016 by VRS  |  Email |Print

Gold has enjoyed a spectacular beginning to 2016, and one widely followed commodities expert believes the metal could be on the verge of going much, much higher.
“I think it’s still a bull market,” said Dennis Gartman, editor of The Gartman Letter, Monday on CNBC’s “Fast Money.” He predicts gold could finish out the year 10 to 15 percent above current levels. With gold hitting a 15-month high Monday and breaching $1,300, that would represent a price as high as nearly $1,500………………………………………..Full Article: Source

Gold may top $1 500/oz by mid-year

Posted on 04 May 2016 by VRS  |  Email |Print

Fresh off a 15-month high of $1 303.60/oz, prevailing economic conditions may well send gold prices skyrocketing in the near term. And bolster momentum in the silver price. “We’ve seen a rising trend range in dollar terms for nearly 6 months. If the current momentum continues, we could see gold over $1 500/oz by mid-year,” said John Butler, vice president and head of wealth services at GoldMoney.
Spot gold prices – up more than 22% year-to-date in dollar terms – received their most recent boost on the back of diminishing expectations of an interest rate hike by the US Federal Reserve (Fed) and the concomitant weakness in the dollar, as well as the Bank of Japan deciding against further monetary easing………………………………………..Full Article: Source

What Makes the Price of Gold Move

Posted on 04 May 2016 by VRS  |  Email |Print

The present gold bull market has drawn more attention to investing in the yellow metal. Yet, many investors don’t know much about the factors that affect the price of gold. Unlike other investments, perceived value is a major factor in the gold price.
There is a bit more to it than that, however. Here are several of the top influencers on the price of gold. Money Morning Resource Investing Specialist Peter Krauth gives readers regular insight into the “types” of money that move the price of gold. One of these is called “dumb money.”……………………………………….Full Article: Source

Harvard Professor Urges EMs To Buy Gold

Posted on 04 May 2016 by VRS  |  Email |Print

Emerging market economies need to shy away from the U.S. dollar and U.S. treasuries, and instead invest more in gold, this according to one Harvard profession.
Tuesday, in a commentary for Project Syndicate, Kenneth Rogoff, professor of Economics at the Ivey League university and former chief economist at the International Monetary Fund, recommended that emerging economies boost their gold reserves to about 10%, which would still keep them below some developed country’s gold reserves………………………………………..Full Article: Source

Silver Market Strong, but it’s Time to be Cautious

Posted on 04 May 2016 by VRS  |  Email |Print

The vertical price action currently taking place tends to indicate that we are nearing a top due to excessive speculation. Last week, July Comex Silver prices reached their highest level since January 2015, driven mostly by the Bank of Japan’s decision to hold off expanding monetary stimulus and weaker equity markets.
The dovish U.S. Federal Reserve monetary policy statement also helped support the surge in prices. The Fed kept the door open to a hike in June, but showed little sign it was in a hurry to tighten monetary policy………………………………………..Full Article: Source

Gold hits 15-month high above $1,300/oz as dollar wilts

Posted on 03 May 2016 by VRS  |  Email |Print

Gold rose to a fresh 15-month high on Monday above $1,300 an ounce, supported by renewed weakness in the dollar, but action was muted because of a holiday in some markets. Many Asian markets and London were closed for national holidays, dampening momentum in the precious metal, which posted its biggest weekly rally since early February last week, up more than 5 per cent.
That was chiefly driven by weakness in the dollar, which had its worst week since 2008 versus the Japanese yen after the Bank of Japan unexpectedly opted against further monetary easing. The US currency stayed on the back foot on Monday………………………………………..Full Article: Source

Gold Crosses $1,300 Threshold as Rates Outlook Undermines Dollar

Posted on 03 May 2016 by VRS  |  Email |Print

After three years of being scorned, gold’s making a powerful comeback. Prices have pushed above $1,300 an ounce on speculation that the U.S. central bank will be slow to tighten policy further, bolstering the metal’s appeal as the dollar sagged.
Bullion for immediate delivery traded at $1,291.90 an ounce at 8:51 a.m. in Singapore from $1,291.55 on Monday, when it rose to $1,303.82, according to Bloomberg generic pricing. The metal has gained 22 percent this year, rising to the highest since January 2015, as a gauge of the dollar lost 6.3 percent………………………………………..Full Article: Source

Gold Has Potential To Reach $1,400 - RBC Analyst

Posted on 03 May 2016 by VRS  |  Email |Print

Gold’s rally continues, and according to one technical analyst known in the industry, the uptrend could push prices $100 higher. “The trend on gold is in a strong short-term uptrend that now has the potential to reach the 1,400 level over the next few months,” said Bob Dickey, technical analyst for RBC Capital Markets, in a research report released Monday.
However, despite this relatively bullish call, the analyst said it is still too early to tell if gold’s momentum will remain longer term. “It is still too early to determine if the current rally is the start of a longer-term uptrend, or just a move to the top end of a range,” he said. “So, we suspect that gold-related issues will be possible sells if the metal gets close to 1400.”……………………………………….Full Article: Source

Gold’s surge is making it feel a lot like late 2007

Posted on 03 May 2016 by VRS  |  Email |Print

Gold is enjoying an incredible year, surging 22 percent as the S&P 500 is barely positive. What’s rare is for the yellow metal to outperform the market so dramatically in a year when stocks are up.
In fact, going back to 1980, there has been only year in which gold has outperformed the S&P by 20 percent or more while the latter was positive on the year: 2007. Both gold and the fear-measuring CBOE Volatility Index surged in the second half of that year, even as stocks maintained their footing. The crash, of course, came in 2008………………………………………..Full Article: Source

Gold vs. gold miners

Posted on 03 May 2016 by VRS  |  Email |Print

For thousands of years, gold has been used as money, a store of wealth, fought over and sought after. Over the last 45 years, Western populations have had a mixed impression of gold. A minority of the population understands that gold is a monetary asset that should be held as wealth insurance.
A larger percentage of the population is confused about gold because of mainstream sources of information. Many people consider gold a risky investment when in fact gold bullion is not an investment at all, but rather money itself………………………………………..Full Article: Source

What if central banks have NOT lost control of gold?

Posted on 03 May 2016 by VRS  |  Email |Print

Has the positioning of the big commercial traders in the monetary metals futures markets lost its value as an indicator of future monetary metals prices? It seems like gold and silver bugs and maybe a few ordinary investors have been waiting for weeks for the usual smashing of the metals by those traders, the big investment banks, hoping to buy the next dip, only to have to watch the metals and the mining shares move steadily higher.
Among the market analysts whose prediction of a smash has gotten stale and who seems to be doubting himself is Clive Maund, whose latest commentary notes that it’s a “paradoxical situation.”……………………………………….Full Article: Source

Why gold is still the pick of the precious metals

Posted on 03 May 2016 by VRS  |  Email |Print

One of the strongest arguments against investing in gold was that the metal yielded no interest while you were holding it so it stands to reason that the environment of low interest rates should be friendly for investors in precious metals.
That argument, while valid, has lost significant merit, because investors don’t get much of an interest rate holding government bonds or bank deposits. Indeed in several countries interest rates have gone negative, which means that investors are paying governments for the privilege of holding their bonds. ……………………………………….Full Article: Source

Gold Keeps Shining as Funds Miss Out on Best Rally in Two Months

Posted on 02 May 2016 by VRS  |  Email |Print

Nothing seems to be slowing down the gold market, even when speculators take a step back. Bullion has been on a tear, with futures last week posting the biggest advance in two months. Hedge funds missed the party, reducing their wagers on a rally by the most since they turned bullish in January.
The money managers were more fortunate when it came to silver, taking their holdings to the highest on record just before the metal had its best monthly advance since 2013. The Bloomberg Precious Metals Subindex jumped 23 percent in 2016 amid renewed demand for stores of value………………………………………..Full Article: Source

Will silver prices double?

Posted on 02 May 2016 by VRS  |  Email |Print

The last five years were brutal for silver bulls. After a post Nelson Bunker Hunt bubble peak price of 48.50 in April 2011, silver plunged to $13.60 by mid-December 2015 in a bear market that was even more extreme than the epic falls in gold and crude oil.
Yet 2016 saw the silver bulls finally rock again as silver surges 20 per cent above $17.68 an ounce. The silver bull market is no longer a springtime fantasy. It is anchored in macroeconomics and the fundamental logic of the world precious metal markets………………………………………..Full Article: Source

Gold to leave three-year rout behind as Fed rate expectations fade: poll

Posted on 29 April 2016 by VRS  |  Email |Print

After three straight years of losses, analysts are finally prepared to say gold prices have found a bottom, with rising prices seen this year and next as concerns over the pace of U.S. monetary policy tightening fade.
Gold analysts polled by Reuters have hiked their forecasts for the precious metal by nearly $100 an ounce since the start of the year after it posted its biggest quarterly rise in nearly 30 years in the three months to March………………………………………..Full Article: Source

Who are gold traders?

Posted on 29 April 2016 by VRS  |  Email |Print

The Commitments of Traders Report is one of the most important publications on the gold market. It is usually published every Friday at 15:30 Eastern time by the Commodity Futures Trading Commission (CFTC) to provide market participants “a breakdown of each Tuesday’s open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC.”
Unfortunately the readers don’t get a full picture because of a three day lag between a report and the actual positioning of traders (though the report is issued on Friday, it contains Tuesday’s data). The open interest, analyzed in the report, is the total number of futures contracts not yet liquidated by an offsetting transaction or fulfilled by delivery………………………………………..Full Article: Source

Believe it or Not – It’s Way Too Early to Take Profits in Gold and Silver

Posted on 29 April 2016 by VRS  |  Email |Print

It was no fun investing in precious metals for most of 2011-2015, but the past few months have sure been a blast for buy-and-hold investors. Silver prices are up 22.5% year to date, and gold isn’t far behind. Now that there are some profits available to take, some gold and silver investors wonder if they should grab them. The answer for most people is not yet — not even close.
Yes, there are gains. But the real question for gold and silver investors isn’t whether or not there are profits, it’s whether there are better options for their investment dollars. What other assets have a better risk/reward profile? Cash? Stocks? Bonds? No thank you!……………………………………….Full Article: Source

Low demand in Asia may pull down gold price

Posted on 28 April 2016 by VRS  |  Email |Print

Gold prices that hit a 13-month high in March are likely to fall back in the short term because of a slump in demand from key Asian consumers, GFMS analysts said in a report on Tuesday.
Global gold demand tumbled by 24 per cent year-on-year to 781 tonnes in the first three months of the year, its weakest quarter in seven years, as buying from leading consumers India and China plummeted, GFMS said in the first-quarter update to its Gold Survey 2016………………………………………..Full Article: Source

Why China Wants Yuan-Denominated Gold

Posted on 28 April 2016 by VRS  |  Email |Print

It’s crucial to understand the potential benefits for China of having yuan-denominated gold. Besides internationalization, the fix may also increase the liquidity and efficiency of the gold markets. Yuan-denominated gold may also reduce the dependency of gold on the US dollar, though this may not hold true in the short run. In the longer run, gold may untangle from the US dollar.
According to the World Gold Council, in 2015, China’s gold demand hit 984.5 tons. The initiation of the yuan benchmark for gold is aimed at increasing the usage of the yuan as a global currency………………………………………..Full Article: Source

Silver price jumps to near one-year high

Posted on 28 April 2016 by VRS  |  Email |Print

On Wednesday, silver jumped to the highest since mid-May last year, as the metal continues to be rerated against the gold price and industrial metals demand gets a boost.
Silver futures in New York for delivery in May, the most active contract, added nearly 2% in early dealings to trade at $17.48 an ounce, before paring some of those gains by the close………………………………………..Full Article: Source

Silver bullion momentum building as supply trouble brewing

Posted on 28 April 2016 by VRS  |  Email |Print

Silver bullion prices are likely to rise further as there is “supply trouble brewing” as strong industrial and investment demand are confronted by declining supply.
“There are signs that this year could be a pivotal year for the silver market,” New York-based CPM Group said in its “Silver Yearbook 2016… Silver mine supply is forecast to decline for the first time in 2016, since 2011,” CPM said, noting scheduled closures and planned production cutbacks………………………………………..Full Article: Source

Gold price could hit $1,300/oz on weaker dollar, global risks – HSBC

Posted on 27 April 2016 by VRS  |  Email |Print

The gold price has the potential to hit $1,300 this year thanks to gold-bullish factors including a weaker dollar, global risks and a modest recovery in oil prices, HSBC said. A move above $1,300 would take the yellow metal to the strongest since January 2015. Spot gold was last at $1,233.30/1,233.60 per ounce, down $3.70 on Tuesday’s close.
“We find two reasons that reaffirm our broadly bullish view on gold. The potential for US dollar weakness ahead, particularly vs the euro, helped by a truce in the currency wars. Gold could also benefit from hedging ahead of the UK referendum on remaining in the EU,” the bank said in a note………………………………………..Full Article: Source

China’s Gold Imports Jump on Investment Demand as Price Falters

Posted on 27 April 2016 by VRS  |  Email |Print

China, the world’s biggest gold consumer, increased bullion imports from Hong Kong in March as a global price rally stalled and local investment demand showed signs of recovery. Net purchases climbed to 64.1 metric tons from 42.9 tons in February and 61.8 tons a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg.
The mainland bought nearly 76.3 tons compared with 55.1 tons a month earlier, while exports to Hong Kong were 12.1 tons from 12.2 tons. Mainland China doesn’t publish the data………………………………………..Full Article: Source

Gold Sees Modest Gains as Bulls Continue to Show Resilience

Posted on 27 April 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session firmer Tuesday. The key “outside markets” were in a bullish posture for the precious metals markets, as the U.S. dollar index was lower and crude oil prices were solidly higher. Gold prices continue to show resilience despite a lack of major, fresh bullish fundamental news in the marketplace.
June Comex gold was last up $3.30 at $1,243.50 an ounce. July Comex silver was last up $0.101 at $17.16 an ounce. Gold prices erased early-morning losses in the wake of a weaker-than-expected U.S. durable goods orders report issued at 8:30 a.m. eastern time. The downbeat data falls into the camp of the U.S. monetary policy doves, who do not want the Federal Reserve to raise interest rates any time soon………………………………………..Full Article: Source

These 5 Trends in China Will Change the Gold Market Forever

Posted on 27 April 2016 by VRS  |  Email |Print

Apple spent about five years developing the iPhone, which has changed the smartphone market forever. Until the release, however, nobody could imagine what impact the iPhone would have on the market. And most consumers didn’t know about it at all.
The same thing is happening with China and gold right now. The gold market will soon be very different than from what we see today—largely due to the current developments in China. China’s influence will impact not just gold investors but everyone who has a vested interest in the global economy, stock markets, and the US dollar. After all, China will be a dominant force in all, as most analysts project………………………………………..Full Article: Source

All that glitters isn’t gold. It’s silver

Posted on 27 April 2016 by VRS  |  Email |Print

Silver has given a 14.3% returns in April alone, over the first quarter of 2016, riding on Chinese demand which is likely to spark interest among investors who had missed the recent rally in the metal.
“The metal is on consolidation mode and the current upside is expected to continue, and investors are likely to participate in the metal in the coming weeks,” Himanshu Gupta, senior market strategist, Karvy Commodities Broking, said………………………………………..Full Article: Source

Silver Supply Trouble Shows Why Rally Momentum Is Building

Posted on 27 April 2016 by VRS  |  Email |Print

More good news for silver bulls: there’s supply trouble brewing. Output from mines will fall for the first time since 2011, while demand for the metal in uses including industrial products and jewelry is heading for a fourth straight gain, supporting prices, according to CPM Group.
The market is entering what is “likely to be a pivotal year,” the New York-based researcher said in its “Silver Yearbook 2016.” Production is declining just as signs of stabilization in China’s economy fuel optimism for stronger global demand, helping drive a 24 percent rally in silver this year through Monday that topped gold’s performance………………………………………..Full Article: Source

Hedge funds aren’t wavering on gold price rally

Posted on 26 April 2016 by VRS  |  Email |Print

Goldman Sachs not so much – sees $150 drop in near term. Gold has been drifting lower after hitting a 13-month high of $1,274 an ounce in March but remains up just under 17% in 2016. Large gold futures and options speculators or “managed money” investors such as hedge funds have also stayed bullish on the metal despite expectations of higher interest rates in the US later this year.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold Price Target is $3,000 and Silver is $75 per Ounce

Posted on 26 April 2016 by VRS  |  Email |Print

Precious metals have posted their best quarter in nearly 30 years and mining stocks are soaring from oversold multi-year lows. Those that were willing to buy when everyone else was selling have been handsomely rewarded in 2016. But we believe the gains are just getting started.
After such a huge move to start the year, many have been anticipating a sharp pullback for gold and silver on profit taking. This would make sense, especially considering the record short positions by commercial traders. Plus, nothing goes straight up, not even deeply oversold assets awakening from a 4-year correction. It is almost always a roller coaster ride………………………………………..Full Article: Source

Barclays: Gold Leads Investment In Commodities During First Quarter

Posted on 26 April 2016 by VRS  |  Email |Print

Investors appear to be focusing on individual commodities more-so than passively buying the entire sector, with gold a beneficiary, says Barclays. Commodities investment surged in the first quarter, with $24.2 billion of inflows and price appreciation bringing assets under management in commodities to $193 billion, the bank calculates.
“Gold has been the primary driver of investment flows so far in 2016, taking over from oil, which was the dominant driver in 2015,” Barclays says. Precious metals had the second-largest quarterly inflows on record at $15.7 billion, the bank says………………………………………..Full Article: Source

All you wanted to know about the Shanghai Gold Fix

Posted on 26 April 2016 by VRS  |  Email |Print

China’s displeasure over the dollar’s supremacy in global financial markets is no secret. The Chinese feel the yuan should rightfully be the preferred reserve currency of all nations. In yet another move to dethrone the dollar, China has now decided to get its own gold benchmark that will be denominated in yuan.
While the Shanghai Gold Fix may not immediately have an impact on international gold prices, it does help diminish the need for the dollar. Gold prices will now be fixed twice every day in China, based on the contracts traded on the Shanghai Gold Exchange. Shanghai gold fix will compete with the popular benchmark, the London Fix, which is set by the London Bullion Market Association………………………………………..Full Article: Source

Gold Extends Early Gains Amid Bullish ‘Outside Markets’

Posted on 26 April 2016 by VRS  |  Email |Print

Gold prices are higher and trading near the daily high in late-morning dealings Monday. A lower U.S. dollar index is a bullish outside market force working in favor of the precious metals markets. Also, crude oil prices have recovered early losses and are holding slight gains, which is also a positive for the metals markets.
Lower U.S. stock index prices are also adding a bit of safe-haven demand for the gold market as midday approaches. June gold was last up $12.00 an ounce at $1,242.00………………………………………..Full Article: Source

Silver Prices: Silver Bullion Could Soar 147% in 2016

Posted on 26 April 2016 by VRS  |  Email |Print

Silver may not be as scarce as gold but it has become much more attractive to investors. While silver prices recently soared to an 11-month high, silver continues to provide investors with more upside potential than gold.
After a record four consecutive years of declines, silver has been rewarding precious metal bulls in 2016. Silver prices have been on a tear in 2016, and recently hit an 11-month high. Currently exchanging hands at around $17.00 an ounce, silver prices are up 23% year-to-date………………………………………..Full Article: Source

Macro picture sees precious metal shine

Posted on 26 April 2016 by VRS  |  Email |Print

Gold generally finds favour among investors during periods of turbulence thanks to its reputation as a “safe haven” asset, so it is hardly surprising people are allocating to the metal once again this year.
Seven Investment Management’s multi-asset team has bought gold for the first time in three years, as reported by Investment Adviser earlier this month, showing fund managers are dipping their toes back into the asset class………………………………………..Full Article: Source

31 Gold ETFs Investors Should Size Up

Posted on 26 April 2016 by VRS  |  Email |Print

Gold exchange traded funds have been a bright spot in the markets this year as an extended low-rate environment, depreciating U.S. dollar and volatility pushed investors into the hard asset. At the start of the year, gold enjoyed safe-haven demand as the equities market plunged into a correction.
Gold maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes. Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated cheaper for foreign buyers and a better store of value for U.S. investors………………………………………..Full Article: Source

Bullion Cues: China gets its own gold benchmark

Posted on 25 April 2016 by VRS  |  Email |Print

The new gold contract, based on the domestic market demand and supply dynamics, will help in better price discovery. China has launched a yuan-denominated gold contract which will act as the benchmark price for gold in the country.
It was only in November that the renminbi was included in the IMF’s SDR basket and it received the reserve currency status (to take effect in October 2016). The new gold contract, launched last week, is expected to help in better price discovery in gold as it will be based on the domestic market demand and supply………………………………………..Full Article: Source

Gold Back in Fashion? Why Precious Metal Has Made an ‘Amazing Comeback’

Posted on 25 April 2016 by VRS  |  Email |Print

Gold is coming back into fashion: ‘left for dead’ for almost four years it’s up over 50 percent this year, Manhattan-based financial writer Michael Brush notes. Does it mean the precious metal is ‘back for good’?
Gold has always been regarded as a secure haven for wealth and has played an insurance role in portfolios. “Gold has always played an insurance role in portfolios — against global disaster, geopolitical meltdown or inflation,” Manhattan-based financial writer Michael Brush writes in his article for MarketWatch.com………………………………………..Full Article: Source

Gold, already on its way up, may head even higher

Posted on 25 April 2016 by VRS  |  Email |Print

Gold bugs may have a firmer grip on the market than you think. Consolidation in the precious metal has become the driving force for positive near-term momentum in the space, said Zev Spiro, CEO and chief market technician at Orips Research. It comes as both gold and silver trade around their highs for the year.
“As long as prices hold above support in the $1,190-$1,205 area, then the composure remains positive,” Spiro told CNBC’s “Futures Now” in a recent interview. “Upward momentum is expected with a breakout above the $1,275-$1,280 area. So, that’s where I expect the new wave of buying would come in and could carry prices higher.”……………………………………….Full Article: Source

China eyes more say in global gold pricing

Posted on 22 April 2016 by VRS  |  Email |Print

With the launch of its own gold price benchmark, China, the world’s biggest producer and consumer of gold, has more influence in the pricing of the precious metal. It will be some time, however, before “Shanghai Gold,” launched by the Shanghai Gold Exchange on Tuesday, can truly challenge the dominance of its international counterparts.
The fix, the Shanghai Gold Benchmark Price, was set at 260.39 yuan (US$40.20) per gram yesterday morning; by the afternoon the fix was 261.82 yuan. As the first gold price benchmark denominated in the Chinese currency, the fix is the quote for trading of 1 kilogram of 99.99 percent purity bullion, derived from multiple rounds of trading………………………………………..Full Article: Source

The Biggest Gold Buyer: India Is Back!

Posted on 22 April 2016 by VRS  |  Email |Print

Indian jewelers have called off their 43-day strike, which began as a reaction to a 1% excise duty on gold jewelry. For nearly six weeks, the global gold market was missing its largest buyer. Gold purchases across India were paralyzed by a strike from national jewelers’ associations.
The Indian physical markets stayed away from the dramatic rise in gold, which has gained 17% on a YTD (year-to-date) basis. The rise in gold is also reflected in mining-based funds. The Market Vectors Junior Gold Miners ETF (GDXJ) has risen 71% YTD. Mining returns are often more amplified than metal returns………………………………………..Full Article: Source

Does the Gold Price Have the Legs to Extend and Drag Silver Higher?

Posted on 22 April 2016 by VRS  |  Email |Print

Most analysts explain the recent surge in the price of silver as a reaction to an increase in the Gold to Silver ratio. This is essentially just a clever way of saying that silver had become extraordinarily cheap compared to its precious metal cousin gold, and as such was viewed as a bargain by investors, who flocked to buy it.
The Gold to Silver ratio is a calculation of the number of ounces of silver it takes at any given time to buy an ounce of gold. Historically it has averaged about 50 but recently in March 2016 it rose to a peak of 82, and that is when silver started to move higher, recovering the difference in value………………………………………..Full Article: Source

5 Tips on Buying Silver

Posted on 22 April 2016 by VRS  |  Email |Print

In today’s economic climate, investing in precious metals makes sense. More and more investors are looking at buying silver, and there are several ways to accomplish this. Investing in gold and silver is an ideal way to both diversify an investment portfolio and to hedge against adverse conditions in the market.
While the silver market isn’t nearly as large as the market for gold investing, it’s an affordable investment that provides many protections as well as healthy returns. In fact, silver has seen double-digit returns in the last seven out of ten years, and 2016 is expected show more promising numbers………………………………………..Full Article: Source

Why you need to ‘stay away’ from gold

Posted on 21 April 2016 by VRS  |  Email |Print

Investors and traders have gone for gold in the past few months, but some analysts warn that the metal could be set for a drop. “Gold is a notoriously difficult trade,” said Eddy Elfenbein, editor of the Crossing Wall Street blog. “It’s a highly speculative bet on the direction of short term interest rates, real rates, and I think with the Fed where they are right now and with the last inflation report, I don’t think real rates are going to go any lower for the rest of the year.”
Gold lost a third of its value between the start of 2013 and the end of 2015. But in 2016, the metal has become a highly sought after commodity, as the Federal Reserve has avoided tightening interest rates, and the dollar has turned a bit lower………………………………………..Full Article: Source

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