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Commodities Briefing - Category | Bullion/Gold more

India’s gold demand could rise in second quarter, says WGC

Posted on 15 May 2015 by VRS  |  Email |Print

Gold demand in India, the world’s second-largest consumer of the metal after China, is likely to increase in the April-June quarter, from the first quarter. Demand will get a boost from strong buying during a major festival, lower prices and robust economic growth, according to the World Gold Council (WGC).
Second-quarter gold demand numbers for India, expected to be released by mid-August, will likely show an improvement over the first-quarter, when China was the top consumer, overtaking India by nearly 100 tonnes, the WGC said…………………………………..Full Article: Source

Global Gold Market Remains Steady In Q1 2015 Demonstrating The Unique Diversity Of Gold Demand

Posted on 15 May 2015 by VRS  |  Email |Print

The first three months of 2015 saw stable gold demand, according to the latest Gold Demands Trends report from the World Gold Council. Total demand for Q1 2015 was 1,079 tonnes (t), down just 1% on the same period last year.
Conditions differed from market to market, but at an aggregate level, these differences broadly balanced each other out. Once again, consumers in Eastern countries dominated the market with China and India alone accounting for 54% of total global consumer demand in the quarter…………………………………..Full Article: Source

What Might be behind Gold Price Jump

Posted on 15 May 2015 by VRS  |  Email |Print

Over the years, I have written occasionally about the connection between the demand for U.S. government debt and quantitative easing. My contention is straightforward. The primary determinant for quantitative easing is not, as we are constantly told, to keep the unemployment rate down, nor is it to stimulate the economy.
(I emphasize the word “primary” as opposed to the word “only”) It is to support the government debt market and keep government in business – not just in the United States but wherever it is employed. So when you see the price of gold suddenly shoot up over $20 in a single day, these days you look in the direction of the debt market and by extension interest rates to see if that is what driving interest in the metal…………………………………..Full Article: Source

The Next Gold Bull Market Starts Before October

Posted on 15 May 2015 by VRS  |  Email |Print

At an International Monetary Fund (IMF) forum last month, China’s central bank governor, Zhou Xiaochuan, made it clear he believes the renminbi is “ready for reserve status.” It would be a huge step for the Chinese currency, starting with the fact that it would be added to the basket of currencies IMF member countries can include in their official reserves. Billions would be invested in it.
What was the IMF’s reaction? “We welcome and share this objective,” said IMF Managing Director Christine Lagarde. “We are now working closely with the Chinese authorities in this regard,” added Director of Communications Gerry Rice. They didn’t say they would accept it, but then again, they surely wouldn’t advertise it in advance…………………………………..Full Article: Source

Palladium to outperform platinum, move towards convergence – ANZ

Posted on 15 May 2015 by VRS  |  Email |Print

Palladium will continue to outperform platinum, with the prices of the two metals moving further to convergence amid differing fundamentals, ANZ Research said. Platinum was recently quoted at $1,149/1,155 per ounce, up $4 on Wednesday’s close and recovering from March’s sub-$1,100 lows – its softest since July 2009. Palladium, meanwhile, was last at $784/789, up $1.
“The price of the two metals should move closer to parity over the next few years, based on how we expect the market supply/demand balances to evolve,” the broker said in a note on Thursday. “But it is likely to be a long grind rather than a quick shift. In reality, this would just be a continuation of the downtrend in the platinum/palladium ratio in place since 2009,” it added…………………………………..Full Article: Source

Macquarie lowers 2015 gold, silver price forecasts

Posted on 14 May 2015 by VRS  |  Email |Print

Investment firm Macquarie sees average 2015 gold price forecast at $1,231 per ounce and silver at $17 per ounce.
It also made small reductions to gold, silver forecasts to reflect view that US interest rate rise will become increasingly priced-in during second quarter, strengthening the dollar…………………………………….Full Article: Source

Gold prices surge above $1,200/oz as US data underwhelms

Posted on 14 May 2015 by VRS  |  Email |Print

Gold prices broke through the physiological barrier of $1,200 per ounce for the first time in two weeks as US data continues to disappoint and oil prices rise. Gold for June delivery on the Comex division of the New York Mercantile Exchange climbed by $12.60 to $1,205 per ounce. Trade has ranged from $1,190.40 to $1,206.90.
In US data, core retail sales month-over-month in April were up 0.1 percent, off the 0.4 percent forecast, while retail sales month-over-month for April was unchanged, missing the estimates of 0.3 percent. Even more pronounced, April import prices month-over-month were down 0.3 percent, in opposite direction of the 0.3 percent increase forecast…………………………………….Full Article: Source

7 Common Misconceptions About Gold

Posted on 14 May 2015 by VRS  |  Email |Print

Gold is perhaps one of the most misunderstood physical assets out there. Below are seven common misconceptions we gathered about gold. 1. The United States Dollar is backed by gold. The U.S. dollar was backed by gold for some time, but is not anymore. After President William McKinley signed the Gold Standard Act in 1900, the U.S. went on a gold standard in which one dollar was convertible to 1.5 g (23.22 grains) of gold.
In early 1933, President Franklin D. Roosevelt suspended the gold standard with the exception of foreign exchange. In 1971, in the most well-known of the “Nixon Shock” series of actions, President Richard Nixon severed all ties between the U.S. dollar and gold, effectively abolishing the gold standard…………………………………….Full Article: Source

What’s Next for the Gold Price?

Posted on 13 May 2015 by VRS  |  Email |Print

Will gold zoom higher with Greece on the brink of default? Or will it crash as the Fed pursues an “exit?” Why has gold not rallied with the recent retreat of the dollar? To understand where gold may be heading, keep in mind that this shiny metal isn’t changing; it’s the world around it that is. We contemplate why investors may want to hold gold as part of their portfolio.
In today’s world where the utterance of a pundit may move markets, it may be helpful to go back to basics to allow investors to make up their own mind as to what drives markets and what may be a good investment. As such, gold is simply a precious metal, a rare, naturally occurring chemical element that tends to be less reactive than most elements………………………………………..Full Article: Source

Gold – looking vulnerable as resistance persists

Posted on 13 May 2015 by VRS  |  Email |Print

Despite an initial lift from safe-haven demand early in the year, gold remained overshadowed by dollar strength – markets continued to price in the start of higher interest rates in US later this year. Seasonally strong physical demand helped cushion the impact of speculative and investor disinvestment and will continue to do so into the second quarter.
But while this demand fades, gold will be increasingly vulnerable to downside pressure, we feel. Still, the dollar may have run ahead of itself so a period of dollar weakness could provide some lift. For the second quarter we are looking for a range of $1,170-$1,250 per ounce………………………………………..Full Article: Source

Why China Is Taking Control Of Physical Gold Pricing

Posted on 13 May 2015 by VRS  |  Email |Print

The Chinese have always been in love with gold. And this year especially China is taking several steps to rattle gold markets. The country is currently lobbying to be including in the International Monetary Fund’s reserve currency and gold has a lot to do with that process. Estimates say China has amassed thousands of tons of gold reserves that could rival the United States in the future.
“It is the Chinese view that all great currencies have gained prominence in some measure because of the hard asset reserves the government standing behind the currency holds. Gold reserves both from the government and reserves held by the population are a key factor for economic security for them,” says Simon Mikhailovich, managing director at Tocqueville Bullion Reserve………………………………………..Full Article: Source

Gold price shrugs off Chinese stimulus

Posted on 12 May 2015 by VRS  |  Email |Print

The gold price struggled to gain any momentum on Monday, despite the likelihood of a delay to any US interest rate rises and news of further stimulus measures out of China over the weekend.
Spot gold was last seen at $1,184.50/1,185.30 per ounce, down $2.80 on the pre-weekend session and trading within a $6 range so far. In other metals, silver was down one cent at $16.40/16.45 per ounce, while platinum fell $2 at $1,136/1,141 per ounce, and palladium was unchanged at $795/800………………………………………..Full Article: Source

Precious Metals - Gold Continues To Disappoint Everyone

Posted on 12 May 2015 by VRS  |  Email |Print

The dollar corrected and gold ignored it. Divergences continue. It is a range trade. What will make gold break out of the range? All signs continue to point south. The price action in gold is like watching paint dry these days. Everything about gold is boring lately. June COMEX gold futures closed at $1187.30 on Friday, May 8 — just $3.20 above where it was at the end of December 2014. All I can really say about the gold market these days is — Zzzzzzzzzzzzzzzzzzz.
There are many devotees of the gold market; there are also plenty who believe that gold is just a barbarous relic of the past. Gold is a beautiful lustrous metal and it evokes passionate emotions from bulls and bears alike………………………………………..Full Article: Source

What an Increase in M&A Activity among Gold Miners Could Mean

Posted on 12 May 2015 by VRS  |  Email |Print

Gold traders were bullish for a second week on speculation a weaker dollar may support gold demand. As the U.S. dollar has seen sustained retrenchment lately, the “smart money” is taking the bullish-dollar bets off, as CFTC data show the value of positive bets in the futures pits have fallen to four-month lows.
Bullionvault’s Gold Investor Insight rose in April as clients added the most metal in 20 months. Investors sold the most gold from bullion-backed funds in anticipation of this week’s employment report potentially showing stronger job growth. Gold has posted three straight months of losses, the longest slump since December 2013. The latest payrolls report, which showed a net increase of 223,000 for April, added to recent pressure on gold………………………………………..Full Article: Source

Silver no longer the poor man’s gold as solar demand surges

Posted on 12 May 2015 by VRS  |  Email |Print

New industrial uses for the precious metal could result in demand surging. Silver has been mined for thousands of years. But for most of the 20th century it was the poor man’s precious metal, its value eclipsed by the enduring lure of gold.
The first big revolution in silver came in 1492 with the discovery of the New World, which opened up mining of the metal on a scale not previously seen. In the centuries that followed Hernán Cortés and the conquistadors’ destruction of the Aztecs, Peru, Bolivia and Mexico accounted for three-quarters of all world production and trade in the metal………………………………………..Full Article: Source

Bullion to benefit from likely financial markets volatility

Posted on 11 May 2015 by VRS  |  Email |Print

Analysts are unsure as to how gold prices will move next week and expect bullion to take its cues from the financial markets, where any sign of volatility could help boost the metal’s safe-haven status. Analysts will be tracking the Bank of England’s (BoE) interest rate decision alongside GDP data from the UK, Germany and from the Eurozone next week.
They will also be watching retail sales and manufacturing data due out in the US, and the financial markets’ reaction to economic data through the week. The yellow metal could also draw support from any unexpected geopolitical event………………………………………..Full Article: Source

Indian people hold 20,000 tonnes of gold

Posted on 11 May 2015 by VRS  |  Email |Print

It may come as little surprise to those who understand the “fear trade” and the “love trade” in gold, as Frank Holmes of US Global Investors likes to say. Last week the Economic Times reported that the Indian public hold 20,000 tonnes of the yellow metal in jewelry, coins and gold bars. It was unclear from the media report what was the source of the “20,000-tonnes” comment, but Arun Jaitley, the Indian Finance Minister, reportedly stated the figure after noting that the Indian government does not have data on gold held by the general public.
However it would mesh with a news story three years ago in The Financial Express, which said that Indian households have amassed up to 20,000 tonnes for a historic high of $1.16 trillion, based on the gold price in 2012. The figure came from the World Gold Council (WGC) which estimated that India’s household gold reserves at the time were 11 percent higher than the 18,000 tonnes it had earlier pegged………………………………………..Full Article: Source

Gold Holds Gain on Rate Outlook After Jobs Data; Palladium Drops

Posted on 11 May 2015 by VRS  |  Email |Print

Gold held an advance as investors gauged the outlook for higher interest rates after data showed that U.S. payrolls increased and unemployment fell while wage gains were limited. Palladium dropped from an eight-week high.
Bullion for immediate delivery added as much as 0.2 percent to $1,190.54 an ounce and was at $1,190.05 at 8:55 a.m. in Singapore, according to Bloomberg generic pricing. The metal rose 0.3 percent on Friday after the Labor Department release to cap the first weekly gain in a month. Gold in Shanghai fell………………………………………..Full Article: Source

Gold an ‘unreliable’ hedge against geopolitical risk – SocGen

Posted on 08 May 2015 by VRS  |  Email |Print

Gold is not reliable as a hedge against geopolitical risks, Société Générale said on Thursday. The performance of the yellow metal in periods of regional military conflicts is mixed and it has not performed well consistently, the bank said in a note on Thursday.
One of the most recent examples is the annexation of Crimea by the Russian military during which gold initially rallied towards $1,400. “[But] the gold rally didn’t last very long and it wasn’t long before gold was trading at levels below when armed men seized Crimea’s parliament,” SocGen said………………………………………..Full Article: Source

Gold At Buy Point: RBC

Posted on 08 May 2015 by VRS  |  Email |Print

Analysts have noted that the gold market has suffered because of lackluster investment demand, as investors shift away from precious metals and into higher yielding assets like equities. However, one analyst at RBC Wealth Management sees some higher short-term risk to equity markets, which could be bullish for gold and silver.
Bob Dickey, technical analyst at RBC, said in his Market Maps report, published Tuesday that the S&P 500 is six years into what could be a 27-year secular bull market, if historical patterns prove correct. “The years ahead could represent a good time to own stocks, in general, much like it was in the 1975–2000 period,” he said in the report………………………………………..Full Article: Source

Thomson Reuters GFMS: Silver Price to Average $16.50 in 2015

Posted on 08 May 2015 by VRS  |  Email |Print

May 5 brought the release of the World Silver Survey 2015, an extensive report completed annually by Thomson Reuters GFMS on behalf of the Silver Institute. The document outlines key silver price, supply and demand trends for 2014 and includes some information into what may be in store for 2015.
To get a little more insight on those topics, Resource Investing News spoke with Andrew Leyland of Thomson Reuters GFMS. Here’s what he had to say. Silver mine supply came to a record 877.5 million ounces in 2014, with total market supply (also including scrap and net hedging supply) reaching 1,061.8 million ounces, the highest level since 2010………………………………………..Full Article: Source

Global surge in silver output passes SA by

Posted on 08 May 2015 by VRS  |  Email |Print

South Africa is Africa’s second-largest silver producer, but it is minuscule when compared with global supply, which last year notched up a 12th consecutive year of growth to reach 877-million ounces. Silver in SA is largely a by-product of other mining processes, and production has remained constant at about 2.8-million ounces a year over the past decade.
Silver is used mainly in industrial, jewellery and investment applications. The silver market ended last year with a 4.9-million ounce deficit, but the price fell 20% to $19.08/oz, the lowest average annual price since 2009, according to the 2015 World Silver Survey compiled by Thomson Reuters GFMS………………………………………..Full Article: Source

China One Step Closer to Becoming World’s Gold Hub

Posted on 07 May 2015 by VRS  |  Email |Print

Chinese ambitions to become the world’s leading gold trading hub and international financial hub have taken another step forward. Trials were quietly conducted to launch a yuan-backed gold pricing benchmark last month, according to Reuters today.
China, the world’s largest gold producer and buyer, feels its market weight should entitle it to be a price setter for gold bullion. It is asserting itself at a time when the established benchmark, the century old London ‘gold fix’, is under scrutiny because of long-running allegations of price manipulation. The new Chinese gold price benchmark may be launched before the end of the year………………………………………..Full Article: Source

Can Gold Save the World From the Credit Bubble?

Posted on 07 May 2015 by VRS  |  Email |Print

In a financial world of contradictions, chaos, and confusion, perhaps a “gold-centric” perspective will provide clarity. The media is filled with comments from notable “gold-bashers” such as Benjamin Bernanke, Warren Buffett, and Bill Gates. Their criticisms of gold (in my opinion) boil down to:
Gold has no real value – you can’t eat it or do much with it except make jewelry. It is a barbarous relic etc. Gold makes no sense. Why dig it from the ground, refine it, and then lock it in a vault where it sits producing nothing? Gold prices are volatile. Gold is an unsafe investment. Gold pays no interest. 101 more criticisms of the oldest money in the world………………………………………..Full Article: Source

Silver to slump 14% in 2015 – GFMS

Posted on 07 May 2015 by VRS  |  Email |Print

Silver prices on average will decline 14 percent this year as speculation that the Federal Reserve will raise U.S. interest rates spurs a shift to alternative assets, Thomson Reuters GFMS said. Silver will drop to $16.50 an ounce from the average fixing price of $19.08 in 2014, Andrew Leyland, manager of precious- metal demand at Thomson Reuters GFMS, said.
Silver futures declined 2.7 percent last month after the Fed damped speculation that it will delay boosting borrowing costs. Higher rates drive investors to favor assets that pay interest, such as bonds, curbing the metal’s appeal as a store of value, since it generally offers returns only through price gains………………………………………..Full Article: Source

Global silver output running low — report

Posted on 07 May 2015 by VRS  |  Email |Print

After over ten years of gains, global silver production is expected to drop this year, as new supply from projects won’t be sufficient to replace production losses from aging operations, a study released Wednesday shows.
According to the World Silver Survey 2015, published by The Silver Institute and Thomson Reuters GFMS, global silver output went up by 5% in 2014 to reach 877.5 million ounces, the 12th successive gain and a new record. This year, however mine supply is set to decrease………………………………………..Full Article: Source

CPM Group Calling for Silver Price Consolidation in 2015

Posted on 07 May 2015 by VRS  |  Email |Print

CPM Group released its Silver Yearbook 2015 on Wednesday, and while the document is aimed at educating investors about silver market trends and fundamentals, it likely contains few surprises for those who’ve kept an ear to the ground.
For one thing, the firm cautions readers not to expect anything too dramatic this year in terms of silver price action. Instead, it’s calling for silver price consolidation as the US economy and dollar continue to strengthen. Specifically, CPM sees the silver price averaging $16.93 per ounce in 2015, with the metal trading in a range of $15.66 to $18.51………………………………………..Full Article: Source

15 Precious Metals Terms All Gold Buyers Should Know

Posted on 07 May 2015 by VRS  |  Email |Print

For the sake of simplicity, “gold” in any of the definitions below can be replaced with silver, platinum, or palladium. 1. Ingot: A mass of metal formed into a convenient shape for shipping, storing, or further processing. Ingot and bar may be used interchangeably in regards to precious metals.
2. Bullion: Precious metals in the form of bars, coins, or other ingots. Not to be confused with bouillon, the French word for broth. 3. Circulated/Uncirculated: Circulated coins have been used as currency by the public, and uncirculatedcoins have not. Uncirculated coins are usually in much better condition than circulated ones………………………………………..Full Article: Source

Gold price holds below $1,200

Posted on 06 May 2015 by VRS  |  Email |Print

Gold held below $1,200 an ounce before U.S. monthly jobs data later this week that may provide indications on when the Federal Reserve will boost interest rates. Gold last week erased this year’s gains after the Fed said U.S. growth will rebound, damping speculation that rate rises may be delayed amid mixed data on the economy.
Fed Bank of Chicago President Charles Evans said on Monday the central bank should wait for more evidence wages are rising before boosting rates. Higher rates hurt the allure of gold, which usually only provides a return if prices rise. “The market will remain focused on the U.S. payrolls number to be released this week,” Australia & New Zealand Banking Group Ltd. wrote in an e-mailed note. “A weak print could see gold push above $1,200 an ounce.”……………………………………….Full Article: Source

Silver investors corner the market, not JP Morgan

Posted on 06 May 2015 by VRS  |  Email |Print

On Friday GoldCore posted an article asking whether JP Morgan was cornering the silver bullion market, noting their Comex warehouse stocks of 55 million ounces and claims by Ted Butler that they “may be holding as much as 350 million ounces of physical silver.” My short answer: I don’t think so.
The clear import from the article is that because the warehouse has JP Morgan’s name out front that all the silver insider is theirs. However, JP Morgan has large market share of global precious metal market activity with a significant number of industry participants using JP Morgan to buy and sell physical and futures, and for storage services. It is therefore highly unlikely that none or little of the silver in JP Morgan’s warehouse is held on a custodial basis for clients………………………………………..Full Article: Source

Silver Market Update: Could A Reversal Be On The Way?

Posted on 06 May 2015 by VRS  |  Email |Print

Silver’s long bear market, from its 2011 highs, is believed to be “nested” within a larger bull market, along with gold’s, as discussed in more detail in my parallel Gold Market update, to which the reader is referred. This is an echo of what happened in the 70s, when both gold and silver went into a heavy correction in 1975 and 1976 that was taken at the time to be a new bear market, but ended up leading into a massive parabolic ramp that took silver to dizzying heights as the Hunt brothers attempted to corner the silver market.
The second major upleg of this bull market should take silver to levels that dwarf those of the 70s peak, and this is not some deluded fantasy but based on a sound assessment of the trends in currencies and debt now extant………………………………………..Full Article: Source

A ‘Cash-Less Society’ = Bullion Confiscation

Posted on 06 May 2015 by VRS  |  Email |Print

As the corrupt regimes of the West move slowly but inexorably toward “banning cash”; it’s very important that bullion-holders understand the full implications of the latest, fascist moves by these regimes. Simply, “banning cash” = bullion confiscation.
If the Zombie-serfs of Western nations are no longer allowed to hold any of our debauched paper ‘money’, they certainly won’t be allowed to hold real money – i.e. gold or silver. However, even here there may be a means of escape, for those who plan for this (inevitable?) eventuality………………………………………..Full Article: Source

Gold may witness gentle bull run in 2015: GFMS

Posted on 05 May 2015 by VRS  |  Email |Print

Despite gold’s inverse co-relation with the dollar, precious metals consultancy firm GFMS predicts a “mild bull run” in gold in 2015. This could happen even when the dollar gains strength after the US Federal Reserve hikes interest rates. Speculations on rising interest rates in the US have been putting pressure on gold price for some time now. GFMS finds that there will be a complex interplay between competing asset classes, like gold and dollar, while the investors will implement fresh strategies.
There appears to be something of a contrarian consensus developing in the gold market. Higher US rates, when they come, will trigger higher gold prices, whereas usually higher interest rates, in a low inflationary environment, would be bad for gold as a non-yielding asset class, GFMS said in the quarterly update on the metal………………………………………..Full Article: Source

Gold Long-term Outlook for Massive Parabolic Run to $5,000

Posted on 05 May 2015 by VRS  |  Email |Print

In order to comprehend why the long-term outlook for gold (and silver) is so positive you only have to understand that global debt and balance sheets are set to expand indefinitely. The controllers of the system had the chance to demand that the books be balanced back in the financial crisis of 2008 - 2009, but they weren’t interested - they were much more interested in taking the easy way out and lining their own pockets at the expense of society at large, by printing vast quantities of money which they gifted to themselves, and fleecing savers via zero and now negative interest rates.
They were then able to use their Central Bank generated cash handouts to make even more money by speculating in global property and stockmarkets, and magnify their gains even more via the carry trade………………………………………..Full Article: Source

Will gold get back its sheen?

Posted on 05 May 2015 by VRS  |  Email |Print

The key factor working against gold right now is the imminent rate hike by the US Federal Reserve. “Gold will be a bad asset class once the Fed starts hiking rates. Low inflation and rising interest rates are bad news for gold,” says Kishore Narne, Associate Director, Mo tilal Oswal Commodities Broker.
“The dollar will rise if the US Fed hikes interest rates. So, the outlook for gold is likely to remain bearish for the next one year,” concurs C.P. Krishnan, Wholetime Director, Geojit Comtrade. However, don’t expect a big fall in gold either. “Gold has peaked out in dollar terms. But the geo-political situation is fast changing,” says Jayant Manglik, President, Retail Distribution, Religare Securities……………………………………….Full Article: Source

Six Silver Questions and Perspectives

Posted on 05 May 2015 by VRS  |  Email |Print

The next time you find yourself contemplating, worrying, or wondering with anxiety whether it’s too simple to be true; it is not simple - it’s exceedingly complicated. Not because the fundamentals are all that hard to understand. And not because in principle it is sound personal action in any time period.
But it is complicated because we’ve spent so many years off the rails of sound economic principles that we don’t recognize them when we see them. And the inertia to change is very intense on an unspoken level. Each step we take to make it right–to do what is wise– is met with a startling resistance. Almost an unconscious, collective river moving against progress………………………………………..Full Article: Source

Silver: Consolidating Into A Wedge Pattern?

Posted on 05 May 2015 by VRS  |  Email |Print

Silver has continued to consolidate its position, within a very tight trading range, since experiencing a strong selloff a week ago. Despite the bearish pressure,silver has managed to close through some limited resistance at 16.220 and it now appears in the early stages of forming a rising wedge. Considering that the highs are getting higher, it might be time for Silver to retrace some of the gains it lost over the past few days.
Silver has also been under considerable scrutiny of late as JP Morgan has acquired a significant position in the commodity with some analysts suggesting that they are now in a position to corner the market………………………………………..Full Article: Source

Gold equities may be better bet than physical metal

Posted on 04 May 2015 by VRS  |  Email |Print

While the price of gold has meandered in a narrow range this year, gold equities have improved somewhat and an analysis of relative performance suggests they may have further to rally. Spot gold ended Thursday’s trade at $1,183.85 an ounce, largely unchanged from $1,183.55 at the end of 2014, as the precious metal battles the competing influences of a firmer dollar and concerns over a Greek exit from the eurozone.
However, major gold miners have shown some improvement, with the S&P TSX Global Gold Index gaining 14% so far this year. The Toronto Stock Exchange-based index groups together the world’s top gold producers, including No 1 Barrick Gold Corp, which is up 20.5% this year in US dollar terms, and No.2 Newmont Mining Corp, which has gained 40%………………………………………..Full Article: Source

Gold Speculators Net Bullish Positions Virtually Unchanged Last Week

Posted on 04 May 2015 by VRS  |  Email |Print

Gold speculator and large futures trader positions were virtually unchanged last week as gold bullish bets hovered above +100,000 net contracts for a second week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +101,257 contracts in the data reported through April 28th. This was a weekly change of just +12 contracts from the previous week’s total of +101,245 net contracts that was registered on April 21st………………………………………..Full Article: Source

Gujarat imports 80% of gold from Switzerland

Posted on 04 May 2015 by VRS  |  Email |Print

The largest gold reserves, easier procedures and least chances of duplication or adulteration have made Switzerland the favourite source of gold imports by bullion traders in Gujarat. In 2014-15, over 80% of the 152 metric tonnes (MT) of gold imported through Gujarat was from Switzerland followed by UAE, South Africa and Australia.
Industry insiders say the share of Switzerland in overall gold imports in Gujarat has risen from 45% in 2012 to more than 80% in 2015. According to industry sources, of 22 MT of gold worth Rs 5,190 crore imported in March 2015 in Gujarat, around 19 MT, worth Rs 4,450 crore, was from Switzerland alone. Imports from UAE, South Africa, Australia and Turkey stood at 1,450 kg, 740 kg, 600 kg and 350 kg respectively………………………………………..Full Article: Source

Gold snaps two-day rally before Fed statement

Posted on 30 April 2015 by VRS  |  Email |Print

Gold fell on Wednesday as investors took profits following a two-day rally, but soft US economic data that hurt the dollar and lowered expectations for a Federal Reserve rate rise in June limited losses.
Spot gold was down 0.3 per cent at $1,210.91 an ounce at 1309 GMT. It has gained nearly 3 per cent in the last two sessions, climbing to a three-week high of $1,215 on Tuesday. US gold futures for June delivery fell $5.90 an ounce to $1,207.80, after rising to their highest level since April 7 in the previous session………………………………………..Full Article: Source

Rising US rates could trigger higher gold prices – GFMS

Posted on 30 April 2015 by VRS  |  Email |Print

A contrarian consensus has emerged whereby higher US rates, when in effect, are expected to trigger higher gold prices, while usually higher interest rates in a low inflationary environment would negatively impact the price of gold, as a non-yielding asset class, Thomson Reuters GFMS market analysts have reported.
The idea that prices will rise is based on the assumption that the market has already anticipated the rate increase, more than pricing it in, explains the GFMS metals research and forecasts team in the first of its new ‘Quarterly update and outlook’ reports, which supplements the yearly ‘Gold Survey’……………………………………….Full Article: Source

Gold Prices Inadvertently Spur Make In India’s Manufacturing Push

Posted on 30 April 2015 by VRS  |  Email |Print

Current volatility in the gold markets has led to a new wave of ‘Make In India’ that is taking place at home – notably in the jewelry segment. Before starting, it is important to note that India’s gem and jewelry industry is a hefty contributor to the country’s economy, comprising up to seven percent of GDP.
Industry body FICCI estimates that this market, valued at approximately $40.4 billion in 2013, has the potential to grow to $85 billion by 2018. However, facts and figures on the Indian jewelry segment tend to account largely for gems and gold, which have always been staples of the economy – purchases are made for religious and cultural occasions – and consumption relies on the price of gold. India is the world’s largest consumer of gold………………………………………..Full Article: Source

How China Will Shock the Gold Market

Posted on 30 April 2015 by VRS  |  Email |Print

One of the freaky things about tsunami waves is they’re barely noticeable out at sea. In the open ocean, where the depths can hide its raw power, a tsunami is only about a meter high at most. It’s when the tsunami wave finally hits land that it starts to rear up and tower overhead, astonishing and terrifying all who see it.
We’re about to see something like this in the gold market. Courtesy of China. I’ve told you recently how China is planning to dethrone King Dollar. Right now, those plans are slowly falling into place, just as I said. The country already announced it will unveil the new China International Payment System later this year. That opens the door to making the yuan (or renminbi) a fully convertible trading currency………………………………………..Full Article: Source

India’s gold demand down 5.68% in March quarter

Posted on 29 April 2015 by VRS  |  Email |Print

India’s gold consumption declined by a marginal 5.68 per cent in the quarter ended March this year, primarily due to expectations of a cut in import duty. In terms of consumption, India continued to lag China, with a wide gap of 27 per cent.
Data compiled by global consultancy GFMS showed India’s overall gold consumption stood at 179.5 tonnes in the quarter, against 190.3 tonnes in the year-ago period. While jewellery consumption rose a marginal two per cent to 148.5 tonnes, the investment segment reported a steep 30 per cent decline at 31 tonnes………………………………………..Full Article: Source

Gold shines ahead of Fed statement

Posted on 29 April 2015 by VRS  |  Email |Print

Hopes that the Federal Reserve will refrain from significant changes in its April statement due on Wednesday have buoyed gold prices. Gold rallied for a second straight day, rising 0.9 per cent to $1,212.62 an ounce, on expectations that Fed policymakers will acknowledge the recent spate of soft economic data, which in turn would make a June rate rise less likely than previously thought.
The timing of the Fed’s first rate rise has largely governed the price of gold this year. As an asset class that offers no yield, the prospect of a rate rise has weighed on gold, as investors rotate into income yielding assets………………………………………..Full Article: Source

Switzerland And Gold: What Next?

Posted on 29 April 2015 by VRS  |  Email |Print

How can we explain such a reversal so shortly after a campaign by the SNB against gold? We must remember that during the referendum campaign the SNB and its president strongly defended the peg and promised it would continue. I expected the Swiss Gold Referendum to be a big shock in the central bank sector and the gold market, but only if passed and it didn’t.
However, the consequences of the initiative, I am sure, helped prepare the “big surprise” event that was the lifting of the cap by the SNB just a month and a half later. The strong support for the initiative scared the banking industry and the SNB and, even though defeated, I think it affected the central bank in some way. It was a message from the people………………………………………..Full Article: Source

Silver price could eventually outperform gold – UBS

Posted on 29 April 2015 by VRS  |  Email |Print

The silver price could eventually outperform that of gold in percentage terms, UBS said, highlighting the metal’s encouraging performance so far in 2015. Silver was last at $16.36 per ounce, up four percent on the start of the year. It peaked at $18.49 in January and bottomed out at lows of $15.29 in March.
It is outperforming gold so far this year – the yellow metal started 2015 at $1,189 per ounce and was last at $1,200, up one percent. “Silver had been underperforming gold for most of April, with the gold:silver ratio rising from the low 70s towards the highs around 75. The underperformance was likely in large part due to positioning,” UBS’ Edel Tully said………………………………………..Full Article: Source

What’s with JP Morgan and its massive silver hoard?

Posted on 29 April 2015 by VRS  |  Email |Print

All markets are rigged – and silver especially so! That may be a cynical appraisal but the fact remains that any entity with sufficient capital behind it can usually move any market in the direction that suits it – the size of the market concerned perhaps being the key factor here as to whether this would be easily accomplished, or even attempted!
And silver is a small enough market to be in the sights of the big money which theoretically can move it whichever way it wants through huge forward purchases or sales in the futures markets. As those who’ve been around a while will recall, oil billionaires Nelson Bunker Hunt and William Herbert Hunt, back in 1979/80 attempted to corner the silver market in just this way………………………………………..Full Article: Source

Silver miners moving up the endangered list

Posted on 29 April 2015 by VRS  |  Email |Print

Pure-play silver miners, a niche investment market popular with retail investors, are moving up the endangered list. Buffeted by a 68 percent plunge in the price of silver since 2011, miners who traditionally made most of their money from silver are increasingly diversifying into gold, buying mines that have been put up for sale and looking to acquire more.
In addition to spurring deals in the precious metals space, the trend is reducing investment avenues for those wanting to take a bet on a commodity that often outperforms gold when bullion is rising. ……………………………………….Full Article: Source

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