Mon, Apr 27, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Bullion/Gold more

Natixis sees gold averaging $1,150/oz in 2015

Posted on 01 April 2015 by VRS  |  Email |Print

The gold price could average $1,150 and $1,055 per ounce in 2015 and 2016 respectively as the normalisation of Federal Reserve monetary policy and further currency weakness in Europe and Japan drive the dollar higher, Natixis said in a report released on Monday.
The members of the Fed’s policy board are locked in what has become an increasingly public debate on when will be the right time to raise interest rates, which have been near zero since December 2008. The current market consensus is that the first increase will happen in the second half of this year………………………………………..Full Article: Source

Silver to hit $26 (£17.68) per ounce by end of 2016

Posted on 01 April 2015 by VRS  |  Email |Print

Macroeconomic consultantancy Capital Economics has reiterated its above consensus forecast for the silver price of $23 per ounce for the end of the year, rising to $26 for the end of 2016. Julian Jessop, head of Commodities Research at Capital Economics, said in a note on March 27: “Silver has out-performed gold this year during periods when the prices of both have been rising, as usual, but it has also held on to more of its gains when both have struggled. This supports our relatively bullish view on the outlook for silver prices over the remainder of 2015 and in 2016.”
Jessop continues to see plenty of upside for silver, which has massively under-performed gold since2011. He cited the ratio of the price of an ounce of gold to that of silver is now around 70 ($1,200/$17), compared to a long-run average of around 60………………………………………..Full Article: Source

Silver forecast to average $16.39/oz this year – JP Morgan

Posted on 01 April 2015 by VRS  |  Email |Print

Silver prices should track gold at an average ratio of 72:1 as larger economic trends prove more potent than supply/demand fundamentals, JP Morgan said on Tuesday. “The large macro themes – US rate hikes, strong dollar, potential for upticks in geopolitical risk – that will drive gold prices will also largely influence silver prices throughout 2015 and 2016,” JP Morgan said.
“From a fundamental perspective, continued growth in the global economy should underpin growth in industrial applications for silver but cheaper alternative materials and thrifting will likely temper some of this growth,” said the bank, which said that industrial application demand will grow by 2.5 per annum over the next two years………………………………………..Full Article: Source

Natixis forecast sees gold price averaging $1,150/oz in 2015

Posted on 31 March 2015 by VRS  |  Email |Print

The gold price could average $1,150 and $1,055 per ounce in 2015 and 2016 respectively as the normalisation of Federal Reserve monetary policy and further currency weakness in Europe and Japan drive the dollar higher, Natixis said in a report released on Monday.
The members of the Fed’s policy board are locked in what has become an increasingly public debate on when will be the right time to raise interest rates, which have been near zero since December 2008. The current market consensus is that the first increase will happen in the second half of this year. ……………………………………….Full Article: Source

In 20 years, the world may run out of minable gold

Posted on 31 March 2015 by VRS  |  Email |Print

In another two decades rare commodities may become seriously scarce. According to Goldman Sachs, the world has about 20 years each of known minable reserves of gold diamonds and zinc. Platinum copper and nickel reserves only have about 40 years or less left.
“The combination of very low concentrations of metals in the Earth’s crust, and very few high-quality deposits, means some things are truly scarce,” Eugene King, European metals and mining analyst at Goldman Sachs, wrote in a recent research note. “Gold has been used as a measure of wealth for more than 4,000 years, as the ancient Egyptians soon worked out that gold was not only shiny and heavy, but rare,” he said………………………………………..Full Article: Source

Silver’s outperformance versus gold to stay: Capital Economics

Posted on 31 March 2015 by VRS  |  Email |Print

According to senior analysts at Capital Economics, Silver has risen 8% in dollar terms year-to-date in 2015. During the same period, gold has appreciated only by 1%. This outperformance by silver is expected to continue in 2015 and 2016, noted Julian Jessop, Head of Commodities Research at the London-based economic research consultancy.
Gold had witnessed continuous upward journey for seven days in a row. However, the geopolitical tensions surrounding Saudi attack on Yemen, worries over Greece debt situation and the shaky US dollar had resulted in sharp rise in gold prices. However, the prices of the yellow metals settled under the $1,200 per Oz on account of strong profit booking. Overall, gold prices ended higher during the week……………………………………….Full Article: Source

Silver’s outperformance versus gold set to continue suggests economist

Posted on 30 March 2015 by VRS  |  Email |Print

Gold eased back after a strong run that had seen the spot price rise for seven straight days. Uncertainty over the situation in Yemen, Greece and a rare bout of the wobbles for the dollar spurred the rise, but some profit taking saw spot gold ease US$5 to just under US$1,200.
Even so, it was a good week for the metal, but even more so for near neighbour silver. It has risen by 8% in dollar terms in 2015 to date, whereas gold is up barely 1% said Capital Economics. Julian Jessop, Head of Commodities Research, said silver normally does better when prices of both metals are rising, but this time it has also proved more resilient in bouts of weakness………………………………………..Full Article: Source

Hedge funds bet gold gain to fizzle

Posted on 30 March 2015 by VRS  |  Email |Print

Hedge funds are betting that gold’s recent rally won’t last and are holding the biggest wager ever that prices will decline. The net-long position in gold dropped by 9.9 per cent to 31,653 futures and options in the week ended March 24, according to U.S. Commodity Futures Trading Commission data published three days later.
That was the lowest since Dec 2013. Short holdings rose for a seventh straight week to 84,022 contracts, the highest since the data begins in 2006. Even as futures climbed for two straight weeks, some investors have shied away from the metal. Global holdings in exchange-traded products backed by bullion declined every week in March………………………………………..Full Article: Source

World Gold Council Tells China to Increase Gold Reserves

Posted on 27 March 2015 by VRS  |  Email |Print

China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.
“The ideal amount should be at least 5 percent of its total forex reserves,” Wang told Reuters in an interview in Hong Kong. China last raised its gold holdings in April 2009, when reserves rose to 33,890,000 troy ounces (about 1,054 tonnes), from 19,290,000 troy ounces, according to central bank data. The holding was unchanged as of December 2014………………………………………..Full Article: Source

Yuan and Gold: Old Enemies Should Finally Become Friends

Posted on 27 March 2015 by VRS  |  Email |Print

The Communist Party had good reason to avoid the use of gold when it set up China’s financial system, but having a reserve of the metal offers a range of benefits. We’ll never know if there really were 200 chests of gold on the steamer Taiping, as depicted in John Woo’s recent movie The Crossing, but we can verify that 1,317 cases of central bank records were sunk with the ship in 1949.
These documents, including the Draft Agreement on Gold, were the only legal basis the government of the Republic of China had to move the former central bank’s gold reserves to Taiwan so they could be used to “pre-pay military expenses.” With the situation on the mainland growing dire at the end of 1948, Chiang Kai-shek began planning to move all treasury assets to Taiwan, including gold reserves intended to back “jinyuanquan,” the paper money issued by the ROC government in 1948………………………………………..Full Article: Source

Further downside on gold prices limited – CPM

Posted on 27 March 2015 by VRS  |  Email |Print

This time of year usually sees the release of three major analytical reports on the gold market – from CPM in the USA and from Metals Focus and GFMS in the UK – and CPM’s Jeff Christian kindly let me have a copy of the former’s analysis which was released earlier this week.
The CPM Gold Yearbook comprises over 250 pages, mostly of statistics and comment, some of which most will agree with whether from the bullish or bearish factor of gold followers, whereas other elements may raise the hackles, particularly of the gold ultra bulls for whom Christian and his team are bêtes noires – primarily because Christian is an adamant anti-gold price manipulation standard bearer, and is prepared to defend his position right in the lion’s den on occasions………………………………………..Full Article: Source

Gold price leaps past $1,200 on safe haven buying

Posted on 27 March 2015 by VRS  |  Email |Print

Amid nervousness on US bond and equity markets which are back in negative territory for the year and a spike in oil prices sparked by chaos in the Middle East gold leaped past the psychologically important $1,200 an ounce level on Thursday.
Gold for delivery in June – the most active futures contract – gained $21.76 or 1.8% hitting a high of $1,219.76 early on, before pulling back in early afternoon trade in New York to around $1,206 an ounce, still a three-week high. The gold price is up more than 6% after dropping to a 2015 low of $1,148.20 an ounce last week and has now retraced almost 40% of its losses since the 2015 high above $1,300 reached in January………………………………………..Full Article: Source

HSBC ‘cautiously optimistic’ of gold price outlook in 2015

Posted on 26 March 2015 by VRS  |  Email |Print

HSBC is “cautiously optimistic” of the gold price outlook for 2015, predicting a trading range of $1,120/oz-$1,305/oz with an average price of $1,234/oz, the bank said late Tuesday, March 24. “The possibility that deflationary pressures could bring on negative rates in some economies helps reaffirm our cautiously optimistic view on gold,” head analyst James Steel said.
However, in Steel’s view gold prices are not “entirely hostage” to monetary developments. “The recent price slump below $1,150/oz may be encouraging greater demand from price sensitive emerging market buyers, notably, but not exclusively, in India and China,” Steel said………………………………………..Full Article: Source

Bank of America: Gold Price Could Hit $1,300 by May

Posted on 26 March 2015 by VRS  |  Email |Print

CNBC reported that MacNeil Curry, the Bank of America Merrill Lynch’s head of global technical analysis, believes that a near-term correction in the US dollar and declining yields on Treasuries may lead to a “sustained and sizable” gold price rally. The yellow metal might even rise above $1,300 per ounce by the end of May.
As quoted in the market news: ‘Rates are headed lower, and the dollar is likely to remain in a corrective sequence in general,’ said Curry. ‘Gold should rally in that environment.’ According to Curry’s chart work, gold has been in a ‘sizable corrective phase’ since November 2014. But recently, the yellow metal has shown signs of life. Moreover, Curry points out that gold’s inverse relationship to the dollar appears have broken down, which he interprets as another bullish sign for bullion………………………………………..Full Article: Source

SocGen’s ultra bearish gold and silver outlook

Posted on 26 March 2015 by VRS  |  Email |Print

Analysts at the French Bank Societe Generale (SocGen) in their latest research report have forecast that the gold price, having given away all its early year gains, was headed sharply lower, as it saw the dollar continue its gain in strength. They thus expected the bear market in gold to continue further and saw the price as falling to average only $925 an ounce between 2016 and 2019.
The timing of this report was perhaps unfortunate in that the forecast for a virtually immediate downturn in gold, together with dollar strength, predated the events of the past few days, which has seen the reverse occur. Gold bulls will be fervently hoping that the bank’s analysts are equally incorrect in their forecast of gold’s longer-term prospects………………………………………..Full Article: Source

Gold Prices Seen Declining by CPM for Third Straight Year

Posted on 25 March 2015 by VRS  |  Email |Print

Gold prices will fall for a third straight year in 2015 as concern eases that global economies will falter, curbing demand for the metal as a haven, according to CPM Group.
Bullion futures on the Comex in New York will probably average $1,208 an ounce in 2015, Jeffrey Christian, CPM managing director, said Monday in an interview, a day before the release of the research company’s “Gold Yearbook.” That would be down 4.6 percent from 2014, according to CPM………………………………………..Full Article: Source

Global gold price setting arrives in the 21st century

Posted on 25 March 2015 by VRS  |  Email |Print

A new era of gold pricing and Kuwait’s budgetary concerns are the issues in this edition of Business Middle East. Better late than never, the gold market has entered the digital era, joining other precious metals in the 21st century.
Criticism of an archaic global price fixing system intensified with some claiming it lacked credibility. Following numerous fines on international banks due to scandals of price manipulation, gold traders may now have more peace of mind with a new electronic system to manage price setting………………………………………..Full Article: Source

Gold is going to $1,300 by May: BofA technician

Posted on 25 March 2015 by VRS  |  Email |Print

Gold has risen for five straight sessions and is now positive on the year. And according to one top technician, the rally has just begun. Bank of America Merrill Lynch’s head of global technical analysis, MacNeil Curry, said a near-term “correction” in the dollar over the “next couple of weeks,” paired with declining yields on Treasurys, should lay the groundwork for a sustained and sizable rally in gold that could see it break above $1,300 by the end of May.
“Rates are headed lower, and the dollar is likely to remain in a corrective sequence in general,” said Curry. “Gold should rally in that environment.” According to Curry’s chart work, gold has been in a “sizable corrective phase” since November 2014………………………………………..Full Article: Source

Is HSBC really closing gold vaults?

Posted on 25 March 2015 by VRS  |  Email |Print

A rumor that HSBC is rapidly and quietly closing gold vaults where clients gold bullion was stored and gold in the GLD ETF is stored has been swirling around the internet. After conversations with key players in the industry including a bullion dealer who used the safety deposit boxes for storage and delivery to clients, we can now confidently say that the speculation was incorrect.
What HSBC is actually doing is closing its safety deposit box facilities some of which are in vaults and strong rooms in branches. The vaults are not specialist gold vaults rather standard vaults or strong rooms which contain safety deposit boxes. These safety deposit boxes hold all sorts of valuables – from legal documents, to family heirlooms, to art works, to jewellery and of course bullion coins and bars………………………………………..Full Article: Source

Fed hike, Indian demand will be key for Gold: Barclays

Posted on 24 March 2015 by VRS  |  Email |Print

A likely Fed hike and seasonal physical demand will determine the intensity for risks in store for Gold, a report by Barclays said. In Q315 gold will likely be caught between scope for disinvestment as markets look for a rate hike and seasonal physical demand materializing from India.
“Our economists now see a much lower likelihood that the committee raises rates in June given the downward revision to NAIRU which means that the Fed’s estimate of labour market slack has risen. In turn, the Fed now looks for the first rate hike to occur in September and for the target range for the federal funds rate to reach 50-75bp in December, the report said………………………………………..Full Article: Source

Gold Prices Will Hit Record On Surging Asian Demand, ANZ Says

Posted on 24 March 2015 by VRS  |  Email |Print

With Japan all set to become the sole owner of Japanese government bonds and equity ETFs and with ECB officials explicitly promising to print euros until the market finally gives up and submits to “monetary dominance,” the utility of owning a barbarous yellow relic may be less clear as it appears that the path to eternal prosperity runs parallel to the road where printing worthless paper to buy other worthless paper somehow doesn’t dead end at the intersection of “absolutely broke” and “massive bubble.”
Be that as it may, there are still some analysts out there who believe owning an asset that can’t be printed by central planners is probably not a bad idea in an era where the CBs of the world have driven the idea of a “market” to the edge of extinction. When you couple that with EM CB demand and cultural dynamics in Asia, you’ve got the recipe for surging prices………………………………………..Full Article: Source

Societe Generale trims average gold price forecast to $925 per Oz

Posted on 24 March 2015 by VRS  |  Email |Print

The French Bank Societe Generale in its latest report forecasts that gold prices having given away all its early year gains is headed further lower, as dollar gains strength. SocGen expects the bear market in gold to continue further. The gold prices are likely to average at $925 per Oz between 2016 and 2019.
According to the report, gold is likely to average at $1,150 per Oz during the second quarter of the year. The weakness in prices will extend to the fourth quarter, with gold prices expected to average at $1,050 per Oz. However, the full year 2015 gold price forecast has been lifted from earlier $1,025 per Oz to $1,130 per Oz mainly due to the strong rally in prices during Q1 2015………………………………………..Full Article: Source

How to Rig the Gold Market

Posted on 24 March 2015 by VRS  |  Email |Print

New technologies bring new changes to our world. One small change just happened in the financial world, although it is not on most people’s radar. The old gold fix – which was a conference call that took place twice a day – has been replaced by a new electronic gold fix. The old gold fix was a century old and consisted of four banks – Barclays, HSBC, Bank of Nova Scotia, and Societe Generale.
These four banks will remain a part of the new process, plus two additional participants. The new gold fix will be an electronic benchmark, utilizing 21st century technology. It is hoped that it will come with more transparency and less vulnerability to rigging of the markets………………………………………..Full Article: Source

What Investors Need to Know About the LBMA Gold Price

Posted on 24 March 2015 by VRS  |  Email |Print

When the London silver fix came to an end last year after operating for more than a century, many market watchers wondered if the London gold fix would be next. Ultimately, the answer turned out to be “yes.” The London Bullion Market Association (LBMA) decided in November to put ICE Benchmark Administration in charge of the fix, stating that it would take over in the first quarter of 2015 and noting that an electronic system would be put in place.
Q1 is now here, and March 20, 2015 is the day ICE will officially take the reins. Here’s a breakdown of what exactly that transition will mean for investors and for the gold price. Similar to the London silver fix, the London gold fix came into existence nearly a century ago — in 1919, to be exact. Currently, the price-setting process involves four banks — Barclays, HSBC, Societe Generale and the Bank of Nova Scotia — engaging in two conference calls a day to fix the gold price………………………………………..Full Article: Source

ANZ forecasts surge in gold demand and price

Posted on 23 March 2015 by VRS  |  Email |Print

More gold-related investment offerings could be on the cards for local investors given estimates that demand for the precious metal is set to double in the region over the next 15 years. ANZ commodity strategist Victor Thianpiriya told The Sunday Times: “The country is already quite advanced when it comes to such options”, but there is still “room for more”.
He added that the booming demand in Asia could see prices surge to over US$2,400 an ounce by 2030, up from its level of US$1,170 now. An ANZ report on Wednesday said that the price rise will be fuelled by long-term growth in the key consumer markets of China and India, which are already the world’s largest consumers of gold……………………………………….Full Article: Source

LBMA Gold Price successfully launched

Posted on 23 March 2015 by VRS  |  Email |Print

The LBMA Gold Price has replaced the historic London Gold Fix. The first LBMA Gold Price settled at $1,171.75. ICE Benchmark Administration (IBA) administers the “LBMA Gold Price”. They provide the auction platform, methodology as well as overall independent administration and governance for the LBMA Gold Price. The LBMA holds the intellectual property rights.
The London Gold Fix pricing mechanism has been replaced by a new electronic LBMA price-discovery process from Friday, 20th March 2015. The price continues to be set twice daily (at 10:30 and 15:00 London GMT). The new LBMA Gold Price is operated and administered by an independent third party provider, ICE Benchmark Administration (IBA), who were chosen following consultation with market participants………………………………………..Full Article: Source

Gold fix replacement gets more participants, no Chinese yet

Posted on 23 March 2015 by VRS  |  Email |Print

At least six companies can set daily gold prices through an electronic auction that on Friday replaced the century-old London fixing ritual. Thursday was the last day that Societe Generale SA, Bank of Nova Scotia, HSBC Holdings Plc and Barclays Plc agreed twice- daily rates by phone. The four banks, UBS Group AG and Goldman Sachs Group Inc can take part in the new LBMA Gold Price run by ICE Benchmark Administration that set prices at US$1,171.75 an ounce this morning.
Gold is the last precious metal to drop the London fixings after silver, platinum and palladium made way for similar auctions last year. More participants will make the US$18 trillion global gold market more transparent, according to IBA, which said that no companies from China are yet confirmed. The London Bullion Market Association said last month that Chinese banks were among those in talks to take part………………………………………..Full Article: Source

How Indian gold prices are fixed

Posted on 23 March 2015 by VRS  |  Email |Print

How are the benchmark prices for gold in India fixed? The truth is that there is no commonly accepted benchmark. Given that there is no physical market where gold is bought and sold, participants still rely on informal gold price quotes disseminated by the jewellery trade.
The gold imported into the country is brought in through the nominated agencies, mainly banks. Banks supply this gold to bullion dealers, at a price that includes customs duty after adding a fee to it. The IBJA- Indian Bullion Jewellers Association, a Mumbai-based association of gold dealers, then announces a rupee price for gold every day based on quotes from its member dealers………………………………………..Full Article: Source

Is the tide turning for Precious Metals?

Posted on 23 March 2015 by VRS  |  Email |Print

Has the tide begun to turn for the precious metals, notably silver and gold? In our view the turn began last year and if pressed to pinpoint one event, it would be following the failure of the Swiss referendum when the SNB de-pegged the franc from the euro. The Swiss National Bank was frustrated with the continued depreciation of the Euro. This had as much to do with sentiment as it did with the SNB clearing seeing the Euro might be going the way of the Rentenmark.
Around this timeframe, investors received a flurry of news regarding worldwide demand for both silver and gold. This news continues to pore in, that multiple factions that are unsure of the longevity of the U.S. dollar continue to buy precious metals. For example, net silver imports into India in November, set an all-time monthly record. This would be followed by a record setting year of net silver imports, amounting to 7,063 tons………………………………………..Full Article: Source

What Moves Gold Prices?

Posted on 20 March 2015 by VRS  |  Email |Print

The price of gold is moved by a combination of supply, demand and investor behavior. That seems simple enough, but the way those factors work together is sometimes counterintuitive. Many investors, for example, think of gold as an inflation hedge. That has some common sense plausibility — paper money loses value as more is printed. But the supply of gold is relatively constant. As it happens mining doesn’t add much year to year.
Two economists, Claude B. Erb of the National Bureau of Economic Research and Campbell Harvey, a professor at Duke University’s Fuqua School of Business, studied the price of gold in relation to several factors. It turns out gold doesn’t correlate well to inflation………………………………………..Full Article: Source

Commodities explained: The new gold fix

Posted on 20 March 2015 by VRS  |  Email |Print

London is the centre of the gold world, accounting for about three quarters of the world’s bullion trading. On Friday the twice-daily process used for almost a century to “fix” the price of precious metal goes digital.
What is the gold fix? Started in 1919, the daily meeting to decide on a benchmark price was held at NM Rothschild with five bullion dealers and an agent of the Bank of England. Originally held once a day, companies involved in the early years included Rothschild, Mocatta & Goldsmid, Samuel Montagu, Sharps Pixley and Johnson Matthey Bankers………………………………………..Full Article: Source

The way gold prices are set is changing forever

Posted on 20 March 2015 by VRS  |  Email |Print

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion.
Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year. More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday .Anyone can follow auctions online, rather than needing a line to a fixing dealer………………………………………..Full Article: Source

China to allow more firms to trade gold

Posted on 20 March 2015 by VRS  |  Email |Print

China’s central bank on Thursday detailed plans on granting more licences for gold imports and exports, while maintaining that it could impose trade restrictions when necessary. A further opening up of the world’s second biggest bullion market would underpin demand for the metal while also boosting global prices that have dropped 9 percent in two months.
Import licences could be granted to gold producers, refiners and financial institutions, who meet certain requirements, from April 1, the central bank said on its website on Thursday. Currently, only 15 banks can import gold into China. In the last few years, Beijing has accelerated the pace of reforms in the gold market. It allowed foreign banks to import gold for the first time in 2013 and launched gold-backed exchange traded funds for the first time that year………………………………………..Full Article: Source

Silver to trend towards $14/oz by year-end – SocGen forecast

Posted on 20 March 2015 by VRS  |  Email |Print

The silver price will struggle going forward as the Federal Reserve starts hiking interest rates from June onwards, Société Générale said in a report. The French Bank expects that the Fed will raise interest rates by 25 basis points in June 2015, with this more likely followed by another hike of a similar magnitude later this year.
“As the labour markets gain traction and with the forecast for GDP growth at 3.5 percent this year, we see a high probability of a more aggressive rate hike during next year, to an extent that the interest rate cycle could peak at four percent by the end of 2017,” iSocGen said. Against a backdrop of a strengthening US economy, the bank predicts that the upward trajectory of the US dollar against most currencies will continue over the course of the year………………………………………..Full Article: Source

Gold price to double by 2030 thanks to Asia

Posted on 19 March 2015 by VRS  |  Email |Print

Asia’s financial system liberalization and its population’s growing wealth are two key factors expected to boost demand for gold and push the price of the key commodity over US$2,400 an ounce by 2030, a report published Wednesday claims. According to the Australia and New Zealand Banking Group (ANZ) predictions, as incomes rise across Asia, particularly in China and India, so will the appetite for gold rings and necklaces.
In its report “East to El Dorado: Asia and the Future of Gold,” ANZ estimates that annual retail and investor demand for the precious metal in the 10 largest economies in Asia could double to 5,000 tonnes within 15 years. The bank dubbed these nations “the A10″ – China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam………………………………………..Full Article: Source

The Way Gold Prices Are Set is Changing Forever

Posted on 19 March 2015 by VRS  |  Email |Print

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion. Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year.
More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday. Anyone can follow auctions online, rather than needing a line to a fixing dealer………………………………………..Full Article: Source

Is gold finally ready to rebound?

Posted on 19 March 2015 by VRS  |  Email |Print

Analyst Jim Bianco argues that gold may have already reached its bottom. There are few more polarizing topics in the world of investing than gold. The shiny metal, which for centuries was the basis of the global monetary system, is beloved particularly by investors whose political beliefs tilt libertarian.
These are the sort of people who are convinced of the incompetence of political leaders and central banks that now run a monetary system based on floating exchange rates rather than the value of hard metals. Gold enthusiasts had their moment in the sun during the 2000s, when the combination of rising deficits and a sharply falling dollar helped give the precious metal its best stretch since the inflation-racked 1970s and 1980s………………………………………..Full Article: Source

Fund Selector: Should you dig gold?

Posted on 19 March 2015 by VRS  |  Email |Print

In the past, there have been periods when the correlation between gold bullion and the gold equity market has been high. Yet, at the turn of the decade, correlation of sorts fell away quite remarkably.
The price of physical gold continued to perform robustly for a period before softening, while gold-related equity prices came under significant pressure much earlier and tailed away rapidly, dragging the gold-mining index back to levels last seen at the turn of the century when bullion was $350 an ounce. Gold is often perceived as an inflation hedge, which perversely is the environment in which gold equities struggle………………………………………..Full Article: Source

The gold:oil ratio is speaking

Posted on 18 March 2015 by VRS  |  Email |Print

As a believer in the power of diversification and inflation protection a basket of commodities can provide in a passive index framework, it is hard to grasp how much investors love oil and gold. It must be that oil is the biggest, most economically significant commodity, and gold is the shiniest, most prized metal – arguably a currency in its own right.
From the largest pensions in the world to the smallest mom-and-pop retail investors, oil and gold dominate the conversation. In Taipei this week, gold and oil were louder than ever. It is an exciting time for greater China as the first commodity futures exchange-traded funds are soon to be launched………………………………………..Full Article: Source

Asian demand set to lift gold price to above $US2400 by 2030: ANZ

Posted on 18 March 2015 by VRS  |  Email |Print

The gold price could hit above $US2400 an ounce by 2030 on the back of the growing wealth of Asia’s populations, a major new study predicts. ANZ’s chief economist, Warren Hogan, one of the authors of the new report, said the Asian Century would have profound implications for the gold market.
He predicted a growing Asian middle class would buy more jewellery, a larger body of professional money managers would drive investment demand and regional central banks would purchase more gold to provide confidence in newly floated currencies. “These factors will, in our view, support a long term and significant increase in the gold price,” he said………………………………………..Full Article: Source

A simple test to see if gold is at a bottom

Posted on 18 March 2015 by VRS  |  Email |Print

What is the range you expect for gold in 2015? The 200-day moving average right now is $1,244/oz. If gold can break above that, I think it would gather strength and surprise people on the upside. Seeing as how so many people are betting the other direction, I think you’d have a lot of short covering. So $1,400/oz or $1,500/oz wouldn’t surprise me.
The magic number on silver is $18/oz. The 200-day average on the iShares Silver Trust (SLV), an exchange-traded fund, is roughly $17.29/oz. If silver closes above $18/oz, that will be a strong signal that it has changed its colors. For both gold and silver, the moving average keeps coming down, so it gets easier to surpass it………………………………………..Full Article: Source

Will Gold Follow Oil and Fall Back Under $1,000?

Posted on 18 March 2015 by VRS  |  Email |Print

The drop in the price of oil has been monumental, and the oil and gas sector is starting to prepare for some much leaner times ahead. The question to ask is what really lies ahead in the larger picture, outside of oil. With the dollar rallying and with economic numbers slowing, what are the odds that gold takes a dive like oil did? Also, how correlated should the two assets be today versus in the past?
Knowing an answer here may require a crystal ball. Still, investors and speculators should start to consider whether gold could or would take on the same sort of sentiment as oil………………………………………..Full Article: Source

Platinum price drops under $1,100 per oz to fresh 2009 lows

Posted on 18 March 2015 by VRS  |  Email |Print

Platinum dropped below a price of $1,100 on early on Tuesday afternoon to a fresh July 2009 low, coming under renewed pressure from the strength of the US dollar. The metal traded as low $1,096 per ounce, down $10 on Monday’s close and a drop of 9.1 percent since the start of the year. It was last at a price of $1,095/1,100.
“The decline in PGM prices this year may be viewed as encouraging for industrial buyers [but] we believe above ground stocks may have to be depleted further before platinum can make significant upside advances,” James Steel at HSBC said………………………………………..Full Article: Source

Gold havens hit by dollar ascendancy

Posted on 17 March 2015 by VRS  |  Email |Print

Gold bugs are wary of a strong dollar, and with good reason. In the early 1980s, gold fell 60 per cent from a peak of $850 as the US currency strengthened. By contrast, in 2001 gold started its long march upwards just as the dollar started to weaken.
As the US dollar surges again, the market is wondering how far gold has to fall. The strong dollar has already capped a rally in January, which was spurred by uncertainty over Greek elections and European quantitative easing. Gold is down 39 per cent since August 2011 as the trade-weighted dollar index has risen 36 per cent………………………………………..Full Article: Source

How the gold price will defy the skeptics and stage a huge comeback

Posted on 17 March 2015 by VRS  |  Email |Print

The dollar has staged such a stellar performance since the start of the year there is now an almost universal acclamation of its strength and a consensus that parity with the euro is very close. A strong dollar means a low gold price, or does it? Gold is actually one of the world’s best performing currencies this year, off just a couple of per cent compared with double-digits for the euro.
Dollar crash coming? That said if the dollar crashed then gold prices would undoubtedly surge as the only credible rival safe haven currency, except perhaps the Swiss franc. Where the gold skeptics have the argument wrong is their belief in the almighty dollar………………………………………..Full Article: Source

Poll: What determines the price of gold?

Posted on 17 March 2015 by VRS  |  Email |Print

Gold prices remained under pressure on Monday as the dollar stormed higher ahead of the Federal Reserve meeting this week. Speculation is swirling that chair Janet Yellen will remove the word “patient” from the FOMC’s post-meeting statement on Wednesday, paving the way for a rate hike in June.
In early Asian trade, spot gold slipped 0.2 percent to $1,155.36 an ounce, but marking a slight rebound from a more than three-month low of $1,147.10 attained last Wednesday after speculation of a sooner-than-expected rate hike sapped appetite for the precious metal………………………………………..Full Article: Source

Hedge funds cut bullish gold price bets 60% since January

Posted on 17 March 2015 by VRS  |  Email |Print

Large scale speculators in gold futures added massively to short positions – bets that prices will fall – ahead of Wednesday’s Federal Reserve meeting that will to set the tone for the gold market. On Monday the gold price held above the crucial $1,150 an ounce support level – likely to be severely tested in two days time if the US central banks’ Federal Open Market Committee pronouncements on rate hikes foresee a sooner-rather-than-later scenario.
The gold price closed below $1,150 during only two sessions in early November, but soon bounced back. For a sustained period of sub-$1,150 gold you have to go back to April 8, 2010………………………………………..Full Article: Source

Is Gold About To Plunge To $1,000 Or Even Lower?

Posted on 17 March 2015 by VRS  |  Email |Print

Since warning about a possible correction in gold and silver in late-January, gold has fallen by $125 and silver by $1.64. Though I am a longer-term fan of precious metals, I have been concerned in recent years about the risks posed by the ending of the commodities supercycle as well as the rising U.S. dollar, which trades inversely with precious metals and other commodities.
I intend to invest in precious metals for the longer run, but I have been waiting for the current bearish cycle to run its course before I commit. Like any investor, my goal is to get the most for my money, so I have been analyzing precious metals carefully to determine when they have finally bottomed………………………………………..Full Article: Source

Don’t rush to buy gold; yellow metal likely to weaken in coming months

Posted on 17 March 2015 by VRS  |  Email |Print

The yellow metal is on a slide. After hitting a high of $1,297 a troy ounce on 21 January 2015, international gold prices have fallen by 10% to $1,164 per troy ounce now. The price fall in the domestic gold market has been to the tune of 7% over the same period. So should you buy now or wait for Akshaya Tritiya, which is seen as an auspicious day to buy gold in India?
According to most experts we spoke to, you should wait. The bear market in gold has resumed and prices will not move up anytime soon. “With no fundamental factors supporting prices, international gold may fall more to breach the recent record low price of $1,143,” says Praveen Singh, Senior Commodities Analyst, Sharekhan………………………………………..Full Article: Source

U.S. Dollar Takes Gold ETFs For A Ride

Posted on 17 March 2015 by VRS  |  Email |Print

Gold and bullion-related exchange traded funds have exhibited an inverse relationship against the U.S. dollar, but the moves this time around may not be as severe. Over the past year, the SPDR Gold Shares (NYSEArca: GLD) has declined 16.1%, whereas the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) jumped 24.2%.
Gold has shown a history of moving inversely with the USD. In 1971, U.S. President Richard Nixon ended the U.S. dollar to gold conversion, sending the dollar into a free fall and lifting gold prices to a peak of $850 per ounce, reports Henry Sanderson for the Financial Times………………………………………..Full Article: Source

banner
banner
April 2015
S M T W T F S
« Mar    
 1234
567891011
12131415161718
19202122232425
2627282930