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Commodities Briefing - Category | Bullion/Gold more

Why the gold bear market may finally be over

Posted on 13 October 2014 by VRS  |  Email |Print

After three tough years for gold, could a bullion turnaround finally be in the cards? That’s the argument made by Lindsey Group’s chief market analyst, Peter Boockvar, who says that the Federal Reserve meeting minutes released this week point to a reversal for the precious metal.
“The three-year bear market in gold, in my opinion, is over, because yesterday in their minutes, the Fed officially threw their hat in the global-currency-war ring,” Boockvar said……………………………………….Full Article: Source

Gold rebounds on reversal of macro dynamics, caution advised: Barclays

Posted on 13 October 2014 by VRS  |  Email |Print

Gold has rebounded on reversal of macro dynamics after witnessing intense downward pressure last week on stronger dollar nd firmer rates. With demand returning to India and China, precious metals seem to be a on a better footing. However, Barclays said it remains cautious on gold prices and continue to see the macro environment preseting headwinds and would look for opportunities to sell into a rally.
Gold prices are trading back above $1200/oz, buoyed by a relatively more supportive external environment w/w,as well as gold-specific factors turning comparatively positive.The FOMC minutes provided a boost to gold as markets concluded that the Fed may remain patient before moving to rate hikes. Meanwhile, physical demand has materialised at lower price levels………………………………………..Full Article: Source

Will gold and silver prices continue to go up as stocks go down?

Posted on 13 October 2014 by VRS  |  Email |Print

Last week gold and silver prices advanced by three per cent while the S&P 500 lost that much in its worst week for two years. Is this a new trend? Gold has almost certainly traced out a bullish triple bottom in its price chart, although the position looks less clear on the silver chart. Many areas of the US stock market are already past 10 per cent corrections while the major indexes are the last dominos to fall and on their way down now.
Is this a straightforward rotation into safe havens? T-bonds are also up. Riskier assets like junk bonds are out of favor like small cap stocks. True but this is not going to be a repeat of the 2008-9 wipe-out for precious metals for three reasons. First, gold and silver have just completed a three-year-plus correction. They are not at the top of their cycle waiting for a correction like equities today as they were in late 2008………………………………………..Full Article: Source

Standard Chartered strikes gold in China commodities

Posted on 13 October 2014 by VRS  |  Email |Print

While markets started the year range-bound, a surging dollar, weak economic data from Europe and the US – plus supply exceeding China demand – saw volatility return by the middle half of 2014 in a number of key commodities. Iron ore saw prices fall by 41% to reach a five-year low in mid-September, while protectionist moves by the Indonesian government requiring nickel to be smelted locally initially drove a spike in prices but this eventually reversed as Chinese firms offloaded supply into the global market, driving September prices 20% below their May high.
For banks, the global retreat from the commodities market continued. Credit Suisse closed down its commodities arm – a move that was felt particularly in Singapore, given the firm’s market-making role on the Singapore Exchange’s iron ore swap contract. The diminishing role of the global banks has been particularly felt in the oil derivative markets as the oil majors play an increasingly important role………………………………………..Full Article: Source

Why A Gold Standard Does Not Imply Price Stability

Posted on 10 October 2014 by VRS  |  Email |Print

Last week, Alan Greenspan penned an interesting article in Foreign Affairs that praised China’s recent conversion of some of its $4 trillion foreign exchange reserves into gold bullion and gave the gold standard some further adulation in a world where there is relatively little today from mainstream economists.
This marks the first time the gold standard has been seriously discussed by a senior U.S. policymaker (former or present) since 2012, when two GOP presidential candidates, Newt Gingrich and Ron Paul, along with former Congressman Lewis Lehrman and Grant’s Interest Rate Observer founder James Grant, called for a commission to consider readopting the gold standard………………………………………..Full Article: Source

World top 15 gold producers - output still rising but peaking this year

Posted on 10 October 2014 by VRS  |  Email |Print

According to the latest research report from London-based precious metals analysts – Metals Focus – global mined gold output is still on the increase this year, despite the much lower gold price prevailing. This is primarily due to the build-up to full production of a number of major new gold mining operations which came on stream in 2013, while the start-ups at Kibali in the DRC, Aykem in Ghana and Tropicana in Australia added a further 21 tonnes in the first half of the current year.
The increased mine production in the first half of the year, however, was at least in part countered by a continuing decline in scrap sales – indeed the consultancy is forecasting a fall in global gold supply for the full year due to a predicted double digit drop in scrap supply………………………………………..Full Article: Source

CIBC: Gold prices likely ‘not too far from their cyclical lows’

Posted on 10 October 2014 by VRS  |  Email |Print

Gold prices are “probably not too far from their cyclical lows,” said CIBC World Markets in a commodity update released Thursday. The Canadian bank forecast gold to be around $1,300 an ounce at the end of 2015.
CIBC recounted factors that have pressured the metal since earlier in the year, including a renewed bid in the U.S. dollar, muted inflationary pressures and market chatter about the U.S. Federal Reserve eventually tightening monetary policy………………………………………..Full Article: Source

BMO cuts gold, silver, platinum price outlook

Posted on 10 October 2014 by VRS  |  Email |Print

BMO Capital Markets warns miners should prepare for a “prolonged period of sub-US$1,200/oz gold prices.” As a result, “many of the gold producer equities will struggle, especially those with higher cash costs and/or high debt loads,” cautioned BMO Nesbitt Burns analyst Jessica Fung in a report issued October 7th.
“Gold, silver and platinum prices remain under considerable pressure due to expectations for the U.S. dollar to continue strengthening,” Fung advised. BMO has lowered 2015-16E gold prices from $1,275 to $1,190 in 2015 and from $1,250 to $1,238 in 2016 to reflect recent price performance, adding “BMO Research does not expect any upset for gold from current levels until H2/16E based on U.S. dollar forecasts.”……………………………………….Full Article: Source

Silver Price Optimism Still in the Cards

Posted on 10 October 2014 by VRS  |  Email |Print

It’s no secret that silver is having a bad time. Though prices for the white metal generally pick up in September, when investors return to the market after vacation, that simply hasn’t held true this year. Instead, silver has trended downward, with its slide culminating in a fall below $17 per ounce just over a week ago.
That’s pretty poor news, especially when silver’s overall 2014 price performance is taken into account — the metal has dropped 19 percent in the last quarter alone, and is down 22 percent for the year as a whole. However, that’s not to say silver is a lost cause; in fact, the current situation has a couple of pluses………………………………………..Full Article: Source

Morgan Stanley Says Gold One Of The Least Desireable Metals

Posted on 09 October 2014 by VRS  |  Email |Print

Asian markets are trading on a negative note ahead of the US Federal Reserve minutes today and concerns that global economic growth may worsen in future after International Monetary Fund (IMF) cuts the global growth forecast to 3.8 percent in 2015 from earlier estimates of 4 percent. This morning China’s HSBC Services Purchasing Managers’ Index (PMI) declined by 0.6 points to 53.5-mark in September as against a rise of 54.1-level in August.
Gold rose for a second session on Tuesday as its safe-haven appeal increased after the International Monetary Fund cut its global economic growth forecasts and weak German industrial data stoked further concerns. Gold is trading at 1213.30 up by just under $1.00 in the Asian sessions………………………………………..Full Article: Source

International Gold Price should Bottom around $1,100 per Ounce

Posted on 09 October 2014 by VRS  |  Email |Print

Gold has lost its year to date gains post Friday’s blockbuster US jobs data. The headline US unemployment rate came in at 5.9% - the last time the unemployment rate was below 6% was in July 2008.
The US economy added 248,000 jobs in September, which marked the 48th straight month of job creation. This was sufficient news flow for traders to push back the price of the precious metal below $1,200/ounce as the probability of an earlier than expected rate hike by the Fed looks likely………………………………………..Full Article: Source

BMO Cuts Gold, Silver, Platinum Forecasts for 2015

Posted on 09 October 2014 by VRS  |  Email |Print

BMO Capital Markets cut its outlook for gold, silver and platinum prices, predicting that the precious metals will lag other commodity markets next year. In a research report regarding 2015 forecasts, the Canadian bank lowered its average 2015 gold forecast to $1,190 an ounce, down from $1,275. It reduced its silver forecast to $17.50 from $20.25 and its platinum forecast to $1,413 from $1,500.
As of Wednesday afternoon, gold for December delivery had fallen 0.53% to was trading at $1,206 per ounce. BMO, however, raised its palladium outlook to $860 from $853 and predicted that nickel and aluminum likely finding support on improving fundamentals………………………………………..Full Article: Source

Bitcoin speculators being crushed will they now move into silver?

Posted on 09 October 2014 by VRS  |  Email |Print

Every market has its favorite speculative asset and for the past few years the electronic funny money Bitcoin has ruled this roost. Yesterday Bitcoin rebounded from a 20 per cent sell-off over the weekend. But year-to-date speculators in this novel specie have lost 40 per cent of their money in dollar terms.
These are the same mad speculators who drove the silver price up to nearly $50 three years ago. Since then the shiniest of metals has crashed back to earth and now stands at an alluring $17 an ounce, precisely the point at which it previously began its almost 300 per cent price surge………………………………………..Full Article: Source

Gold Can’t Hit Bottom If the Gold Bugs Keep Buying the Dips

Posted on 08 October 2014 by VRS  |  Email |Print

The gold market has had a rough go of it lately, with prices for the yellow metal falling from near $1,400 in March to just under $1,200 last week. But despite that, the gold bugs have maintained their bullishness, and that was clearly evident when the last price drop actually increased sentiment, rather than sapping it.
That’s a bad sign, MarketWatch’s Mark Hulbert said this morning on the MoneyBeat show. True bottoms form when sentiment is depressed. What’s happened recently, though, is that sentiment has actually gotten stronger even as the price fell under $1,200 last week (or, perhaps, because the price fell under $1,200). That’s not what normally happens………………………………………..Full Article: Source

Gold Has Most Challenged Fundamentals In Precious Metals Sector – BoAML

Posted on 08 October 2014 by VRS  |  Email |Print

Of all the precious metals, gold has “the most challenged fundamentals,” said analysts at Bank of America Merrill Lynch on Tuesday, as rising interest rates, stronger equities and the rising U.S. dollar all weigh on the yellow metal.
Adding to gold’s weakness is the reduced Chinese purchases year-over-year, they said. The combination all of these forces suggests that “prices may touch $1,100/oz at some stage next year,” the analysts said in a research note. While all of these factors contribute to weaker prices, gold has some supportive supply and demand aspects which could give the metal some support around $1,200, the bank said………………………………………..Full Article: Source

Don’t get whipsawed investing in the gold market

Posted on 08 October 2014 by VRS  |  Email |Print

Before you jump into gold, be aware that it is a very thin market, one in which you can get whipsawed very easily. Right now, gold might seem very attractive. After reaching an all-time high of $1,950 an ounce back in September 2011, the benchmark gold future contract GCZ4, -0.16% did a 180 and closed last week just below $1,193 an ounce. This was a plunge of 38%, bringing gold’s price to its lowest level since February 2010.
September’s drop of 6.3% was the biggest monthly decline in 15 months. The retreat for the third quarter as a whole was 9%. Although gold did edge back over $1,200 as this week got underway, the underlying mood remains decidedly bearish………………………………………..Full Article: Source

Is Gold’s Tumble an End for Commodity Super-Cycle? (Video)

Posted on 07 October 2014 by VRS  |  Email |Print

UBS U.S. equity and derivatives strategist Julian Emanuel and Partnership for a Secure America co-chairman Jamie Metzl discuss what the falling price of gold means for commodities and how China’s push for economic reform impacts global commodity demand. They speak on “Bloomberg Surveillance.”.………………………………………Full Article: Source

Production costs, physical demand key to gold price support – BARCLAYS

Posted on 07 October 2014 by VRS  |  Email |Print

The costs of production and physical demand can offer guidance to where price support may materialise for gold, Barclays said. Prices of $1,190 per ounce suggest that 15 percent of gold production is cash-negative on an all-in sustaining capex basis, the bank said in a note on Monday, while less than 1 percent is negative on a cash-cost basis.
“The sustaining cost of production is a clearer measurement of the cost pressures gold producers face,” it said. “Again, the strength of the dollar offers some respite to producers outside of the US, but given the weak demand environment, any cuts in production are unlikely to tighten the gold market immediately.” The marginal cash cost of production in gold is currently $988 per ounce, it said, with spot gold currently testing key levels around $1,194/1,194.80………………………………………..Full Article: Source

Goldman Sachs Reaffirms Gold Prices To Fall To $1050

Posted on 07 October 2014 by VRS  |  Email |Print

Gold continued its decline in the Asian session to trade at 1189.10 down by $3.80, surprising traders. Most predicted gold would climb a bit in the morning after falling $23 on Friday. It was thought that traders in Asian would buy up the cheap commodity. Precious metals are another victim of the dollar’s resurgence as gold futures, lost 1.83% to $1,192 per ounce.
On Thursday Goldman Sachs stuck to its forecast for the price of the “yellow metal” to fall to $1,050 per ounce over the coming twelve months. Precious metals continued losses to touch their lowest this year after U.S. payrolls beat forecasts, boosting the dollar and stoking expectations the Federal Reserve will increase interest. Platinum fell to a five-year low and silver declined to the lowest since 2010………………………………………..Full Article: Source

Sterne Agee Sees Gold at $1,400 in 2015

Posted on 07 October 2014 by VRS  |  Email |Print

It’s only natural that last week’s drop in gold prices would have investors wondering where the precious metal will trade a year from now. According to Sterne Agee analysts Michael Dudas and Satyadeep Jain, gold and silver prices will trend higher as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
How high? Dudas and Jain forecast gold prices averaging $1,400 in 2015 and $1,450 in 2016. As for silver prices, the pair see an average price of 19 next year and $21 in 2016. For investors, the pair recommend gold midnight stocks, rating Newmont Mining (NEM), Agnico-Eagle Mines (AEM), Coeur Mining (CDE) and Gold Resources (GORO) as Buys………………………………………..Full Article: Source

Precious metals: Industrial demand revival to turn silver into gold

Posted on 07 October 2014 by VRS  |  Email |Print

Silver may be the new gold. The reason is prices have fallen sharply compared to gold. As a result, the gold/silver ratio has risen to a five-year high. The ratio shows the ounces of silver you can buy with one ounce of gold. At present it is around 71, previously seen five years ago. A high ratio means silver is undervalued compared to gold and will fall much less versus gold, or when prices increase silver will rise faster.
In three months beginning June, international gold prices have fallen 8.8 per cent to $1211 an ounce while silver has fallen 19 per cent to $17.02 an ounce. The ratio increased from 63 to 71 in just three months………………………………………..Full Article: Source

Gold Bulls Retreat as Short Holdings Rise to Highest Ever

Posted on 06 October 2014 by VRS  |  Email |Print

Speculators pared bets on rising gold prices for a seventh consecutive week, the longest retreat since 2010, as futures erased this year’s gains.
The net-long position in New York futures and options contracted as hedge funds accumulated the most bets on further declines since the U.S. government began collecting data in 2006. The most-traded Comex gold option on Oct. 3 was for the right to sell December futures at $1,100 an ounce, or almost 8 percent below where prices ended the day………………………………………..Full Article: Source

Gold poised at the brink

Posted on 06 October 2014 by VRS  |  Email |Print

Gold had another forgettable week in global markets, registering a negative close below the psychological $1,200 per ounce mark at $1,191.42, down 2.2 per cent. Mixed data releases from the US prompted gold to register volatile trades between $1,204 and $1,223 until Thursday.
The trigger for the sharp fall came on Friday in the form of the US non-farm payroll (NFP) and unemployment data. The NFP increased in September by 248,000 as against the market expectation for a 216,000 rise. Also, the unemployment rate in the US fell below 6 per cent for the first time since July 2008 to 5.9 per cent in September from 6.1 per cent in the previous month………………………………………..Full Article: Source

Gold drops below $1,200/oz

Posted on 06 October 2014 by VRS  |  Email |Print

As gold dropped below $1,200/oz, bearish analysts renewed their dim outlook of any turnaround for the precious metal soon. Goldman Sachs reiterated its $1,050/oz call in 12 months, according to Bloomberg, with others joining the chorus.
Speaking to the WSJ Adam Klopfenstein of Archer Financial Services declared the break below $1,200 “just another sign that the metals trade is over.” “The inevitable trend for gold is lower, and it’s a long drop from here,” he is quoted as saying. As previously noted in these pages, gold’s renewed fall this morning came after a strong jobs report, with the U.S. government reporting the jobless rate at 5.9 percent………………………………………..Full Article: Source

Rigged gold price distorts perception of economic reality

Posted on 06 October 2014 by VRS  |  Email |Print

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

Put gold to work for economy, says WGC

Posted on 06 October 2014 by VRS  |  Email |Print

Gold should be put to work for the Indian economy, creating jobs, developing skills, generating exports and revenues, the World Gold Council (WGC) said on Saturday unveiling its Vision 2020 for the industry.
“Our vision for gold is that it should be put to work for the economy, creating jobs, developing skills, generating exports and revenues — an essential part of the financial, economic and social structure of the country,” The WGC said………………………………………..Full Article: Source

Super rich return to gold’s safe haven

Posted on 03 October 2014 by VRS  |  Email |Print

Every month a property investor walks into Neil Tremaine’s gold vault and deposits $250,000 worth of bullion. Why? The investor hopes it will act as a hedge against a plunge in an overheated property market. He is not alone. Demand for the precious metal is growing among the super rich, who are snapping up gold coins and bars.
At the Perth Mint – Australia’s only gold refinery and the world’s second-biggest producer after China – sales of gold coins and minted bars rose to 68,781 ounces in September, their highest since October 2013. Minted bars, which range from one to 100 grams, took the lion’s share of the increase, rising 37 per cent to 12,238 ounces, with investors in Germany and the United States the biggest buyers………………………………………..Full Article: Source

Gold price to fall further in 2015, summit hears

Posted on 03 October 2014 by VRS  |  Email |Print

Gold prices will fall further in 2015 on factors including weak demand and US economic strength, analysts told the BNamericas 2nd Mexico Mining Summit. The yellow metal declined steeply in September on the back of US dollar strength, averaging US$1,238.81/oz in London, compared with US$1,295.99/oz in August.
“We expect gold prices to continue to fall in 2015 due to weak physical and investment demand, and don’t expect any rebound at least for the next year,” Fernando Bolaños said at the event, held in Mexico City. Increases in interest rates in the UK and the US expected next year and continuing low inflation are also negative for yellow metal prices, he said………………………………………..Full Article: Source

Gold is back en vogue as investors worry

Posted on 03 October 2014 by VRS  |  Email |Print

If you want to know just how awful a week it’s been on Wall Street, look no further than gold and utilities. Both have held up quite nicely while stocks have done their impersonation of Felix Baumgartner jumping from space.
Speaking of which, even GoPro (GPRO) has gotten hit hard during this recent sell-off. The stock plunged Thursday after GoPro CEO Nick Woodman and his wife gifted shares to a new charity of theirs. By doing so, they’ll be able to sell some of their stock before the IPO lockup period expires. It was unclear if the charity actually intends to sell GoPro stock, however. But I digress. Back to gold and utilities………………………………………..Full Article: Source

Silver price falls to 4-year low

Posted on 03 October 2014 by VRS  |  Email |Print

The price of silver has dropped to a four-year low falling 19.3 per cent in the third quarter of 2014. Value of the precious metal declined below the $17 (£10.40) mark for the first time since 2010 after it was impacted by expectation of higher US interest rates. This move helped to strengthen the US dollar and provided the biggest quarterly rise since the second quarter of 2013 for the price of silver.
The US dollar has been a key factor in the fluctuating price of silver with the currency’s index (DXY) reaching a four-year high of 86.21 on Monday (September 29th). It represented 11 weeks of gains, the longest sustained rate of growth since 1971. The Federal Reserve is now expected to raise interest rates on the back of positive US economic data………………………………………..Full Article: Source

Platinum oversold as price tanks

Posted on 03 October 2014 by VRS  |  Email |Print

It’s rather remarkable in light of the year’s events. The platinum price (January delivery) reached a five-year low Wednesday ($1,263/oz.) highlighting a precipitous few months for the precious metal, largely used in catalytic converters.
The selloff in platinum - with ETF holdings dropping alongisde - started in August and has been relentless since. Platinum traded near $1,500/oz back in late July and early August, but it has since crumbled to under $1,300/oz. Many will recall that platinum climbed, if tentatively, on the back of a crushing strike in the South African platinum mining sector earlier in the year, which was eventually resolved but only after months of long-fruitless negotiation………………………………………..Full Article: Source

US$660 gold?

Posted on 02 October 2014 by VRS  |  Email |Print

A client of respected market research firm Ned Davis Research asked the question: If gold follows its 1980s market path, what kind of gold price would we be looking at? The answer: $660. From the January 1980 peak to the February 1985 trough, gold lost 65.8%, according to a note posted today by John LaFarge, commodity specialist for Ned Davis. So far this cycle, gold is down -35.7% from its August 2011 $1888/oz. peak. If it follows the path of the 1980s bear market, it lands at $660 an ounce.
Gold’s biggest foe back then is the same as it is now: The soaring value of the U.S. dollar. Gold fares best when paper money is losing its value. But the dollar has surged against the euro and the yen, in large part because U.S. interest rates, low as they are, are higher than those of other major countries. And gold, after all, pays no interest or dividends………………………………………..Full Article: Source

Gold Prices Rise as Some Cash in on Recent Downturn

Posted on 02 October 2014 by VRS  |  Email |Print

Gold prices turned higher Wednesday as investors locked in gains on bearish bets following the metal’s recent steep downturn, while platinum futures fell to the lowest level in almost five years.
Gold for December delivery, the most actively traded contract, settled up $3.90, or 0.3%, at $1,215.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices fell to $1,205 an ounce earlier in the session………………………………………..Full Article: Source

Gold Prices: 3 Ways to Play the Bullion Retreat

Posted on 02 October 2014 by VRS  |  Email |Print

Gold prices have been in secular decline ever since the summer of 2011, peaking at $1,921.50 per ounce then to just above $1,200 today. The first 10 years of the 2000s — often referred to as the “lost decade” for stocks — saw bullion prices soar as investors fled to safety in times of war and recession. A print-happy Federal Reserve and rock-bottom interest rates put the cherry on top.
However, a slowly improving economy and sluggish inflation have brought prices closer to earth, and with the Fed now signaling that the days of easy money are likely winding down in 2015, goldbugs look to be in even more trouble………………………………………..Full Article: Source

Analysts see silver lining as precious metal hits four-year lows

Posted on 02 October 2014 by VRS  |  Email |Print

Silver - for which Australia is one of the world’s leading producers - has hit four-year price lows, falling beneath $US16.90 per ounce during intraday trading on Wednesday. Although not one of Australia’s major resources in terms of production or export value, 59.2 million ounces of the precious metal was extracted from the country’s mines in 2013, just over $US1 billion worth. This puts Australia in fourth place worldwide, behind China, Peru and top producer Mexico.
Unfortunately for silver fans, it’s all been downhill since April 2011 when silver reached its nominal record high of $US49.76 per ounce. The reason is simple, say analysts: silver tends to track gold very closely. Gold has become less popular as monetary policy in the United States normalises and silver is following faithfully behind………………………………………..Full Article: Source

The collapse in “physical demand” for precious metals in the USA

Posted on 02 October 2014 by VRS  |  Email |Print

Some precious metal bulls like to dismiss price declines in gold and silver by pointing to the strength of “physical demand.” (Savers who put their wealth into precious metals never seem to get paid for this “physical demand”, but whatever…)
For example, here is Jim Rickards: So we thought it would be worth sharing some charts from Nick Colas over at Convergex that track spending on gold and silver coins issued by the US Mint. This isn’t a perfect measure of “physical demand” for bullion but it ought to be consistent over time………………………………………..Full Article: Source

Stay Liquid for the Coming Gold Boom

Posted on 01 October 2014 by VRS  |  Email |Print

I believe we have two different markets. One is an honest market for physical metal. The other is a market that has increasingly become less than honest. The latter is a paper market, primarily in London and New York, and it is used to muddy the waters of price discovery with gold and silver. This paper market price is assumed to be the real price of gold. I don’t think that’s true.
There is a need on the part of Wall Street, and the ruling elite within the Anglo-American empire, to keep people uninterested in honest money and real gold because dishonest enterprises must keep people from knowing the truth. What we have essentially is a fiat currency system that is devised to allow those in charge of the monetary system to profit at the expense of the real producers of wealth: the miners, the manufacturers, the farmers, the inventors………………………………………..Full Article: Source

Demand For Physical Gold Remains Strong As Bullion Banks Suppress Prices

Posted on 01 October 2014 by VRS  |  Email |Print

September has been a poor month for precious metals. Gold is down 5.2%, despite it being gold’s strongest month from a seasonal perspective. The price fall means that gold is heading for the first quarterly loss this year.
As a dollar-driven rally spurred by U.S. economic growth and after the U.S. Federal Reserve indicated it could raise interest rates sooner than expected earlier this month, gold prices have come under pressure for the entire month of September………………………………………..Full Article: Source

Silver Hits Lowest Price Since March 2010

Posted on 01 October 2014 by VRS  |  Email |Print

Silver traded at $17.07 per ounce on Tuesday, its lowest level since March 2010, according to Reuters. The metal is on its way to the biggest quarterly loss it has seen since the middle of 2013, the source reported.
The same factors responsible for dragging gold prices down are also impacting silver. This includes a stronger dollar, expectations that the U.S. Federal Reserve will raise interest rates soon and positive U.S. economic data. The U.S. dollar has seen 11 weeks of gains as investors expect that the Fed will raise interest rates soon, before Japan and the euro zone do the same………………………………………..Full Article: Source

Silver losing its luster?

Posted on 01 October 2014 by VRS  |  Email |Print

Silver continues to “lose its luster” as new highs in the U.S. Dollar again weigh heavily on the precious metals. Both silver and gold made new contract lows this morning in the December contract as the dollar continues to tear higher.
Provided the market continues to put in new contract lows, there’s not much that can be gained in terms of potential support targets by looking at the December chart and those looking for longer term support should consider using a continuous chart. There are a few structural points at 17.325 and 17.440 that could provide initial resistance to any corrective strength in the silver market………………………………………..Full Article: Source

Platinum Slides to 5-Year Low as Demand Wanes After Strike Ends

Posted on 01 October 2014 by VRS  |  Email |Print

Platinum sank to the lowest level since 2009 as a surge in the dollar curbed investor interest, extending the first quarterly loss this year spurred by the resumption of output in South Africa after a strike. Gold held losses near a nine-month low.
The metal for immediate delivery fell as much as 1.2 percent to $1,285.50 an ounce, the lowest price since Oct. 5, 2009, extending a retreat from a 10-month high of $1,519.68 in July. It traded at $1,287 by 8:34 a.m. in Singapore, according to Bloomberg generic pricing. Gold was at $1,207.58 after dropping yesterday to $1,204.57, the lowest since Jan. 2………………………………………..Full Article: Source

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

Posted on 30 September 2014 by VRS  |  Email |Print

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

Golden opportunity

Posted on 30 September 2014 by VRS  |  Email |Print

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

Gold prices may revert to long-term trends

Posted on 30 September 2014 by VRS  |  Email |Print

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

Bearish investor sentiment may pin down Gold prices: Barclays

Posted on 30 September 2014 by VRS  |  Email |Print

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

China gold demand surging again

Posted on 30 September 2014 by VRS  |  Email |Print

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

Gold prices may revert to long-term trends

Posted on 30 September 2014 by VRS  |  Email |Print

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

China spurns gold, adding to price woes

Posted on 29 September 2014 by VRS  |  Email |Print

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

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

Posted on 29 September 2014 by VRS  |  Email |Print

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

Will gold fall off the $1200 precipice?

Posted on 29 September 2014 by VRS  |  Email |Print

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

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