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Gold Prices ‘Target $1200′ Ahead of Fed

Posted on 26 January 2016 by VRS  |  Email |Print

Gold prices edged higher on Monday morning in London, writes Steffen Grosshauser at BullionVault, holding close to a 7-session high at $1107 per ounce as a rebound in Asian stockmarkets faded in European and pre-US trade ahead of this week’s decision on Dollar interest rates from the Federal Reserve.
“If gold can stay above $1100 in the coming days,” reckons Mark To, head of research at Hong Kong’s Wing Fung Financial Group, “it may signal a further rebound, maybe even to $1200 in the coming months.” “We believe the key reason for gold’s weakness is the near-record short [speculative] position in paper markets,” says a note from London bullion bank HSBC, “overriding robust physical demand and an outlook for declining supply………………………………………..Full Article: Source

Gold is back in fashion after $15 trillion global decline

Posted on 26 January 2016 by VRS  |  Email |Print

The $US15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety. Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most- bearish ever.
Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $US3 billion in 2016. Bullion has seen a revival of its appeal as a haven after being mainly ignored last year in the face of the Paris terror attacks in November and the Greek bailout negotiations in July………………………………………..Full Article: Source

2016: Silver could go on a winning streak

Posted on 26 January 2016 by VRS  |  Email |Print

When gold prices rise, silver normally does too – and it tends to outperform the yellow metal. Some commodities specialists think silver prices could stage a recovery this year. “There’s an inherent link between the two. Silver is gold’s little sister and when gold moves higher, silver does too,” says Clive Burstow, manager of Barings Global Mining fund.
Silver is notoriously volatile, and is down 2.27 per cent in the last month. But silver has something gold hasn’t – its use in industry. While the prices of most metals fell last year amid broad negativity towards commodities in general, silver also suffered from weak demand for electronics and other goods………………………………………..Full Article: Source

Gold monetisation acquires new polish

Posted on 25 January 2016 by VRS  |  Email |Print

Those who have not opted to participate in the Centre’s gold monetisation scheme (GMS) so far, and have gold idling in their bank lockers, may like to consider it now. The Reserve Bank of India on Thursday announced a few changes to the scheme to make it customer-friendly.
GMS offers to pay you interest based on the weight of the old gold (in the form of jewellery, coins or bars) that you deposit with the bank. The minimum deposit is 30 grams (995 fineness). The scheme is available for short terms of one to three years, a medium term of five to seven years and long term of 12-15 years………………………………………..Full Article: Source

Gold Is Back in Fashion After a $15 Trillion Global Selloff

Posted on 25 January 2016 by VRS  |  Email |Print

The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety. Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most-bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $3 billion in 2016.
Bullion has seen a revival of its appeal as a haven after being mainly ignored last year in the face of the Paris terror attacks in November and the Greek bailout negotiations in July………………………………………..Full Article: Source

Will Gold Be The Beneficiary Of Oil, Equities Plunge?

Posted on 25 January 2016 by VRS  |  Email |Print

Global stock markets were in turmoil again this week, with the Dow plunging 566 points on Wednesday before recovering to a 250-point loss, and the S&P 500 index bleeding over 3.5 percent to hit an intraday low of 1,820, the worst showing since February 2014.
The Toronto Stock Exchange, heavily weighted towards mining and oil stocks, at one point was over 400 points down, giving investors an eerie déjà vu of the financial crisis as the S&P/TSX composite index ended the day under the psychologically-important 12,000 mark………………………………………..Full Article: Source

Gold price: Four reasons it hasn’t risen more

Posted on 22 January 2016 by VRS  |  Email |Print

While the gold price is having a decent year and optimism is building over its future projection, it has yet to really break free from established price parameters and a ceiling of around $1,100.
The precious metal has risen about three per cent this year, despite December’s rise in US interest rates, which is typically a negative signal. But this “safe-haven” rally comes at a time when equity markets are enduring their worst start to a year ever, with the UK’s benchmark the FTSE-100 ploughing a three-year low. So why hasn’t gold soared?……………………………………….Full Article: Source

Why Gold Prices Will Soar in 2016

Posted on 22 January 2016 by VRS  |  Email |Print

Gold prices were slightly lower today (Thursday) as markets calmed, but we still see gold prices soaring in 2016. In fact, investing in gold is one of the smartest decisions investors can make during this extreme market volatility. But first, here’s what caused gold prices to dip today…
European Central Bank President Mario Draghi kept interest rates unchanged Thursday and didn’t implement any new monetary measures. But he did signal the bank might offer more stimulus at its meeting in March. That stabilized European markets today………………………………………..Full Article: Source

Gold price rise hits buying in China, blunts India demand

Posted on 22 January 2016 by VRS  |  Email |Print

Physical gold demand in Asia slowed this week as prices rose, curbing seasonal buying in China ahead of the Lunar New Year holiday and moving Indian offers to a discount. Spot gold touched a 1-1/2-week high of $1,109.20 an ounce on Wednesday as tumbling equities and oil prices burnished bullion’s safe-haven draw.
“There’s a bit of speculative demand. Some Chinese people are buying with stock markets collapsing, but not huge,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd in Hong Kong………………………………………..Full Article: Source

Citi upgrades 2016 gold price forecast, lowers palladium

Posted on 22 January 2016 by VRS  |  Email |Print

Citi revised upward its 2016 gold forecast because of fears that China’s slowdown will spread to other parts of the globe, tensions in the Middle East and slumping equities around the world. The bank now expects prices to average $1,070 this year, a 7.5-percent upgrade on previous expectations. The spot gold price recently traded at $1,095.40/1,095.80 per ounce, down $3.50 on the previous close.
“Gold’s safe-haven rationale is back in vogue for the time being on fears of further China macro contagion, whipsaw equity markets, and geopolitical issues in the form of rising Arabian Gulf tensions,” the bank said………………………………………..Full Article: Source

Can the gold price continue to shine?

Posted on 21 January 2016 by VRS  |  Email |Print

After spending the past few years disappointing investors, gold is regaining some shine. The precious metal is the best-performing non-agricultural commodities of 2016, thanks to a number of trends aligning in its favour.
Gold has bounced up many times temporarily during its long-term downward trend that began after the price peaked in 2011. Still, it is undeniable that the gold bugs are gathering………………………………………..Full Article: Source

Gold Gains As ‘Nervous’ Investors Seek Haven Assets Amid Turmoil

Posted on 21 January 2016 by VRS  |  Email |Print

Gold rose as renewed losses in Asian equities spurred demand for less risky assets, with Citigroup Inc. saying bullion’s rationale as a haven was now back in vogue and prices may be supported over the first quarter. Bullion for immediate delivery advanced as much as 0.6 percent to $1,093.56 an ounce and was just shy of that level at 12:10 p.m. in Singapore, according to Bloomberg generic pricing. Spot silver also climbed.
The tumultuous start to the year has led investors to seek bullion, boosting prices 3 percent. Asian stocks fell to a three-year low on Wednesday after crude fell below $28 a barrel and the International Monetary Fund cut its world growth outlook amid the slump in most commodities………………………………………..Full Article: Source

Gold is good

Posted on 20 January 2016 by VRS  |  Email |Print

Declining Chinese demand has caused commodities like iron ore and many base metals to fall in price but gold remains pretty strong according to an expert. The analyst says the historically high gold price and outlook is bolstering the balance sheets of gold miners, and explorers should benefit over the next 12 months.
Mining and resources analyst Ryan Armstrong from Taylor Collison says siginificant interest in Australian gold is driven by the low US exchange rate. “With the market volatility gold is a bit of the ‘go-too’ precious metal,” he said………………………………………..Full Article: Source

Why Gold Is Not a Good Safe Haven Investment

Posted on 20 January 2016 by VRS  |  Email |Print

Gold is typically considered a safe haven while markets are volatile, and with the recent equity slide both in China and US, investors are thinking of gold as an alternative, safe haven investment. Indeed, since the start of the year gold prices have received a boost, hitting a 2-month high as global stock markets sold-off.
The global stock rout didn’t have any bullish effect on silver prices since the precious metal has an industrial metal status, too. That might help explain why gold fared better than silver in January………………………………………..Full Article: Source

Gold Miners May Finally Be Worth a Look

Posted on 20 January 2016 by VRS  |  Email |Print

A gold price rally has some investors thinking it might finally be time to start looking at gold mining stocks. Gold prices are just off two-month highs, outperforming commodity and financial markets in 2016 as fears about China’s stock market and its economy sent shock waves across global financial markets, hitting U.S. stock markets.
The yellow metal’s rise to around $1,100 an ounce comes after a few years of losses. Prices fell about 43 percent from their 2011 peak of over $1,900 an ounce – a nominal record high………………………………………..Full Article: Source

Gold is set for a better year on the market

Posted on 19 January 2016 by VRS  |  Email |Print

After a steep decline in gold prices, newly restricted supply should restore the bull market to bullion. After years of high gold prices – which peaked in 2011 before seeing a price slide – encouraging a flurry investment to increase production, output for gold is now said to have peaked. According to Thomson Reuters’ GFMS metals research team, production this year could fall by three percent, offering a potential new rise in the market cost.
Encouraged by rising prices, the gold industry saw increased investment into new productive assets. However, after the price of gold began to decline, these new assets caused increasing strain in the gold mining industry, as they struggled to turn a profit and cover extraction costs………………………………………..Full Article: Source

Gold Output has Peaked for Current Commodities Cycle

Posted on 19 January 2016 by VRS  |  Email |Print

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices.
The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher………………………………………..Full Article: Source

Price of Gold in 2016: Will It Break Out or Melt Down?

Posted on 19 January 2016 by VRS  |  Email |Print

The yellow metal still hasn’t bounced back, but some expect better times this year. Gold suffered another bad year in 2015, falling another 12% to close the year at about $1,060 per ounce. That put the price of the yellow metal at its worst year-end level since 2008 and extended a three-year streak of falling prices for gold.
Looking forward, investors want to know if tough times will continue for gold or whether it will finally post a substantial rebound. Let’s look at some of the things the gold market has gone through lately and what impact it will have on prices in 2016 and beyond………………………………………..Full Article: Source

Gold miners say output has peaked as losses reshape the industry

Posted on 18 January 2016 by VRS  |  Email |Print

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices. The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.
Kelvin Dushnisky, president of Barrick Gold, the world’s largest gold miner by annual output, said: “Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.”……………………………………….Full Article: Source

Gold buyers, sellers wait for luster to return

Posted on 18 January 2016 by VRS  |  Email |Print

Today, as the price of gold has dropped from peaks that followed, the parties have evaporated, most gold-buying stores and kiosks have closed, and the ubiquitous TV commercials by the tan, smiling Gold Guys are history. How did gold lose its luster?
In late August 2011, gold hit an all-time high of more than $1,900 per ounce in after-hours trading, before falling to $1,600 in 2012, $1,200 in 2013, and drifting along at around $1,100 since 2014. As gold prices declined each year, so did consumer interest in selling gold for scrap………………………………………..Full Article: Source

Gold again emerging as a safe haven

Posted on 18 January 2016 by VRS  |  Email |Print

The year has begun on an optimistic note for gold, up three per cent in a fortnight when most other asset classes are down, with some like crude oil having plunged over 20 per cent and equities down sharply. The unusual thing about gold’s rise is that the dollar index has not fallen during the period. Normally, they move inversely. This suggests gold is emerging as a safe bet in times of uncertainty.
Uncertainties could emerge in various forms, from terror attacks or crashing oil prices or the G7 central banks losing their credibility. Although many still see the recent spike in gold as temporary given that the yellow metal is seeing resistance at higher levels, voices have started emerging in support of gold. If uncertainties increase, some experts believe gold could rise as much as 20 per cent in 2016………………………………………..Full Article: Source

Buy palladium and dump gold, says precious metals forecasters

Posted on 18 January 2016 by VRS  |  Email |Print

Investors may not want to get too used to this month’s surprise rally in gold. Some of the most accurate precious metals forecasters say the gains won’t last and instead expect palladium to advance, even though it’s off to worst start in decades. After dropping for three straight years, gold has advanced more than any other metal in January.
Bullion’s appeal as a haven got a boost from political tension in the Middle East and Asia and global market turmoil. At the same time, industrial commodities have tumbled. Palladium, a metal used mostly for catalytic converters in cars, fell 12%in January. “The gold market is benefiting from geopolitical news and Chinese stock-market uncertainty, and these factors are unlikely to last,” said Bernard Dahdahat Natixis SA……………………………………….Full Article: Source

Silver is only second best

Posted on 18 January 2016 by VRS  |  Email |Print

Do you know what the wealthy added to their investment portfolio last year? It was silver. Record sales of the grey metal were reported from many mints as investors made a beeline to stack up physical silver in their coffers. The US mint sold a record 47 million American Eagle silver coins in 2015, which is higher than the previous year’s 44 million ounces.
Silver Maple Leaf Coins, sold by the Royal Canadian Mint, rose 75.9 per cent in the third quarter of 2015 from a year ago. In Australia, the Perth Mint recorded over 50 per cent increase in silver sales to 11.6 million ounces in 2015………………………………………..Full Article: Source

Barclays cuts 2016 average gold, silver price forecasts

Posted on 15 January 2016 by VRS  |  Email |Print

Barclays has pegged average gold prices at $1100/oz for 2016 (compared to previous forecast of $1,150/oz), $1200/oz for 2017. Average silver prices would be at $14/oz for 2016 (compared to previous forecast of $16/oz), $15.75/oz for 2017 (compared to previous forecast of $16.75/oz).
Barclays forecast average copper price at $1.98/lb for 2016 (compared to previous forecast of $2.55/lb), $1.90/lb for 2017 (compared to previous forecast of $2.30/lb). Average zinc price has been forecast at $0.75/lb for 2016 (compared to previous forecast of $1.04/lb), $0.85/lb for 2017 (compared to previous forecast of $1.15/lb)………………………………………..Full Article: Source

2016 Gold Price to Fall 14% Says 2015’s Top Forecaster

Posted on 15 January 2016 by VRS  |  Email |Print

Gold Prices again fell below $1090 per ounce in London trade Thursday, heading for a 1.7% loss from last Friday’s 10-week closing high as European stock markets fell hard and crude oil whipped around $30 per barrel – its lowest price since April 2004.
2016 gold prices will average $970 per ounce, says Bernard Dahdah at French investment and bullion bank Natixis – winner of the 2015 gold forecast competition held by trade association the LBMA – ranging between $900 and $1300. That would mark a 14% drop from last year’s average, and the fourth drop in a row since gold’s annual average peaked in 2012 at $1669 after 11 consecutive gains………………………………………..Full Article: Source

An ‘Acute Shortage’ in Gold Can Boost Prices

Posted on 15 January 2016 by VRS  |  Email |Print

An acute shortage of readily marketable physical gold is developing that we believe will deepen in years to come. This possibility seems to be unrecognized by those who are short the gold market through paper contracts.
The relentless dumping of synthetic or paper gold contracts since 2011 by speculators in Western financial markets has caused the shortage. The steady selling has driven down the price of physical gold, hobbled the gold-mining industry, and drained the stores of gold held in the vaults of Western financial centers………………………………………..Full Article: Source

Gold investment highest in a year following market uncertainty

Posted on 15 January 2016 by VRS  |  Email |Print

It’s been a scary start to 2016 for global markets and investors are responding by buying more gold than at any time in the past year. In the past five days, investors bought 26.8 metric tons of bullion through exchange-traded products backed by the metal, the most since January 2015, according to data compiled by Bloomberg.
Gold is one of the few commodities doing well, with prices up 2.8 per cent so far this year. Interest in the precious metal is being driven by demand for a safe haven after losses spread across Chinese and US equity markets and oil collapsed to $30 a barrel………………………………………..Full Article: Source

Gold prices will spike 30%

Posted on 14 January 2016 by VRS  |  Email |Print

One of America’s top money managers predicts gold prices will soon spike. Gold will shoot up to $1,400 an ounce, according to Jeff Gundlach, the CEO of big bond house DoubleLine Capital. That would be a gain of about 30% from gold’s current price of $1,090.
Gundlach thinks gold recently hit a bottom. It’s been rallying since the beginning of the year as investors look for safe havens in the stock market sell-off. Lately, his predictions have been spot on. He was one of the first to predict the sharp oil price crash in the fall of 2014 and then the junk bond turbulence of 2015. He has been dubbed the “new bond king.”……………………………………….Full Article: Source

Gold price: does two-day drop mean rally is over?

Posted on 14 January 2016 by VRS  |  Email |Print

Gold prices fell for a second consecutive day yesterday – and are lower again on Wednesday morning – as improved sentiment on equity markets undermined a “safe-haven” rally. Amid a sharp drop on indices around the world since the start of the year, caused by brittle sentiment in China, turmoil in the Middle East and the latest slump in oil, the precious metal had rallied strongly.
After hitting a six-year low of $1,045 an ounce in December, it rose to a high of $1,113 earlier this week and remained at or around $1,100 for four sessions. But traders have gained some confidence as Chinese markets recovered ground on Tuesday and again overnight, triggered by official data revealing exports unexpectedly rose in December………………………………………..Full Article: Source

Why Gold Prices Could Rocket in 2016

Posted on 13 January 2016 by VRS  |  Email |Print

The chaos of the first trading week of 2016 was unprecedented in modern history. There hasn’t been an opening week like that since 1928. Panic is starting to creep in as all U.S. indexes hurtle towards a “classic” 10% correction.
Millions of investors are looking for the exits and a reliable safe haven. And with Middle East tensions flaring and perpetual uncertainty over Chinese markets, millions more are sure to follow. But… all that bad news on the markets is terrific news for gold – and everyone holding it. As those reactions intensify, I think we’ll see gold hit these levels in 2016………………………………………….Full Article: Source

Gold spread to platinum extends over $250/oz, largest on record

Posted on 13 January 2016 by VRS  |  Email |Print

The premium of gold to platinum has moved to its largest level on record, at over $250/oz, as the metal fails to keep up with large gains made by gold this year. Whereas gold has added over $50/oz in 2016 to date on safe haven buying at over $1,100/oz this week, soft China data, persistent yuan depreciation and weak stock markets have all helped platinum lose around the same amount this year, to $845/oz as of 1100 GMT Tuesday.
2016 has been even worse for palladium, down around 15% year to date, trading around $450/oz Tuesday morning, its lowest level in over five years, as concerns over China continue to dominate prices for industrial and precious group metals. Palladium’s discount to gold is the largest since 2013, at $650/oz………………………………………..Full Article: Source

Precious Metals To Retreat in Short Term; Platinum Could See Pop — Mitsubishi

Posted on 13 January 2016 by VRS  |  Email |Print

Gold saw some relief last week on safe-haven demand, hitting a two-month high, while the other precious metals suffered; however, Mitsubishi says the outlook doesn’t look too positive for the precious metals.
“An unusual divergence between gold and the PGMs took place last week as bullion was buoyed by risk-averse mentality as global equities, led by China, plunged lower and geopolitical concerns…came to the fore. Platinum and palladium reverted to their pro-cyclical industrial roles while gold and silver both benefitted from safe-haven buying,” said Jonathan Butler, precious-metals strategist for the company, in a research note Monday afternoon………………………………………..Full Article: Source

Gold Joins Commodities Selloff

Posted on 12 January 2016 by VRS  |  Email |Print

Gold prices gave up gains Monday as a broad selloff in commodities and a stronger dollar pulled the market down. Front-month gold futures for January lost $1.30, or 0.1%, to $1,096.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Gains had approached 1% overnight but slid throughout traditional U.S. trading hours.
The market had lost ground Friday, too, after a surprisingly strong set of U.S. jobs numbers strengthened the dollar. Gold, like other dollar-denominated commodities, typically moves in the opposite direction of the dollar because an appreciating dollar makes gold more expensive for traders who primarily use another currency………………………………………..Full Article: Source

The Gold Market in 2015

Posted on 12 January 2016 by VRS  |  Email |Print

How can we summarize the last year in the gold market? First, it was not a good year for the gold bulls (however, gold performed much better than many other commodities, confirming its role as a currency). The London spot price of the shiny metal declined 9.56 percent from $1172 to $1060. Gold marked its fourth full year in a bear market.
Some analysts are calling this the bottom in gold, and they could be right. However, investors should remember that picking the bottom is often like catching a falling knife. If you have not mastered advanced contrarian strategies, do not fight the trend, which is your friend until it bends………………………………………..Full Article: Source

Gold rebounds on safe-haven demand as stocks face headwinds

Posted on 11 January 2016 by VRS  |  Email |Print

Gold bounced back on Monday with the market inching towards last session’s nine-week high as pressure on Asian stock markets triggered safe-haven bids for the metal. Gold climbed to its highest since early November on Friday, adding more than 4 percent to its value this year, as concerns over the Chinese economy and tumbling stock markets boosted the safe-haven appeal of the precious metal.
Investment appetite for bullion showed signs of picking up last week. Holdings of the world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 4.2 tonnes on Thursday, data from the fund showed………………………………………..Full Article: Source

Outlook For Gold In 2016

Posted on 11 January 2016 by VRS  |  Email |Print

The early stage of the interest rate increase cycle is bearish for gold. There are currently no catalysts for gold to rise. The price of gold is likely to continue to fall in 2016.
My thesis was that there is no positive catalyst for gold and that the price would continue to fall. My forecast turned out to be correct as the price of gold fell 12% from $1207 to $1061 since the article was written. I explained in the article how a rising dollar is likely to be bearish for the price of gold………………………………………..Full Article: Source

Why increased risk aversion may drive gold prices higher

Posted on 11 January 2016 by VRS  |  Email |Print

Surprising many investors in the market, gold hit a 9-week high during the previous week as the appetite for risky assets faded in the background of Chinese troubles.
We have turned bullish on gold for medium to long term a couple of months back precisely banking on two facts, that the best in the US equities and the worst for gold which is the Fed’s rate policy have been excessively discounted, now the known unknown is China, along with the fact that the net-short positions on Comex Gold for managed money stand at an all-time high hold a perfect backdrop for extending the strength in gold on slightest provocation………………………………………..Full Article: Source

Gold Is Turmoil’s Beneficiary as Soros Reminded of Market Crisis

Posted on 08 January 2016 by VRS  |  Email |Print

Gold is dusting off its credentials as the go-to commodity in troubled times and its producers are reaping the benefits. Futures rallied above $1,100 an ounce to a two-month high, after a sell-off in Chinese shares forced the country’s stock exchanges to shut for a second time this week, spurring demand for a haven.
Global markets are facing a crisis and investors need to be very cautious, billionaire George Soros said. Shares of bullion miners including Barrick Gold Corp. are climbing, even as the 80-member Bloomberg World Mining Index slides to the lowest in more than a decade………………………………………..Full Article: Source

Gold ‘Below $1000′ by April: Top Forecaster

Posted on 08 January 2016 by VRS  |  Email |Print

Gold will drop below $1000 per ounce within the first 3 months of 2016 according to the analyst behind last year’s winning forecast. Beating 30 other professional analysts in the London Bullion Market Association’s 2015 gold forecast (and coming a very close second in the silver forecast), Bernard Dahdah of French investment and bullion bank Natixis called last year’s annual average of $1160 per ounce down to the dollar.
Predicting a wider trading range for last year than the eventual $1046 (Dec. 2015) to $1306 (Jan. 2015), Dahdah based his 2015 forecast on the view that the “biggest driver” would be “the strength of the US Dollar…benefiting from higher employment and lower oil prices [with] growth in the US expected to accelerate.”……………………………………….Full Article: Source

Gold Rises Again Amid Global Market Tremors

Posted on 08 January 2016 by VRS  |  Email |Print

Gold is regaining its luster as the ultimate safe haven for investors. As global stock markets have come unglued in the first days of 2016 because of worries about weakening economic growth in China and geopolitical unrest over both the Middle East and North Korea, investors have been returning to the market to play defense.
Though gold is traditionally viewed as a risk-off asset, in recent months the $30 billion market has been driven more by anticipation of the Federal Reserve’s interest rate increase and the strength of the U.S. dollar………………………………………..Full Article: Source

Time for gold to glisten again as a safe haven?

Posted on 08 January 2016 by VRS  |  Email |Print

As global equity markets tumble, analysts say it could be time for gold to shine once more as a safe buy in times of market turmoil. Spot gold prices rose for a fifth successive day on Thursday, with bullion up about 4 percent since the start of the year. Prices topped $1,100 an ounce for the first time in nine weeks as the dollar fell after concerns over the Chinese economy hit global stocks.
“With equity markets tumbling, escalating tensions between a Saudi-led Sunni bloc against Iran, ongoing hostilities in Syria, North Korea testing what it claims to be a hydrogen bomb, the once precious yellow metal is looking perky,” BBH strategists led by Marc Chandler said in a note on Thursday………………………………………..Full Article: Source

China Boosted Bullion Holdings in December as Prices Retreated

Posted on 08 January 2016 by VRS  |  Email |Print

China increased its gold hoard for the sixth straight month in December as prices extended their decline through the end of last year. The central bank boosted reserves to 56.66 million ounces or about 1,762 metric tons from 56.05 million ounces in November, according to the People’s Bank of China.
The country has expanded its stash by 6.3 percent since announcing in July a 57 percent jump since 2009. China is buying gold to diversify its foreign exchange reserves and holds the fifth-biggest tonnage by country. Russia and Kazakhstan are among other nations increasing assets………………………………………..Full Article: Source

Gold Is Off To A Fast Start In 2016; Charts Look Bullish

Posted on 07 January 2016 by VRS  |  Email |Print

Gold is batting three-for-three so far in 2016. Prices for the yellow metal have risen each day this week set against a backdrop of global worries, recently up 1.2% to $1,091 an ounce. The recent rise pushed the SPDR Gold Shares exchange-traded fund (GLD) above its so-called 50-day moving average, a pivot point technical analysts view as an indicator of short-term momentum. It’s the first time in about three months that GLD has been above that level.
Gold finished 2015 near a six-year low, as prices plunged 10.7% amid a selloff in commodities and a countdown until the Federal Reserve’s first rate increase in nearly a decade, which finally came in December. Gold futures have lost nearly 43% of their value since hitting an all-time high in 2011………………………………………..Full Article: Source

Why gold’s mini-revival may be sustained

Posted on 07 January 2016 by VRS  |  Email |Print

Gold has started 2016 well. By mid-session on Wednesday, the metal was sporting a $28 jump since New Year’s eve, flirting with two-month highs. Crucially, the bullion’s latest strength comes despite the dollar index, with which it often sports an inverse correlation, crawling back towards December’s 12-year high, a function of a crumbling euro.
Chartists will note that gold in December hit a double bottom around $1,050 a troy ounce and has broken above its 50-day moving average. It may be tempting to see gold’s current mini revival as mainly a function of its haven status after North Korea’s bomb test added to the heightened geopolitical tensions from the Saudi/Iran fallout………………………………………..Full Article: Source

Gold might be the way forward, says UBS

Posted on 07 January 2016 by VRS  |  Email |Print

2015 was a volatile year for the stock markets and 2016 opened with a near obliteration of Chinese stocks on the first day back. And for this reason, technical analysts Michael Riesner and Marc Muller at UBS told clients in a research note on Wednesday morning that they should plough into gold (emphasis ours):
Gold has been trading in a cyclical bear market since 2011. In 2016, we expect gold and gold mines moving into an eight-year cycle bottom as the basis for the next multi-year bull market. Initially, we see gold profiting as a safe haven and as of 2017, gold could profit from the US dollar moving in a major top and starting a bear market………………………………………..Full Article: Source

Here’s Why the Bears Are Wrong on Silver Prices

Posted on 07 January 2016 by VRS  |  Email |Print

Silver prices trended upward after the Chinese stock market crash on Monday triggered a demand for safe-haven investments. Further adding a boost to silver is the mounting geopolitical tension in the Middle East, where Saudi Arabia and its allies have cut political ties with Iran. Meanwhile, the juggernaut between Russia and Syria is adding pressure to NATO partners.
Amid these changing global political and economic circumstances, betting on silver prices is becoming increasingly risky. For a trader, it is all or nothing (mostly nothing!). I prefer to liken it to Russian roulette………………………………………..Full Article: Source

Gold and silver in 2016: a prediction

Posted on 06 January 2016 by VRS  |  Email |Print

The surging dollar, prospect of higher interest rates in the US and the slump in commodity prices bore down on precious metals in 2015. While gold prices dropped 10 per cent, silver slid 12 per cent and platinum slumped by a sharp 26 per cent on worries of drop in demand for diesel cars in Europe (after the Volkswagen emission scandal).
Investment demand for all the three precious metals was poor as investors took shelter in bonds. SPDR Gold fund, the largest gold ETF in the world, saw its holdings drop to the lowest in many years. Hard-bitten bullion investors are now thinking twice about betting on precious metals………………………………………..Full Article: Source

Gold price enjoys ’safe haven’ bounce, but still trapped

Posted on 06 January 2016 by VRS  |  Email |Print

Predictions that the gold price would rise in the opening stages of 2016 were borne out in the first session of the year, as the precious metal enjoyed a strong ’safe haven’ bounce.
Spot gold rose more than $20 an ounce at one point, from near its recent multi-year low to above $1,083, before retreating slightly. The price ended the New York session 1.3 per cent higher at $1,075 – and it edged up to around $1,077 in London this morning………………………………………..Full Article: Source

Gold regains status as safe haven asset again?

Posted on 06 January 2016 by VRS  |  Email |Print

Gold has finally responded to the falling equity markets rather than the volatility in the dollar at the start of this year, possibly reviving its role a safe haven asset. However, it is early days still and the lack of a more significant rally makes me wonder whether this latest rise will prove to be another ‘dead-cat’ bounce.
Global stock markets have fallen sharply at the start of this year and although Wall Street staged a mini recovery late in the day on Monday, US index futures have turned lower once again, tracking the renewed selling pressure in Europe. No one seems to be too sure why the markets have dropped this viciously………………………………………..Full Article: Source

Why Now Is the Time to Buy Gold

Posted on 05 January 2016 by VRS  |  Email |Print

Gold has a message for the market: You’re a nut if you trust the Fed. In the days since the arbiters of American monetary policy raised interest rates on December 16 — the first rate hike in nearly a decade — gold prices have pretty much gone nowhere. On December 15, the day before the Fed’s announcement, gold closed near $1,065.
As I write this, it’s at $1,070 … and it has seen a high of $1,084 and a low of $1,052. Like I said, it has gone nowhere. Which, if you believe the claptrap that passes for institutional knowledge and learned wisdom on the business news channels, defies preconceptions about the metal………………………………………..Full Article: Source

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