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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

Platinum Prices Skid on Car-Demand Worries

Posted on 29 September 2014 by VRS  |  Email |Print

Platinum prices have fallen to the lowest in almost five years, as slowing growth outside of the U.S. has aroused concerns about demand for the precious metal. It has been a bumpy year for platinum, used in jewelry and automobile exhaust filters. A five-month-long strike in South Africa, the longest ever for the nation’s platinum miners, curbed supplies earlier this year and sent prices to a near 10-month high in July.
But the end of the strike, and lackluster economic performance in Europe and Japan, have brought platinum prices down 14% from their July peak of $1,517 a troy ounce. On Friday, platinum for October delivery, the most actively traded contract, shed 0.9%, or $12.20, to end at $1,302 an ounce. That is a level not seen since Oct. 5, 2009………………………………………..Full Article: Source

India: Driven by demand gold imports likely to double this October

Posted on 29 September 2014 by VRS  |  Email |Print

India’s gold imports are likely to double in October, driven by demand from consumers who purchase jewellery during the festival season. But investment demand, usually in the form of coins and bars, is likely to be less this year, which in turn may reduce the volume of gold entering the country through illegal routes, say industry executives.
The bullion industry pegs gold imports at 80 tonnes next month. “Last year during October, we had imported around 35-40 tonnes of gold. Gold availability was under pressure due to the 80:20 rule,” Prithviraj Kothari, vice-president of the Indian Bullion & Jewellery Association, told ET………………………………………..Full Article: Source

Price-fixing of gold, oil to become a crime in U.K.

Posted on 26 September 2014 by VRS  |  Email |Print

The U.K government plans to make fixing the price of gold and six other benchmarks a criminal offense, the Treasury department said Thursday, as it announced a consultation into extending laws regulating LIBOR.
By the end of 2014, those rules will be put in place for: London Gold Fixing, the LMBA Silver Price, ICE Brent futures contract, Sterling Overnight Index Average (SONIA), Repurchase Overnight Index Average (RONIA), WM/Reuters 4 p.m. London Fix (for foreign exchange), and ISDAFix, which covers interest-rate swap transactions. ……………………………………….Full Article: Source

Gold likely to fall further, says Goldman’s Currie

Posted on 26 September 2014 by VRS  |  Email |Print

Goldman Sachs’ Jeffrey Currie says the worst isn’t over yet for gold after prices for the metal erased almost all of this year’s gain. “Risks are significantly skewed to the downside,” said Currie, who told investors to sell last year before gold’s biggest collapse since 1980.
“Much of the support was coming from political uncertainty in Ukraine and what was going on in Middle East,” and those concerns have faded, he said. Currie heads the bank’s global commodities research team. After bullion’s rally in the first half of the year beat gains for commodities, equities and US Treasuries, the metal is heading for its first quarterly decline in 2014………………………………………..Full Article: Source

Gold price tipping point threatens mining operations

Posted on 26 September 2014 by VRS  |  Email |Print

The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations.
Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces………………………………………..Full Article: Source

Gold Rebounds From Eight-Month Low As Dollar Eases

Posted on 26 September 2014 by VRS  |  Email |Print

Gold prices moved higher, rebounding from eight-month lows hit earlier Thursday, as the dollar pared its gains. Gold for December delivery, the most active contract, was recently up $2.60, or 0.2%, at $1,222.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold fell to $1,206.60 an ounce as the ICE Dollar Index rose to its highest level in four years. But a reversal in the dollar sparked a rush by bearish investors to close out their bets on lower gold prices, propelling gold higher in late morning trade………………………………………..Full Article: Source

Pressure on gold market as dollar strengthens

Posted on 26 September 2014 by VRS  |  Email |Print

The gold market is trying to take a stand following recent weakness. Thus far, the gold market has bottomed out around the $1210 level. The market does, however, appear headed towards another retest of the $1185-$1200 areas. The gold market has held this area on two occasions already in the last year or so, but may not be able to take the pressure another time around.
A breach below this area could potentially ignite a new, significant leg lower in gold prices. Of importance is the fact that gold is in the midst of completing a large descending triangle. A break down out of this technical pattern could potentially see gold fall another $200 from current levels………………………………………..Full Article: Source

Some Traders See Potential For ‘Severely Oversold’ Silver To Now Outperform Gold

Posted on 26 September 2014 by VRS  |  Email |Print

Some traders and analysts are wondering if the gold/silver ratio got out of whack after silver was beat up worse than gold during a recent downdraft in the two precious metals. If so, there might be potential for silver to now outperform or at least hold up better than the yellow metal going forward. Traders who share this view could try to exploit this in a ratio trade, they say.
Others, however, look for silver to keep underperforming as long as the precious metals complex remains in a downtrend. The gold/silver ratio measures how many ounces of silver it takes to buy an ounce of gold. As the ratio falls, it means silver is outperforming gold, and vice-versa………………………………………..Full Article: Source

A Rational Look At Gold

Posted on 26 September 2014 by VRS  |  Email |Print

The fundamentals that drive Gold prices higher are in full force and improving. Central banks are buying more of the precious metal — to reinforce their reserves — while countries that are known to be big consumers of gold bullion post increased demand. According to the India Bullion & Jewellers’ Association, India’s monthly gold bullion imports are expected to rise by as much as 50% in the coming few months — in the range of 70 to 75 tonnes per month compared to an average of 50 to 60 tonnes now.
That is mainly due to the festival/wedding season fast approaching in India. If India continues to import 70 tonnes of gold bullion each month, then the total imports just to India will be 31% of all world gold mine production (based on 2,700 tons in annual mine production)………………………………………..Full Article: Source

Platinum and palladium struggle despite positive fundamentals

Posted on 26 September 2014 by VRS  |  Email |Print

Platinum and palladium prices continue to struggle amid a dwindling precious metals market, despite support from strong fundamentals that should be driving the price upwards, particularly in palladium.
Palladium is currently trading amongst near-perfect fundamentals, the market remains in a deficit for the third year running, major strikes across South Africa this year, no new mining facilities online and demand from China climbs higher as the country looks to meet emissions targets in auto catalysts. However, spot palladium dropped below $800 today, continuing on the downside to the lowest level since April. ……………………………………….Full Article: Source

The Better Inflation Hedge: Gold or Treasuries?

Posted on 26 September 2014 by VRS  |  Email |Print

Rightly or not, gold is widely viewed as an inflation hedge — a reliable measure of protection against purchasing power risk. The precious metal may not be the best option for that purpose, though. Some gold investors fail to consider its volatility as well as its opportunity cost, while others fail to anticipate storage needs and other logistical complexities of gold ownership.
For these and other reasons, some view U.S. Treasury bills as a superior safe haven alternative to gold. Both asset classes have their own sets of pros and cons; here’s a look at them………………………………………..Full Article: Source

Capital Economics Sees $1,400 Platinum At Year-End, $1,500 By End-2015

Posted on 25 September 2014 by VRS  |  Email |Print

Capital Economics has lowered its end-of-year platinum forecast to $1,400 an ounce but listed an upbeat outlook for the medium term, calling for $1,500 platinum by the end of 2015. “Disappointing growth in demand at a time of high stocks is weighing on the price of platinum,” the firm said in a report Wednesday.
“We expect lower prices to encourage some buying, notably of jewelry, but a sustained recovery is only likely when stocks are depleted, possibly some time next year.” October platinum futures settled at $1,319.40 an ounce on the New York Mercantile Exchange Wednesday………………………………………..Full Article: Source

Gold: The Bewitching Hour Of A Triple Bottom Nears

Posted on 25 September 2014 by VRS  |  Email |Print

The last time gold sparkled was in the summer of 2011 when an all-time record of $1900/oz was achieved. Alas since then it has been a torturous journey as gold prices has trekked south arriving at today’s price of $1216/oz, registering a loss of 36%. However, for the year to date gold is still trading above its low of $1180/oz as it grimly hangs on to a modest gain of 3%.
The question we face now surrounds gold’s direction; will it test the previous low of $1180/oz and bounce to higher levels or will it penetrate this support level and set the stage for sub $1000/oz gold prices………………………………………..Full Article: Source

Reasons Gold Neared $2,000 Still In Place - Frank Giustra

Posted on 25 September 2014 by VRS  |  Email |Print

There is a reason to hold gold but patience is a virtue, said Frank Giustra, renowned resource investor and co-founder of the Clinton Giustra Enterprise Partnership. “All the reasons why gold went to $2,000 in the first place are still there, and in spades,” he said during an interview with Kitco News’ Daniela Cambone at the Clinton Global Initiative annual meeting on Tuesday.
Gold is currently stuck in a ‘no one cares phase’ but his views on the metal remain unchanged he said on the sidelines of the annual meeting in New York………………………………………..Full Article: Source

Gold Speculation Interest Rising - Gold Price Falling

Posted on 25 September 2014 by VRS  |  Email |Print

Recent Seeking Alpha articles take very opposite postures on gold commitments, but the more optimistic, flamboyant, promotional approach seems to draw larger attention. Old saying: You catch more flies with honey than with vinegar.
When I started in the late 1950s just out of B-school as an investment researcher for one of the top NYC investment counsel firms my assignment was the metals stocks. It was apparent then, as it has continued to be since, that making forecasts about gold and gold stocks was an entertainment activity graced with results drawn from a random number table………………………………………..Full Article: Source

What the Charts Are Saying About Gold, Precious Metals

Posted on 25 September 2014 by VRS  |  Email |Print

As bad as conditions have been for gold and precious metals stocks in recent weeks, they could be on the verge of getting much worse. Some key indices, exchange-traded funds and individual stocks are nearing critical support levels, leaving little room for further weakness before the sector breaks down completely.
Here are the levels you need to watch to determine whether to position for a bounce or stay out of the way: The SPDR Gold Shares (GLD) ETF has been falling with virtually no let up since the beginning of August, bringing it within striking distance of its 52-week low of $114.46. The last time GLD traded below this level was 2010, about the midpoint of what would prove to be a three-year rally………………………………………..Full Article: Source

World Gold Council: ETFs ‘Good For Investors – And For Gold’

Posted on 25 September 2014 by VRS  |  Email |Print

Gold-backed exchange-traded funds “have been good for investors — and for gold,” said the World Gold Council in a report Wednesday. “Over the past decade, gold-backed exchange-traded funds have transformed the gold investment market,” the report said. “Yet, their rise has not been universally popular. They may have put pressure on gold vendors’ margins, and some investors believe that they have led to an increase in volatility of the gold market.
“As we see it, ETFs may not be an answer to every gold investor’s needs, but the gold market has benefited more broadly since their launch. Overall, we believe that ETFs have reduced total cost of ownership, increased efficiencies, provided liquidity and access, and brought new interest – and demand – into gold as a strategic investment.”……………………………………….Full Article: Source

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