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Commodities Briefing - Category | Bullion/Gold more

Asteroid passing by Earth may hold $5 trillion in precious metals

Posted on 21 July 2015 by VRS  |  Email |Print

Forget the Pluto flyby. Metals bugs were buzzing Monday after a metallurgically rich asteroid rocketed past Earth on Sunday evening, boasting an out-of-this-world cache of precious metals. Astronomers speculated that the asteroid, known as 2011 UW-158, which passed about 1.5 million miles from Earth, might have carried as much as $5.4 trillion worth of precious metals and minerals, according to Slooh, which connects telescopes to the Internet.
Slooh quoted Astronomer Bob Berman as saying this in a news release: “Can it be mined someday, perhaps not too far in the future?” Mining.com reported that scientists believe the half-kilometer-wide asteroid contains up to 90 million metric tons of platinum and other precious metals………………………………………..Full Article: Source

Gold Speculators Least Bullish on Record as Rate Rise Approaches

Posted on 20 July 2015 by VRS  |  Email |Print

Janet Yellen’s optimism about the U.S. economy is making gold speculators the least bullish on record. Money managers are holding the smallest net-bullish bet on gold since the U.S. government data begins in 2006. They’re also dumping silver, platinum and palladium, and combined net-long wagers across the metals are the lowest ever.
About $2.1 billion was erased from the value of exchange-traded products tracking the commodities last week, the most since March. Gold futures dropped to the lowest level since 2010 on Monday, and Barclays Plc recommends that investors short the metal and go long on the dollar. With Federal Reserve Chair Yellen repeating that she’s ready to raise U.S. interest rates this year, investors are dumping precious metals that don’t pay interest or offer returns like competing assets………………………………………..Full Article: Source

China’s Been Hoarding Gold And It Isn’t Likely to Stop

Posted on 20 July 2015 by VRS  |  Email |Print

With China finally coming clean that it’s been the second-biggest buyer of gold over the past six years, analysts and traders say the purchases will continue. In the first update since 2009, the People’s Bank of China said on Friday that it owns about 1,658 metric tons, implying purchases of 100 tons a year. The stockpile may eventually reach more than 5,000 tons, according to Robin Bhar, an analyst at Societe Generale SA in London.
“China hasn’t been very open about its strategy, so what matters now is whether the market believes they intend to continue buying,” said Joni Teves, an analyst at UBS Group AG in London. “They do appear to leave the door open to further purchases, which should limit the downside for gold.”……………………………………….Full Article: Source

China’s gold reserves underestimated

Posted on 20 July 2015 by VRS  |  Email |Print

Pull the other one, Beijing. Various analysts put it more politely, but there was a wave of scepticism washing over Friday’s announcement that the people’s Bank of China had increased its official gold holdings, adding 604 tonnes since 2009, making the present total 1658 tonnes.
Being more measured than Pure Speculation, Bernard Dahdah, precious metals analyst at French bank Natixis put this view thus: “It begs the question of what’s been happening to the gold produced that hasn’t been taken by the central bank”. One London broker said he did not believe the Chinese announcement, and wondered why Beijing was playing down its gold purchases. Another said: “The timing (of the announcement) is as expected; it’s just the amount that makes no sense”……………………………………….Full Article: Source

Did A Major Gold And Silver Breakdown Just Begin?

Posted on 20 July 2015 by VRS  |  Email |Print

In late-June, I wrote a piece called “Why You Should Watch This Giant Chart Pattern In Gold And Silver.” In this piece, I showed that gold and silver have been building a two year-old wedge pattern – a chart pattern that often leads to sharp moves in the direction of the breakout.
Since then, precious metals have fallen sharply due to the calming of Greece-related fears, the stronger U.S. dollar, and lower oil prices. The latest gold and silver breakdown brings the metals dangerously close to breaking down from the wedge patterns, so I will analyze them further in this piece………………………………………..Full Article: Source

Gold Prices Headed to $2,000? Gruesome Supply and Solid Demand Say So

Posted on 17 July 2015 by VRS  |  Email |Print

It can’t be stressed enough; gold prices are setting up to provide big gains to investors. Just pay attention to supply and demand; you will notice how the precious metal’s market is improving fundamentally. We have been tracking what’s happening in the major gold-producing regions closely. To say the least; conditions are getting outright worse. Producers aren’t producing the yellow metal.
Consider this; between 2013 and 2014, gold production from U.S. mines declined roughly eight percent. U.S. mines produced 212,000 kg of gold in 2014 compared to 230,000 kg in 2014. This year, it looks like the mine production from the U.S. will be much lower than the 2014 figures. For instance, in the first three months of 2015, U.S. mines have produced 47,700 kg of the yellow metal. ……………………………………….Full Article: Source

Are the shares of gold mining companies a ‘buy’?

Posted on 17 July 2015 by VRS  |  Email |Print

A gold mine is a hole in the ground with a liar standing on top of it.”- unverified quote attributed to Mark Twain. Gold can’t seem to catch a break. Despite a parade of potential market roiling news, the reaction of the shiny yellow metal has been one of benign indifference.
After Federal Reserve Chair Janet Yellen’s testimony about the likelihood of an interest rate increase sometime this year, gold fell for a fourth consecutive day. Gold now trades at about $1,142 an ounce. Aside from a three-day stretch in November 2014, gold hasn’t been below $1,150 since 2009………………………………………..Full Article: Source

Not a great scenario for gold bugs

Posted on 17 July 2015 by VRS  |  Email |Print

The dollar is rallying again and US borrowing costs — as measured by benchmark bond yields — are nudging to the top of their recent range. As we’ve mentioned before, that’s not a great scenario for gold. Because the main quote for the yellow metal is in dollars, the bullion price tends to fall as its cost is adjusted when the buck strengthens.
Gold is also seen by some as a competitor to the greenback, so the idea that the market wants dollars can mean investors see less need to shift out of fiat currency and into bullion. Higher interest rates increase the “opportunity cost” of holding the non-yielding metal………………………………………..Full Article: Source

How Large Was US Gold Market Trade Deficit In Q1 2015?

Posted on 17 July 2015 by VRS  |  Email |Print

While the global financial system remained subdued in the first quarter of 2015, the U.S. Gold Market still suffered a large trade deficit. Matter-a-fact, the U.S. Gold Market deficit in 2015 may surpass its full-year shortfall in 2014 by a wide margin. Furthermore, with the heightened financial turmoil stemming from the Greek situation in Europe during the summer, I would imagine U.S. gold market deficits may be even higher in the second and third quarter.
Before we look at the data for the first quarter of 2015, let’s take a peak at the U.S. gold supply and demand situation for the full-year 2014: Last year, the U.S. imported a total of 308 metric tons (mt) of gold, had domestic mine supply of 212 mt and scrap of 90 mt (my estimates based on GFMS 2014 World Gold Survey). ……………………………………….Full Article: Source

India further cuts gold, silver import tariff value

Posted on 17 July 2015 by VRS  |  Email |Print

Government today further slashed the import tariff value of gold to $376 per 10 grams and of silver to $498 per kg due to weak global prices. For last fortnight, the tariff value of gold was fixed at $382 per 10 grams and silver at $516 per kg.
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices. The decrease in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, according to an official statement………………………………………..Full Article: Source

Gold is on the cusp of a ‘major breakdown’: Technician

Posted on 17 July 2015 by VRS  |  Email |Print

Gold bugs simply can’t catch a break. After starting 2015 with a bang, bullion made a new year-to-date low this week as Fed Chair Janet Yellen reiterated plans to raise interest rates later this year. The precious metal is now more than 12 percent from its January high, and according to one technical analyst, it could be on the “cusp of a major breakdown.”
“I think we need to be prepared for what the biggest casualty of a rate hike could be, and that’s gold,” Todd Gordon said Thursday on CNBC’s “Trading Nation.” By Gordon’s chart work, gold has broken through a key trendline that’s been in place since 2001………………………………………..Full Article: Source

Gold falls as precious metals hit by stronger dollar

Posted on 17 July 2015 by VRS  |  Email |Print

Gold has fallen to an eight-month low as precious metals struggle in the face of a strengthening US dollar. As bullion declined to $1,142.9 a troy ounce on Thursday, platinum — used in jewellery and catalysts in diesel cars — hit a six-year low, while palladium touched levels last seen in late 2012.
Analysts say the weakness for gold is being driven by expectations of a US central bank interest rate increase, bolstering the dollar, while weak physical demand in China, the world’s largest consumer, has also hurt sentiment. Traditionally a haven investment, gold has also failed to react to uncertainty in Greece or the slump in China’s stock markets in the past month………………………………………..Full Article: Source

Gold price falls to within sight of 5-year low

Posted on 16 July 2015 by VRS  |  Email |Print

On Wednesday, gold dropped to the lowest level since November last year after the US Federal Reserve said the world’s largest economy favours a rate rise this year. Futures contracts in New York with August delivery dates were priced as low as $1,141.90 an ounce down more than $10 from yesterday’s close following comments by Fed chair Janet Yellen in testimony to US politicians.
That was the lowest since November 7 when gold briefly dipped to $1,135 an ounce before recovering to end that day at $1,173 an ounce. For a sustained period below $1,150 an ounce you have to go back to April 2010………………………………………..Full Article: Source

Gold Price Forecast: Here’s Why Gold Prices Could Be Going a Lot Higher

Posted on 16 July 2015 by VRS  |  Email |Print

Some people are saying that the yellow metal is losing its shine. They have a point, as gold prices have plunged quite dramatically during the past few years. However, we shouldn’t be too fixated on the current gold prices. They are a result of emotional trading, extreme speculation, and possible manipulation. Looking ahead, the fundamentals of gold will eventually be priced in.
Let’s look at inflation first. The money printing by the Federal Reserve was at unprecedented levels. Since the Great Recession started in 2008, the Fed has increased money supply by 67%, or more than $5.0 trillion! Intuition suggests that when more money is chasing the same basket of goods, each good is going to command a higher price. But why don’t we see it happening?……………………………………….Full Article: Source

Reversal of Fortune for Gold & Silver Funds?

Posted on 16 July 2015 by VRS  |  Email |Print

Gold started off 2015 with a bang as it became even more of a safe haven as a result of an increase in currency volatility, uncertainly over Greece’s future in the euro zone and expected quantitative easing in Europe. However, the gains fizzled out as gold prices again dropped on strong U.S jobs.
Following which, gold prices fell to new six-week lows as equities recovered on hopes that Greece would work out a deal with its creditors. The demand for yellow metal returned at the start of the second quarter on disappointing economic data and a firming dollar. A weaker dollar and geopolitical tensions emanating from the Saudi Arabia-led coalition’s attack on Houthi rebels helped gold move up………………………………………..Full Article: Source

Palladium Price Forecasts Keep Falling

Posted on 16 July 2015 by VRS  |  Email |Print

While palladium performed much better than its sister metal platinum last year, the white metal hasn’t been immune to a fall in the broader precious metals complex so far in 2015.
The palladium price has lost 10.75 percent in the past month and has fallen 18 percent, or $148, since the start of the year; it is now at about $656 per ounce. Platinum has lost 13 percent year-to-date, and is currently sitting dangerously close to $1,000 per ounce at about $1,032………………………………………..Full Article: Source

Gold extends losing streak to four sessions

Posted on 15 July 2015 by VRS  |  Email |Print

Gold futures settled lower Tuesday. Disappointing U.S. retail sales data failed to keep prices from extending their losing streak to a fourth straight session. “Today’s gold price action is a case of the path of least resistance pointing to lower prices,” said Mike Armbruster, principal and co-founder at Altavest.
“Gold is approaching critical support around $1,150 and our expectation in the medium term is that gold is heading even lower,” he said. “Fundamental arguments for a longer-term bull market in gold are strong, but now is not the time to be overweight gold. Gold bugs need to be patient.”……………………………………….Full Article: Source

2 Factors that Could Send Gold Prices Higher

Posted on 15 July 2015 by VRS  |  Email |Print

Over the last few years, gold prices have been in the doldrums. With stock markets soaring to all-time highs, who wants to buy something that has no return? Well, things are about to change. Or should I say; are already changing in front of our eyes. For the following two reasons, gold prices are about to soar.
Reason #1: China - The recent crash in China’s stock market has helped many investors realize the risk in stock investing. From June 12th to July 8th, the Shanghai Composite Index plunged a staggering 32.1%. In recent weeks, more than 1,000 stocks dropped by more than the 10% limit posed by regulators. At the peak of the crash, more than half of all publicly-listed companies in China filed for trading suspension to save themselves from further tumbles………………………………………..Full Article: Source

ICE to scrap LBMA gold price seller’s premium

Posted on 15 July 2015 by VRS  |  Email |Print

ICE Benchmark Administration, which runs daily gold price-setting auctions used by mining companies to central banks, will remove a seller’s premium from next year. Following a market consultation, IBA will on Jan. 1 remove the 15 cents-an-ounce premium that’s added to the settled rate in the twice-daily LBMA Gold Price, it said in a statement Tuesday. It also said that if fewer than three direct participants are available to start an auction, it would publish a benchmark price without conducting the procedure.
IBA in March started administering the electronic auction that replaced the century-old London gold fixing, a ritual that had been taking place by phone. There are now 10 companies allowed to be direct auction participants, including Bank of China Ltd., which joined last month………………………………………..Full Article: Source

Silver prices set to hit US$21 an ounce

Posted on 15 July 2015 by VRS  |  Email |Print

Capital Economics has forecast that the price of silver will rise to US$21 an ounce by the end of 2016. In a note out last week, Julian Jessop chief global economist at the macro-economic, consultancy wrote that “silver does look under-valued”.
He explained that while silver closely tracks the price of gold it is like a ‘high beta’ version of gold, tending to climb further when the prices of both are rising and drop further when then are falling. The reason for this being that the silver market is smaller and less liquid………………………………………..Full Article: Source

Silver Pretty, Silver Ugly

Posted on 15 July 2015 by VRS  |  Email |Print

The big picture in simple terms: US national debt is huge, ugly, unpayable, and accelerating higher. Silver Eagles are pretty and are priced low. Silver prices will increase erratically, driven higher by a devalued dollar, along with increasing debt.
Silver is currently at the low end of the silver to national debt ratio. Silver is currently at an 81 month cycle low………………………………………..Full Article: Source

Gold price manipulation: Who really calls the tune?

Posted on 14 July 2015 by VRS  |  Email |Print

Perhaps the question should be are precious metals prices manipulated – or indeed are all commodity prices manipulated? The answer to these questions, almost certainly, is a resounding yes. Virtually anything traded on an exchange of any kind is open to manipulation by those with deep enough pockets, or those prepared to take the risk of being bankrupted if massive trades on margins go wrong.
But gold is something of a special case as the principal accused manipulators of last resort are the gold establishment – central banks and governments supported by the bullion banks………………………………………..Full Article: Source

Gold price: Hedge funds slash bullish bets 64%

Posted on 14 July 2015 by VRS  |  Email |Print

On Monday, gold went nowhere in New York with August deliveries priced at $1,155.30 an ounce in quiet afternoon trade, down a couple of dollars rom Friday’s close. Gold is down nearly 12% from its 2015 highs and the pervading negative sentiment – despite all the factors working in the precious metal’s favour – is nowhere more evident than in the positioning of speculators on the futures market.
Last week large gold futures investors such as hedge funds, referred to as “managed money”, slashed overall bullish positions by a whopping 64%………………………………………..Full Article: Source

Silver Price Remains in Long-term Downtrend

Posted on 14 July 2015 by VRS  |  Email |Print

It’s a strange situation - the long-term charts for silver continue to look awful, but there has been a quite dramatic improvement in its COTs, which now look positive, with readings that in the past have consistently lead to rallies. However, this doesn’t mean that any rally that develops soon will succeed in breaking silver out of its long downtrend.
Silver’s 8-year chart shows the as yet unrelenting downtrend from its 2011 highs involving a classic “staircase” decline. On this chart it looks set to drop again, but perhaps after another rally first towards the upper boundary of the downtrend channel………………………………………..Full Article: Source

Bullion Cues: Turbulence fails to move bullion

Posted on 13 July 2015 by VRS  |  Email |Print

Normally, turbulence in financial markets stokes safe-haven buying in gold, but this time, turbulence was a non-event for the bullion markets. On the one hand, Greece defaulted on its $1.7-billion payment to the IMF last week and Greek voters rejected the creditors’ terms.
On the other, China’s stock market plummeted, roiling financial markets across the globe. But, gold prices still ended in the red — down by 0.4 per cent for the week at $1,163.7/ounce. In fact, in the first half of the week, gold prices declined quite sharply, oblivious to the tumbling Chinese markets and hit a low of $1,147.4/ounce………………………………………..Full Article: Source

Gold up in Asia as investors eye Greece talks, news on banking sector

Posted on 13 July 2015 by VRS  |  Email |Print

Gold prices gained on Monday in Asia as investors awaited concrete announcements on the status of Greece’s banks and a third bailout program as talks in Europe dragged on through the weekend after some earlier hopes a deal was near.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose 0.34% to $1,161.80 a troy ounce. Also on the Comex, silver futures for September delivery gained 0.47% to $15.608 a troy ounce. Elsewhere in metals trading, copper for September dropped 0.73% at $2.524 a pound………………………………………..Full Article: Source

For Indians, paper gold can’t beat the real thing

Posted on 13 July 2015 by VRS  |  Email |Print

India is meeting stiff resistance in its drive to make the buying of gold jewelry more transparent and to channel demand into paper gold to stop the metal being used to hide billions of dollars of undeclared ‘black money’.
The jewelry trade says the Narendra Modi government’s plans to trace gold deals is unworkable and won’t deter holders of black money, or hundreds of millions of Indians outside the tax net, from buying gold to keep their wealth away from the prying eyes of the authorities………………………………………..Full Article: Source

Is The Commitment Of Traders Report For Gold Really That Bullish?

Posted on 13 July 2015 by VRS  |  Email |Print

Much has been made of a ‘record short position’ in precious metals held by the speculator trader category, but it may not be as bullish for price as many expect. I continue to believe that we have made a major high at $1232 in May, and can expect to see new lows in gold over the next few months. In the near term we should expect a brief short covering rally before the decline resumes.
Well I’m not quite sure whether to call last week’s forecast a win or a loss. We got a spike higher on the back of the Greek referendum as predicted, but the pop was muted (about 0.5%) and extremely short lived given that it sold off immediately and proceeded to make new local lows………………………………………..Full Article: Source

China wants to steal gold-market ‘reins’ from New York, London

Posted on 10 July 2015 by VRS  |  Email |Print

China has been making it very clear that it wants more control over the global gold market, but it’ll have to go through New York and London first. “Given that China is the epicenter of the physical gold market, it does make sense that the Chinese government would want its physical Shanghai gold market to supplant the Comex derivative market (and others) as the primary global price-setting mechanism,” said Anthem Blanchard, chief executive officer of online precious-metal retailer Anthem Vault.
China is, after all, the world’s largest producer and one of the biggest buyers of the metal, often running neck and neck with India as the globe’s top consumer. Last month, the Bank of China became the first Chinese bank to join the group of lenders that set the London Bullion Market Association’s gold price benchmark, and two more Chinese banks are reportedly working to become members………………………………………..Full Article: Source

China retains world’s largest spot gold trading market for 8th year

Posted on 10 July 2015 by VRS  |  Email |Print

China has retained its lead as the world’s largest market for spot gold trading for the eighth year, as growing participation by offshore investors fueled trade growth, the Shanghai Gold Exchange said Thursday. Trading of gold surged 166 percent during the first half this year to 17,520 tonnes, while that for silver jumped 151 percent during the same period to 380,000 tonnes.
Trading of bullion and silver totalled 4,764 and 525 tonnes respectively at an international board set up for offshore investors in the Shanghai Free Trade Zone in September. The World Gold Council estimates demand for bullion from China and India, the world’s top two buyers, will stand between 900 to 1,000 tonnes this year………………………………………..Full Article: Source

No Gold Rush as Greece and China Troubles Roil Markets

Posted on 10 July 2015 by VRS  |  Email |Print

Market mayhem is normally a buy signal for one asset: gold. But this time around the precious metal is the dog that hasn’t barked. The commodity surged to a record high in 2011 amid rising anxiety over the eurozone’s unfolding debt crisis, as mass protests against austerity policies hit the streets of Athens.
This year, faced with more turmoil from a deteriorating situation in Greece, investors haven’t yet rushed to gold. Nor have concerns about China’s economy and its plunging stock market yet caused the sort of panic gold-buying seen in past years………………………………………..Full Article: Source

China stock rout: Boon or bane for gold?

Posted on 10 July 2015 by VRS  |  Email |Print

With China’s stock market meltdown now into its fourth week, what does this mean for gold demand out of the world’s second largest consumer of the precious metal? “Given that one of the reasons for gold’s tepid demand in China is due to the strong equity bull market, questions are now raised if the current bearish ‘A’ share market could spark Chinese interest in gold once more,” Howie Lee, investment analyst at Philip Futures, wrote in a note on Wednesday.
Chinese equities plunged to a four-month low on Wednesday, as panic selling gripped markets despite fresh measures by the government to shore up confidence, including easing rules for insurers to invest in blue-chips stocks, raising margin requirements for short positions against small-cap stocks and warning against “irrational selling.”……………………………………….Full Article: Source

Warning: Hedge Funds See Gold Price Collapse in 2015

Posted on 10 July 2015 by VRS  |  Email |Print

Despite an underwhelming U.S. jobs report and turmoil in Greece, institutional investors are more bearish on gold prices now than at any point in history. With China’s stock market in freefall and Europe on the brink of chaos, many analysts predicted that investors would seek the relative safety of precious metals. Those predictions have been wrong so far.
A recent report from the Commodity Futures Trading Commission (CFTC) shows that some of the world’s largest hedge funds are unloading their bullish positions on gold futures. The value of futures contracts fluctuate based on where investors think the asset’s price is headed. If they are optimistic, investors amass “long” positions; if they are pessimistic, they take “short” positions………………………………………..Full Article: Source

Gold ETFs Fail The Volatility Test

Posted on 10 July 2015 by VRS  |  Email |Print

In my experience as an investment advisor, gold bullion and other precious metals are often very polarizing asset classes to own. You either love gold because you’re worried about inflation, currency manipulation and market volatility, or you hate it because you have no idea when it actually works to hedge those themes.
Anyone who has been watching the price of the SPDR Gold Shares ETF (GLD) over the past four years has seen the deflationary pressures this yellow metal has succumbed to. GLD peaked near $185 back in 2011 and is currently trading near its lowest levels of this bull market at $110. That represents a total decline from peak to present day of 40%………………………………………..Full Article: Source

Investors seek refuge in gold after price drop to nearly 4-month low

Posted on 09 July 2015 by VRS  |  Email |Print

Gold futures settled higher Wednesday, scoring a partial rebound after a drop to a nearly four-month low a day earlier as investors sought refuge in the metal. Investment interest in gold got a boost as the U.S. dollar weakened, a combination of unrelated events prompted a selloff in the main U.S. stock indexes and uncertainty continued to surround Greece, Iran and China.
Silver and copper also gained after concerns over China’s growth fueled hefty declines Tuesday for industrial metals. Gold for August delivery on Comex rose $10.90, or 1%, to settle at $1,163.50 an ounce. The metal shed $20 an ounce on Tuesday, as investors showed disappointment that gold failed to catch a haven bid against the backdrop of Greece’s fiscal turmoil………………………………………..Full Article: Source

What happened to gold’s safe-haven status?

Posted on 09 July 2015 by VRS  |  Email |Print

Conspicuous by its absence in the commodity market turmoil of the last week has been the reaction in the gold price, say analysts who believe the metal has currently lost its safe-haven status. “One of the interesting developments despite the Greece crisis and China uncertainty has been the failure of any rally in gold prices. In fact, gold prices yesterday (July 7) flirted with their year lows,” said Goldman Sachs in a morning note to clients.
“This is an indication that even in a risk-off environment investors are not seeing gold as a safe-haven and rather prefer parking their money in US and German bonds and the US dollar,” the bank said………………………………………..Full Article: Source

Big losses for precious metals

Posted on 09 July 2015 by VRS  |  Email |Print

Gold at lowest level in three and half months. Bullion metals registered big losses at Comex on Tuesday, 07 July 2015. Gold lost more than $20 an ounce on Tuesday, as sharp gains in the U.S. dollar helped send futures to the lowest finish since mid-March. Other metals also took a hit, with silver leading the losses as concerns over China’s economic growth pressured prospects for metals demand.
Gold for August delivery on Comex fell $20.60, or 1.8%, to settle at $1,152.60 an ounce. September silver sank 78.4 cents, or 5%, to settle at $14.69 an ounce, with prices tracking the most-active contracts at their lowest settlement since August 2009………………………………………..Full Article: Source

Gold market returns to net dehedging in Q1

Posted on 09 July 2015 by VRS  |  Email |Print

Following a year of net hedging in 2014, when hedging contributed 3.33-million ounces to gold supply, the first quarter of 2015 saw the market return to net dehedging, with the global producer gold hedge book contracting by 80 000 oz. This return of activity to the demand side of the market came after 1.45-million ounces of net hedging in the last quarter of 2014, Société Générale and Thomson Reuters GFMS revealed in the Global Gold Hedge Book Analysis for the first quarter on Wednesday.
The report further noted that the volume of the global producer hedgebook ended the quarter at 6.21-million ounces, with 29 companies becoming net dehedgers, and 16 companies adding to their delta-adjusted hedge positions over the three months………………………………………..Full Article: Source

China fears CRASH in gold market next to come

Posted on 09 July 2015 by VRS  |  Email |Print

The crumbling Chinese stock market is crashing into the global metals market. Copper plummeted to six-year lows and gold took its biggest hit in nearly two months on Tuesday as alarms continue to sound about China’s health. At first glance, it may not make sense for trouble in China to impact precious and industrial metals. But it’s important to remember how turbulence in one asset class can cause trouble in another.
Chaos has gripped Chinese stocks in recent weeks, sending the previously red-hot market nose diving 25%. The ferocious selling has forced investors who bought stocks with borrowed money to pay back loans by dumping other assets — including gold and other commodities………………………………………..Full Article: Source

Gold has done ‘worse than nothing’ in 2015

Posted on 09 July 2015 by VRS  |  Email |Print

Gold is losing its status as a safe haven asset. Markets have been jittery over the past few weeks with all that’s going on in Greece and China. In moments like these, gold usually benefits as one of the safer commodities to be invested in. But gold has been all over the place, and after a selloff on Tuesday, it sank even further to a fresh three-month low.
In a note Wednesday, Macquarie analysts ask, “What is left of gold’s status as a safe-haven?” Here’s more (emphasis added): Put simply, this year feels as if has had more than its share of drama - terrorist attacks, airline crashes, conflict in the Middle East and most recently a plunge in the Chinese stock market and the now very real prospect of Greece defaulting on its debts and being forced to leave the Eurozone………………………………………..Full Article: Source

Yes, China Can Push Gold Price To $64,000

Posted on 08 July 2015 by VRS  |  Email |Print

A new projection from Bloomberg has suggested that should China take on a gold standard then the metal would explode and go over more than $60,000 per ounce and would back the yuan currency. The report said that should China take it on it would need an exchange rate of around $64,000 an ounce, which would be 50 times the price of the bullion it is now.
Along with this in order to be able to make the exchange rate of a single ounce of the gold for each $64,000 the country would require around 10,000 metric tons of gold. This means that’s about 9 times the official holdings of the nation and 6% of all gold that has been mined around the world………………………………………..Full Article: Source

China Rapidly Changing International Gold Market

Posted on 08 July 2015 by VRS  |  Email |Print

Since 2007 China has the largest domestic gold mining output, since 2011 the Shanghai Gold Exchange has been the largest physical gold exchange and in 2013 and 2014 China was the largest importer. Now the Chinese seek to escalate pricing power. From the beginning of the liberalization of China’s gold market in 2002, the governor of the People’s Bank Of China has been strikingly honest – compared to his Western colleagues – regarding his view on gold.
At the LBMA conference in 2004 governor Zhou Xiaochuan stated gold is a currency, an indispensable investment tool and the gold market – together with the securities and foreign exchange market – constitute the main part of the financial market. As of today, China has fully developed its domestic gold market and is aiming to further integrate with the international gold market – inter alia to support the internationalization of the renminbi – as was planned more than a decade ago……………………………………….Full Article: Source

London loses golden touch as China’s build-up of bullion continues apace

Posted on 08 July 2015 by VRS  |  Email |Print

London, the traditional home/hub of the world’s gold trade, could be slowly losing its grip on power as more and more of the world’s physical gold moves from London’s vaults to Asia, chiefly China. This part of the story isn’t really anything new. Since 2013 when Western investors started to liquidate Exchange Traded Fund holdings of gold, and the dollar price in turn started its descent from historic highs, China has been stocking up gold.
Now, exact data of gold imports is sketchy at best, as the mainland doesn’t officially report figures, so analysts use fancy calculations from Hong Kong and Switzerland to get to a rough number. ANZ, for instance, said recently that as much as 75% of the world’s gold reserves have now been shipped from London vaults to the Middle East and China………………………………………..Full Article: Source

Markets hedge gold bet on US Fed

Posted on 08 July 2015 by VRS  |  Email |Print

In 2011, when Europe was spiralling into crisis, gold soared, helped by the perception of US dollar “money printing” by the US Federal Reserve. Last weekend, Greek voters cleaved a serious schism in the eurozone facade, threatening the stability of the world’s second-biggest economic block. But instead of roaring higher, gold barely whimpered as it slipped to near five-year lows.
“The lack of influence that the euro crisis is having on gold is particularly noteworthy as the yellow metal continued its recent price decline, underlining again how gold’s main role in financial markets at present is as a proxy for the timing and likelihood of a Fed rate hike,” Barclays commodity strategists said………………………………………..Full Article: Source

Gold Price Forecast: This Could Send Gold to $5,000

Posted on 07 July 2015 by VRS  |  Email |Print

Over the next few months, you could make triple-digit gains in one of the world’s most hated commodities: gold. No, you won’t get rich quick. But as I’m about to show you, some of the world’s smartest investors have been quietly accumulating precious metals. And before the move is over, we could see prices more than double. Let me explain.
These are hard times for resource investors. The past three years have seen big declines in gold price, with the metal trading more than a third below its peak of $1,900 an ounce. A number of investment banks have slashed their gold price forecast for the rest of the year………………………………………..Full Article: Source

Gold Price Gravitating Lower Towards $1000

Posted on 07 July 2015 by VRS  |  Email |Print

Gold has not even been able to muster a rally on the Greek crisis, which is a bad sign, especially as the dollar looks like it is preparing to break out upside from a large consolidation pattern. On its 8-year chart we can see that gold is still in the large downsloping consolidation pattern that has been going on for 2 years now. Goldbugs like to think that this trading range is a pattern is a base pattern, and while it may be, this is viewed as wishful thinking.
Instead it looks like the B-wave of a large A-B-C correction from gold’s highs in 2011. If it is, then the C-wave, which is suspected to be imminent, will take gold down at least to the strong support in the $1000 area, and probably lower towards the lower boundary of its large downtrend channel shown - if it gets there we are looking at $850 - $870………………………………………..Full Article: Source

Gold price: Hedge funds have NEVER been this bearish

Posted on 07 July 2015 by VRS  |  Email |Print

Gold is down nearly 10% from its 2015 highs and the pervading negative sentiment – despite all the factors working in the precious metal’s favour – is nowhere more evident than in the positioning of speculators on the futures market. Last week large gold futures investors such as hedge funds, referred to as “managed money”, slashed overall bullish positions by a whopping 55%.
Bets that prices will rise only amounted to 21,480 lots or 2.15 million ounces in the week to June 30 according to the Commodity Futures Trading Commission’s weekly Commitment of Traders data. That’s more than 14 million ounces below levels hit in January this year when gold reached its 2015 peak. The net long positioning is also the lowest since October 2006 when gold was worth less than $600 an ounce………………………………………..Full Article: Source

Is Gold going to Crash?

Posted on 07 July 2015 by VRS  |  Email |Print

The price of gold – in terms of U.S. dollars – has certainly struggled since 2011. The price is currently under $1,200. Just when it shows signs of a promising run above $1,200, it falls back down. Mining stocks have been even worse. They have been beaten down quite a bit over the last several years. It seems that almost nobody wants to touch them at this point.
A recent article at Forbes discusses the weakness in gold and why it should crash another 40% or more, which would send the metal down to $700 per ounce. The author lists five reasons on why the gold price should fall further from its 2011 highs………………………………………..Full Article: Source

A not very golden crisis

Posted on 07 July 2015 by VRS  |  Email |Print

Here’s a puzzle. Neither the Chinese stock slide or the Greek ‘no’ vote are having much of an effect on the gold price — odd given that the goldbug narrative that gold always performs well in a crisis: In fact, looking at the 10-day performance, the trend is distinctly to the down side: What gives?
Barclays’ Suki Cooper has an interesting view (our emphasis): The failure of gold to appreciate given global macroeconomic uncertainty may seem puzzling initially but is explainable. Over the past few weeks, as the Greek crisis reached a climax, gold prices failed to appreciate in any meaningful way, continuing their downward trend since crossing $1,300/oz in late January………………………………………..Full Article: Source

Fail: Gold can’t even rally on a currency crisis

Posted on 07 July 2015 by VRS  |  Email |Print

Gold, the world’s oldest currency and the most basic store of wealth, used to be where the world turned when times got rough. But after a Greek referendum that put the future of the euro in question and an equity bear market in China, bullion has barely budged.
Gold futures was little changed through midday Monday after jumping immediately after the Greek “no” vote in overnight trading. Gold is now down almost 2 percent for 2015 and virtually unchanged over the last one month amid these financial shocks. In the past, when a country got ready to abandon a currency, gold typically would fill that void………………………………………..Full Article: Source

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