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Commodities Briefing - Category | Bullion/Gold more

Gold sector M&A to be smaller in scale as big asset sales dry up

Posted on 09 June 2016 by VRS  |  Email |Print

Evolution Mining chairman Jake Klein says the string of big deals that Australian mid-tier gold companies have made to grow their portfolios and attract global investor interest is all but over.
The Australian gold sector benefited from a significant round of transactions over the past two years, as global majors Newmont Mining Corporation and Barrick Gold divested the majority of their Australasian assets to ambitious local miners, including Evolution, Northern Star Resources and OceanaGold. Klein said it was “difficult to see more large assets moving hands” as the majors turned their focus to cash flows from their remaining assets amid a resurgence in the gold price………………………………………..Full Article: Source

Actually, Gold Can Provide Income: Here’s the Trade

Posted on 09 June 2016 by VRS  |  Email |Print

As gold stocks surge, this options trade lets investors pocket income as long as prices don’t fall. Gold, which defies traditional valuation metrics, keeps attracting buyers in anticipation of further gains. This is incredible because stocks, which can be valued based on cash flow, are dancing around record highs and it’s hard to find anyone who is confident about the near-term future.
But the SPDR Gold Trust , even though it is up some 14% this year in what appears to be a knee-jerk reaction to simmering fears that the world economy is in bad shape, is in a full-fledged bull market. ……………………………………….Full Article: Source

How Are Gold Miners Placed in a Volatile Gold Price Environment?

Posted on 09 June 2016 by VRS  |  Email |Print

Gold investors became worried after the release of the Federal Reserve’s April minutes, which were more hawkish than expected. This put the summer rate hike back on the table, causing gold to lose some of its sheen. Gold lost 5.1% in 11 trading sessions after the minutes were released.
The Market was also awaiting the May jobs data to get a sense of the direction of Fed’s monetary policy. The data came in markedly below expectations, lowering the chances of a Fed rate hike in June………………………………………..Full Article: Source

World Silver Survey Shows Indian Market Still Growing

Posted on 09 June 2016 by VRS  |  Email |Print

“The World Silver Survey 2016,” an annual report published by The Silver Institute, said Asia’s silver mine output went up last year by 1% to 165.1 million ounces, following a 3% drop in 2014. A major part of the decrease originated from lead and zinc production sources with a lesser drop from primary silver mines. The bulk of the loss could be traced to mines in China and Kazakhstan.
For India, silver production showed a “notable rise” last year, of over two-fifths, or by 3.6 million ounces, to reach a record production total for the country of 12.0 million ounces. Total physical demand in 2015 saw a 3% increase in 2015, driven by higher retail investment, jewelry and silverware fabrication and solar and ethylene oxide catalyst demand………………………………………..Full Article: Source

Gold Ends Near Steady Amid Chart Consolidation

Posted on 08 June 2016 by VRS  |  Email |Print

Gold prices ended the U.S. say session near unchanged levels Tuesday, amid mild profit-taking pressure and some normal backing and filling on the charts following recent good gains. The gold market bulls still possess the overall near-term technical advantage.
That means the path of least resistance for prices in the near term will remain sideways to higher. August Comex gold was last up $0.10 an ounce at $1,247.60. July Comex silver was last down $0.017 at $16.43 an ounce………………………………………..Full Article: Source

Gold appetite in May was the strongest in over 3 years

Posted on 08 June 2016 by VRS  |  Email |Print

Buyers took advantage of gold’s price volatility to boost their holdings in May, according to data from BullionVault. The increase in buying lifted a key measure of gold investment to its highest level in roughly three years, BullionVault’s report, released on Tuesday, shows.
The Gold Investor Index, run by internet-based metals exchange operator BullionVault, jumped to 55.8 in May—its highest level since April 2013. It stood at 53.5 in April………………………………………..Full Article: Source

Another Gold Bull Market to Begin in 2016?

Posted on 08 June 2016 by VRS  |  Email |Print

3 Reasons to Remain Bullish on Gold Prices. Despite all the negativity, gold prices continue to trend higher. Expect more upside ahead in 2016. The yellow precious metal is setting up to reward investors big time.
There are three things you have to keep in mind when looking at the gold market: higher prices could attract more investors, demand already remains solid and could increase, and the supply side remains constrained. When looking at the supply side, gold prices are still not high enough for producers to flood the market………………………………………..Full Article: Source

BMO: Gold ‘Pullbacks Should Be Viewed As Buying Opportunities’

Posted on 08 June 2016 by VRS  |  Email |Print

BMO Capital Markets remains upbeat on gold for the second half of 2016, commenting that “pullbacks should be viewed as buying opportunities.” The market’s focus will be expectations for Federal Reserve rate hikes, analysts say.
No hike is good for gold, while a hike would hurt the yellow metal. However, a rate increase may hold back gold only for a little while. “Then the markets don’t believe there is actually sufficient economic strength for the next hike. Good for gold,” BMO says. “The underlying driver for our positive view on gold prices remains safe-haven demand in an uncertain global economic environment………………………………………..Full Article: Source

Gold and silver buying hits three-year high

Posted on 08 June 2016 by VRS  |  Email |Print

Overall trading activity in May - private investors either starting to invest in the precious metals or adding to their existing holdings - represented the highest since spring 2013. That was when both global stockmarkets and bond markets fell out of form as America’s Federal Reserve moved to unwind quantitative easing. The market reaction at that time was described as the ‘taper tantrum’.
There are two drivers behind the buying spree. The first is the fact that during the month of May both the gold price and the silver price dipped, falling 7% and 10% respectively. Investors took advantage of these falls to buy gold and silver at cheaper prices………………………………………..Full Article: Source

Outlook for Silver Prices in 2016

Posted on 08 June 2016 by VRS  |  Email |Print

Projected silver prices will reach $20 per ounce by year’s end, according to Money Morning  Resource Specialist Peter Krauth. That’s a rise of more than 28% from current levels for projected silver prices. His forecast, then, is still very bullish for projected silver prices. However, he also believes that investors should expect softness and pullbacks in the near term.
Silver prices historically have some seasonality. Krauth believes the low point will be hit in June, with a rise to $18 per ounce by autumn. Then, by year-end, projected silver prices have more to go – to $20 per ounce………………………………………..Full Article: Source

A Brexit Could Send The Gold Price Beyond $1,400

Posted on 07 June 2016 by VRS  |  Email |Print

According to a recent poll, the leave campaign has edged ahead with the vote just over two weeks away. Economists predicted that gold could rise to as high as $2,000 if the Grexit had occurred, we feel similar could be likely in the event of a Brexit.
With US rate hikes looking unlikely in June or July we feel nothing can stop gold’s ascent. Additionally, the British pound could have ~20% downside on an exit………………………………………..Full Article: Source

Non-Event for Gold Price to Move Up/Down 20% in Year: Frank Holmes

Posted on 07 June 2016 by VRS  |  Email |Print

After gold ’s recent correction, Frank Holmes, chief executive officer for U.S. Global Investors, says that the yellow metal is coming back toward its mean. “Seventy percent of the time, an asset class can move up or down a specific amount over various time periods,” Holmes said.
He added that it is a non-event for gold to go up or down about 20% in a year. Gold ended slightly lower Thursday after the European Central Bank monetary policy meeting concluded with no change in interest rates. The lack of fresh news failed to significantly move the precious metals markets………………………………………..Full Article: Source

Dollar gold price jumps on poor jobs data, physical demand remains dire

Posted on 06 June 2016 by VRS  |  Email |Print

The dollar gold price posted a significant jump Friday afternoon following the release of much weaker-than-expected US employment data, pushing the paper market even further from physical fundamentals.
In total 38,000 new jobs where created, according to US non-farm payroll data, falling far short of market expectations of 160,000 and easing the possibility of an interest rate hike by the Federal Reserve at its next meeting mid-June. The London Bullion Market Association Gold Price posted a $29.5 increase between the morning and afternoon settlements, jumping from $1,211/troy oz to $1,240.50/tr oz………………………………………..Full Article: Source

Gold Prices Pull Back Amid Interest Rate Concerns

Posted on 03 June 2016 by VRS  |  Email |Print

Investors will be watching Friday’s U.S. jobs report for signs the economy is strong enough for the Fed to raise rates. Gold prices closed lower on Thursday, after swinging between gains and losses as investors weighed the possibility that the Federal Reserve will raise interest rates in June.
Gold for June delivery settled down 0.2% at $1,209.80 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as high as $1,214.90 earlier in the session………………………………………..Full Article: Source

Investor Interest in Gold Waning With Fed Rate Increase Looming

Posted on 03 June 2016 by VRS  |  Email |Print

There’s one more indicator signaling investors are beginning to lose interest in gold again. Open interest, a tally of outstanding contracts in futures on the Comex in New York, fell 1.5 percent on Wednesday to the lowest since April 8. In the week ended May 24, money managers cut their net-long positions in gold by 26 percent, the most this year.
In the U.S., where the Federal Reserve has been monitoring signs of economic resilience before deciding on the next increase in borrowing costs, filings for jobless benefits released Thursday fell for a third straight week………………………………………..Full Article: Source

Gold is falling because of the Fed — but not for the reason you think

Posted on 03 June 2016 by VRS  |  Email |Print

Gold investors can stop worrying. Despite recent chatter, interest rate tinkering at the Federal Reserve is not driving the price of gold. That said, it’s easy to understand the confusion…
The price of gold dropped to a three-week low after the Fed released the minutes of its April meeting on May 18, suggesting it may lift interest rates in June………………………………………..Full Article: Source

There’s a ‘controversy’ brewing in gold market: Goldman Sachs

Posted on 03 June 2016 by VRS  |  Email |Print

Gold has been one of the best investments this year, rising 15 percent even as the S&P 500 is only a few percentage points better than flat. But as gold has slipped over the past month due to heightened expectations of a summer rate hike, indicators “show controversy” around gold ETFs, according to Goldman’s options research team.
Looking to the two popular ETFs that track gold miner stocks, GDX and GDXJ, the Goldman Sachs team notes a few mixed signals………………………………………..Full Article: Source

Global silver market deficit forecast up 21% in 2016, at 1,005 mt: Metals Focus

Posted on 03 June 2016 by VRS  |  Email |Print

The global physical silver market is expected to record a 1,005 mt deficit in 2016, up from a deficit of 793 mt in 2015, Metals Focus said in its most recent global silver survey Thursday. The increased deficit is forecast to come primarily from a tightening in supply, rather than increased demand, it said.
Total supply is expected to be 1% lower on the year in 2016, at 32,192 mt, due to a 2% fall in mine production, the survey said. The fall in mine production is significant, according to Metals Focus, as it comes after 10 years of production growth………………………………………..Full Article: Source

2016 Silver Prices ‘Will Rise Further on Ultra-Loose’ Rates

Posted on 03 June 2016 by VRS  |  Email |Print

Silver Prices will hold firm and rise further in 2016 according to the leading analysts behind a new report, with fresh gains driven by new investor and speculative demand, led in turn by low-to-negative interest rates worldwide.
After the 30% price surge to $18 per ounce from new 6-year lows between December and this spring, “Further, albeit modest, gains are likely for silver in 2016,” says specialist consultancy Metals Focus, today launching its first annual Silver Focus report. “A major change in market expectations regarding the number of US interest rate rises this year…spurred a sizeable flow of funds into precious metals,” says director Philip Newman………………………………………..Full Article: Source

Calling All Gold Bugs - Look Out Below

Posted on 02 June 2016 by VRS  |  Email |Print

Nothing mysterious about buying or selling gold. Gold bugs aren’t smarter than you or me. Many wax fanatical, and fanatics tap out in financial markets because of inflexibility. As long as they don’t close out positions they’re OK. Right? No, wrong.
Why shoulder a cross of gold? Figuring out Alibaba’s numbers is tough enough. I’m short gold as a conceptual hedge against my contemporary art collection and what is considered luxury real estate in the Big Apple AAPL -1.37%, Hudson Valley and Palm Beach………………………………………..Full Article: Source

Ghana sees slight dip in gold production this year

Posted on 02 June 2016 by VRS  |  Email |Print

Ghana expects to produce 2.7 million ounces of gold in 2016, down only marginally from last year as new production offsets a decline in output due to lower global prices and ageing mines, the Chamber of Mines said on Wednesday.
Gold is the single biggest revenue earner for Ghana, which is following a three-year aid deal with the International Monetary Fund. The West African country produced 2.8 million ounces of gold last year, the Chamber’s Chief Executive Sulemanu Koney said, down 10 percent from 2014 when AngloGold Ashanti’s Obuasi mine laid off workers and all but stopped production………………………………………..Full Article: Source

Gold Bullion Tries $1220, Drop ‘Now Finished’ as China’s Yuan Nears 5-Year Low on Weak PMI

Posted on 02 June 2016 by VRS  |  Email |Print

Gold Bullion retreated twice from a 3-session high of $1220 per ounce on Wednesday, dropping back but holding firmer than world stock markets as new data again showed manufacturing activity contracting in China and slowing in Germany.
The May manufacturing PMI survey from news outlet Caixin and data agency Markit said activity contracted for the 15th month running, contrasting with a pop to unchanged on the government’s official NBS index. “Has gold’s $100 drop [from start-May] been enough?” asks London bullion and futures brokerage Marex Spectron’s David Govett in a note. “Personally I think it has………………………………………..Full Article: Source

15 Reasons Why Gold Prices Could Hit $5,000 an Ounce

Posted on 02 June 2016 by VRS  |  Email |Print

Gold prices over the past several weeks have taken a hit. They are down roughly seven percent from their highs made in early May. Should this be a sign of worry? No; more upside could be ahead.
In fact, there are 15 reasons why gold prices are undervalued and big gains could be ahead. Central banks around the world continue to buy the precious metal despite gold prices being well below the highs made in 2011. Know this: they are not buying it for speculative purposes. They are buying to hedge their reserves and they will need more………………………………………..Full Article: Source

Silver Price Forecast: Silver Could Hit $1,000 Per Ounce, Insider Says

Posted on 02 June 2016 by VRS  |  Email |Print

Silver prices had a solid bull run in the beginning of this year. From January to the end of April, the spot price of silver shot up nearly 30% from $13.82 to $17.89 an ounce. But according to the latest silver price forecast from one industry insider, this could just be the beginning for silver prices.
Keith Neumeyer is the founder, president, and chief executive officer of First Majestic Silver Corp. In an interview with Future Money Trends, Neumeyer explained why he believes the silver price is about to shoot through the roof………………………………………..Full Article: Source

Forget gold, oil is the star investment right now!

Posted on 01 June 2016 by VRS  |  Email |Print

Since the turn of the year, the price of gold has risen by around 18%. As a result, many investors are highly optimistic about the prospects for the precious metal and it has clearly been a strong performer in 2016.
A key reason for this is the fact that US interest rates have risen at a much slower pace than expected. When the Federal Reserve increased interest rates in December, it was expected that there would be as many as four rate rises this year, but with none by May, this figure is unlikely to be met. As such, interest-producing assets have been less enticing than was anticipated and the price of gold has risen………………………………………..Full Article: Source

Gold: What Is It Good For? Absolute Value Or Absolutely Nothing?

Posted on 01 June 2016 by VRS  |  Email |Print

Gold bullion is up 15% so far in 2016. This rise is particularly interesting when you consider that the derivatives of gold, such as gold and silver mining companies, have bounced off of even deeper lows than the metals far more aggressively.
For instance, the NYSE ARCA Gold Bugs Index, a representation of the mining companies, is up over 80% YTD. Conversations about gold often resemble an argument about religion with the believers and the non-believers rarely seeing eye to eye. Typically, the believers are so adamant that the non-believers are left with only one conclusion: being long gold is similar to joining a cult………………………………………..Full Article: Source

Gold fears the Fed: Julius Baer

Posted on 01 June 2016 by VRS  |  Email |Print

Gold prices have come under renewed pressure as the probability of a summer rate hike in the U.S. has risen of late, according to an analyst from Swiss private bank Julius Baer. “A rebounding dollar and cooling futures market sentiment have pushed gold prices towards $1,200 per ounce,” Carsten Menke, commodities research analyst at Julius Baer said in a note Tuesday.
“We maintain a neutral view on gold but believe that investors should continue to consider it as insurance to their portfolios against the backdrop of prevailing economic and financial market risks.”……………………………………….Full Article: Source

Gold price dips below $1,200 - is the rally now over?

Posted on 01 June 2016 by VRS  |  Email |Print

Gold’s prolonged winning streak came to an abrupt end this month. The yellow metal has been by far the standout performer in a volatile four months for markets. By the end of April, it was up 21 per cent to above $1,260 an ounce, says the Daily Telegraph, and as recently as 2 May, it hit an intraday high in excess of $1,300.
But things have changed markedly over the past ten or so days. In its ninth consecutive losing session, gold dipped below $1,200 overnight for the first time since mid-February, before recovering slightly………………………………………..Full Article: Source

Expectations for 2016 Silver Prices

Posted on 01 June 2016 by VRS  |  Email |Print

The precious metals markets have a close eye on them now as investors try to predict where 2016 silver prices are going. After climbing for weeks, silver has pulled back a bit since mid-May. While the silver market is volatile by nature, there are some elements to gold and silver prices that make them predictable to a point.
In fact, Money Morning Resource Specialist Peter Krauth anticipates a coming surge for silver prices, stating that “silver is now primed to outpace gold’s gains and soar much higher from current levels.” He does see some weakness ahead first, but then the silver price climb will resume………………………………………..Full Article: Source

The Price of Silver Will Head Lower Before Rising Again in 2016

Posted on 01 June 2016 by VRS  |  Email |Print

The silver price correction I’ve been cautioning readers to expect is finally upon us, as the price of silver has not been able to escape the broader sell-off in precious metals recently. Silver peaked right along with gold prices in late April and has followed a similar decline ever since. As expected, the U.S. Dollar Index (DXY) bottomed right around the same time.
Then, silver prices consolidated between $17 and $17.50 until mid-May. The DXY had already been rebounding, and then it got a second wind and kept climbing higher………………………………………..Full Article: Source

Gold Price Forecasts Revised Higher – Citi Says “Buy the Dip”

Posted on 31 May 2016 by VRS  |  Email |Print

Gold price forecasts have been revised higher in recent weeks and Citi became the latest bank to revise higher their projections for gold, despite the recent weakness in the price. Citi Research, the research division of one of the world’s biggest banks, raised its gold price forecast to an average $1,280 in the current quarter, $1,300 in the July-September period, and $1,250 in the final three months of the year.
Citi said that despite the recent gold pullback, now is an “opportune moment” for buyers and now is the time to invest in gold………………………………………..Full Article: Source

Gold will not fall below $1,200/oz for long – Commerzbank

Posted on 31 May 2016 by VRS  |  Email |Print

There is the short-term potential for the gold price to fall below $1,200 per troy ounce due to the high level of speculative interest and renewed Fed rate hike speculation, said Commerzbank . But the price is not expected to fall lastingly below this threshold because such a price level is likely to be viewed by investors as an attractive opportunity to buy, it said.
“What is more, lower prices should cause physical buying interest to pick up in Asia, as the consumer restraint exercised there in recent months has generated pent-up demand,” it added. At present, there is also little to suggest that the interest in gold ETFs might wane abruptly or even switch to selling, it noted………………………………………..Full Article: Source

Mines can put gold price respite to good use

Posted on 31 May 2016 by VRS  |  Email |Print

Stakeholders need to address alternative job opportunities for mineworkers, but it can also be expected that mining posts will steadily become more skilled and better paid. A surging gold price and a weakening rand have been good to South African gold producers in the first half of 2016, but how can the much-needed financial respite be used to build more sustainable mines?
There is a danger of this windfall revenue simply being used to repay debt and issue dividends to expectant investors. Rather, these pressing demands should be tempered by considering where the business will be when the rand gold price weakens again. What is needed are bold strategic and technical efforts to improve productivity and drive these companies down the industry cost-curve in the medium to long term………………………………………..Full Article: Source

Will gold continue to shine in 2016?

Posted on 30 May 2016 by VRS  |  Email |Print

Gold has been one of the best performing assets of 2016 and is up 15% since 1 January. Gold bugs around the world have been calling this the start of a furious bull market in gold and silver. Today I’m looking at the reasons gold has made this move and whether it will continue.
After the Federal Reserve increased US interest rates in December last year, most of us were expecting multiple rate rises this year. However this hasn’t happened and the Fed has been surprisingly dovish, which has weakened the dollar. The US Dollar index tracks the dollar against a basket of currencies and is down nearly 4% this year………………………………………..Full Article: Source

UBS: Investors Have Opportunity To Buy Gold At ‘More Attractive Levels’

Posted on 30 May 2016 by VRS  |  Email |Print

UBS says any further weakness in gold may be a buying opportunity. The metal has fallen some $90 an ounce from its recent highs, leaving it not far from $1,200 psychological support.
The bank says it’s “understandable” that some investors might be hesitant to buy into weakness, considering recent gains in the U.S. dollar, equities back near the highs for the year, rising 10-year Treasury yields and financial markets pricing in an increased likelihood of Federal Reserve tightening since the start of last week……………………………………….Full Article: Source

Emerging markets should shift from dollars into gold

Posted on 30 May 2016 by VRS  |  Email |Print

Managers of the world’s $10tn or so foreign exchange reserves are in a bind. More and more of the global government bond market shows a negative yield. If held to maturity, such bonds will inflict a certain loss. Those bonds that do offer a positive yield are horribly overvalued by historic standards.
If held to maturity, they will show a profit. But the capital value of these so-called safe assets is vulnerable to a spike in yields, which is bad news if central banks need to liquidate them to cope with a currency crisis or fiscal disaster………………………………………..Full Article: Source

High gold price prompts miners’ switch to lower grades

Posted on 30 May 2016 by VRS  |  Email |Print

With the price of gold continuing to hold at near record levels, Australia’s gold miners have switched to mining lower grades while also hedging their exposure to ensure ongoing access to the high price.
The latest quarterly survey by Surbiton Associates found a 2 per cent decline in March quarter gold production to 71 tonnes when compared with the previous quarter. March quarter output is usually weak due to the industry slowdown for summer holidays and the impact of the cyclone season, which slows output in mines in the country’s north………………………………………..Full Article: Source

Funds Step Back From Gold Before Yellen Says Rate Rise Is Coming

Posted on 30 May 2016 by VRS  |  Email |Print

Hedge funds decided to take a breather from gold just before Janet Yellen gave investors more reason to ditch the precious metal.
After a roaring start to the year, the excitement over bullion has dissipated this month on increasing expectations that the Federal Reserve is getting ready to raise U.S. interest rates again as the economy improves. Last week, money managers who have been bullish since January reduced their wagers on a price rally by the most this year………………………………………..Full Article: Source

A 107pc return in six months: Gold funds storm 2016 performance tables

Posted on 27 May 2016 by VRS  |  Email |Print

Specialist gold funds have clocked up incredible gains since the start of the year, with some doubling investors’ money. The rally, thanks to a 20pc rise in the gold price, puts them among the best performers of the 3,500 or so collective investments available to British investors.
Investec Global Gold, MFM Junior Gold, Ruffer Gold and Blackrock Gold & General are all among the top performers, while WAY Charteris Gold & Precious Metal and the Smith & Williamson Global Gold & Resources fund have also delivered stand-out performance………………………………………..Full Article: Source

Top 10 Countries With The Largest Gold Reserves

Posted on 27 May 2016 by VRS  |  Email |Print

Beginning in 2010, central banks around the world turned from being net sellers of gold to net buyers of gold. Last year they collectively added 483 tonnes—the second largest annual total since the end of the gold standard—with Russia and China accounting for most of the activity. The second half of 2015 saw the most robust purchasing on record, according to the World Gold Council (WGC).
Not every top bank is a net buyer. The Bank of Canada has liquidated close to all of its gold, mainly in coin sales, while Venezuela is in the process of doing the same to pay off its debts, but most of the world’s central banks right now are accumulating, holding and/or repatriating the precious metal………………………………………..Full Article: Source

Should you start hoarding gold? Some say China’s gold ambitions mean you should keep some stashed at home

Posted on 27 May 2016 by VRS  |  Email |Print

China’s decision to buy its second gold storage vault in London last week was another step towards total dominance of the market. The vault is in a secret location and was bought by Chinese state-owned bank ICBC Standard Bank from Barclays. It could store $90bn of gold at today’s prices, and follows the purchase of a lease on another vault in the capital earlier this year from Deutsche Bank.
London has been a hub for metals investment for hundreds of years, but times have changed and the big banks are pulling back from trading them. Now China is pushing into the gold market in a big way. The reasons why are unclear, and gold continues to spawn more conspiracy theories than the moon landing, but what is known is that China has been amassing the yellow metal at a rapid pace over the last decade………………………………………..Full Article: Source

Gold likely to see speculative unwinding: S&P Global Platts survey

Posted on 27 May 2016 by VRS  |  Email |Print

Market participants expect the US dollar gold price to head lower over the next week, with signals from the US Federal Reserve on a possible rate hike and speculative unwinding the likely key drivers, the S&P Global Platts Gold Sentiment Survey indicated this week.
The poll of 20 industry participants showed that the majority of those who responded were bearish on the outlook for the gold price over the course of the coming week. This is the second week of the market being polled, and like the first week it shows lower price forecasts………………………………………..Full Article: Source

New global precious metals code created - LBMA

Posted on 27 May 2016 by VRS  |  Email |Print

A new code for precious metals has been created that will apply to all precious metals markets participants and will provide guidance for best practice, the London Bullion Market Association (LBMA) said. The new code will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) code, it said in a release on Thursday.
The final global Foreign Exchange Code will be published in May 2017 and it will replace the FX element of the NIPS code, which focuses on best practice in the global wholesale foreign exchange markets, it added. The new FX Code is being jointly produced by central banks and market participants………………………………………..Full Article: Source

Platinum and Palladium: Are They Following the Fall in Gold?

Posted on 27 May 2016 by VRS  |  Email |Print

Platinum and palladium are exclusively used in emission-curbing autocatalysts. Those demands impact the price direction for these metals. Platinum has increased approximately 13% year-to-date. Palladium, however, has erased its losses from 2015 and now has a year-to-date loss of 2.7%.
The last month has adversely impacted palladium, which fell about 9.8%. Platinum fell a marginal 0.14%. The beginning of the year remained slow for palladium. This is likely due to industrial metals rather than precious metals. The volatility in palladium is close to 31%, while platinum’s volatility is around 23%. Palladium is the most volatile among the four precious metals………………………………………..Full Article: Source

Precious Metal Miners Slide alongside Precious Metals

Posted on 27 May 2016 by VRS  |  Email |Print

Precious metal miners have been following metals fairly closely. Miners are often known to amplify the returns of previous metals, as they take directional moves from these metals. Because 2016 brought positive sentiment for precious metals due to increased safe-haven bids, miners also recovered their 2015 losses.
However, these metals have been pulled back, and the losses in mining stocks are once again amplified. Royal Gold (RGLD), GoldCorp (GG), Gold Fields (GFI), and Alacer Gold (ASR) rose by 53.7%, 45.2%, 30%, and 24.3%, respectively, on a YTD (year-to-date) basis. Crucial contributors to the miners’ rally in 2016 have been safe-haven bids on gold and silver………………………………………..Full Article: Source

The top 10 countries with the largest gold holdings

Posted on 26 May 2016 by VRS  |  Email |Print

Beginning in 2010, central banks around the world turned from being net sellers of gold to net buyers of gold. Last year they collectively added 483 tonnes—the second largest annual total since the end of the gold standard—with Russia and China accounting for most of the activity. The second half of 2015 saw the most robust purchasing on record, according to the World Gold Council (WGC).
Not every top bank is a net buyer. The Bank of Canada has liquidated close to all of its gold, mainly in coin sales, while Venezuela is in the process of doing the same to pay off its debts………………………………………..Full Article: Source

Get into gold now! Prices could hit $1,900

Posted on 26 May 2016 by VRS  |  Email |Print

Gold’s losing streak continued on Tuesday as the precious metal tumbled to its lowest level in more than five weeks. However, one of Wall Street’s most closely followed analysts says the dip presents a prime buying opportunity and that bears are reading the market incorrectly.
“This is just the beginning of a new bull market in the metals,” the Lindsey Group’s chief market analyst Peter Boockvar told CNBC’s “Futures Now” on Tuesday. Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as reasoned that bull markets historically exceed the previous bull market peak at some point………………………………………..Full Article: Source

Gold price setback temporary: ABN Amro

Posted on 26 May 2016 by VRS  |  Email |Print

Gold is enduring some rare price weakness thanks to dollar strength, but this should prove transient, according to Dutch bank ABN Amro. Prices fell again on Tuesday, coming under pressure from a stronger dollar amid rising expectations of an interest-rate rise this year in the US.
However, Georgette Boele, ABN’s coordinator of precious metals and FX strategy writes that there are a “wide variety of drivers” for prices, and not the dollar alone. “We think that the recent set-back in gold prices is temporary… and drivers will turn more positive again… leading to higher gold prices later this year and next year,” she says………………………………………..Full Article: Source

An Inside Look at the World’s Biggest Paper Gold Market

Posted on 26 May 2016 by VRS  |  Email |Print

Every day, there are a whopping 5,500 tonnes ($212 billion) of gold traded in London, making it the largest wholesale and over-the-counter (OTC) market for gold in the world.
To put that in perspective, more gold is traded in London each day than what is stored at Fort Knox (4,176 tonnes). On a higher volume day, amounts closer to total U.S. gold reserves (8,133.5 tonnes) can change hands. How is this possible? The infographic below tells the story about gold’s foremost trading hub, as well as the paper gold market in London, England……………………………………….Full Article: Source

The easiest way to buy gold is actually backed by the real thing

Posted on 26 May 2016 by VRS  |  Email |Print

The largest gold exchange-traded fund (ETF) says it has the physical gold to back up every share it issues. Because investors don’t buy physical gold when they purchase shares in the ETF, there’s been concern that the fund does not.
The SPDR Gold Trust exchange-traded fund, which uses the ticker ‘GLD,’ launched in 2004. In part, it serves as a cheaper alternative to investing in the physical metal. It is sponsored by the World Gold Council, which has oversight over the Bank of New York Mellon as a trustee………………………………………..Full Article: Source

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