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Gold And Presidential Politics: Why Your Vote May Not Count

Posted on 12 September 2016 by VRS  |  Email |Print

Brace yourself. The winds are changing. Come 2017, there will be a new occupant in the Oval Office in Washington, D.C. However, it may be disturbing to know that your vote may not really matter, depending on what state you live in.
It’s not the popular vote in the United States that determines who wins the election, it’s the Electoral College. When Americans go to the polls and vote for President and Vice President, they are actually voting for the Electoral College. It is these electors –who actually choose the nation’s president………………………………………..Full Article: Source

Data supports ‘platinum cliff’ theory

Posted on 12 September 2016 by VRS  |  Email |Print

Investors don’t seem to be responding to the rhetoric of an impending platinum supply cliff. A few platinum sector CEOs – namely, Northam Platinum’s Paul Dunne and Impala Platinum’s Terence Goodlace – have recently warned of a looming structural deficit in the global platinum market as a result of diminishing supply and dwindling capital expenditure from South Africa.
Theoretically, this means the platinum price is all but guaranteed to shoot up quite dramatically because a global platinum shortage is inevitable, but history has shown that the dollar price of platinum is not necessarily responsive to demand and supply dynamics………………………………………..Full Article: Source

Gold Prices Reverse Course as Dollar Gains

Posted on 09 September 2016 by VRS  |  Email |Print

Gold prices fell on Thursday after the U.S. dollar strengthened and the European Central Bank left interest rates unchanged. Gold for December delivery settled down 0.6% at $1,341.60 a troy ounce on the Comex division of the New York Mercantile Exchange, reversing course after trading as high as $1,352.50 earlier in the session.
The drop marked the second consecutive day of losses for the precious metal. The ECB’s decision to keep rates unchanged sparked selling in government bonds and a rise in yields, which put pressure on gold prices, said Tai Wong, head of base and precious metals trading at BMO Capital Markets………………………………………..Full Article: Source

Buy gold on rebound rally

Posted on 09 September 2016 by VRS  |  Email |Print

The gold price reached the long-term resistance target projection level of $1,360 before consolidating and retreating. The retreat offers a buying opportunity for an uptrend continuation back to $1,360 and higher. There are four technical features that suggest a bullish rebound.
The first feature is the strength of the underlying uptrend. This is shown with the Guppy Multiple Moving Average (GMMA) indicator. The long-term group of averages is consistently well separated. When prices dipped in June 2016, the long-term group did not develop any compression. This shows good investor support………………………………………..Full Article: Source

ABN Amro rethinks gold prices after tepid summer

Posted on 09 September 2016 by VRS  |  Email |Print

Gold has risen just 0.8% in 2016’s third quarter so far. That’s a far cry from the 30% rise seen in the year’s first half- the metal’s strongest first half since the 1980s. As a result, ANB Amro’s metal strategy team has had a little rethink.
Third-quarter performance has been “disappointing,” its coordinator Georgette Boele wrote. “We had expected a stronger rally for several reasons,” she went on. Like many other market watchers the Dutch bank had expected more immediate fallout from June’s Brexit vote………………………………………..Full Article: Source

If You are Bullish Gold, Buy Silver- Analyst

Posted on 09 September 2016 by VRS  |  Email |Print

“If you are bullish gold, buy silver” is an axiom I’m fond of repeating. Silver is more volatile, which is why in the short term it over reacts relative to Gold. The converse is true. If you are bearish Gold, sell Silver. (Which is less successful if you don’t understand the industrial component of Silver.) But I digress.
This axiom is a positive one for Silver people, but actually has its roots in cynicism and manipulation years ago. We find it helpful to drill down on concepts before adopting them. We now believe that Silver is the way forward because there are big forces with too much to lose if it does not keep a reliable ratio with Gold………………………………………..Full Article: Source

Gold ETF Impact on Price ‘Intuitive’ Says SocGen as Euro Gains Before ECB News

Posted on 09 September 2016 by VRS  |  Email |Print

Gold prices held shy of 3-week highs in London on Thursday, trading at $1347 per ounce as the US Dollar fell near 2-week lows against the Euro ahead of today’s European Central Bank decision on interest rates – now negative for commercial banks using the ECB’s deposit facility – and quantitative easing.
Silver retreated from yesterday’s near 4-week highs at $20.13 per ounce, recovering half of an overnight 40 cents drop. Wednesday’s new all-time high global stockmarkets saw the giant SPDR Gold Trust shrink by half-a-tonne to just less than 952 tonnes as stockholders liquidated shares………………………………………..Full Article: Source

Top forecaster lowers gold price predictions

Posted on 08 September 2016 by VRS  |  Email |Print

Underlying trend is still in tact but there’s little upside for gold from current levels. Georgette Boele of ABN Amro in a new research note dated September 6 says the last couple of days notwithstanding the gold rally is running out of steam and that gold has underperformed despite the many factors working towards its advantage:
First, we had expected a larger Brexit fallout on financial markets reflected in negative investor sentiment. As a result, investors would move into gold (and to a lesser extent silver) for safe haven reasons. In fact, this did not materialise as investor sentiment on financial markets improved also helped by the recent stronger-than-expected UK data………………………………………..Full Article: Source

Gold price to reach new heights on increased global stimulus, negative rates

Posted on 08 September 2016 by VRS  |  Email |Print

Gold’s rebound from three month lows this week demonstrates the increased disdain for sovereign debt that charges lenders a fee instead of the other way around. That, combined with the prospect of further stimulus, which in reality is just the fabrication of more cash and credit from thin air for the exclusive benefit of the world’s financial institutions, is causing a massive downward valuation in purchasing power in all currencies in the future.
The argument against gold by advocates of government debt has always been that “gold offers no yield.”……………………………………….Full Article: Source

Ignore the Fed Hype, Gold Prices To Rise – Gerald Celente

Posted on 08 September 2016 by VRS  |  Email |Print

The way market participants are pricing in U.S. rate hikes seems to be following a similar pattern as it did in June, according to one longtime trend forecaster, and if history repeats itself, gold stands to gain.
“[J]ust as we had forecast back in June that there would be no interest-rate hike despite Yellen’s statement to expect one ‘in the coming months,’ so too we forecast no rate hike until after the U.S. presidential election… if at all this year,” notes Gerald Celente, publisher of the Trends Journal. Gold continues to be sensitive to shifting rate-hike expectations, however, since the weak jobs data from last Friday, prices have recovered………………………………………..Full Article: Source

The Bullish Case for Gold Today Remains the Same as in 2011

Posted on 08 September 2016 by VRS  |  Email |Print

The conditions that drove the price of gold to all-time highs in 2011 have only worsened, which just reinforces the long-term bullish narrative for the yellow metal. Bill Gross just called out Janet Yellen as the penultimate market manipulator.
Gross, former head of PIMCO and current manager of Janus funds, recently echoed Rick Rule, assigning blame to the Fed for deferring short-term pain at the expense of long time gain. Mr. Gross’s comments are timed as the Fed continues to debate whether to raise interest rates after years of keeping them anchored in an effort to stimulate the economy and generate inflation………………………………………..Full Article: Source

Volatile gold demand tarnishes U.S. commodity fund sales

Posted on 08 September 2016 by VRS  |  Email |Print

Turning fortunes for gold pushed withdrawals from U.S.-based commodity funds to their highest levels since April, Investment Company Institute data for the latest week showed on Wednesday. Investors pulled $601 million from those mutual funds and exchange-traded funds during the week through Aug. 31, the trade group said, though many gold funds have seen a rebound in recent days.
The fickle buying and selling of funds, such as SPDR Gold Shares, comes after some U.S. monetary policymakers suggested they favored raising interest rates sooner rather than later, though weak economic data have damped their case………………………………………..Full Article: Source

Q4 commodity trends: What’s next for gold?

Posted on 07 September 2016 by VRS  |  Email |Print

The fourth quarter poses possible challenges to gold’s price growth, which, unlike many other commodities, has actually seen a strong 17 per cent price rise over the last year. While other commodity classes struggle amid slowing global growth and reduced demand, gold shines brightly as a safe-haven beacon in a stormy investment environment.
The big question now is whether the storms will continue into the next quarter, thereby increasing gold’s attractiveness, or whether they will abate, thus reversing gold’s relatively-bullish trend………………………………………..Full Article: Source

Gold Extends Biggest Jump Since Brexit on Lowered Fed Rate Bets

Posted on 07 September 2016 by VRS  |  Email |Print

Gold built on its biggest daily increase since June and traded near the highest in almost three weeks as the dollar weakened amid diminishing chances of a U.S. interest-rate rise in September.
Bullion for immediate delivery was 0.2 percent higher at $1,352.16 an ounce at 11:29 a.m. in Singapore, after surging 1.7 percent on Tuesday, the most since the results of the Brexit vote on June 24, according to Bloomberg generic pricing………………………………………..Full Article: Source

Gold Investing Hits 2012 Level Post-Brexit

Posted on 07 September 2016 by VRS  |  Email |Print

Gold Investing by private savers hit the heaviest level since end-2012 in August, with customers of BullionVault adding nearly half-a-tonne to their aggregate holdings as price gains eased following the UK’s Brexit referendum shock, writes Adrian Ash at the world leading gold-trading platform.
Net purchases of 470kg – almost entirely in Zurich storage rather than the other BullionVault choices of London, New York, Singapore or Toronto – took client gold holdings to a new record total of 35.7 tonnes. Worth $1.5 billion, that’s more than most of the world’s central banks hold, and larger than all but 12 of the world’s 84 gold-backed ETF trust fund products………………………………………..Full Article: Source

Silver Surge Continues For Fifth Day; Settles 4% Higher

Posted on 07 September 2016 by VRS  |  Email |Print

Silver is continuing its winning streak with the metal is up 4%, surging back towards $20 an ounce on Tuesday. December silver futures were up $0.772 at $20.19 an ounce. In contrast, gold was up 2% on the day with December Comex gold last up $28.80 an ounce at $1,355.60.
Frank Holmes, chief executive officer of U.S. Global Investors, says he is liking silver, a lot. He said it is his play pick this week, as silver has outperformed gold in the last two weeks, erasing the shift after the latest Federal Reserve minutes. Both gold and silver ended the U.S. day session sharply higher and hit three-week highs………………………………………..Full Article: Source

Hedge funds slash bullish gold price bets again

Posted on 06 September 2016 by VRS  |  Email |Print

Large scale gold futures and options speculators or “managed money” investors such as hedge funds were wrong-footed by the negative employment and wage numbers and had been positioning themselves for further declines in the gold price ahead of the Dept of Labor data.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold miners favoring mine-site over grassroots exploration: SNL

Posted on 06 September 2016 by VRS  |  Email |Print

Major gold miners have significantly shifted their exploration focus over the past decade, favoring increased mine-site exploration at the expense of grassroots exploration, SNL Metals & Mining said Monday.
SNL’s recently released profiles of the world’s top 20 gold producers show that from 2006 to 2015, the share of the group’s total gold exploration budgets devoted to near-mine work rose from 44% to 54%, while the share allocated to greenfields programs decreased from 40% to 22%………………………………………..Full Article: Source

Gold Fund Holdings Rebound From Biggest Two-Day Drop This Year

Posted on 06 September 2016 by VRS  |  Email |Print

Gold steadied as holdings in bullion-backed funds rebounded from the largest two-day drop this year. Investors bought 0.6 metric ton of the metal through exchange-traded funds as of Friday, when prices rose as weaker-than-expected U.S. jobs data cut expectations that the Federal Reserve will raise interest rates this month.
They sold 16.1 tons in the two days before that, the most since December. Gold had surged as much as 30 percent this year as the Fed refrained from further tightening and the U.K.’s Brexit vote boosted demand for a haven………………………………………..Full Article: Source

Terence Goodlace warns of platinum supply cliff

Posted on 06 September 2016 by VRS  |  Email |Print

Supply of platinum from SA, the world’s largest producer, would drop “off a cliff” in the next decade after years of underinvestment. There was little chance of reversing that trend any time soon, CEOs and industry players warned.
In recent weeks, leading CEOs of platinum companies have flagged concerns about supply from SA, which is by far the biggest source of the metal used to make autocatalyst devices in vehicle exhausts to scrub out noxious elements, as well as for jewellery………………………………………..Full Article: Source

Yes, the uranium market is bad, but remember gold’s turn?

Posted on 06 September 2016 by VRS  |  Email |Print

Investors considering uranium should take heart from gold’s turn after the yellow metals ressurection off of last year’s lows, says Dev Randhawa, Chairman and CEO of Fission Uranium.
“Right now people are scared to be in uranium, but that’s where they should be,” says Randhawa who spoke to MINING.com at the Sprott Natural Resource Symposium in July. Fission Uranium is an exploration company working on projects in the Athabasca Basin………………………………………..Full Article: Source

Gold shines on disappointing US data

Posted on 05 September 2016 by VRS  |  Email |Print

Gold prices, which have been trending down over the last couple of weeks and threatening to decline below the psychological $1,300 per ounce mark, found respite after a strong bounce-back on Friday. This was thanks to the weak US job numbers released on Friday, which dimmed the prospects of a US Fed rate hike.
The global gold spot prices fell to a low of $1,302 on Thursday and reversed sharply higher, recovering all the losses made during the week to close at $1,325. Prior to this reversal the yellow metal was trading under pressure as the dollar index had surged after US Federal Reserve Chair Janet Yellen’s Jackson Hole speech on August 26. Yellen had indicated that the case for the next rate hike had strengthened in recent months………………………………………..Full Article: Source

The Gold Price Hinges on this Federal Reserve Decision

Posted on 05 September 2016 by VRS  |  Email |Print

Up one day. Down the next. Financial markets have been crazy this year. The volatility has been difficult to swallow. The uncertainty has benefited none other than, gold. The yellow metal is up about 26.3% from its December 2015 low.
Most gold stocks have outperformed the spot price. That’s because they were trading, on average, 95% below their 2011 highs. The average gold stock is up 110% this year. The best gold stocks have gone up three to five times already…or more. The question is, with gold having now pulled back 3.78% from the July high, what’s next?……………………………………….Full Article: Source

The Real Reason Gold Is Up 25% In 2016

Posted on 05 September 2016 by VRS  |  Email |Print

Precious metals are a top performing asset in 2016. Here is a quick snapshot of gold and silver performance versus other major asset classes around the globe year to date. Question: What is behind the massive outperformance in gold and silver in 2016? Answer: Uncertainty.
Uncertainty is the main driver for gold buyers this year, and that encompasses a great deal of macro-economic, monetary and political concerns. Here is a short list of factors that have unsettled global money managers worldwide in 2016………………………………………..Full Article: Source

Gold Price Hits Post-Brexit Low

Posted on 02 September 2016 by VRS  |  Email |Print

Gold Prices held at 2-month lows against the Dollar and fell near post-Brexit lows for UK investors in London trade Thursday as world stockmarkets rose despite worse than expected global manufacturing data. Commodities rallied from yesterday’s sell-off, with silver holding unchanged on the week so far at $18.68 per ounce.
Japanese manufacturing shrank again, while Chinese activity held flat on both the NBS and Caixin surveys and Eurozone growth slowed. The British Pound, however, reversed the last of August’s drop versus the Euro, and touched 1-month highs versus the Dollar, after UK manufacturing activity showed a marked jump in August from the post-Brexit drop on Markit’s PMI survey………………………………………..Full Article: Source

Ways to invest in gold, albeit at your own peril

Posted on 02 September 2016 by VRS  |  Email |Print

There are myriad ways to invest in the current ‘gold rush’ but do not presume it to be the holy grail of investing. In the wake of the Brexit vote, investors seeking safe-haven asset classes have their work cut out. Equity markets have seen extreme volatility, low interest rates have destroyed returns for those wanting the safety of cash savings, and foreign exchange plays remain far from predictable.
Meanwhile, commodities remain among the worst performing asset classes. That’s excepting one particular commodity – gold – with the shiny yellow metal soaring by nearly 30% from the start of 2016 to date in dollar terms, rising from $1,050 (£793, €942) an ounce to about $1,350 an ounce………………………………………..Full Article: Source

Commerzbank: Gold ETFs Post Big Outflow; Silver Inflows Continue

Posted on 02 September 2016 by VRS  |  Email |Print

Global holdings of gold by physically backed exchange-traded funds collectively posted their highest daily outflow – of 11.3 tonnes – in nearly three weeks on Wednesday, Commerzbank reports. “The SPDR Gold Trust, the world’s largest gold ETF, was responsible,” the bank says.
The SPDR website shows a single-day outflow of 12.17 tonnes. “Holdings in the gold ETFs tracked by Bloomberg were topped up by a mere 13.7 tonnes in all in August; that’s the smallest monthly increase since April,” Commerzbank says………………………………………..Full Article: Source

Here are the 3 reasons why gold isn’t $2,000 an ounce

Posted on 01 September 2016 by VRS  |  Email |Print

Gold has surged in 2016, against a backdrop of political uncertainty and consistently low interest rates, but it has not broken past its 2011 high. Gold is up 24% year-to-date, a performance only bettered in the past 12 years in 2011 at the height of the Eurozone sovereign debt crisis.
But, as analysts at Macquarie note, the gold price of around $1,300/oz is still 30% below its all-time high of $1,895. And the real gap is even bigger. Adjusting for US inflation, “that 2011 high is worth over $2,000/oz in today’s money,” Macquarie said in a note to clients………………………………………..Full Article: Source

Why Investors Should Follow George Soros into Gold

Posted on 01 September 2016 by VRS  |  Email |Print

The outlook for the controversial asset, gold, remains murky at best; it has pulled back sharply because of the Fed’s recent hawkishness on interest rates, a stronger U.S. dollar, and the U.S. stock market surging to new heights.
This, along with George Soros’s decision last quarter to dump his 58 million shares of gold miner Barrick Gold Corp., has triggered consternation among investors as to whether or not gold is an appropriate investment. Nonetheless, there are signs that every investor should have exposure to gold at this time………………………………………..Full Article: Source

Gold hits two-month low, but portfolio manager sees a rebound ahead

Posted on 01 September 2016 by VRS  |  Email |Print

Gold has struggled to maintain its levels during the summer as the market has remained flat, but one portfolio manager has a way to play the yellow metal in today’s market environment. Chad Morganlander, portfolio manager at Stifel Nicolaus, encourages investors to look at the gold-tracking ETF (GLD).
“We believe that it will continue to go higher and for the short run,” he said Wednesday on CNBC’S “Power Lunch.” GLD is up 23 percent year-to-date, rallying as gold surged throughout the year………………………………………..Full Article: Source

Africa’s Fastest Growing Gold Producer Says More to Come

Posted on 01 September 2016 by VRS  |  Email |Print

Burkina Faso said it has more gold waiting to be discovered as the nation where output jumped more than 20 times in a decade reviews its geological records.
The government wants to help companies that are already operating in the West African nation to lengthen the lives of their mines and make it easier for new investors to get information about deposits, Mining Minister Alfa Omar Dissa said last week in an interview in the capital, Ouagadougou………………………………………..Full Article: Source

Central Bankers Get Tired of Gold as Lower Exports Cut Cash

Posted on 31 August 2016 by VRS  |  Email |Print

The biggest owners of gold are tiring of the metal. Central banks — holders of about 32,900 metric tons of bullion — cut their purchases by 40 percent during the three months through June, compared with the same period a year earlier, to the lowest since 2011, World Gold Council figures compiled by Bloomberg show. It was the third-straight quarterly drop, the longest such streak in at least five years.
Buying declined in 2016 as prices were rallying for their biggest first-half gain in 40 years……………………………………….Full Article: Source

Why Gold Will Likely Be Much Higher 10 Years From Now

Posted on 31 August 2016 by VRS  |  Email |Print

US government debt should exceed $20 trillion next year. Domestic infrastructure is falling apart and more spending (debt) is badly needed. The Federal Reserve will not be able to significantly raise interest rates due to a systemically weak US economy which is likely to stay “weaker for longer.”
Low and even negative interest rates mean the cost of buying and holding gold is negligible. Long term, gold is going much, much higher. Many goldbugs and analysts watch the price of gold very closely and try to time trades based on the latest economic data or Federal Reserve statements……………………………………….Full Article: Source

Gold futures may climb toward $1,400 by end of year: analyst

Posted on 31 August 2016 by VRS  |  Email |Print

Gold futures still have room to climb this year even as the Federal Reserve seesaws between a dovish and hawkish stance on monetary policy. Prices for the yellow metal may make “another try” at the $1,400-an-ounce level later this year, George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, said.
He said he can’t guarantee a rate increase at all, with the Fed appearing to be “dovish one day and hawish another” day. He expects gold to see muted trading for the rest of the year but despite that, prices may still see another $50, $60 or $70 rise. Also on CNBC, Tom McClellan, editor of The McClellan Market Report, said next year and 2018 should be “hugely bullish” for gold……………………………………….Full Article: Source

Are gold and silver still trending up?

Posted on 31 August 2016 by VRS  |  Email |Print

The demand for gold investments reached a record 1,064 tonnes in 1H. This is the highest 1H demand since 2009, when the financial market was reeling from the global financial crisis. Are gold investors preparing for the next crisis?
The demand from gold comes from four main sources: jewellery, technology, investment, and reserve asset management. Of the four, jewellery demand accounted over half of total gold demand. But anaemic jewellery demand amid high prices has eroded the demand share since 2006……………………………………….Full Article: Source

Gold ‘should be $US1,700 an ounce’: Deutsche Bank

Posted on 30 August 2016 by VRS  |  Email |Print

Gold has seen a sell-off in recent days, heading for the longest run of declines since May, trading at $US1319 an ounce. Federal Reserve chairwoman Janet Yellen’s speech at Jackson Hole over the weekend contributed to gold’s latest decline.
Yellen said the case for a US rate increase has strengthened, without specifying whether we would see one in September or ­December. The odds of a September rate rise have risen to 42 per cent, from 22 per cent a week ago, and the odds of a December rate hike soared to 65 per cent, according to Bloomberg………………………………………..Full Article: Source

Why Gold Will Likely Be Much Higher 10 Years From Now

Posted on 30 August 2016 by VRS  |  Email |Print

US government debt should exceed $20 trillion next year. Domestic infrastructure is falling apart and more spending (debt) is badly needed. The Federal Reserve will not be able to significantly raise interest rates due to a systemically weak US economy which is likely to stay “weaker for longer.”
Low and even negative interest rates mean the cost of buying and holding gold is negligible. Long term, gold is going much, much higher………………………………………..Full Article: Source

The Gold Trade Is Not Overcrowded Says UBS

Posted on 30 August 2016 by VRS  |  Email |Print

The best performing precious metal for the week was gold, down slightly by 1.47 percent. Current market conditions make it the perfect time to invest in gold, according to Heather Ferguson, an analyst at Hargreaves Landsown.
“There is a fixed amount of this precious metal in the world so central banks are not able to manipulate the gold market like they can with bonds and cash,” Ferguson explains. “In the current environment of quantitative easing and increasingly extreme monetary policy, gold is highly sought after.”……………………………………….Full Article: Source

Price of Silver Soars 45% in H1 2016

Posted on 30 August 2016 by VRS  |  Email |Print

Silver’s price performance soared in the first half of 2016, fueled by increased investor interest in silver as a safe haven asset and as leveraged exposure to gold’s price rally. Between January 4 to July 11, the price of silver increased 44.7%, according to a report by the Silver Institute.
Exchange traded product holdings rose by 44.3 million ounces (Moz), or 7.2%, to a record high of 662.2 Moz. Silver coin sales increased in the first quarter of 2016 by 29% globally, according to the GFMS Thomson Reuters Quarterly Coin Sales Survey………………………………………..Full Article: Source

Higher gold price will add 10m annual ounces by 2020

Posted on 29 August 2016 by VRS  |  Email |Print

BMI Research, a division of Fitch, predicts in a new report that gold miners will add 10 million ounces or more than 280 tonnes to global production with average annual growth of 2.7% for a total of 110 million ounces or 3,118 tonnes yearly output by 2020. This represents a slight deceleration in growth rate compared the previous five-year average of 3.2%.
Projects expected to add substantial ounces to global gold production before the end of the decade include Endeavour Mining’s Hounde project in Burkina Faso, Goldcorp and Teck’s Corridor JV in Chile and Torex Gold Resources giant El-Limon-Guajes ramp up to full production………………………………………..Full Article: Source

Gold May Have ‘Rally Legs’ - RBC’s Gero

Posted on 29 August 2016 by VRS  |  Email |Print

“As more things change the more they stay the same,” summed up George Gero of RBC Wealth Management, post Fed Chair Janet Yellen’s anticipated talk. Federal Reserve chair Janet Yellen said Friday that there is a stronger case for a rate hike with the U.S. economy nearing goals of maximum employment and price stability.
Yellen’s Jackson Hole speech was slightly hawkish, said Gero but seems to be helping the metals as ten-year treasuries and the dollar index are back to where they were. Gold dipped on the news but is now 1.5% higher post-remarks. December Comex gold futures last traded at $1,343.40 an ounce while September silver last traded at $18.950, 2.49% on the day………………………………………..Full Article: Source

Gold price drops, but market watchers remain bullish

Posted on 29 August 2016 by VRS  |  Email |Print

The gold price is heading for its first monthly drop since May as the spotlight refocuses on the next United States interest rate hike. But market watchers are still bullish on the precious metal given its safe-haven qualities amid continuing global economic uncertainty.
The gold price - about US$1,325 an ounce as at last Friday - is down 0.8 per cent this month, as the commodity retreats from its high this year of US$1,373 in early July following Britain’s shock vote to leave the European Union………………………………………..Full Article: Source

What next for gold prices?

Posted on 29 August 2016 by VRS  |  Email |Print

Gold was a disaster after it peaked at $1,930 an ounce in September 2011 and then dropped to $1050 in a savage bear market that mauled the gnomes and goldbugs of the Gulf.
However, the yellow metal endeared a bull market in 2016 as gold bullion has risen 24 per cent while the gold miners index fund (GDX) I had recommended in this column has been one of the most profitable investments of 2016, up a fabulous 100 per cent. Gold is $1,325 spot as I write. What next?……………………………………….Full Article: Source

Where To For Gold? Down - But Not Out - For Now

Posted on 26 August 2016 by VRS  |  Email |Print

Gold has done very well this year. It was up almost 30% year-to-date in early July, which certainly beats most other investments nowadays! But since then it’s stagnated, and earlier this week took a sudden dive. Where will it go from here?
I believe that the factors pushing gold higher have pretty much played out for now, and the price is likely to fall back further. But that doesn’t mean gold finished, by any means. There are likely to be plenty more opportunities for the metal to rally in the future………………………………………..Full Article: Source

Investors’ mad dash for gold

Posted on 26 August 2016 by VRS  |  Email |Print

South Africa’s three biggest listed gold companies paid down debt and started to pump cash in the first half of the year, while gold prices and local currencies were favourable. With fatter purses, they may develop an appetite for acquisitions.
AngloGold Ashanti, Gold Fields and Harmony Gold boosted profits in the period to June as strong dollar gold prices were accompanied by weaker currencies in the countries where they own mines, reducing their operating costs………………………………………..Full Article: Source

Gold to hit $1,600, then $1,800: Scotia

Posted on 26 August 2016 by VRS  |  Email |Print

Gold is having a comparatively torpid summer. The price has hovered around the $1,300 level since late June. This is quite a comedown from the best first-half performance since the 1980s. Still, gold is up about 30% for the year. And there’s no shortage of analysis suggesting that it has more to give.
The fundamental backdrop is well worn. Maybe bond yields are low, or negative, and central banks are printing money. Why not buy precious metals? But the long-term technical backdrop also looks pretty good. In fact, it looks rock solid to Elliot Fishman. He’s Scotia Wealth’s director of US and international trading………………………………………..Full Article: Source

Gold Believers From Soros to UBS Lose Faith in Mining-Share Gain

Posted on 26 August 2016 by VRS  |  Email |Print

The red-hot market for gold-mining companies has made the shares too expensive for some investors, even though they remain bullish on the outlook for bullion. Earlier this year, fund managers including George Soros had gobbled up shares of producers such as Barrick Gold Corp. and Newmont Mining Corp. in a bet that the surprise rally in the price of the metal would spark a surge in profit.
After a five-year slump marked by mine closures and losses, the companies were cheap. But now, many are worth twice what they were in 2015 — after rising at almost five times the rate of the commodity — so funds have begun unloading the equities while retaining or expanding holdings in physical gold………………………………………..Full Article: Source

Why gold prices soared over 20% in 2016 so far

Posted on 25 August 2016 by VRS  |  Email |Print

Gold has witnessed a spectacular first half this year with a mammoth gain of almost 25 per cent. Global economic concerns, political and economic uncertainty caused by Brexit and loose monetary policy stance of major central banks are some of the factors which have helped pushed gold price to the highest level since 2014.
However, gold price have turned rangebound in last few days as market players await fresh triggers to extend the gains. Gold has been trading in a narrow range above $1300/oz since start of August indicating lack of direction………………………………………..Full Article: Source

Gold price drop triggers mining stocks bloodbath

Posted on 25 August 2016 by VRS  |  Email |Print

Gold struggled on Wednesday losing more than 1% to exchange hands for $1,327 in late afternoon trade in New York. Gold is coming off two-year highs hit early this month and year to date the metal is still up more than 25% or nearly $270 an ounce.
Some of the biggest drivers of 2016 gold price surge have begun to lose steam in recent weeks. Large scale gold futures and options speculators or “managed money” investors such as hedge funds have been scaling back bullish bets recently and the frenzied buying of physically-backed gold ETFs have also moderated……………………………………….Full Article: Source

UBS: ‘Any Downside Should Ultimately Be Limited’ In Gold

Posted on 25 August 2016 by VRS  |  Email |Print

UBS looks for any potential damage from Federal Reserve hawkishness to be limited. “The focus this week will be Fed Chair Yellen’s speech at Jackson Hole, where investors will look for guidance on Fed policy,” UBS says in an early-week research note.
“We expect Fed comments to hint at the potential for a hike later in the year – improving U.S. data and hawkish comments from the Fed could weigh on gold, especially given positioning has lingered close to all-time highs.” Net speculative length on Comex as of Aug. 16 was around 91% of the all-time high, despite a decline over the past six weeks, UBS says………………………………………..Full Article: Source

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