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Commodities Briefing - Category | Bullion/Gold more

UBS: Gold-Investment Demand Offsetting Soft Physical Market

Posted on 15 April 2016 by VRS  |  Email |Print

Investment demand for gold is more than offsetting weakness in the physical market, thereby driving prices higher so far this year, says UBS. “Many are becoming increasingly convinced about gold’s strength and believe that the market has entered a new phase,” UBS says, noting it has a “constructive” view on the metal.
“Those who are looking for higher gold prices argue that low/negative interest rate environments, deteriorating confidence (in) central banks and the effectiveness of monetary policy, currency depreciation and downside risks to equities markets should all make a case for more upside.”……………………………………….Full Article: Source

Finally, It’s Silver’s Time to Outshine Gold

Posted on 15 April 2016 by VRS  |  Email |Print

After falling short of gold’s performance every year since 2012, silver is finally pushing ahead to post the biggest rally among precious metals this year.
While both benefit from mounting speculation that the Federal Reserve will be slow to increase interest rates, the white metal, which also has industrial uses, is gaining an added boost from signs of stabilization in China’s economy and the resilience of the U.S. expansion. In the spot market, an ounce of gold buys 75.96 ounces of silver, the least since December………………………………………..Full Article: Source

Barron’s: Gold to Hit $1,300, Here’s Why

Posted on 14 April 2016 by VRS  |  Email |Print

RBC Capital Markets says demand from China and India, physical gold ETFs and central bank purchases can push the precious metal higher, Barron’s reported.
RBC lifted its 2016 average gold price estimate by 9% from $1,150 per ounce to $1,250 per ounce, its 2017 forecast 8% from $1,200 to $1,300 and its long term forecast 4% from $1,250 per ounce to $1,300 per ounce, Barron’s reported………………………………………..Full Article: Source

Gold resurgence: who’s buying gold and why

Posted on 14 April 2016 by VRS  |  Email |Print

After four years of sharp falls, a sudden revival has been taking place in the gold market. In the first three months of 2016 the price of the yellow metal soared by 20pc - its best quarterly performance since the financial crisis erupted in the final three months of 2008.
The gold price, currently around $1,260 an ounce, is well below its record peak of almost $1,900 achieved in July 2011, at the height of the European sovereign debt crisis………………………………………..Full Article: Source

Gold will soar 700% in near future

Posted on 14 April 2016 by VRS  |  Email |Print

An economist has claimed gold will soar in value in the coming years and cited cyber warfare as the number one reason people will pile into the commodity. James Rickards, chief global strategist at West Shore Funds, told Bloomberg Markets that the 21st century cyber age poses risks to digital money and wealth to all investors and savers.
He claims gold will climb to $10,000 an ounce if confidence in currency collapses, which he believes could happen as a result of another financial crisis. The precious metal is currently trading around $1,250 an ounce. ……………………………………….Full Article: Source

Buy Gold – Advises HSBC

Posted on 14 April 2016 by VRS  |  Email |Print

Sentiment towards gold is slowly moving from being extremely negative and bearish to more bullish. HSBC joins a long list of large banks, insurers and investment houses who are now bullish on gold.
HSBC, JP Morgan Chase, Bank of America Merrill Lynch, ABN Amro, UBS, Deutsche Bank, PIMCO and BlackRock head a growing number of investment houses that are recommending an allocation to gold today. Indeed, the world’s largest reinsurer Munich Re is buying gold………………………………………..Full Article: Source

Profit-Taking Hits Gold; Silver Pushes Still Higher

Posted on 14 April 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session lower Wednesday, on a corrective pullback from recent gains, some profit-taking, and as investor risk appetite was on the upswing at mid-week. Silver prices did post modest gains and hit another 5.5-month high.
A solid rebound in the U.S. dollar index and weaker crude oil prices today also were bearish “outside markets” for the gold market on this day. June Comex gold was last down $12.80 at $1,248.10 an ounce. May Comex silver was last up $0.078 at $16.30 an ounce………………………………………..Full Article: Source

How to Sell Gold and Silver Bullion

Posted on 14 April 2016 by VRS  |  Email |Print

People often talk about buying the many different forms of gold and silver bullion. But rarely is the topic of selling bullion addressed. And of course, unless you are holding gold for survival purposes, you’re eventually going convert your physical bullion back into some other form of currency… You’re going to sell.
Here’s the best way to do that. First, let me tell you that I am in a selling mood right now. Even if you were buying gold or silver on Monday morning, you’d be sitting on a 1.5% gain in gold and a 4.5% profit in silver — and that’s not bad for just two days………………………………………..Full Article: Source

HSBC Looks For Gold/Silver Ratio To Continue Narrowing

Posted on 14 April 2016 by VRS  |  Email |Print

HSBC looks for the gold/silver ratio to narrow further, which would mean silver is outperforming. The ratio measures how many ounces of silver it takes to buy an ounce of gold.
Comex May silver rose Tuesday even as June gold eased slightly, and silver has posted a smaller percentage decline so far Wednesday. “We believe that retail demand for coins and small bars and light institutional buying in the paper markets has boosted silver,” HSBC says in a late-Tuesday research note………………………………………..Full Article: Source

Will Gold Continue to Shine?

Posted on 13 April 2016 by VRS  |  Email |Print

The price of gold glittered in early 2016, soaring 17 percent in the first quarter and trouncing returns in major stock and bond indices. Global investors pumped money into the gold market, a traditional safe-haven investment, early in the year as equity markets crashed in a short-lived correction. Stocks have since recovered, but gold hung onto most of its gains.
Gold soared to a 13-month high in February, climbing just above $1,280 per ounce. The rising price trend in gold is being supported by a variety of factors, according to the World Gold Council. These include concerns about emerging market growth, a hiatus in the U.S. dollar’s rise, negative interest rate policies at leading central banks and investment demand………………………………………..Full Article: Source

China: Total Collapse In The Price Of Gold

Posted on 13 April 2016 by VRS  |  Email |Print

The Chinese economy is showing serious signs of stress, this is resulting in reduced demand for all commodities including gold. China is the worlds top gold consumer, if this country enters recession it will drag gold down with it. This is further support for my assertion that recession and deflation are bearish for gold.
To understand the role of gold in the economy you must understand China. The country is not only the biggest consumer of the precious metal, but the worlds biggest producer as well. The Chinese economy is showing serious signs of stress and its overheated markets show the tell-tale signs of speculative bubbles - slowdown in growth is inevitable………………………………………..Full Article: Source

Global physical gold markets grind along; eyes on new business: sources

Posted on 13 April 2016 by VRS  |  Email |Print

The global physical gold market continues to grind along, with little optimism resonating with participants — from producers to end-users — with logistic firms and bankers looking for ways to sell, and distribute bullion, sources said this week in Dubai.
At an industry event in the UAE, the mood was distinctly bearish, with few signs of life. That’s not to say business isn’t concluding, but conditions are tough, sources said. One senior source questioned where the product is ending up………………………………………..Full Article: Source

If central banks get out of market, gold will pick up a lot of steam

Posted on 13 April 2016 by VRS  |  Email |Print

The gold prices went down so long that any uptick looks very encouraging. But we really do not know what is going to happen with gold unless we know what the central bank policy is. We know from all the documents that my organisation has collected that central banks are intervening in the gold markets secretly every day.
They say they are intervening secretly every day when they are talking to each other and they do not think anyone outside their circle is listening………………………………………..Full Article: Source

China Gold Fix to create greater price transparency

Posted on 13 April 2016 by VRS  |  Email |Print

China is set to extend its influence in the gold market with the launch of a highly anticipated yuan-denominated gold fix on April 19. “As the largest producer and consumer of gold, it is only logical that they develop the infrastructure to trade, price and provide liquidity for gold in their own currency,” said John Butler, vice president and head of wealth services at GoldMoney.
Seamus Donoghue, chief executive officer of Singapore-based Allocated Bullion Solutions said the gold fix also provides the People’s Bank of China with the capability to control and stabilise the gold price………………………………………..Full Article: Source

Silver price climbs to $16 confirming gold’s breakout

Posted on 13 April 2016 by VRS  |  Email |Print

Hi Ho Silver, Away! Precious metals have registered a blistering start to the year. After more than four years of defeat, gold bulls once again have something to be excited about. The gold price is up 19% year to date and the mining stock ETF (GDX) is up over 60% since the start of the year. Not bad for a barbarous relic!
But one thing that generated some caution for precious metals investors has been silver’s underperformance. You see, silver typically leads gold higher and outperforms during major advances in the sector. ……………………………………….Full Article: Source

Expert sees gold price crossing $3,000 in 3 years

Posted on 12 April 2016 by VRS  |  Email |Print

The price of gold could go up above $3,000 per troy ounce in three years, a precious metals expert said on Monday. Speaking at the Dubai Precious Metals Conference, Dr. Diego Parrilla, co-author of ‘The Energy World is Flat,’ said “a perfect storm for gold is brewing” as central banks have reached the point of no return.
“Central banks continue to push and test the limits of monetary policy, credit markets, and fiat currencies, which could result in gold prices above $3,000/oz within 3 years,” said Parrilla………………………………………..Full Article: Source

Gold Prices Unlikely To Slow Down, $1,350/oz In 2017: Credit Suisse

Posted on 12 April 2016 by VRS  |  Email |Print

Once again these are golden times for gold. The precious metal has regained some of the strength it lost over the last year after having a record high quarter in 2016. Gold prices gained 16% to 17% in the first quarter and are currently at $1,235/ounce. According to analysts at Credit Suisse, the precious metal is going to follow an upward trajectory throughout this year.
Michael Slifirski and Nick Herbert write in their FX and Commodities quarterly review that gold prices will peak at $1,350/ounce in the first quarter of 2017. The report further states that gold is likely to keep rising until the global economy stabilizes against fears of recession. Credit Suisse predicts a pullback in gold prices at the beginning of 2018 as real interest rates turn upwards………………………………………..Full Article: Source

Here’s why gold could rally to $1,300 by end of year

Posted on 12 April 2016 by VRS  |  Email |Print

A bullish trend is building gold futures. After posting its best return—around 16%— in the first three months of a calendar year in about 30 years, the yellow metal might have more room to run, said analysts at RBC Capital Markets in a research note dated April 10.
RBC raised its forecast for the yellow metal by 13% to $1,300 an ounce from a previous forecast of $1,150 an ounce by the fourth quarter 2016. It has raised its average price forecast for the metal in 2016 by 9%. RBC’s upgrade comes amid a 1.8% advance by gold futures in April, trading Monday at $1,258 an ounce………………………………………..Full Article: Source

What’s the World Gold Council Advising on Gold?

Posted on 12 April 2016 by VRS  |  Email |Print

Amid the global unrest that kicked off 2016 were the negative interest rate policies in Japan and Europe. The interest rate going negative may stand for swelling balance sheets and possible currency wars in the future. With negative rates, government bonds pay no interest but rather charge interest.
Under these circumstances, investors seem to prefer putting their money in gold rather than government securities. The World Gold Council has remained optimistic on gold due to NIRPs (negative interest rate policies) of major economies. It stated, “We believe that, over the long run, NIRP may result in structurally higher demand for gold from central banks and investors alike.”……………………………………….Full Article: Source

Why Some Investors Are Hot on Gold

Posted on 12 April 2016 by VRS  |  Email |Print

Some investors most likely entered a panic mode at the very beginning of 2016. With growing uneasiness in the Chinese markets, money was withdrawn from China. Also, equity markets went tumbling with the oil market rout. Currencies were vulnerable, and one option where investors could park their money was precious metals. Gold has surged a whopping 16% on a year-to-date basis. Silver followed gold, rising 9.3% on the same basis.
Changes in gold and other precious metals have been largely dependent on the US dollar in 2016. The US dollar eased 3.8% on a year-to-date basis as speculation of an interest rate hike continued. Weakness in the US dollar often gives some breathing room to US-dollar-denominated assets………………………………………..Full Article: Source

Chinese goldminers seek offshore acquisitions

Posted on 12 April 2016 by VRS  |  Email |Print

Chinese goldminers are aggressively scouting for overseas acquisitions, encouraged by his­torically low gold prices that could help them scoop up assets cheaply. Though gold prices have risen by more than 16 per cent since hitting a six-year low in December, the metal has still been trading close to levels last seen in 2010, in a range of roughly $US1220-$US1240 a troy ounce.
China is the world’s largest gold consumer and producer, but only a few Chinese companies, such as Zijin Mining Group, have ventured abroad to buy mines, unlike their counterparts in industrial metals………………………………………..Full Article: Source

Is China Becoming An Even Bigger Player In The World’s Gold Market?

Posted on 12 April 2016 by VRS  |  Email |Print

China, the world’s largest producer and consumer of gold, may be expanding its presence in the international gold market. According to a new story by the Wall Street Journal, low gold prices in recent years have driven a new wave of international gold asset acquisitions by Chinese companies.
Sprott Asset Management CEO Peter Grosskopf says China’s five or six gold companies are all better-positioned financially than their North American counterparts. “I have been in touch with all of them, and they all have plans for increasing assets overseas,” Grosskopf says………………………………………..Full Article: Source

Gold At $10,000?

Posted on 11 April 2016 by VRS  |  Email |Print

After being in the doghouse for several quarters, gold rose up to the $1200s in recent weeks, trading places with equities and bonds. SPDR Gold Shares have lost 12.58% over the last five years, while S&P500 shares have gained 38.85%. But in Q1, equities and gold have traded places. GLD has gained 14.29%, while equities have lost 7.82%.
For years, holding gold has been considered a good “insurance” against the inflation that usually follows prolonged periods of monetary easing and rising commodity prices. Gold soared back in the 1970s, for instance, together with oil prices and accommodative monetary policies that fueled inflation………………………………………..Full Article: Source

Why Changes to London Gold Fix Could Send Gold to $5,000

Posted on 11 April 2016 by VRS  |  Email |Print

The gold price death spiral between 2011 and 2015 left a lot of analysts puzzled. Money poured out of precious metals and into stocks, driving gold prices into a deep slump. Now, an overhaul at the London Gold Fix could help reverse the tide, drawing in institutional investors and sending gold prices to levels we’ve never seen before.
But before we get to that, let’s quickly review what happened between 2011 and 2015. Precious metals fell as a group during that time, but the gold price slump was particularly strange in light of economic uncertainty around the world………………………………………..Full Article: Source

Gold’s Rally Far From Being Over - Capital Economics

Posted on 11 April 2016 by VRS  |  Email |Print

Despite gold’s rally losing some steam, one U.K.-based research firm remains optimistic on the yellow metal’s price this year. “We think that gold’s rally this year is far from being over,” said Simona Gambarini, commodities economist for Capital Economics, in a research note Friday morning.
“We expect building inflationary pressures in the U.S. to keep real interest rates low, boosting the attractiveness of gold as a store of value,” she explained further. Gold prices remain up on the year but have recently lost steam as stronger U.S. employment and manufacturing data have reignited prospects of Federal Reserve rate hikes this year………………………………………..Full Article: Source

China Goes Prospecting for World’s Gold Mines

Posted on 11 April 2016 by VRS  |  Email |Print

Hunt by Chinese companies for overseas deals could make China an even bigger player in the global gold market. Chinese gold miners are aggressively scouting for overseas acquisitions, encouraged by historically low gold prices that could help them scoop up assets cheaply.
Though gold prices have risen by more than 16% since hitting a six-year low in December, the metal has still been trading close to levels last seen in 2010, in a range of roughly $1,220 to $1,240 a troy ounce………………………………………..Full Article: Source

Now, India’s very own gold coins

Posted on 11 April 2016 by VRS  |  Email |Print

Indian Overseas Bank kicked off sale of Indian gold coins on Friday in its branches in Mumbai on the occasion of Gudi Padwa. The RBI had given the nod to banks in January to sell these coins. These coins, minted in India, will have the national emblem of Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other and will join the global basket of national coins, including the American eagle coins (of the US), Panda coins (of China) and Maple Leaf coins (of Canada).
With a third of the gold demand in India (200-250 tonnes a year) coming from investors who buy coins/bars of gold, this new coin should see strong demand………………………………………..Full Article: Source

Global Demand for Food Is Rising. Can We Meet It?

Posted on 08 April 2016 by VRS  |  Email |Print

Over the last century, the global population has quadrupled. In 1915, there were 1.8 billion people in the world. Today, according to the most recent estimate by the UN, there are 7.3 billion people — and we may reach 9.7 billion by 2050. This growth, along with rising incomes in developing countries (which cause dietary changes such as eating more protein and meat) are driving up global food demand.
Food demand is expected to increase anywhere between 59% to 98% by 2050. This will shape agricultural markets in ways we have not seen before………………………………………..Full Article: Source

Gold Prices Settle Higher Amid Flight to Quality

Posted on 08 April 2016 by VRS  |  Email |Print

Gold prices settled higher in U.S. trading Thursday amid a broader flight to quality, as investors bet the Federal Reserve would be cautious on raising interest rates given uncertainty about global economic growth.
Gold futures for June delivery, the most actively traded contract, rose 1.1% to settle at $1,237.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Thursday’s action adds to a robust start to the year for gold futures, which are up some 17% so far………………………………………..Full Article: Source

Gold Close Above $1,240 Would Be “Impressive” - Gartman

Posted on 08 April 2016 by VRS  |  Email |Print

Gold is seeing strong support at the $1210-$1215 an ounce level says newsletter writer Dennis Gartman. The famed market watcher explains in his Thursday edition of The Gartman Letter that there has also been strong resistance along the trend line that extends back into mid-March.
“A close today above $1,240 would be most impressive, just as a close today below $1,210 would be most depressive,” he says. Gartman adds, “Our ‘money’ is on the former however, and our enthusiasm would be greater were we to see signs that India is back in the gold market in size.” Kitco’s Spot Gold was last quoted up $17.30 at $1239.60………………………………………..Full Article: Source

Investors Rush to Snap Up Gold Funds as Price Bounces

Posted on 08 April 2016 by VRS  |  Email |Print

Investors are welcoming gold funds back into their portfolios in a big way, encouraged by significant gold price rally and a low interest rate environment, Morningstar data shows. The gold price has rallied 16% year to date, and the funds in the precious metal equities sector are feeling the benefits.
The precious metals equity fund sector posted inflows of £193 million from December 2015 to February this year; its largest quarterly inflows in nearly three years as expectations for an interest rate rise in the UK faded. Omitting the inflows in December, the sector recorded a massive inflow of £185 million in the first two months of this year, according to Morningstar Direct………………………………………..Full Article: Source

UBS: Chinese, Other Central-Bank Buying Continues Although Pace Slowing

Posted on 08 April 2016 by VRS  |  Email |Print

Central-bank buying of gold is likely to continue although at a slower pace, with China setting the pace so far this year, said UBS Thursday. News organizations reported overnight that the People’s Bank of China boosted its holdings by 0.5% in March to 57.79 million ounces.
The buying coincided with a $10.3 billion increase in China’s foreign-exchange reserves to $3.21 trillion, more than analysts were expecting, UBS said. China has been consistently reporting gold buying over the last nine months………………………………………..Full Article: Source

Gold Sees Safe-Haven Demand on European Union Worries

Posted on 08 April 2016 by VRS  |  Email |Print

A feature in the world marketplace Thursday is the rally in the gold market. Safe-haven demand has again surfaced for the yellow metal as a referendum in the Netherlands on European Union-Ukraine trade relations has failed, prompting more concerns about the U.K. referendum in June to opt out of the European Union.
A U.K. exit from the European Union could spell the eventual doom for the EU. A weaker U.S. dollar index that hit a nearly eight-month low Thursday is also a positive for the precious metals markets on this day. June Comex gold was last up $14.70 at $1,238.30 an ounce. May Comex silver was last up $0.166 at $15.22 an ounce………………………………………..Full Article: Source

Can Silver Keep Pace With Gold?

Posted on 08 April 2016 by VRS  |  Email |Print

Gold’s surprising strength in price is capturing headlines, but another precious metal, silver, is chasing gold’s coattails – without the fanfare. Silver futures are up about 8.5 percent this year, making it stand out among other commodities and financial markets.
Investors snapped up coins, with U.S. Mint data showing March silver coin sales were up 17 percent over the previous year’s figure. Inflows into silver-backed exchange-traded funds witnessed their highest monthly inflow since December 2010, according to Commerzbank………………………………………..Full Article: Source

The Silver Price Will Rise in 2016 from This One Buying Trend

Posted on 08 April 2016 by VRS  |  Email |Print

The farther we get in 2016, the better the silver price outlook is. That’s promising news for investors seeking returns in an unstable commodities market. This fact may seem counterintuitive to most silver investors, though. That’s because they know the U.S. Federal Reserve plans to raise interest rates in 2016. And interest rates typically have an inverse relationship with the silver price.
Even so, there’s one trend that will cause silver prices to rise in 2016 despite the Fed’s meddling. But before we touch on this trend, let’s look at how interest rates affect the silver price………………………………………..Full Article: Source

Gold price swings ease as investors assess US growth outlook

Posted on 07 April 2016 by VRS  |  Email |Print

A gauge of price swings in gold fell to the lowest in almost two months as the prospect of a strengthening U.S. economy damped investors’ interest in the metal. Gold’s 30-day historical volatility dropped to the lowest since Feb. 10 and prices fell for the third time in four days amid signs the U.S. economy is improving.
Minutes of the Federal Reserve’s last meeting released Wednesday showed policy makers debated an April interest-rate hike, with several officials leaning against such a move and others saying it might be warranted. Gold advanced 17 percent last quarter, the largest such gain since 1986, on speculation that the Fed would delay raising interest rates amid a slowdown in global economic growth………………………………………..Full Article: Source

Dead wrong: Osama bin Laden bet that gold was going to $3,000

Posted on 07 April 2016 by VRS  |  Email |Print

A year before Navy SEALs stormed his compound and put an end to Osama bin Laden, the al Qaeda leader was puzzling over a question with which every investor is familiar: where to put his cash. The decision made was to put the money into gold and coins. Osama bin Laden — the gold bug.
“The overall price trend is upward,” the terrorist leader wrote in a letter to Atiyah Abd al-Rahman, the al Qaeda general manager, according to the New York Times. “Even with occasional drops, in the next few years the price of gold will reach $3,000 an ounce.”……………………………………….Full Article: Source

Big Trouble Ahead For Copper Is Good For Silver Prices

Posted on 07 April 2016 by VRS  |  Email |Print

It looks there may be trouble ahead for copper. This goes well beyond the falling copper price and annual surpluses. Chinese investors have been buying copper to finance trades. Thus, they have been warehousing one heck of a lot of copper to finance these trades This has kept demand artificially higher, causing mining companies to add more copper production.
Why is this good for silver? As global base metal supply, especially copper, starts to decline, it will drastically impact global silver mine supply. Again, 55% of world silver mine supply comes from copper, zinc and lead production………………………………………..Full Article: Source

Gold Funds See Outflows after Touching a 2-Year High

Posted on 07 April 2016 by VRS  |  Email |Print

The precious metals have been on a southward journey in the last couple of days. The fall of the precious metals has likely been due to the diminishing safe-haven appeal of the bullions. Initially, investors were likely sticking to gold as most of the other assets in the economy were underperforming.
However, the recent fall in the bullions has curbed the fund flows in gold. The SPDR Gold Shares ETF (GLD) had seen remarkable fund infows since the begining of 2016. However, the consistent inflows turned into outflows as the metal started to fall………………………………………..Full Article: Source

UBS: Platinum Group Metals Driven By External Factors For Now

Posted on 07 April 2016 by VRS  |  Email |Print

Platinum and palladium are drawing limited attention from investors right now, with price moves tending to be driven by external forces such as gold and broader risk sentiment, says UBS.
For instance, these metals have “barely” reacted to news reports of auto sales — important since PGMs are used for catalytic converters – and instead more likely to move on the back of gold and changes in equities. “Interest is lackluster and liquidity conditions are poor,” the bank says………………………………………..Full Article: Source

Why Goldman’s commodity chief wants investors to bet against gold

Posted on 06 April 2016 by VRS  |  Email |Print

Gold futures have been among the best performers this year. But that hasn’t stopped Goldman Sachs’ head of commodities, Jeff Currie, from recommending that investors bet against the yellow metal. “Short gold! Sell gold!” That was Currie’s unabashed advice during a CNBC interview Tuesday after discussing the outlook for crude-oil futures.
Currie’s rationale is fairly straightforward: The closely followed Goldman strategist sees the Federal Reserve raising benchmark interest rates at some point in 2016 and believes the result of higher rates will be a drag on the dollar-denominated precious metal………………………………………..Full Article: Source

Gold prices to decline in second quarter

Posted on 06 April 2016 by VRS  |  Email |Print

Those who have held off buying gold jewellery lately due to rising prices may soon find themselves back into the market, with analysts predicting there could be some price declines during the second quarter of the year.
The precious metal posted a stellar performance in the first quarter of the year, with retail prices in Dubai rising by 15 per cent from the end of last year. However, there are certain factors that point towards prices going down anytime soon………………………………………..Full Article: Source

Gold Prices at a Crossroads; Morgan Stanley see $1250 achieved by Q4

Posted on 06 April 2016 by VRS  |  Email |Print

Charts are showing volatility may be on the horizon for the precious metal, but the question is in which direction will the price settle on?
Since breaking higher at the end of 2015 investors have been asking whether gold is really changing course and starting a new longer-term bull trend higher, or whether it is merely correcting in the midst of a bear market. Gold’s current technical position seems to ask the very same question; in terms of chart patterns and price action………………………………………..Full Article: Source

Gold is the pile of poker chips in the next global crisis

Posted on 06 April 2016 by VRS  |  Email |Print

Countries around the world are acquiring gold at an accelerated rate in order to diversify their reserve positions. This trend, combined with the huge reserves held by the U.S., Eurozone and the IMF amount to a shadow gold standard.
The best way to evaluate this shadow gold standard among various countries is to use the ratio of gold to the gross domestic product, (GDP). This Gold-to-GDP ratio can easily be calculated using official figures and compared across countries to see where real gold power resides………………………………………..Full Article: Source

Gold ETFs’ defensive qualities may yet woo investors due to market volatility

Posted on 06 April 2016 by VRS  |  Email |Print

Gold exchange-traded funds (ETFs) are starting to gain traction with investors seeking safe haven assets in light of ongoing equities market volatility. After spending significant time in the doldrums, the gold price hit a 13-month high of above $US1280 an ounce in March, before sliding back.
Alongside the lift in its price, BlackRock reported record fund inflows of $US7.2 billion ($9.4 billion) for gold ETFs globally during the month of February. This represents an increase in fund flows of more than 10 per cent of the total $US66.8 billion market across the month………………………………………..Full Article: Source

Clashing Views on Gold

Posted on 05 April 2016 by VRS  |  Email |Print

In the first quarter, gold registered its strongest quarterly gain in 30 years. But what lies ahead for the metal? Depends, of course, on whom you ask and which macroeconomic indicators and other evidence they choose to accentuate.
A piece by Bloomberg argues that gold, which jumped 17% in value last quarter, could add more nice gains ahead, thanks in part to the bullishness of hedge-fund managers. “While gold futures have dipped from a 13-month high, hedge funds are the most bullish since January 2015,” writes Bloomberg’s Megan Durisin………………………………………..Full Article: Source

Is gold steadying itself for a major bull run?

Posted on 05 April 2016 by VRS  |  Email |Print

Investors have the opportunity to make significant returns on gold shares, many of which still have a long way to go before reaching pre-bear market levels, according to Paul Burton, mining research analyst at QuotedData.
The gold price (in terms of the London pm fix price) reached US$1,277.50/oz on 7 March, a rise of 18% since the start of the year. After softening over the following week or so, the price climbed back to levels approaching the high for the year in the wake of the US Federal Reserve’s Open Market Committee meeting, when it became clear major interest rate hikes are not on the cards this year………………………………………..Full Article: Source

The Biggest Reason the Price of Gold Will Rise in 2016

Posted on 05 April 2016 by VRS  |  Email |Print

Since we last checked in on the price of gold, the precious metal has seen some violent swings. Early last week, statements from the U.S. Federal Reserve pushed gold prices higher, but this boost only lasted about a day. The gold price retraced some of those gains shortly afterward and reacted to the movement in the U.S. dollar.
Despite its inconsistent performance last week, the price of gold’s movement has huge implications for where it’s headed in 2016. First, let’s look at how gold prices fluctuated last week………………………………………….Full Article: Source

Hedge funds aren’t wavering on gold price rally

Posted on 05 April 2016 by VRS  |  Email |Print

Equities, yields, oil, the dollar and gold were all in pull-back mode on Monday as the metal failed to capitalize on renewed worries about US and global economic growth. Traders in gold futures in New York pushed gold for delivery in June, the most active contract, to a week low of $1,215.70 an ounce in early afternoon dealings.
The weakness on gold markets since the 13-month high above $1,260 an ounce reached mid-March hasn’t shaken the conviction of deep-pocketed speculators that the metal is set to add to its $155 an ounce gain so far this year………………………………………..Full Article: Source

A Warning for Gold Bugs: This Rally Won’t Last

Posted on 04 April 2016 by VRS  |  Email |Print

The enthusiasm surrounding gold’s big first-quarter rally suggests its shine is set to dull sooner rather than later. Gold investors should enjoy the party while they can. The good times are probably coming to an end.
Bullish headlines following gold’s 16.5% first-quarter surge were in full force last week. CNBC claimed there was still upside ahead following the biggest quarterly rally in three decades. Bloomberg said even the bulls were stampeded by gold’s sharp move. And The Wall Street Journal touted the growing number of bullish bets on the metal………………………………………..Full Article: Source

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