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Gold price jumps to highest since October

Posted on 13 January 2015 by VRS  |  Email |Print

Gold on Monday continued to build on recent gains as sagging equity markets, a fresh slide in the price of oil and doubts about the strength of the US economy saw investors piling into safe haven assets.
In afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,235.60 an ounce, up $19.50 or 1.6% from Friday’s close. Gold is now trading at its highest since October 22 and has jumped more than 4% jump so far this year. Gold hit a near four-year low of $1,143 early November………………………………………..Full Article: Source

Gold, Silver more prone to risks in 2015: Barclays

Posted on 13 January 2015 by VRS  |  Email |Print

Gold and silver are prone to further downside risk in 2015 but lower PGM prices are likely to prove to be good buying opportunities, according to the latest report by Barclays.
The report says the macro environment is likely to be pivotal for the precious metals in 2015, in particular given the expectation that the dollar may strengthen and for the first rate hike in June. This dynamic is likely to present significant headwinds for gold that has potential to weigh upon the rest of the precious metal complex, the report said………………………………………..Full Article: Source

The beginning of the end for gold and industrial metals price falls?

Posted on 13 January 2015 by VRS  |  Email |Print

The title of this article could be taken two ways, but our meaning in using it – courtesy of London metals and mining commentator David Hargreaves’ Week in Mining newsletter, which used aspects of the famous Winston Churchill wartime quote in its title and conclusions this week – is that are we perhaps actually nearing the bottom of the prices downturn virtually across the board in resources?
As the newsletter points out – the Brent crude oil price has fallen through $50/bbl, iron ore is staring down the abyss, copper has a look of testing $6,000 per tonne on the downside, while gold has picked up to $1,200 plus etc………………………………………..Full Article: Source

Gold miners struggle to shine in investors’ eyes

Posted on 12 January 2015 by VRS  |  Email |Print

Gold miners are hoping that the four-year low in the precious metal’s price, recorded in November, marked the end of a torrid period for the industry – and that the outlook will be brighter in 2015.
But many investors in gold fear the miners are still placing too much faith in a cyclical recovery and not making structural changes to put the sector on a stronger footing………………………………………..Full Article: Source

Will The Gold To Silver Ratio Peak In 2015?

Posted on 12 January 2015 by VRS  |  Email |Print

Both gold and silver have been under selling pressure for a majority of the past few years. However, last year, silver prices were hit much harder than gold prices. In fact, gold was down just over one percent on the year while silver fell nearly 20 percent. This got me thinking about the gold to silver ratio (price per ounce of gold divided by price per ounce of silver).
Silver’s underperformance in 2014 is pretty glaring. And this acceleration has pushed the gold to silver ratio toward an extreme. Based on the chart below, it is likely that silver will begin to outperform gold at some point in 2015. This is due to the Relative Strength Index (RSI) of the ratio nearing a point where a reverse in trend has occurred in the past………………………………………..Full Article: Source

What’s In Store For Gold Price in 2015?

Posted on 12 January 2015 by VRS  |  Email |Print

The year started out strong and many gold bulls called the end of the downtrend. However a strengthening US Dollar, signs of economic growth in the US, and concerns over the Fed’s tapering program put an end to the bull market pretty early in the year when gold peaked in March at ~$1,370/oz.
These signs, among others (which I will discuss in a moment), prompted me to call for more downside in the gold market in September when the price was hovering around $1,300/oz. Shortly thereafter the gold price fell below its critical support level of ~$1,180/oz. and traded down to ~$1,135/oz. before rebounding back to today’s range, which is roughly $1,180 – $1,220/oz. ……………………………………….Full Article: Source

Gold price predictions: Will gold rise or fall in 2015?

Posted on 09 January 2015 by VRS  |  Email |Print

Leading fund manager claims that after its three-year slump gold has ‘bottomed out’ - but not many agree. Top fund manager Evy Hambro, who runs one of the most popular funds focused on gold and gold mining shares, is predicting the precious metal will recover from its three-year slump in 2015.
Since the summer of 2011 when it peaked at $1,900 the price of gold has fallen almost 40pc to trade today at around $1,200 (£800). Mr Hambro’s fund - the £1bn Blackrock Gold and General - has fared worse, losing investors more than half their money over the past three years………………………………………..Full Article: Source

HSBC raises 2015 gold price forecast on safe-haven cues, lowers PGMs

Posted on 09 January 2015 by VRS  |  Email |Print

HSBC has raised its average gold price forecast for 2015 should the growing strength of the dollar and geopolitical fears burnish its safe-haven qualities, it said. It now sees gold averaging $1,234 per ounce this year, up from its previous forecast of $1,175, it said in a note on Thursday. It also sees gold in a trading range of $1,120-1,305 in 2015.
The bank left its 2016 forecast unchanged at $1,275 and introduced a 2017 forecast of $1,275.“The possibility that the forex market is under-estimating the risk of destabilizing currency moves is an important element… gold prices may gain modestly in 2015, even in the face of a stronger US dollar,” it said………………………………………..Full Article: Source

Jim Rogers Gold Price 50% Correction Low During 2015

Posted on 09 January 2015 by VRS  |  Email |Print

Jim Rogers Gold outlook for 2015 according to a recent youtube video is for the gold price to halve from its all time high during 2015, which implies a drop from its April 2011 high of $1923 to $960 as the following extract illustrates -
“We have a lot of people who bought gold in the last 14 years. Gold has not had a proper correction for a long long time and in my view until there is a proper correction Gold cannot make a bottom and start over.” “Gold has not been down 50% in many years and that is not normal, most things go down 50% every 3 or 4 years, it’s just the way markets work.” “If Gold were to go down 50% that would be $960″………………………………………..Full Article: Source

Outlook: Gold price seen positive

Posted on 08 January 2015 by VRS  |  Email |Print

Gold price jumped more than 1 percent to a three-week high on Tuesday as investors continued to eye Greece’s future in the Euro zone and await upcoming Federal Reserve minutes for hints on the timing of an interest rate hike widely expected this year. Political uncertainty in Greece ahead of the country’s elections on Jan.25 has renewed fears of a possible Greek exit from the Euro zone.
Gold futures were likely to find support at $1,180 an ounce and resistance at $1,255. In upcoming days, we can expect COMEX Gold February Futures prices to trade on positive note on the back of concern over Greece’s future in the Euro zone. Technically If COMEX Gold breaks the level of $1223 then it can test the level of $1250 and $1280 on upside. If MCX Gold Feb futures sustains above the levels of 27500 on upside then upward movement can be seen till the levels of 27700 and 28000………………………………………..Full Article: Source

Gold is glittering once again

Posted on 08 January 2015 by VRS  |  Email |Print

With stocks, oil and the euro all plunging since the year began, the yellow metal is off to a hot start in the first few days of 2015. Although gold pulled back a bit Wednesday as the broader market rallied, prices are still up about 2.5% so far. Ditto for the popular SPDR Gold Shares ETF (GLD). And Newmont Mining (NEM) has surged 5%, making it one of the top performing stocks in the S&P 500 so far in 2015.
Why is gold glittering? And can it last? The gold rally is likely due to renewed fears about Europe, particularly what might happen if the Syriza party wins Greek elections on January 25………………………………………..Full Article: Source

Silver Price Off to a Strong Start in 2015

Posted on 08 January 2015 by VRS  |  Email |Print

It’s not even a week into the new year, but already silver appears to be trying to redeem itself for its less-than-stellar price action in December. Aside from a few slumps, including a brief foray to $15.56 per ounce on January 2, the white metal has been on the rise since 2015 began, peaking at $16.22 on Monday before continuing up higher on Tuesday.
As of 3:15 p.m. EST, silver was sitting at $16.53.Silver’s positive performance has come on the back of a strong US dollar — that’s unusual given that a strong dollar generally decreases investors’ desire for safe-haven assets like precious metals . Explaining how that happened, iNVEZZ.com states in a Monday article7 that “strong physical demand … offset pressure from US dollar strength.”……………………………………….Full Article: Source

Gold and Oil: Who’s going to bottom out soon?

Posted on 07 January 2015 by VRS  |  Email |Print

In recent days, I have encountered a few questions related to gold and whether it would be right time to invest. In November, we had expected an uptrend in gold in the beginning of New Year and now the break of $1200 resistance levels, analysts may be watching for the next breach at $1230, 1250 upto $1280 per ounce levels.
Time and again I have told that gold price in India is basically a function of global spot prices plus import duties and local taxes. Gold demand has been fairly inelastic in the country with higher prices only raising the urge to buy more so that they don’t end up buying at still higher prices………………………………………..Full Article: Source

Gold price in 2015: Playing Russian roulette

Posted on 07 January 2015 by VRS  |  Email |Print

What happened in 2014 -Gold ended the year not far below its opening levels, but symbolically at least it’s the first back-to-back decline since 1998. After a torrid 2013, gold 2014’s highs and lows were 20% or $237 apart, making it the quietest year since 2008. Managed money seemed to lose interest in trading gold.
Volumes on paper market were down except for a few flurries towards the end of the year and a couple of, let’s call it, interesting trading patterns. Gold’s much-admired safe haven status took a beating. Russia, Ukraine, Iraq, Syria failed to persuade investors that gold would protect them from geopolitical carnage………………………………………..Full Article: Source

Where will gold end 2015 – $1,000, $1,325 or maybe $2,500?

Posted on 07 January 2015 by VRS  |  Email |Print

Well there’s nothing like being optimistic at the start of a New Year and there are certainly many factors to be optimistic about if you are a gold bull. Gold demand remains strong – notably in China and India with those countries alone probably accounting for 100% or more of new mined gold at the moment.
At the end of this article we will make some not very scientific predictions on the final levels for the gold and silver prices at year end 2015 – perhaps to have these totally shot down in flames when the year end comes. It is always easy to be wise after the event. China (as per data from the Shanghai Gold Exchange withdrawals figures) is looking to perhaps see full year 2014 demand come to a little over the 2,100 tonne mark, thus only a fraction below last year’s record of 2,181 tonnes. So much for the almost incessant mainstream media reports throughout 2014 of a collapse in the Chinese gold market!……………………………………….Full Article: Source

If gold’s going to be a winner in 2015 then silver will be the real champion as financial markets implode

Posted on 07 January 2015 by VRS  |  Email |Print

Gold and silver prices have jumped since the start of 2015 as safe haven and dollar diversification plays. But this will be nothing compared to the upside gain to come as financial markets really lose it. Precious metal investors know from long experience that when gold prices go up silver does even better and vice-versa.
Silver is in a tighter market than gold and with a smaller available supply then a rise in demand has a disproportionate impact on its price. It’s also an alternative to gold as prices rise because it is cheaper. The gold-to-silver price ratio is historically very high at the moment at 75, so silver prices have plenty of room to outperform and close up this gap………………………………………..Full Article: Source

Silver price in 2015: Better the devil you know

Posted on 07 January 2015 by VRS  |  Email |Print

What happened in 2014 -Silver had everything going for it in 2014. Apart from receiving a shot in the arm from Indian gold import curbs and becoming real cheap versus the yellow metal, the silver price was supposed to be boosted by rising fabrication demand.
Chinese imports were surging as silver used in solar panels more than made up for decline in the photographic industry. And batteries were on everybody’s brains from Tesla gigafactories in the US to giant electricity storage programs in China………………………………………..Full Article: Source

Metals less precious in 2015

Posted on 07 January 2015 by VRS  |  Email |Print

Gold prices are set to remain low in 2015, as South Africa’s platinum miners continue to recover from the 2014 strike. Most metals face re-strained prospects due to the expected slowdown in growth in China, a major resource importer. The gold price plummeted 28% in 2013 and hit a four-year low to reach $1,171.10 per ounce on 31 October.
This was two days after the US Federal Reserve ended its five- year bond-buying programme. Gold had held appeal as an inflation hedge during that period. Decreasing demand from China, the world’s largest gold consumer, coupled with expected interest rate rises in 2015, also depressed prices. US-based Citi Research revised its gold forecast for 2015 to $1,225, down from $1,365………………………………………..Full Article: Source

Hedge Funds Resume Bullish Gold Bets as Greece Vote Looms

Posted on 06 January 2015 by VRS  |  Email |Print

Hedge funds are stepping back onto the gold bandwagon as political turmoil in Greece and government actions in Asia helped send prices to their biggest monthly advance since June.
Bullish wagers on the metal increased for the first time in three weeks and have more than doubled since mid-November, U.S. government data show. Short holdings dropped for the sixth week in seven. Bullion rose for a second straight month in December………………………………………..Full Article: Source

Gold price jumps $1,200

Posted on 06 January 2015 by VRS  |  Email |Print

Gold made a bold move higher on Monday as fears of new eurozone crisis and a fresh slide in the price of oil caused a huge sell-off on Wall Street. In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,203.20 an ounce, up $17.00 or 1.4% from Friday’s close.
Gold’s gains in solid post-holiday trading volume also came into the teeth of a stronger US dollar which hit the highest level since November 2005 against the currencies of major US trading partners………………………………………..Full Article: Source

Gold Coin Sales Fall as Prices Stagnate

Posted on 06 January 2015 by VRS  |  Email |Print

Sales of gold coins from some of the world’s largest mints declined last year as stable prices discouraged investors and demand declined in Asia. The U.S. Mint and Australia’s The Perth Mint recorded markedly weaker sales of gold bullion coins as the broader market muddled through a year in which gains were capped by expectations for higher interest rates as the U.S. recovery gained steam. Gold is often seen as an alternative store of value during periods of economic uncertainty.
The Perth Mint said it sold 373,351 ounces of gold bullion coins last year, down 28% from 2013. Sales of The U.S. Mint’s American Eagle coins were down 39% at 524,500 ounces………………………………………..Full Article: Source

Gold great value protector in 2014 – silver not

Posted on 06 January 2015 by VRS  |  Email |Print

Are we too focused on gold’s US dollar performance to see its real value for those outside the USA? LBMA Gold price end 2013: US$1 201.50; Gold price end 2014: $1 199.25 – only down a minute 0.19% over the year. Thus, by effectively marking time vis-à-vis the US dollar over the full year gold outperformed virtually all other currencies in maintenance of value.
Frank Holmes of US Global Investors pointed this out neatly with the graph below in a recent article. Indeed its LBMA afternoon price on December 30 at $1 206 was actually 0.4% higher than its 2013 close in US dollars too but something of a dollar rally on the morning of December 31 brought it down a little………………………………………..Full Article: Source

2 Reasons Why Silver Will Rebound in 2015

Posted on 06 January 2015 by VRS  |  Email |Print

According to the World Silver Institute 2013 silver demand outstripped supply and the institute expects this to occur again for 2014 and 2015. This is because of growing demand for using silver in a range of high-tech industrial applications including photo-voltaic cells, electronic touch screens, light emitting diodes, and interposers for the stacking of semi-conductor chips.
Over the last 100 years, the gold-to-silver ratio has on average required 47 ounces of silver to purchase one ounce of gold. But since the peak of the gold bull market in 2011 where only 44 ounces of silver was required, the ratio has widened to now need 75 ounces of silver to purchase one ounce of gold………………………………………..Full Article: Source

Gold Price Looks Ready to Go Higher from Here

Posted on 05 January 2015 by VRS  |  Email |Print

The big picture in Gold hasn’t changed much over the past month. For approximately nine weeks now Gold has been consolidating around prior support of 1,182.20, a price first hit back in June of 2013. This price area was then tested as support first in December 2013, then more recently in May 2014.
During that 16-month time frame Gold consolidated forming a bearish descending triangle pattern. It broke out to the downside nine weeks ago. However, there has been no follow through as it bounced off 1,132.08 and has crept higher since, closing at 1,189.60 last week………………………………………..Full Article: Source

Will you buy gold in 2015 as prices projected to come down?

Posted on 05 January 2015 by VRS  |  Email |Print

The yellow metal market witnessed wide fluctuations in price in 2014. In the New Year, investors can look forward to relatively lower gold price in the international market, as some of the biggest gold investors and gold reserve holders may sell the metal to tide over current financial pressure from lower oil prices.
Leading gold and jewellery investors and traders said the price fluctuation in 2014 and the lower gold prices by the year-end is a welcome trend and gold price may continue to remain low in the New Year. Gold jewellery retail sales in Dubai will increase by at least 25 per cent, due to the lower gold prices, but tourists from Russia may not be buying gold as they used to do in the past………………………………………..Full Article: Source

Gold outlook: Prices could recover in 2015

Posted on 05 January 2015 by VRS  |  Email |Print

The fundamentals of the global gold market could point to modestly higher prices in 2015, according to a commodities analyst. Victor Thianpiriya, commodity strategist at ANZ Bank, expects gold prices to average around $1,238 per ounce for 2015, an increase of over 3.5% from 2 January’s spot price, which hovered at $1,194.10 at midday.
Thianpiriya, in ANZ’s 2015 outlook report, published last month, also said the Australian bank expects Chinese demand for physical gold to remain consistent in 2015, but that prices needed to move up to attract new buyers to the market place………………………………………..Full Article: Source

Precious Metals: A Fundamental Review For 2015

Posted on 05 January 2015 by VRS  |  Email |Print

Gold and Silver started 2015 in positive territory, gaining 0.56% and 1.19% respectively. But there are plenty of fundamental headwinds facing precious metals heading into 2015, many that dominated the headlines in 2014. A stronger dollar, slowing global economies, and deflation concerns, to name a few.
Can precious metals regain their luster? Here’s a quick look at spot Gold and Silver prices on the first trading day of the year. As you can see, Gold prices remain under $1200/oz, while silver lingers around $15-$16/oz. In 2014, capital flowed into equities and bonds, and out of commodities. Of the precious metals, Gold fared the best, closing just under break even for the year. On the other hand, Silver joined Crude Oil as commodities that got hit hard. Below is a performance chart of Gold and Silver for 2014………………………………………..Full Article: Source

Gold retains position as safe haven for 2015

Posted on 02 January 2015 by VRS  |  Email |Print

The metal is the only store of wealth that has a proven track record over thousands of years, and experts predict prices to remain at $1,200 in the year ahead. Gold has retained its place as a safe-haven investment in 2014, despite the rising strength of the US dollar and turmoil elsewhere in commodity markets.
The price has remained stable and what’s more, experts believe that the long- term outlook for the precious metal is well supported over the coming year.. The price of gold looks set to end the year almost unchanged on 12 months, closing last week at around $1,175 (£755) an ounce after starting the year at $1,205. Fears of a crash in the price were overblown………………………………………..Full Article: Source

Gold price outlook: 2015 could end on a strong note

Posted on 02 January 2015 by VRS  |  Email |Print

Gold prices could be set for a strong breakout in the second half of 2015, according to a commodities analyst. Ole Hansen, head of commodity strategy at Saxo Bank, is slightly more optimistic on the gold market for 2015 compared with other analysts.
Hansen told Kitco News that the precious metal could end 2015 around $1,250 an ounce. But prices could struggle in the short term and could even break below the 2014 lows in the coming months, he said. Hansen urged investors not to rule out gold’s safe-haven investment appeal. Safe-haven demand could help the gold market in early 2015 as both the Russian and European economies are in dire straits………………………………………..Full Article: Source

Expect More Volatility in Gold for 2015 as Interest Rates Rise

Posted on 02 January 2015 by VRS  |  Email |Print

Gold has only fallen 3% on the year as the metal has spent much of 2014 consolidating between $1,200 per ounce and $1,400 per ounce. That consolidation is precisely what investors should continue to expect in 2015, says Eric Zuccarelli, an independent metals trader. Investors should also expect more volatility for the metal in the new year.
Interest rates, which are expected to climb in 2015, will likely put pressure on gold prices, especially with inflation as low as it is, he explained………………………………………..Full Article: Source

Asian Investors Need To See Higher Gold Prices in 2015 Before They Buy More - ANZ

Posted on 02 January 2015 by VRS  |  Email |Print

Chinese demand for physical gold is expected to remain consistent in 2015, but prices need to move higher to attract new buyers to the market place, according to a commodity analyst from ANZ Bank. Although volatility has been high in the last few months, gold prices are hovering near unchanged levels from where they started in 2014.
After a year of stabilization, investors need to be confident that prices are on the rise before they jump back into the marketplace, said Victor Thianpiriya, commodity strategist at the Australian bank. He added that the fundamental picture of the gold market could point to modestly higher prices in 2015………………………………………..Full Article: Source

Silver prices in 2015 to be driven by investor sentiments

Posted on 02 January 2015 by VRS  |  Email |Print

Silver prices tend to move in tandem with gold’s prices. However, the price movements of Gold and Silver in 2014 proved that the correlation between them does not hold any more. Silver has clearly underperformed Gold in recent times. During 2014 alone, Silver plunged by nearly 12% as against gold’s 1% drop. Also, Silver is down nearly 67% from its peak reached in 2011.
On the other hand, gold has dropped only by 37% from its highs touched during the same year. Industry participants expect major rebound in silver prices in 2015. According to them, two key factors are likely to drive Silver prices higher………………………………………..Full Article: Source

Gartman: If you buy one thing in 2015, buy this

Posted on 02 January 2015 by VRS  |  Email |Print

It’s hard out there being a commodities king this year. Oil got crushed. Copper was obliterated. And soybeans got mashed. But Dennis Gartman has his eye on one commodity that met a particularly cruel fate in 2014: Gold
Despite bullion being just pennies away from posting its first back-to-back yearly loss since 1997, the self-proclaimed commodities king and author of the eponymous Gartman Letter told CNBC.com’s “Futures Now” on Tuesday that he sees gold enjoying a solid 2015. “My better trade for the year will be the same trade that has been the better one for this year and the better one for the previous year, which is to be an owner of gold,” said Gartman………………………………………..Full Article: Source

Funds unconvinced by gold rebound

Posted on 02 January 2015 by VRS  |  Email |Print

Gold’s year-end rebound is taking investors by surprise. With Greece facing another political crisis and equities giving up some gains, bullion is headed for the biggest monthly advance since June. Hedge funds lowered their wagers on a rally for a second straight week, and holdings in exchange-traded products backed by the metal are near the lowest since 2009.
The money managers aren’t the only ones being caught off guard, with the rebound undercutting bearish forecasts from Goldman Sachs Group Inc. and Societe Generale SA. The metal has climbed 5.9 percent since reaching a four-year low in November. Slowing economies are prompting central banks in Europe and Asia to add to monetary stimulus, while gold’s volatility is picking up after spending most of 2014 in the doldrums………………………………………..Full Article: Source

Credit Suisse: Gold Looks Likely to Fall in 2015

Posted on 23 December 2014 by VRS  |  Email |Print

Credit Suisse is bearish on gold headed into the new year, and one of the firm’s trading strategists recommends options on the SPDR Gold Shares (GLD) to capture additional prices declines.
Victor Lin on Credit Suisse’s trading strategy team recently noted the firm’s bearish outlook on gold in 2015. Their dim view on the yellow metal is premised in part on the potential for the Federal Reserve to raise interest rates, which could makes holding gold less appealing relative to bonds:……………………………………….Full Article: Source

Gold Drops Most in Two Weeks as Volatility Reaches 11-Month High

Posted on 23 December 2014 by VRS  |  Email |Print

Gold futures fell the most in more than two weeks as a slump in oil cut the appeal of the metal as an inflation hedge. Volatility in the metal rose to the highest since January.
The gauge of 60-day historical volatility reached 18.4, the highest since Jan. 10. Aggregate trading was 22 percent lower than the average in the past 100 days for this time, according to data compiled by Bloomberg………………………………………..Full Article: Source

UK Financial Body Regulating Gold, Silver Benchmarks

Posted on 23 December 2014 by VRS  |  Email |Print

Britain’s financial regulatory body is moving forward with its plans to regulate gold and silver benchmarks. The Financial Conduct Authority announced Monday that starting April 1, 2015, it will regulate a total of seven additional UK-based financial benchmarks in the fixed income, commodity and currency markets.
According to the FCA, the London Gold Fixing and the London Bullion Market Association Silver Price, will be two of the seven new regulated benchmarks………………………………………..Full Article: Source

Price of Silver in 2015: Why It Could Bounce Higher

Posted on 22 December 2014 by VRS  |  Email |Print

In 2014, silver once again suffered a substantial loss, following up a 36% crash in prices during 2013 with more double-digit percentage declines. Yet even though investors have had to live through a crushing precious-metals market environment during the past two years, many investors now believe that the price of silver in 2015 could finally bounce higher and give bullion owners some long-awaited relief.
Let’s look more closely at what’s moving silver prices, and how those factors are likely to affect silver prices in 2015 and beyond. Can the price of silver in 2015 really rise? Silver offers a unique mix of attributes of both precious and industrial metals. On one hand, silver has traditionally moved closely with gold, given the two metals’ historical use in monetary systems around the world………………………………………..Full Article: Source

Why Gold Could Continue To Fall

Posted on 22 December 2014 by VRS  |  Email |Print

Gold prices remain under selling pressure. Receding U.S. inflation could continue in 2015. As the dollar strengthens, and disinflation begins, expect gold to sell-off further. The price of gold could continue to decline as inflation expectations fall, alongside a stronger dollar and interest rate hike expectations. SPDR Gold Shares is down 14% since March.
The initial fear is that gold could continue to decline as inflation pressures remain subdued, with the dollar rising, and interest rate hikes taking place. On Friday, Minneapolis Federal Reserve Bank President Narayana Kocherlakota stated that he feared a premature rise in interest rates, prior to inflation growth, could do real damage to the economy………………………………………..Full Article: Source

Why Gold is not Rallying

Posted on 22 December 2014 by VRS  |  Email |Print

Despite a full-blown currency crisis in Russia and increasingly volatile markets in the U.S., the price of gold has hardly moved. The yellow metal dropped considerably in November and has been almost flat in the last 30 days. It remains close to the $1,200 per ounce level. If it closed there, gold would be looking at a slight loss on the year, which would be its first back-to-back yearly loss since 1997.
Analysts are question why investors are holding back from purchasing gold. Paradoxically, the turmoil in Russia, which should be helping gold, is in fact be hurting it………………………………………..Full Article: Source

Will gold tarnish or shine in 2015?

Posted on 19 December 2014 by VRS  |  Email |Print

Resurgence in gold demand from China and India, the world’s biggest consumers, is set to restore some shine to the yellow metal in 2015 after a lackluster year. “Physical gold demand in China and India were held back in 2014 amid high stocks and import controls, respectively,” said Victor Thianpiriya, commodity strategist at ANZ. “Both these shackles have been removed, putting demand on a solid footing as we head into 2015.”
In China, physical gold demand will return because stocks are depleting, said Thianpiriya, who sees the precious metal ending 2015 at $1,280 an ounce, up from $1,200 currently………………………………………..Full Article: Source

Gold to average $1,145/oz in 2015, platinum the favoured trade

Posted on 19 December 2014 by VRS  |  Email |Print

The gold price still has room to drop further given continued strength in the dollar and the possibility that the Federal Reserve will raise interest rates some time in 2015, Natixis said. Platinum is the more favourable trade next year, it said in a research note on Thursday.
“The strengthening dollar will continue pushing gold prices down. As the dollar strengthens so the need for gold as a safe haven ‘in times of crisis’ dissipates,” Natixis said. “Moreover, the yen and euro are expected to weaken on the back of expanding central bank balance sheets.” ……………………………………….Full Article: Source

Gold still on hold

Posted on 19 December 2014 by VRS  |  Email |Print

Gold prices did not show a huge reaction to the FOMC meeting announcement today in which the Fed appeared to sound more dovish–and perhaps a bit confusing as well. The metal is now hovering around the $1,200 area, and it is likely that no significant changes in price action are seen until the new year.
The central bank left in its language the phrase “considerable time” when referencing interest rate policy and the notion of beginning the tightening cycle. Other parts of the central bank’s statement were considered to be more hawkish, however, and some investors feel that the Fed gave some mixed signals with regards to its intentions………………………………………..Full Article: Source

Credit Suisse cuts 2015 gold price, bullish on zinc

Posted on 19 December 2014 by VRS  |  Email |Print

“Gold prices we see as stabilized at current levels,” said the Credit Suisse Global Metals & Mining Team, “we now expect a $1,100-$1,300/oz trading range, we reduce our gold price forecast for 2015 to $1,225/oz and our long term price from $1,250/oz from $1,300/oz.”
“We see gold price supported at the $1,200/oz level by a lower mine supply and continued global physical investment demand,” the analysts advised. However, they observed, “We see potentially bearish factors for the gold market including the bullish consensus USD outlook and market expectations for higher rates in balance with more bullish fundamental factors that drove gold from 2002-2008; shrinking mine supply, central bank buying and Asian demand.”……………………………………….Full Article: Source

Gold Declines to Two-Week Low on Outlook for U.S. Interest Rates

Posted on 18 December 2014 by VRS  |  Email |Print

Gold prices fell to a two-week low on concern that the Federal Reserve is moving closer to raising U.S. interest rates, reducing the precious metal’s appeal as a store of value.
Fed officials dropped a pledge to keep borrowing costs near zero percent for a “considerable time,” replacing it with a promise to be “patient,” according to a statement at the conclusion of a two-day meeting. Last month, gold touched a four-year low as the dollar extended a rally to a five-year high, eroding the investment appeal of gold…………………………………….Full Article: Source

Gold price to see better base in 2015 - ANZ Bank

Posted on 18 December 2014 by VRS  |  Email |Print

The gold price is likely to see a stronger potential for recovery in 2015 despite the prospect of rising US rates, a report from ANZ Bank forecasts. The bank forecasts gold price to average $1,238 per ounce next year, about 3.5 percent higher than the current spot gold price at $1,197 per ounce.
Continuing recovery in Chinese physical gold demand will help to sustain higher gold prices, given that subdued import levels during the second half of 2014 likely indicates a run-down of stocks from previous years. “The pullback in demand over the past three quarters should put demand on a better footing through 2015,” said ANZ Bank’s analyst Vicor Thianpiriya…………………………………….Full Article: Source

Gold Miners ‘Don’t Think Price Will Fall’, Hedging ‘Still Isolated’

Posted on 18 December 2014 by VRS  |  Email |Print

Gold Miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices. “There is not yet compelling evidence to indicate an extended rise in the volume of hedging by gold miners,” says Matthew Piggott, senior precious metals analyst at Thomson Reuters GFMS, introducing the consultancy’s Q3 2014 report for French investment bank and bullion market maker Societe Generale on Tuesday.
Growing 57 tonnes by weight in the first 9 months of 2014, the global gold mining hedgebook – the amount of unmined production effectively sold in advance to lock in prices – fell between July and October, says GFMS, dropping some 6 tonnes as new output was delivered to meet existing contracts…………………………………….Full Article: Source

Silver Prices to Outperform Gold in 2015

Posted on 18 December 2014 by VRS  |  Email |Print

I know it’s a bold prediction: silver prices are going to surprise investors and provide them with better returns than gold bullion. I say this because both the fundamental and the technical pictures for silver continue to improve. The supply of silver produced continues to dwindle, while demand for the metal is robust. This is the perfect recipe for higher prices.
In Canada, a major gold-producing country, in the first nine months of 2014, mines produced 373,828 kilograms of silver. In the first nine months of 2013, Canadian miners produced 510,390 kilograms of silver—representing a 26% decline in silver mine production…………………………………….Full Article: Source

PGMs Seen Gaining Upward Momentum By End Of 2015; More Supply Deficits Expected

Posted on 18 December 2014 by VRS  |  Email |Print

Platinum group metals might start slowly but eventually should gain upside momentum in 2015, with most analysts expecting rises for the year. Large existing above-ground stockpiles, potential for higher U.S. interest rates and a stronger U.S. dollar are expected to provide obstacles in the early part of 2015. But eventually, further supply/demand deficits are expected to help the market tick higher.
Platinum could remain under pressure early in the year, said Bart Melek, head of commodity strategy with TD Securities. While the market is already in a supply/demand deficit, there are nevertheless considerable inventories already built up. Further, Europe’s economy remains soft, especially important to platinum since it is required for auto catalysts in the diesel-powered vehicles popular on the continent…………………………………….Full Article: Source

Gold capped at $1238

Posted on 17 December 2014 by VRS  |  Email |Print

After breaking through a bearish trendline at the beginning of last week, Gold benefited from some USD profit-taking and managed to climb its way back up the charts. However, the yellow metal found resistance at $1238 preventing entry to $1240 and current technicals indicate this could be a psychological ceiling in the current Gold market.
The $1238 level also represents a 50.0 fib level from the previous high ($1344) to the previous low ($1131) and the metal finding resistance at the 50.0 fib level twice last week does suggest the Fibonacci levels are in play. If this is the case, technical traders would likely be bearish below $1238 and looking at a potential entry opportunity if Gold manages to break through this resistance. …………………………………….Full Article: Source

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