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Commodities Briefing - Category | Bullion/Gold more

Hedge funds get gold timing wrong on rebound: Commodities

Posted on 07 April 2014 by VRS  |  Email |Print

Hedge funds and other speculators misjudged gold prices for a second time in three weeks. Just after the investors sold bullion holdings for a second consecutive week, a disappointing U.S. jobs report sparked the biggest rally in prices since mid-March.
Their funds fared better in the five preceding weeks, correctly adjusting wagers 80 percent of the time. Investors who were anticipating gold’s 2014 rebound would fizzle had reason to be confident at the start of last week. As U.S. equities surged to a record, bullion slid to a seven-week low on April 1 as fewer traders saw the appeal of the haven asset………………………………………..Full Article: Source

Gold premiums seen falling further on any ease in trade curbs

Posted on 04 April 2014 by VRS  |  Email |Print

Gold premiums in India are expected to fall from current levels of about $30 an ounce after the Reserve Bank of India (RBI) indicated it is considering removing some of the curbs to trade that have crippled imports.
India, the second biggest consumer of gold after China, last year imposed a record 10 percent import duty on the metal and said a fifth of all shipments should be re-exported as finished product to help narrow its current account deficit (CAD)………………………………Full Article: Source

Gold poised for longest weekly slump since September before data

Posted on 04 April 2014 by VRS  |  Email |Print

Gold headed for a third weekly decline in the longest run of such losses since September before U.S. economic data that may show the labor market improved, backing the case for reduced monetary stimulus.
Bullion for immediate delivery fell as much as 0.2 percent to $1,284.27 an ounce, and traded at $1,284.61 by 9:28 a.m. in Singapore, declining for a second day, according to Bloomberg generic pricing. The metal is down 0.8 percent this week after sliding to $1,277.79 on April 1, the lowest since Feb. 11………………………………Full Article: Source

Gold equity premiums may not return, but value’s back - Altus

Posted on 04 April 2014 by VRS  |  Email |Print

Carl Noack, vice president investments for Altus Global Gold, gave his views on seeking value in the resource sector. He admitted that recent market performance has proved to be a painful time for gold bulls with the sector market down 28% last year and around 50% or more from its peak and with good companies in many cases hit just as badly as poor ones.
Noack pointed to last year’s sharp downturn in the gold price being primarily due to two factors – big sales out of the gold ETFs and ever continuing uncertainty over whether the U.S. Fed would indeed start its tapering programme………………………………Full Article: Source

Silver prices fall sharply in March as safe haven appeal falls

Posted on 04 April 2014 by VRS  |  Email |Print

Spot silver prices rose declined around 7 percent last month, tracking weak cues from gold prices and base metals complex. In the Indian markets, silver prices declined by around 8 percent. The fall in Indian markets is due to rupee appreciation by around 3 percent.
Upbeat economic data from US, and UK and to some extent Eurozone signalled signs of growth in these economies in turn reducing the metals safe haven appeal. Additionally, upbeat market sentiments in coupled with fears of interest rate rise in the US earlier than expected acted as a negative factor………………………………Full Article: Source

Gold to hit new highs after 2014

Posted on 03 April 2014 by VRS  |  Email |Print

For the first time in three days the gold price rose this morning, on the back of hope that the low price will spur gold buying in China. Also, for the first time in the last week gold for immediate delivery in Shanghai traded at a premium to London. This suggests that the downside in gold is protected somewhat by expected demand in China.
Another reason for gold’s weakness this week is the impending March non-farm payroll data, due for release on Friday. Forecasts so far expect the U.S. Labor department to announce 200,000 new jobs were added last month…………………………………Full Article: Source

Speculations reversed - Gold price stealth rally 2014

Posted on 03 April 2014 by VRS  |  Email |Print

So far, 2014 has been a paradoxical year for gold. Many investors aren’t even aware that it has rallied almost 8%. On the rare occasion that the financial media mentions the yellow metal, it is only in the context of comparing the recent rise to last year’s decline.
In spite of this overwhelming negative sentiment, gold is experiencing a stealth rally as one of the best performing assets of the year. Let’s look at some important metrics of the most under-valued sector in this market…………………………………Full Article: Source

Gold bullion imports by Indian state hit 5-year lows in FY ‘14

Posted on 03 April 2014 by VRS  |  Email |Print

In accordance with the latest official trade data, the gold bullion imports by the country’s Northern state of Gujarat touched lowest levels in five years during the financial year FY ’14. The imports failed to cross even 100 metric tonnes this year.
As per trade figures released Monday, the total gold imports during the period from April ’13 to March ’14 amounted to 92 metric tonnes. The gold imports during the fiscal year plunged to nearly half when compared with the total gold imports of 193 metric tonnes during FY ’13…………………………………Full Article: Source

Gold forecasts for China drive prices higher

Posted on 03 April 2014 by VRS  |  Email |Print

Gold rose, ending the longest slump in 19 weeks, on speculation that demand for bars and jewelry will increase in China after futures touched a seven-week low. ANZ Banking Group said Wednesday its gauge of demand increased late last month in China, the world’s biggest buyer. Iraq’s central bank plans to process 11 metric tons for public sale, and will import bars to sell to goldsmiths.
The outlook for reduced U.S. monetary stimulus and higher borrowing costs helped push futures Tuesday to the lowest since Feb. 11. “People are betting on increased physical buying and bargain hunting at these levels,” said Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago. “This may be temporary, as prices could head lower because of expectations of higher interest rates.”………………………………..Full Article: Source

Gold demand at ‘interesting crossroad,’ prices could hit $1,450 this year: Lear Capital

Posted on 02 April 2014 by VRS  |  Email |Print

Gold demand stands at an “interesting crossroad” so far this year, with “numerous conditions triggering market demand,” Lear Capital’s Chief Executive Officer Scott Carter said.
Lear Capital expects an average of around $1,400 an ounce for the year. It even sees gold reaching $1,450 this year. Many analysts, however, forecast average 2014 gold prices below $1,300 an ounce. Barclays last week raised its average 2014 gold price forecast to $1,250 from $1,205………………………….Full Article: Source

Gold will bottom in 2014 before record-making rebound - Pecora

Posted on 02 April 2014 by VRS  |  Email |Print

Gold prices will bottom in 2014 before returning to a record within five years as weaker equities spur demand for a haven and physical buying from Asia strengthens, according to asset manager Pecora Capital LLC.
Bullion may drop to about $1,160 an ounce this year as the dollar advances as much as 5 percent, Boca Raton, Florida-based Pecora said. U.S. stocks that reached an all-time high last month are overvalued and will probably retreat when the Federal Reserve ends stimulus. In that scenario, gold could initially slide as money flows toward cash investments, before rebounding, it said………………………….Full Article: Source

BlackRock’s Raw: Where will the gold price go in 2014?

Posted on 02 April 2014 by VRS  |  Email |Print

Following last year’s dramatic gold sell-off BlackRock World Mining trust co-manager Catherine Raw is expecting a volatile but ultimately more stable gold price in the year ahead.
Speaking at the Fund Strategy Investment Summit in Pennyhill Park, Raw highlighted a number of crucial changes that have created greater stabilisation for the gold price since last year………………………….Full Article: Source

What makes gold totally different from everything else?

Posted on 02 April 2014 by VRS  |  Email |Print

Gold is unlike every other commodity known to man. No, it’s not just that gold is shiny, malleable, or can be hammered into very thin sheets. Nor is it just that the metal is surprisingly heavy—a bar the size of your iPhone is about a kilogram or 2.2 pounds. The reason is not that gold is scarce (it’s not all that scarce). I refer to a unique property of gold that is man-made.
Nearly every ounce of gold ever mined is still in human possession. Think about that for a minute. Do we accumulate other commodities like that?…………………………Full Article: Source

Gold prices fall to lowest level in seven weeks

Posted on 02 April 2014 by VRS  |  Email |Print

Gold prices sank to their lowest level in seven weeks Monday, as investors continued to discount the possibility that the conflict in Ukraine would intensify. Gold for June delivery, the most actively traded contract, closed down $10.50, or 0.8%, at $1283.80. It was the lowest close for the precious metal since Feb 11.
Prices for gold are down more than more than 7% since March 14, as it became clear that the West would limit its response to Russia’s annexation of Crimea to a series of narrowly-targeted sanctions…………………………Full Article: Source

Why are platinum and palladium not meeting analyst expectations?

Posted on 02 April 2014 by VRS  |  Email |Print

While every now and again some analyst or other comments that perhaps palladium is outperforming gold, or platinum is, on the year to date both the pgms have moved up pretty well pari passu with gold overall.
All three metals are around 7-8% up since the beginning of the year. Indeed gold moved up substantially further during the height of the Ukraine crisis and while the pgms followed they did not quite do so to the same extent. As gold has fallen back though, the pgms have caught up again………………………….Full Article: Source

What does that have to do with the price of gold?

Posted on 28 March 2014 by VRS  |  Email |Print

Earlier this month the price of gold hit a six-month high of $US1370 an ounce, buoyed by investors and civil unrest in Ukraine. So what does a foreign conflict have to do with the price of gold?
To those outside the gold industry it might seem strange that geopolitical uncertainty in Crimea might mean good things for your average gold miner in Kalgoorlie-Boulder. But, for one of the world’s oldest currencies, civil unrest is just one of many seemingly random factors to affect its price………………………………Full Article: Source

Gold slips below $1,300, likely to stutter short term

Posted on 28 March 2014 by VRS  |  Email |Print

As tensions ease on Russia/Ukraine, the gold price has suffered falling briefly below $1300 an ounce overnight and then again a little more heavily in European trade this morning. Russia now appears to have managed to annex Crimea without any sanctions of serious consequence being raised against it and President Putin has played the diplomat by cutting out some of the competitive sanction rhetoric.
There seems to be little doubt that the West – and Europe in particular – has no stomach for a serious economic fight given that tit for tat sanctions might be more of a problem for those European states dependent on Russian gas for 30% of their supplies than they would be for Russia itself………………………………Full Article: Source

Gold holds steady near $1,300

Posted on 28 March 2014 by VRS  |  Email |Print

Gold held steady just above $1,300 on Thursday as the metal’s safe-haven appeal was boosted by weaker equities, but gains were limited by a second day of outflows from gold funds.
Spot gold was flat at $1,302.96 an ounce by 0721 GMT. Asian markets were in skittish mood on Thursday following a soft finish on Wall Street and amid simmering tensions over Ukraine………………………………Full Article: Source

Gold extends losses as haven demand wanes

Posted on 28 March 2014 by VRS  |  Email |Print

Gold prices sank to a six-week low on Thursday as signs of improving U.S. economic growth and easing concerns about Ukraine sapped investor interest in the haven asset. Gold for April delivery, the most active contract, fell $8.70, or 0.7%, to $1,294.70 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold’s lowest settlement price since Feb. 11, when futures closed at $1,295 an ounce.
Gold had rallied over the first two months of 2014 as investors sought to protect their wealth from risks such as a slowing U.S. economy, turbulence in emerging markets, and a political crisis in Ukraine. Gold is considered by some traders as a safer investment than currencies or Treasury bonds, because the precious metal’s value isn’t tied to a government or country………………………………Full Article: Source

Are US weekly oil imports from OPEC nations finding support?

Posted on 27 March 2014 by VRS  |  Email |Print

Higher-grade crude yields larger volumes of premium products such as gasoline, but it doesn’t yield as many lower-value products due to chemical differences. In the past, refiners spent millions of dollars on equipment that would allow them to produce larger amounts of premium products from heavier and sourer crude.
As the economics maybe isn’t there to change existing capacity to accommodate lighter and sweeter crude, demand for crude from Kuwait, Colombia, Venezuela, and Saudi Arabia remains strong…………………………………Full Article: Source

Barclays raises 2014 gold price forecast, cites performance so far

Posted on 27 March 2014 by VRS  |  Email |Print

Barclays raised its 2014 gold forecast to $1,250 per ounce from $1,205 on Wednesday, saying the change comes after taking into account gold’s year-to-date performance.
The bank maintained it has not altered its overall view on the yellow metal and believed gold’s next move will be lower as the macro background that could accelerate prices sustainably has not changed though investor sentiment has stabilised. It forecast gold prices at $1,150 for 2015…………………………………Full Article: Source

Gold to stay above last December’s lows in 2014: CPM Group

Posted on 27 March 2014 by VRS  |  Email |Print

Average annual gold prices are expected to remain steady and stay above the lows seen at the end of 2013, said CPM Group Tuesday. The New York-based consultancy released its annual gold yearbook at Bloomberg’s headquarters during an event fittingly called, An Evening On Gold which featured a panel of gold experts. The yearbook is considered one of the industry’s most coveted staples for forecasting the metal.
Findings from CPM Group’s Gold Yearbook show gold prices averaged $1,409.43 an ounce in 2013, down 15.6% from the average gold price of $1,670.15 an ounce in 2012. This was the first annual average decline for the yellow metal in more than a decade…………………………………Full Article: Source

Net gold investment to fall 9.5 mln ozs in 2014 - CPM

Posted on 27 March 2014 by VRS  |  Email |Print

Commodities specialists CPM Group forecast Tuesday that the decline in investment demand for gold will continue this year as “a tug of war between short and long term investors is expected to weigh on overall net additions to gold investment holdings,” which are projected to deteriorate from 30.9 million ounces in 2013 to 21.4 million ounces in 2014.
“The price sensitivity among longer term investors, renewed strength in equity and real estate markets, and weak demand from some major gold consuming nations could deflate the price of gold and drive away shorter term investors,” CPM advised in its Gold Yearbook 2014, which was released Tuesday afternoon…………………………………Full Article: Source

Gold bullion the only global meltdown safeguard, says asset allocator

Posted on 27 March 2014 by VRS  |  Email |Print

The only way to hold gold in a portfolio is through physical gold kept close by rather than listed gold, according to Panthera Solutions’ Markus Schuller. Schuller, a recent guest speaker at Citywire’s Zurich and Geneva fund selector events, said investors should also steer clear of gold ETFs as access to the precious metal would become difficult in the event of another financial meltdown.
He told Citywire: ‘Gold is usually pitched as great inflation hedge, which is not backed by empirical evidence, at least not in the sense of seeing a rising gold price as soon as inflation starts rising.’………………………………..Full Article: Source

Should you be prepared for a bullish run in gold bullion?

Posted on 27 March 2014 by VRS  |  Email |Print

After 12 years, gold bullion’s glorious bull run ended with a thud in 2013, retracing 30% and locking in the biggest annual decline since 1981. Many speculate that gold bullion prices melted in 2013 as investors tried to figure out when the Federal Reserve was going to be cutting its generous $85.0-billion monthly bond purchases.
Investors lean toward gold bullion and other precious metals as a hedge against both a weak U.S. dollar and inflation. A tapering of the Federal Reserve’s monetary policy suggests that the U.S. economy is getting stronger. While there was no real sign of sustained economic strength in 2013, just the idea that the Federal Reserve would have to start tapering at some point was enough to send gold bullion prices lower…………………………………Full Article: Source

How to invest in gold (safely)

Posted on 27 March 2014 by VRS  |  Email |Print

The price of gold has often had a negative correlation with the stock market and often it has served as a hedge against inflation and currency volatility. But, when investing in gold, it is important to remember what the much-hyped asset class is, and what it is not.
Having gold in your portfolio is a speculative play, since it does not yield income, dividends or distributions. But it is a good diversification tool…………………………………Full Article: Source

Gold demand surge in China

Posted on 27 March 2014 by VRS  |  Email |Print

China’s Gold import from Hong Kong was reported to surge in February after more banks were permitted to import gold by the government amid the increasing demand for gold, the Chinese government gave authorized permission for more banks to carry out import of precious metals because of which Gold import in the country climbed a record high last month and is expected to continue.
According to expert analyst report, net import of China in February reached a total of 109.2 mt when compared to the 83.6 mt in January a year ago………………………………..Full Article: Source

Is gold back?

Posted on 26 March 2014 by VRS  |  Email |Print

After slumping in 2013, gold has moved higher this year on worries over the Ukraine crisis and U.S. economic growth. While miners have welcomed the rally, the battle between the gold “bugs” and bears still appears far from decided.
“Gold excites people,” Nick Sheard, chairman of Australian minerals explorer Carpentaria Exploration, told The Diplomat. “If you’ve ever panned gold, when you see that speck of gold you get quite excited and it’s the same with investors.” He added, “Gold is still considered a reserve currency and whenever there’s a crisis you see strong buying.”………………………………Full Article: Source

Gold prices to consolidate lower in 2014: CPM Group

Posted on 26 March 2014 by VRS  |  Email |Print

Despite a strong start to 2014, gold prices are likely to consolidate lower due to longer-term investors’ price sensitivity and shorter-term investors’ concerns about US Federal Reserve monetary policy, analysts from the New York-based research firm CPM Group said Tuesday.
“CPM Group does not expect gold prices to decline significantly from current levels, but neither does it expect a sharp increase in prices over 2014 and 2015,” analysts said in the group’s Gold Yearbook 2014, which was released Tuesday. In 2014, gold prices are expected to average $1,256.77/oz, down 10.8% from the $1,409.52/oz last year, CPM analysts said in the report……………………………….Full Article: Source

Gold hitting $9,000 and $50,000 – Are these legitimate forecasts for gold prices?

Posted on 26 March 2014 by VRS  |  Email |Print

After a disappointing 2013, gold has started off the year doing quite well, despite finishing at a one-month low during the Monday trading session. Nevertheless, some Wall Street traders and contrarian investors see gold hitting new highs in the near future.
One forecast that has been making headlines was made by James Rickards, portfolio manager at West Shore Funds, in which he suggested the yellow metal could rise anywhere from $7,000 to $9,000 within the next three to five years……………………………….Full Article: Source

Funds defy Goldman as gold bears thank Yellen: Commodities

Posted on 24 March 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. and Societe General SA can thank Janet Yellen for helping to get their bearish forecasts for gold back on track.
After hedge funds piled into the precious metal this year with the most bullish bets in 16 months, defying the predictions of lower prices by Goldman and SocGen, gold tumbled last week by the most since November as Federal Reserve Chair Yellen said economic stimulus could end this year, with interest rates starting to rise in early 2015………………………………………..Full Article: Source

Goldman Sachs: Gold’s rally won’t last

Posted on 24 March 2014 by VRS  |  Email |Print

Gold’s rally hasn’t convinced Goldman Sachs to change its bearish thinking on the precious metal. Gold has been one of the top performers across asset classes this year, up 11%, but Goldman says unsustainable catalysts have driven the rally. The firm doesn’t believe the recent gains are sustainable.
Three factors — weather-impacted U.S. economic activity, Chinese credit concerns and Ukraine tensions–have played a role in pushing gold prices higher in 2014. But Goldman sees these factors diminishing in the near future, which will prompt gold to tumble off current levels………………………………………..Full Article: Source

Gold overbought?

Posted on 24 March 2014 by VRS  |  Email |Print

Gold rose 1%, it’s first rise in five days, trimming a weekly decline of 2.8%, as the crisis over Ukraine led to a renewed safe haven bid for gold. Palladium surged 3.1% to the highest since 2011 on concern supply from Russia may be restricted.
Gold had become overbought after its surge to 6 month highs and was due profit taking and a correction. A perception of an abatement of tensions between Russia and the West has contributed to the pullback this week. Momentum could lead to further falls next week but we expect weakness will be short lived………………………………………..Full Article: Source

Perth economist predicts gold prices will keep on shining

Posted on 21 March 2014 by VRS  |  Email |Print

The gold price could reach US $1400 by the end of the month according to a Perth economist. Chief economist for ABC Bullion Jordan Eliseo said the unrest in the Ukraine was pushing the price of gold up.
“If we break US $1430 I think the gold price will continue to appreciate,” Mr Eliseo said. The gold price was US $1332.57 or $1332.57 on Thursday after reaching a six-month high earlier in the month………………………………………..Full Article: Source

Invest in a gold – Precious metals IRA

Posted on 21 March 2014 by VRS  |  Email |Print

According to a new survey, Only 44% of Americans say they or their spouses have calculate how much money to t live comfortably in retirement, let alone how to invest it. Only 18% of workers are confident they’ll retire comfortably.
For those who do save, taking the extra time to plan out how to shine in their golden years, it is just as important to have a strong, diversified portfolio. To those responsible savers, Gold IRA’s are an obvious choice………………………………………..Full Article: Source

How to cut a deal with gold miners

Posted on 21 March 2014 by VRS  |  Email |Print

Give those guys a gold star. Gold-mining stocks, so bad for so long, are finally doing what they are supposed to. Namely, offer leveraged exposure to a gold-price rally. Gold is up 11% so far this year; mining stocks have jumped 21%.
That is in sharp contrast to recent years: In 2011, for example, gold hit an all-time high and gained 9%; mining stocks fell 16%. The miners’ rehabilitation, though, isn’t complete. Investors should look for deals—in more ways than one………………………………………..Full Article: Source

Platinum coming out ahead

Posted on 21 March 2014 by VRS  |  Email |Print

This year is turning out to be a great one for platinum group of metals. New sanctions placed on Russia, the world’s largest producer of palladium, may see interruptions in the shipments of the metal, putting further pressure on an already tight supply.
Given the metal is a key component in the auto industry, analysts are concerned that Russia may react to sanctions by restricting supply of palladium putting pressure on the United States’ car industry………………………………………..Full Article: Source

Gold tipped to hit $1,400 on Russia fears and ETF buying

Posted on 20 March 2014 by VRS  |  Email |Print

German bank says that turmoil in Ukraine and a return of ETFs will push gold prices even higher in 2014. Gold prices will hit $1,400 (£842) an ounce by the end of the year in a dramatic turnaround in sentiment among investors buying the precious metal, according to Commerzbank.
The German bank said it has been “surprised by the early timing and scale of the upward movement” in the price of gold, which has risen 15pc this year………………………………………..Full Article: Source

Commerzbank sees temporary gold pullback, then upswing to $1,400 avg. in 4Q

Posted on 20 March 2014 by VRS  |  Email |Print

Gold is likely to give up some of its recent gains but then recover again into year end, averaging $1,400 an ounce in the fourth quarter, Commerzbank said in a forecast released Wednesday. Silver is seen averaging $24 in the final three months of the year. Other fourth-quarter forecasts included platinum, $1,600; and palladium, $825.
Spot gold rose to just above $1,392 an ounce early this week and was up some 15% for the year to date, the bank said. The metal also was up around 13% in euro terms……………………………………….Full Article: Source

Technical breakout in gold, $1500 in reach

Posted on 20 March 2014 by VRS  |  Email |Print

Gold is staging a breakout of a powerful technical pattern that will bring $1500/oz. into reach. Buying pressure has been building for physical gold. Price action is reflecting stronger bullish sentiment and a continuation of the long term bull trend, which dates back to 2009. Technical indicators show that gold is now poised for another strong move to the upside.
We know that gold trades differently than other commodities and differently than stocks. Some successful investors, such as Warren Buffet, steer clear of gold because it’s value cannot be easily calculated by some discounted cash flow or other quantitative method………………………………………..Full Article: Source

Miners making hay as gold shines on price rises

Posted on 20 March 2014 by VRS  |  Email |Print

Goldminers are rapidly making use of the funding window that has opened up thanks to the recent rise in the gold price. Indochine Mining is the latest, seeking $20 million at a hefty premium to its share price. It launched the raising late last week and by Wednesday had $15 million. It expects to raise the rest in the next few days.
The raising comes as Kingsgate Consolidated seeks $60 million at a discount of 30 per cent to its share price. Doray Minerals raised $17 million last month, Silver Lake $40 million, Perseus $30 million and Saracen $60 million………………………………………..Full Article: Source

How to profit from rising gold prices

Posted on 20 March 2014 by VRS  |  Email |Print

Gold’s outperformance almost seems counter-intuitive. After all, one of the biggest arguments that gold bugs have presented is that the Fed’s quantitative easing program is resulting in more fiat money circulating throughout the economy, leading to inflation. Gold is often used as a hedge against inflation.
Therefore, we would expect the price of gold to fall as quantitative easing comes to a close. But, that hasn’t happened. Instead, the fundamentals for the yellow metal have taken over as demand for it has surged. ……………………………………….Full Article: Source

Does gold’s rally have nothing to do with Ukraine crisis?

Posted on 20 March 2014 by VRS  |  Email |Print

The gold price rally is not the result of any geopolitical instability, instead should be considered as the beginning of the next leg of up move, says Peter Schiff, CEO, SEC registered investment advisor Euro Pacific Capital Inc.
According to Schiff, the precious metal is poised for a tremendous rally here on. The sharp decline in prices during 2013 must be treated as part of the ongoing bull market, he added………………………………………..Full Article: Source

Investors are feeling bullish about gold

Posted on 19 March 2014 by VRS  |  Email |Print

The international markets have witnessed lots of uncertainty of late, especially in respect of the Ukraine crisis. Traders have been shying away from traditional investments in the form of stocks in favour of gold and other safe-haven alternatives. The price of gold has risen sharply this year – in the region of 15%.
The recent referendum results confirm what investors and political commentators already knew: Crimea was always going to side with Russia. Since over 50% of the electorate in the region voted in favour of secession, it would typically be a binding resolution. However, it has largely been condemned as illegal owing to the ubiquitous presence of Russian military personnel and threats of violence. The markets have reacted to this uncertainty in the same way they always do – by buying gold………………………………………..Full Article: Source

China’s secret vaults: Where is all the missing gold?

Posted on 19 March 2014 by VRS  |  Email |Print

China has recently become the world’s largest consumer of gold. Uniquely, it also ranks as both the largest producer and the biggest importer of gold. Yet a big question surrounds the true state of the Chinese demand for gold; the answer would determine how global gold prices are likely to fare.
The expectation that Chinese investors will sustain a voracious appetite for gold has helped to spark a recent rebound in gold prices………………………………………..Full Article: Source

RBCCM sees gold rally ahead - similar to 2005-2008

Posted on 19 March 2014 by VRS  |  Email |Print

Royal Bank of Canada Capital Markets analysts Dan Rollins in Toronto and Jonathan Guy in London have come up with a detailed analysis of the gold market over the next few years comparing it with the big ETF driven gold price rally of 2005-2008.
Over this period, gold doubled in price from $450 to $900, and while the analysts are not putting exact price predictions into their prognostications, nor coming up with a precise timescale, the implication is there in their research that this could lead to a big gold price increase in the medium to long term………………………………………..Full Article: Source

Will silver catch up to gold?

Posted on 19 March 2014 by VRS  |  Email |Print

Why is silver underperforming, and is this an opportunity or a sign of something else? While it is difficult to know why exactly silver is underperforming in just a two-and-a-half-month timeframe, the most obvious answer to this is that silver is not just a precious metal — it is also an industrial metal, and about half of silver’s demand comes from industrial applications while only about a fourth of silver demand comes from investors.
As we have seen this year, industrial metals such as copper and lead have underperformed, which signals economic weakness. If there is, in fact, economic weakness, then it follows that there will be less industrial demand for silver………………………………………..Full Article: Source

Why the precious metals recovery is here to stay and how to play

Posted on 19 March 2014 by VRS  |  Email |Print

So far this year, the price of gold has risen by about 15%, while the price of silver has risen by about 7.5% - a reversal of what we were experiencing this time last year. This brings the question of if gold and silver have finally overcome their troubles from last year. I’m of the opinion that they have, for reasons that I’ll argue in this piece.
First, one thing that I find disheartening about this trend, that’s supposed to be enjoyed, is that many seem to think that the positive trend will be short-lived, mostly pointing at the Ukraine crisis as the reason for which the prices of gold and silver is increasing………………………………………..Full Article: Source

Area near $1,470 may act as ‘magnet’ for platinum ahead of options expiry

Posted on 19 March 2014 by VRS  |  Email |Print

The areas around $1,470 for platinum and $770 for palladium potentially could act as magnets ahead of options expirations this week, traders said. Settlement for Nymex April platinum and palladium options is Wednesday. More options expiries occur next week, with Comex gold and silver expirations set for March 26.
Analysts said the number of open positions in options for platinum and palladium are small relative to the market and also compared to gold, thus expiries may not affect these metals as much as is the case for the yellow metal………………………………………..Full Article: Source

Gold price moves into important Fibonacci Zone

Posted on 18 March 2014 by VRS  |  Email |Print

Gold is at the highs once again, testing 1380-1400 area where we see some important Fibonacci levels that could react as resistance in this week. An updated count now shows a five wave move in wave (c) of C that is in final stages after recent break out of a running triangle in subwave four.
Keep in mind that on a daily time frame we are still looking at a triangle count where price is now testing important 78.6% retracement level of 1435-1180 move. A reversal down from here back to wave four range could suggest a completed rally for metals………………………………………..Full Article: Source

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