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Low demand in Asia may pull down gold price

Posted on 28 April 2016 by VRS  |  Email |Print

Gold prices that hit a 13-month high in March are likely to fall back in the short term because of a slump in demand from key Asian consumers, GFMS analysts said in a report on Tuesday.
Global gold demand tumbled by 24 per cent year-on-year to 781 tonnes in the first three months of the year, its weakest quarter in seven years, as buying from leading consumers India and China plummeted, GFMS said in the first-quarter update to its Gold Survey 2016………………………………………..Full Article: Source

Why China Wants Yuan-Denominated Gold

Posted on 28 April 2016 by VRS  |  Email |Print

It’s crucial to understand the potential benefits for China of having yuan-denominated gold. Besides internationalization, the fix may also increase the liquidity and efficiency of the gold markets. Yuan-denominated gold may also reduce the dependency of gold on the US dollar, though this may not hold true in the short run. In the longer run, gold may untangle from the US dollar.
According to the World Gold Council, in 2015, China’s gold demand hit 984.5 tons. The initiation of the yuan benchmark for gold is aimed at increasing the usage of the yuan as a global currency………………………………………..Full Article: Source

Silver price jumps to near one-year high

Posted on 28 April 2016 by VRS  |  Email |Print

On Wednesday, silver jumped to the highest since mid-May last year, as the metal continues to be rerated against the gold price and industrial metals demand gets a boost.
Silver futures in New York for delivery in May, the most active contract, added nearly 2% in early dealings to trade at $17.48 an ounce, before paring some of those gains by the close………………………………………..Full Article: Source

Silver bullion momentum building as supply trouble brewing

Posted on 28 April 2016 by VRS  |  Email |Print

Silver bullion prices are likely to rise further as there is “supply trouble brewing” as strong industrial and investment demand are confronted by declining supply.
“There are signs that this year could be a pivotal year for the silver market,” New York-based CPM Group said in its “Silver Yearbook 2016… Silver mine supply is forecast to decline for the first time in 2016, since 2011,” CPM said, noting scheduled closures and planned production cutbacks………………………………………..Full Article: Source

Gold price could hit $1,300/oz on weaker dollar, global risks – HSBC

Posted on 27 April 2016 by VRS  |  Email |Print

The gold price has the potential to hit $1,300 this year thanks to gold-bullish factors including a weaker dollar, global risks and a modest recovery in oil prices, HSBC said. A move above $1,300 would take the yellow metal to the strongest since January 2015. Spot gold was last at $1,233.30/1,233.60 per ounce, down $3.70 on Tuesday’s close.
“We find two reasons that reaffirm our broadly bullish view on gold. The potential for US dollar weakness ahead, particularly vs the euro, helped by a truce in the currency wars. Gold could also benefit from hedging ahead of the UK referendum on remaining in the EU,” the bank said in a note………………………………………..Full Article: Source

China’s Gold Imports Jump on Investment Demand as Price Falters

Posted on 27 April 2016 by VRS  |  Email |Print

China, the world’s biggest gold consumer, increased bullion imports from Hong Kong in March as a global price rally stalled and local investment demand showed signs of recovery. Net purchases climbed to 64.1 metric tons from 42.9 tons in February and 61.8 tons a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg.
The mainland bought nearly 76.3 tons compared with 55.1 tons a month earlier, while exports to Hong Kong were 12.1 tons from 12.2 tons. Mainland China doesn’t publish the data………………………………………..Full Article: Source

Gold Sees Modest Gains as Bulls Continue to Show Resilience

Posted on 27 April 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session firmer Tuesday. The key “outside markets” were in a bullish posture for the precious metals markets, as the U.S. dollar index was lower and crude oil prices were solidly higher. Gold prices continue to show resilience despite a lack of major, fresh bullish fundamental news in the marketplace.
June Comex gold was last up $3.30 at $1,243.50 an ounce. July Comex silver was last up $0.101 at $17.16 an ounce. Gold prices erased early-morning losses in the wake of a weaker-than-expected U.S. durable goods orders report issued at 8:30 a.m. eastern time. The downbeat data falls into the camp of the U.S. monetary policy doves, who do not want the Federal Reserve to raise interest rates any time soon………………………………………..Full Article: Source

These 5 Trends in China Will Change the Gold Market Forever

Posted on 27 April 2016 by VRS  |  Email |Print

Apple spent about five years developing the iPhone, which has changed the smartphone market forever. Until the release, however, nobody could imagine what impact the iPhone would have on the market. And most consumers didn’t know about it at all.
The same thing is happening with China and gold right now. The gold market will soon be very different than from what we see today—largely due to the current developments in China. China’s influence will impact not just gold investors but everyone who has a vested interest in the global economy, stock markets, and the US dollar. After all, China will be a dominant force in all, as most analysts project………………………………………..Full Article: Source

All that glitters isn’t gold. It’s silver

Posted on 27 April 2016 by VRS  |  Email |Print

Silver has given a 14.3% returns in April alone, over the first quarter of 2016, riding on Chinese demand which is likely to spark interest among investors who had missed the recent rally in the metal.
“The metal is on consolidation mode and the current upside is expected to continue, and investors are likely to participate in the metal in the coming weeks,” Himanshu Gupta, senior market strategist, Karvy Commodities Broking, said………………………………………..Full Article: Source

Silver Supply Trouble Shows Why Rally Momentum Is Building

Posted on 27 April 2016 by VRS  |  Email |Print

More good news for silver bulls: there’s supply trouble brewing. Output from mines will fall for the first time since 2011, while demand for the metal in uses including industrial products and jewelry is heading for a fourth straight gain, supporting prices, according to CPM Group.
The market is entering what is “likely to be a pivotal year,” the New York-based researcher said in its “Silver Yearbook 2016.” Production is declining just as signs of stabilization in China’s economy fuel optimism for stronger global demand, helping drive a 24 percent rally in silver this year through Monday that topped gold’s performance………………………………………..Full Article: Source

Hedge funds aren’t wavering on gold price rally

Posted on 26 April 2016 by VRS  |  Email |Print

Goldman Sachs not so much – sees $150 drop in near term. Gold has been drifting lower after hitting a 13-month high of $1,274 an ounce in March but remains up just under 17% in 2016. Large gold futures and options speculators or “managed money” investors such as hedge funds have also stayed bullish on the metal despite expectations of higher interest rates in the US later this year.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold Price Target is $3,000 and Silver is $75 per Ounce

Posted on 26 April 2016 by VRS  |  Email |Print

Precious metals have posted their best quarter in nearly 30 years and mining stocks are soaring from oversold multi-year lows. Those that were willing to buy when everyone else was selling have been handsomely rewarded in 2016. But we believe the gains are just getting started.
After such a huge move to start the year, many have been anticipating a sharp pullback for gold and silver on profit taking. This would make sense, especially considering the record short positions by commercial traders. Plus, nothing goes straight up, not even deeply oversold assets awakening from a 4-year correction. It is almost always a roller coaster ride………………………………………..Full Article: Source

Barclays: Gold Leads Investment In Commodities During First Quarter

Posted on 26 April 2016 by VRS  |  Email |Print

Investors appear to be focusing on individual commodities more-so than passively buying the entire sector, with gold a beneficiary, says Barclays. Commodities investment surged in the first quarter, with $24.2 billion of inflows and price appreciation bringing assets under management in commodities to $193 billion, the bank calculates.
“Gold has been the primary driver of investment flows so far in 2016, taking over from oil, which was the dominant driver in 2015,” Barclays says. Precious metals had the second-largest quarterly inflows on record at $15.7 billion, the bank says………………………………………..Full Article: Source

All you wanted to know about the Shanghai Gold Fix

Posted on 26 April 2016 by VRS  |  Email |Print

China’s displeasure over the dollar’s supremacy in global financial markets is no secret. The Chinese feel the yuan should rightfully be the preferred reserve currency of all nations. In yet another move to dethrone the dollar, China has now decided to get its own gold benchmark that will be denominated in yuan.
While the Shanghai Gold Fix may not immediately have an impact on international gold prices, it does help diminish the need for the dollar. Gold prices will now be fixed twice every day in China, based on the contracts traded on the Shanghai Gold Exchange. Shanghai gold fix will compete with the popular benchmark, the London Fix, which is set by the London Bullion Market Association………………………………………..Full Article: Source

Gold Extends Early Gains Amid Bullish ‘Outside Markets’

Posted on 26 April 2016 by VRS  |  Email |Print

Gold prices are higher and trading near the daily high in late-morning dealings Monday. A lower U.S. dollar index is a bullish outside market force working in favor of the precious metals markets. Also, crude oil prices have recovered early losses and are holding slight gains, which is also a positive for the metals markets.
Lower U.S. stock index prices are also adding a bit of safe-haven demand for the gold market as midday approaches. June gold was last up $12.00 an ounce at $1,242.00………………………………………..Full Article: Source

Silver Prices: Silver Bullion Could Soar 147% in 2016

Posted on 26 April 2016 by VRS  |  Email |Print

Silver may not be as scarce as gold but it has become much more attractive to investors. While silver prices recently soared to an 11-month high, silver continues to provide investors with more upside potential than gold.
After a record four consecutive years of declines, silver has been rewarding precious metal bulls in 2016. Silver prices have been on a tear in 2016, and recently hit an 11-month high. Currently exchanging hands at around $17.00 an ounce, silver prices are up 23% year-to-date………………………………………..Full Article: Source

Macro picture sees precious metal shine

Posted on 26 April 2016 by VRS  |  Email |Print

Gold generally finds favour among investors during periods of turbulence thanks to its reputation as a “safe haven” asset, so it is hardly surprising people are allocating to the metal once again this year.
Seven Investment Management’s multi-asset team has bought gold for the first time in three years, as reported by Investment Adviser earlier this month, showing fund managers are dipping their toes back into the asset class………………………………………..Full Article: Source

31 Gold ETFs Investors Should Size Up

Posted on 26 April 2016 by VRS  |  Email |Print

Gold exchange traded funds have been a bright spot in the markets this year as an extended low-rate environment, depreciating U.S. dollar and volatility pushed investors into the hard asset. At the start of the year, gold enjoyed safe-haven demand as the equities market plunged into a correction.
Gold maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes. Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated cheaper for foreign buyers and a better store of value for U.S. investors………………………………………..Full Article: Source

Bullion Cues: China gets its own gold benchmark

Posted on 25 April 2016 by VRS  |  Email |Print

The new gold contract, based on the domestic market demand and supply dynamics, will help in better price discovery. China has launched a yuan-denominated gold contract which will act as the benchmark price for gold in the country.
It was only in November that the renminbi was included in the IMF’s SDR basket and it received the reserve currency status (to take effect in October 2016). The new gold contract, launched last week, is expected to help in better price discovery in gold as it will be based on the domestic market demand and supply………………………………………..Full Article: Source

Gold Back in Fashion? Why Precious Metal Has Made an ‘Amazing Comeback’

Posted on 25 April 2016 by VRS  |  Email |Print

Gold is coming back into fashion: ‘left for dead’ for almost four years it’s up over 50 percent this year, Manhattan-based financial writer Michael Brush notes. Does it mean the precious metal is ‘back for good’?
Gold has always been regarded as a secure haven for wealth and has played an insurance role in portfolios. “Gold has always played an insurance role in portfolios — against global disaster, geopolitical meltdown or inflation,” Manhattan-based financial writer Michael Brush writes in his article for MarketWatch.com………………………………………..Full Article: Source

Gold, already on its way up, may head even higher

Posted on 25 April 2016 by VRS  |  Email |Print

Gold bugs may have a firmer grip on the market than you think. Consolidation in the precious metal has become the driving force for positive near-term momentum in the space, said Zev Spiro, CEO and chief market technician at Orips Research. It comes as both gold and silver trade around their highs for the year.
“As long as prices hold above support in the $1,190-$1,205 area, then the composure remains positive,” Spiro told CNBC’s “Futures Now” in a recent interview. “Upward momentum is expected with a breakout above the $1,275-$1,280 area. So, that’s where I expect the new wave of buying would come in and could carry prices higher.”……………………………………….Full Article: Source

China eyes more say in global gold pricing

Posted on 22 April 2016 by VRS  |  Email |Print

With the launch of its own gold price benchmark, China, the world’s biggest producer and consumer of gold, has more influence in the pricing of the precious metal. It will be some time, however, before “Shanghai Gold,” launched by the Shanghai Gold Exchange on Tuesday, can truly challenge the dominance of its international counterparts.
The fix, the Shanghai Gold Benchmark Price, was set at 260.39 yuan (US$40.20) per gram yesterday morning; by the afternoon the fix was 261.82 yuan. As the first gold price benchmark denominated in the Chinese currency, the fix is the quote for trading of 1 kilogram of 99.99 percent purity bullion, derived from multiple rounds of trading………………………………………..Full Article: Source

The Biggest Gold Buyer: India Is Back!

Posted on 22 April 2016 by VRS  |  Email |Print

Indian jewelers have called off their 43-day strike, which began as a reaction to a 1% excise duty on gold jewelry. For nearly six weeks, the global gold market was missing its largest buyer. Gold purchases across India were paralyzed by a strike from national jewelers’ associations.
The Indian physical markets stayed away from the dramatic rise in gold, which has gained 17% on a YTD (year-to-date) basis. The rise in gold is also reflected in mining-based funds. The Market Vectors Junior Gold Miners ETF (GDXJ) has risen 71% YTD. Mining returns are often more amplified than metal returns………………………………………..Full Article: Source

Does the Gold Price Have the Legs to Extend and Drag Silver Higher?

Posted on 22 April 2016 by VRS  |  Email |Print

Most analysts explain the recent surge in the price of silver as a reaction to an increase in the Gold to Silver ratio. This is essentially just a clever way of saying that silver had become extraordinarily cheap compared to its precious metal cousin gold, and as such was viewed as a bargain by investors, who flocked to buy it.
The Gold to Silver ratio is a calculation of the number of ounces of silver it takes at any given time to buy an ounce of gold. Historically it has averaged about 50 but recently in March 2016 it rose to a peak of 82, and that is when silver started to move higher, recovering the difference in value………………………………………..Full Article: Source

5 Tips on Buying Silver

Posted on 22 April 2016 by VRS  |  Email |Print

In today’s economic climate, investing in precious metals makes sense. More and more investors are looking at buying silver, and there are several ways to accomplish this. Investing in gold and silver is an ideal way to both diversify an investment portfolio and to hedge against adverse conditions in the market.
While the silver market isn’t nearly as large as the market for gold investing, it’s an affordable investment that provides many protections as well as healthy returns. In fact, silver has seen double-digit returns in the last seven out of ten years, and 2016 is expected show more promising numbers………………………………………..Full Article: Source

Why you need to ‘stay away’ from gold

Posted on 21 April 2016 by VRS  |  Email |Print

Investors and traders have gone for gold in the past few months, but some analysts warn that the metal could be set for a drop. “Gold is a notoriously difficult trade,” said Eddy Elfenbein, editor of the Crossing Wall Street blog. “It’s a highly speculative bet on the direction of short term interest rates, real rates, and I think with the Fed where they are right now and with the last inflation report, I don’t think real rates are going to go any lower for the rest of the year.”
Gold lost a third of its value between the start of 2013 and the end of 2015. But in 2016, the metal has become a highly sought after commodity, as the Federal Reserve has avoided tightening interest rates, and the dollar has turned a bit lower………………………………………..Full Article: Source

Why One Analyst Believes Gold Could Hit $3,000 Per Ounce

Posted on 21 April 2016 by VRS  |  Email |Print

After finishing its best quarter in 30 years, gold extended its gains, rising more than 17.2 percent year-to-date to become the best performing asset class among other commodities, U.S. Treasury bonds and major world currencies and equity indices.
If we are entering a new gold bull market, it would be the first time since the previous one concluded in September 2011, when the metal reached its all-time high of $1,900 per ounce. Since 1970, we’ve seen five gold bull markets, each one lasting an average 63 months and returning an average 385 percent, according to the World Gold Council………………………………………..Full Article: Source

3 things every gold investor must know today

Posted on 21 April 2016 by VRS  |  Email |Print

ASX-listed gold miners have been killing it in the first four months of 2016, a welcome change after a poor year in 2015. Shares in EVOLUTION FPO are up a massive 29% so far this year, while Northern Star Resources Ltd is up a massive 33%.
However before jumping into gold mining shares today, here are three things that you should be aware of: 1. Analysts reckon the gold price could keep climbing……………………………………….Full Article: Source

Silver surges to best performing commodity

Posted on 21 April 2016 by VRS  |  Email |Print

Grey metal outpaces gold this year and is also ahead of equities. An explosive two-week rally has made silver one of the best performing commodities this year, fuelled by a surge in interest from hedge funds and Chinese traders after it fell to an uncommonly large discount to gold.
Silver has now outpaced gold in terms of gains as the metal has rallied 14 per cent in 11 days to $17.05 a troy ounce. This year it is up 23 per cent, the best performer in the Bloomberg commodity index, trouncing the 2.3 per cent for the FTSE All-World index of global shares………………………………………..Full Article: Source

Is Silver’s 11-Month High Just The Start?

Posted on 21 April 2016 by VRS  |  Email |Print

The silver market has taken off in spite of gold’s struggle to make new gains, and, according to one international bank, silver’s 11-month high is just the beginning.
Wednesday, May Comex silver futures were up 1% on the day, last trading at $17.155 an ounce, its highest price since early June 2015. The grey metal has become the best performing precious metal and is currently up more than 23% since the start of the year. In a report published Wednesday, ABN AMRO said it is currently reviewing its silver forecasts for 2016, noting that its previous forecast is “too conservative.”……………………………………….Full Article: Source

China launches yuan gold fix to boost power in global bullion market

Posted on 20 April 2016 by VRS  |  Email |Print

Top gold consumer China launched a yuan-denominated gold benchmark on Tuesday, in an ambitious move to exert more control over pricing of the metal and influence in the global bullion market.
The benchmark is a culmination of efforts by China over the last few years to reform its domestic gold market, attempting to gain a bigger say in the bullion industry, long dominated by London where the global spot benchmark price is set. As the world’s top producer, importer and consumer of gold, China has baulked at depending on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold………………………………………..Full Article: Source

Shanghai gold fix aims China towards global pricing power

Posted on 20 April 2016 by VRS  |  Email |Print

Yuan-denominated benchmark for the metal is a sign of China’s growing clout in the world. The yuan-denominated gold benchmark debuted in Shanghai yesterday as China took a step forward in vying to be a global price-setter for the precious metal.
The gold fix is also the latest sign that Beijing will continue to expand the role of its currency to match the country’s increasing economic might. The gold benchmark launched by the Shanghai Stock Exchange is based on a 1 kilogram-contract and was set at 256.92 yuan yesterday morning………………………………………..Full Article: Source

Is Bitcoin Becoming More Stable Than Gold?

Posted on 20 April 2016 by VRS  |  Email |Print

The last 24 days mark the longest period in which bitcoin prices have been less volatile than gold prices. Digital gold is starting to look slightly more stable than its physical counterpart.
Since its inception several years ago, bitcoin has seen wild prices swings as advocates have tried to establish the nascent technology as a widely-used digital currency. But for the past three weeks, the price volatility of bitcoin has remained below or equal to that of safe-haven gold, according to data analysis from FactSet and CoinDesk………………………………………..Full Article: Source

Silver hits 11-month high. It’s up more than gold in 2016

Posted on 20 April 2016 by VRS  |  Email |Print

So much for the idea that silver is the “poor man’s gold.” Lately, silver has been on a hot streak — up 22% so far this year — making it one of the best investments of 2016. The rally has outshone gold’s 18% gain so far this year.
On Tuesday, silver shot up 4.5% to its highest level in 11 months. The price of silver has always been just a fraction of gold’s, but precious metal experts have pointed out for weeks — if not months — that silver has been trading a real bargain………………………………………..Full Article: Source

Silver’s Surge Means It’s Closing the Gap on Gold

Posted on 20 April 2016 by VRS  |  Email |Print

As gold prices have surged this year, silver has lagged far behind. Now, the metal known as “poor man’s gold” is starting to play catch up. On Tuesday, silver hit its highest level in more than 10 months, and its more than 4% gain helped silver narrow its price gap with gold.
The gold-to-silver ratio fell to its lowest level in four months on Tuesday at 74. In March, the ratio hit its highest level since 2008 at 83, according to FactSet data. That recent divergence in price has sparked some buying in silver, as traders bet that the ratio between gold and silver will revert back to its average level………………………………………..Full Article: Source

Gold’s best forecasters see rally resuming as confidence returns

Posted on 20 April 2016 by VRS  |  Email |Print

Gold, one of this year’s best performing assets, has room to extend its advance, according to top-ranked forecasters, even as the rebound shows signs of losing steam. Capital Economics Ltd. and Cantor Fitzgerald LP are bullish as real interest rates will probably stay low even if the Federal Reserve raises borrowing costs in response to higher inflation.
Bullion may surge to $1,350 an ounce by the year-end, says Simona Gambarini, an economist at Capital Economics in London. The metal will continue to climb, though at a slower pace, says Rob Chang at Cantor Fitzgerald in Toronto. Gold traded at $1,235 on Monday………………………………………..Full Article: Source

RBC: Gold Price Set To Push Higher As Inflation Picks Up

Posted on 19 April 2016 by VRS  |  Email |Print

“Analysis suggests a -0.5% real rate would imply a $1,380/oz gold price and a -1.0% real rate $1,546/oz” — that’s according to RBC’s April 10 Global Gold Outlook note, which takes a look at how lower real interest rates, coupled with a dovish Fed will impact the gold price.
Consumer prices in the United States rose 0.9% year-on-year in March of 2016, indicating that inflation is reemerging after a long period of dormancy. This should have sparked a more hawkish tone from Federal Reserve policymakers. However, the recent significant global volatility in January and February has left the path for rate hikes in 2016 much more uncertain and led to a sudden dovish turn by the FOMC……………………………………….Full Article: Source

China to launch gold benchmark

Posted on 19 April 2016 by VRS  |  Email |Print

China will launch a new contract today to set a “benchmark” price for gold bullion in the world’s biggest producer and consumer of gold, as part of efforts to increase its influence in pricing of the precious metal.
The yuan-denominated gold fix will be launched on the Shanghai Gold Exchange this morning, with the benchmark price at 257.97 yuan (US$39.83) per gram, said a statement released by the exchange yesterday. Eighteen banks and bullion traders have been chosen as initial market makers for the fix, including 10 Chinese lenders, Standard Chartered Bank, Australia and New Zealand Banking Group and six domestic and international bullion traders including Switzerland-based MKS Gold Ltd, the exchange said………………………………………..Full Article: Source

The Gold Bear Market Is Over; Prices to Hit $1,350 in Q4

Posted on 19 April 2016 by VRS  |  Email |Print

The gold bear market is all over, this according to one well-known metals research firm. Speaking with Kitco News on Monday, Phil Newman, co-founder of the London-based firm Metals Focus also added that he sees improving prices throughout the year.
‘[L]ike many other people we see the bear market as over. Prices will continue to improve over 2016 and beyond this year,’ he said. Newman, a longtime gold forecaster, added that short-term, gold could weaken due to the uncertainty surrounding the rate hikes of the Federal Reserve………………………………………..Full Article: Source

Q2 Could Help Gold; But Metal Still Ending Year at $1,100/oz - Forecaster

Posted on 19 April 2016 by VRS  |  Email |Print

One known forecaster remains bearish on gold, even if he expects this quarter to be a little more exciting for the metal. Barnabas Gan, commodity economist for Oversea-Chinese Banking Corp. (OCBC), said he is sticking to his bearish calls for gold, looking for the metal to end the year at least $100 lower from current prices.
“We remain firm on our call for the FOMC to inject two more rate hikes this year, with the first one to come likely as early as June 2016,” he said in the OCBC’s latest commodities report released Friday………………………………………..Full Article: Source

Citi: Risk Aversion To Support Gold Prices In 2Q Before Tapering In 2H

Posted on 19 April 2016 by VRS  |  Email |Print

Citi Research looks for gold to remain underpinned in the current quarter but cautions that strength could abate later in the year. “We believe current price momentum may begin to ease after this quarter, averaging $1,200/oz for the year as a whole,” the bank says.
Citi lists a 60% probability of its base-case scenario, which would be gold holding current levels and maintaining a bid “as lingering risk aversion supports ongoing gold inflows in the second quarter, perhaps countered by better risk appetite in other asset classes, particularly oil and equities in 2H16.”……………………………………….Full Article: Source

Gold Could Be Heading Beyond $1,400

Posted on 18 April 2016 by VRS  |  Email |Print

Gold appears to have consolidated its position above $1,200. We believe there are several catalysts that could send the gold price higher. The Brexit vote is around two months away and could cause market turmoil. During the Grexit vote some believed gold would rise to $2,000 if they left.
We expect one rate hike from the Fed this year which should rule out any depreciation of gold from a strong USD. Gold producers or the ETF that tracks them could also be a good investment today………………………………………..Full Article: Source

Funds Are Betting the Gravity-Defying Gold Rally Isn’t Over Yet

Posted on 18 April 2016 by VRS  |  Email |Print

When it comes to gold, hedge funds are betting that what goes up will continue to go up. Even after bullion’s best start to a year since at least 1975, investors are positioning themselves for more gains.
Money managers increased their wagers on a price rally to the highest since 2012, taking their optimism to a level last seen before a three-year bear market started. The metal has jumped 16 percent this year. Federal Reserve officials are cautious about raising U.S. interest rates amid persistent risks facing the global outlook………………………………………..Full Article: Source

Gold is the spectre haunting our monetary system

Posted on 18 April 2016 by VRS  |  Email |Print

For a century, elites have worked to eliminate monetary gold, both physically and ideologically. This began in 1914, with the UK’s entry into the First World War. The Bank of England wanted to suspend convertibility of bank notes into gold. Keynes counselled wisely that the bank should not do so. Gold was finite, but credit elastic.
By staying on gold, the UK could maintain its credit, and finance the war effort. This transpired. The House of Morgan organised massive credits for the UK, and none for Germany. This finance was crucial, and sustained the UK until the US abandoned neutrality and tipped the military balance against Germany………………………………………..Full Article: Source

Peter Schiff to Goldman—you’re wrong on gold!

Posted on 18 April 2016 by VRS  |  Email |Print

Gold bug and perma-bear Peter Schiff has a message for all the bears out there: You are wrong! On CNBC’s ” Futures Now ” recently, Schiff said that Wall Street firms, and Goldman Sachs in particular, which have issued bearish calls on the commodity for some time, are too pessimistic on gold’s upside.
The investor insisted those firms are missing the big picture when it comes to bullion, due largely to anticipated action from the Federal Reserve that Schiff believes is unlikely to materialize. “They are still wedded to the old narrative. They still expect the Fed to raise rates three times this year. They will believe in this phony recovery………………………………………..Full Article: Source

Gold Aiming For $1,350 By Year-End Says Famed Gold Expert

Posted on 15 April 2016 by VRS  |  Email |Print

It is amazing how quickly markets can change. Just look at the gold. In three months, the yellow metal has managed to shake off its bear market and is now in at the start of a new bull trend, this according to one known gold expert.
Although gold prices have seen a pullback in the last two sessions — with June Comex gold futures settling Thursday $21.8 lower at 1,226.5 an ounce — the market is still holding on almost 16% gains since the start of the year………………………………………..Full Article: Source

Gold/Silver ratio to continue narrowing: HSBC

Posted on 15 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. “Some near-term players are focusing on the gold-silver ratio, which is back below 1:78. We think the ratio will narrow further as price sensitive buyers, who want to participate in precious metals , turn more to silver.” ……………………………………….Full Article: Source

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

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