Sun, Aug 31, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Bullion/Gold more

Gold price holds above $1,300, focus on Fed policy meeting

Posted on 30 July 2014 by VRS  |  Email |Print

Gold was little changed just above USD 1,300 an ounce on Tuesday, supported by geopolitical tensions in the Middle East and Ukraine, with investors also focusing on U.S. jobs data and a Federal Reserve policy meeting this week.
The Fed kicks off its two-day meeting later on Tuesday, with markets watching for clues as to when the U.S. central bank will begin increasing interest rates. The Fed will make a statement on Wednesday at the end of the meeting. “Gold is going to be range-bound until the Fed meeting and economic data later this week,” said Mark To, head of research at Hong Kong`s Wing Fung Financial Group………………………………………..Full Article: Source

We’re Ready to Profit in the Coming Gold Price Correction—Are You?

Posted on 30 July 2014 by VRS  |  Email |Print

Sometimes I see an important economic or geopolitical event in screaming headlines and think: “That’s bullish for gold.” Or: “That’s bad news for copper.” But then metals prices move in the opposite direction from the one I was expecting. Doug Casey always tells us not to worry about the short-term fluctuations, but it’s still frustrating, and I find myself wondering why the price moved the way it did.
As investors we’re all affected by surges and sell-offs in the investments that we own, so I want to understand. Take gold, for example. Oftentimes we find that it seems to tease us with a nice run-up, only to give a big chunk of the gains back the next week. And so it goes, up and down………………………………………….Full Article: Source

Who will run the gold fix next?

Posted on 30 July 2014 by VRS  |  Email |Print

The banks that conduct the century- old gold fixing and the London Bullion Market Association will seek proposals next month for a new administrator to run a revamped process for the benchmark by year-end.
The London Gold Market Fixing Ltd., which manages the procedure, and the LBMA will open a market consultation in late August and plan to announce a third-party administrator by the end of September, the association said in a statement today. The process will be open and not restricted to firms who pitched to run a mechanism that will replace the silver fixing on Aug. 15………………………………………..Full Article: Source

Can We Trust Silver’s Leadership Over Gold?

Posted on 30 July 2014 by VRS  |  Email |Print

While gold has been nabbing the bulk of the recent commodity headlines, investors have missed what has been — and will likely continue to be — the better long-term, safe-haven holding. Surprise! Silver has actually outpaced gold since both hit a short-term bottom on June 2. Specifically, even with last week’s tumble, the iShares Silver Trust (SLV) is still up 10% since that point, while the SPDR Gold Trust (GLD) is only up 4.9% for the nearly-two-month timeframe.
In fact, SLV has outpaced the SPDR S&P 500 ETF Trust (SPY), the iShares Barclays 20-Year Treasury Bond ETF (TLT), and a whole slew of other asset classes over the past couple of months………………………………………..Full Article: Source

Gold Price In 2014 Consolidating Above Major Support Area

Posted on 29 July 2014 by VRS  |  Email |Print

So far, the gold price in 2014 in the first six months has been trading in a tight range between $1190 and $1390. The yellow metal had one significant rally in February / March and one moderate rally starting in June.
The spikes in the gold price in 2014 have been driven partly by fear and partly by inflation expectations. The first rally coincided with the outbreak of tensions in Ukraine. The second (modest) rally was driven by the US Fed statement mid June that inflation expectations are soaring………………………………………..Full Article: Source

Must-know facts about the silver rally

Posted on 29 July 2014 by VRS  |  Email |Print

First, it’s worth putting silver’s recent rise in context. Here are three important facts about the recent rally. 1. While the metal has had a respectable run over the past month, silver is still playing catch-up after losses earlier this year. Between late February and early June, silver prices fell roughly 15%.
In addition, even with the recent rally, for the first half of the year silver has trailed gold, which has gained nearly 10% versus roughly 7.5% for silver. Prices are based on spot prices for both gold and silver from Bloomberg. 2. The recent jump in silver prices is partly a function of the metal’s volatility. Silver tends to be a relatively thinly traded market………………………………………..Full Article: Source

Should you jump on the silver bandwagon?

Posted on 29 July 2014 by VRS  |  Email |Print

After rising nearly 12% from its June lows, silver has been garnering some attention lately, leaving many investors wondering whether they should raise their allocations to the precious metal. Russ explains why now probably isn’t the best time to allocate more to either silver or gold.
After rising nearly 12% from its June lows, silver (SLV) has been garnering some attention in recent weeks, as investors and market watchers look for something to get excited about amid the broader market’s low volatility and slow grind higher. It’s no wonder, then, that many are asking whether it’s time to jump on the silver bandwagon………………………………………..Full Article: Source

Is gold approaching a tipping point?

Posted on 28 July 2014 by VRS  |  Email |Print

It is a property of physics that action is met by reaction, as a matter of real science. In the world of financial markets, however, that principle may only doubtfully apply, just as in economics cause and effect are very often difficult to disentangle.
That said, there is a fairly clear counterpart to the supposed likelihood of the US dollar rising with the expected onset of rising interest rates, as related last week. That is the impact on gold, responding both to the same underlying force and to the currency’s behaviour itself………………………………………..Full Article: Source

Goldman Does It Again: Upgrades Gold Price Target To $1,200

Posted on 28 July 2014 by VRS  |  Email |Print

Goldman equity analysts Andrew Quail and Jitendra Pandey have increased their long term inflation adjusted gold price forecast to $1,200/ounce from $1,066/ounce. They recognize that gold is trading at about a 9% premium to their estimate and foresee the precious metal reverting back to a cost sustaining level.
Such level, which Quail and Pandey estimate to be $1,200/ounce, comprises costs incurred to obtain gold that include extracting, storing, exploring and building infrastructure………………………………………..Full Article: Source

Gold Bulls Boost Bet on Rally as Prices Extend Drop

Posted on 28 July 2014 by VRS  |  Email |Print

Hedge funds increased their bets on a gold rally, just before prices fell for a second week as an accelerating U.S. economy outweighed concern that violence between Russia and Ukraine will escalate.
Money managers increased their net-long position by 3.1 percent in the week through July 22, U.S. government data show. Two days later, prices dropped to a five-week low amid declining demand. Purchases by China, the world’s biggest user, fell 19 percent in the first six months of the year………………………………………..Full Article: Source

Banks accused of manipulating price of silver

Posted on 28 July 2014 by VRS  |  Email |Print

HSBC, Deutsche Bank and the Bank of Nova Scotia have been accused of rigging the price of silver. According to J Scott Nicholson, an investor who filed a lawsuit against them in the US, the banks abused their position of controlling the daily silver benchmark by unlawfully manipulating it to reap illegitimate rewards from trading.
This would have been detrimental to other investors in the $5-trillion silver market, who base billions of dollars worth of transactions on the benchmark………………………………………..Full Article: Source

China gold demand falls by a fifth, but output rises

Posted on 25 July 2014 by VRS  |  Email |Print

China’s gold demand fell by nearly a fifth in the first half of 2014 from a year ago as consumer interest in bullion bars and coins waned.
Soaring purchases by retail customers in 2013 helped China overtake India as the world largest gold consumer for the first time. That buying “frenzy”, as the metals consultancy Thomson Reuters GFMS described it, was largely driven by the 28 per cent fall in the gold price last year………………………………………..Full Article: Source

Why Gold Attracts Conspiracy Theorists

Posted on 25 July 2014 by VRS  |  Email |Print

Few things attract as many conspiracy theories and theorists as gold does. The most enduring conspiracy theory seems to be that central banks around the world are colluding to keep a lid on gold prices. The logic here presumably is that a spike in gold prices could be construed by market participants as a harbinger of inflation, and if it occurred, would force central banks to raise interest rates from their artificially low levels (2009 – circa 2014).
Another sub-plot is that the biggest gold exchange-traded funds (ETFs) have a huge shortfall in the amount of gold they hold. Here are three reasons why the noble metal is a favorite subject for conspiracy theorists everywhere……………………………………….Full Article: Source

Goldman on Gold: Target $1,050 an Ounce, But $1,200 is the Real ‘Floor’

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs’ commodity strategists write this week that they remain doubters of gold’s 2014 rally, sticking to their prediction that the metal will reach $1,050 in price by the end of the year. To come true, it would mean a slump in gold’s price of 19% or greater from current levels. That’s pretty bearish.
But the GS’ strategists’ bearishness has a limit. In a note to clients this week, the strategists write that they expect the $1,200 level, or roughly 7% beneath Thursday’s prices, to function as “a good estimate of the floor price for gold.”……………………………………….Full Article: Source

Gold and Investments That Don’t Glitter

Posted on 25 July 2014 by VRS  |  Email |Print

Gold has had a rough week, no doubt pressured by a rising dollar, weaker demand from Chinese importers, and as one RBC Capital analyst diplomatically put it, “a lack of new geopolitical developments.”
Nor did it help matters that Goldman Sachs has issued a report this week stating that it remains skeptical of the 2014 rally in gold. The influential investment bank, as reported by Barrons.com, is sticking to a prediction that the precious metal will fall to $1,050 an ounce by the end of the year, a slump in gold’s price of 19% or greater from current levels………………………………………..Full Article: Source

Is Silver Really Worth $50 an Ounce?

Posted on 25 July 2014 by VRS  |  Email |Print

With Wall Street and institutional investors continuing to place some big bets on precious metals, there are growing calls from some analysts that silver is significantly undervalued and is worth $50 an ounce. This may sound ludicrous to some investors — the metal is now trading at U.S. $21 an ounce — but there is a rationale behind the argument.
There is a strong correlation between gold and silver prices and while gold has rallied strongly this year after seeing its price collapse after the Fed started unwinding quantitative easing at the end of 2012, the price of silver hasn’t kept up. The key driver of this emerging view among analysts is the gold-to-silver ratio, which measures how many ounces of silver are required to purchase an ounce of gold………………………………………..Full Article: Source

Analysts eye gold price rise as geopolitics outweighs policy tightening

Posted on 24 July 2014 by VRS  |  Email |Print

The price of gold is expected to rise over the coming months even if US Federal Reserve progresses with plans to tightening its monetary policy, according to analysts. Fed chair Janet Yellen recently suggested that the central bank could move to raise interest rates sooner than the market expects, assuming US economic indicators continue to show sustained improvement.
Capital Economics points out that any tightening of US monetary policy would act as a negative for the gold price “at face value”. Rising interest rates would be expected to hurt the price of gold and other non-yielding assets………………………………………..Full Article: Source

Safe-haven bids keep gold price above $1,300

Posted on 24 July 2014 by VRS  |  Email |Print

Gold price held steady on Wednesday in Asia after dipping overnight, and looked likely to hold above $1,300 an ounce in the near term as geopolitical tensions from crises in Ukraine and the Gaza strip brought safe-haven bids.
But sluggish physical demand in Asia in the seasonally quiet summer period could weaken support for any price rally and even fail to provide a floor if prices were to decline. Spot gold was little changed at $1,306.61 an ounce by 0627 GMT, after losing 0.4 percent in the previous session, pressured by firmer equities. U.S. gold edged up slightly to $1,308.40………………………………………..Full Article: Source

Will Gold Prices Fall Even Further?

Posted on 24 July 2014 by VRS  |  Email |Print

Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg on July 21 that investors should be buying gold and gold miners to take advantage of the rally he expects in the price of the precious metal.
Faber recommends that investors protect the value of their assets by taking positions in gold and gold stocks to hedge against the negative impacts of worsening geopolitical situations and unrestricted money printing. The idea is that global investors will soon flock to gold again to protect against currency devaluation, inflation, and the unknown fallout of major global conflicts………………………………………..Full Article: Source

Gold: If The Worst Is Over, What’s Next?

Posted on 24 July 2014 by VRS  |  Email |Print

1. A number of top bank economists have turned bullish on gold in the past few months. That’s helping to boost confidence amongst thousands of Western gold community investors.
2. Scotiabank and HSBC have lead the way on that front, and now top metals strategist Mike Widmer at Merrill Lynch has thrown his weight behind the bulls as well………………………………………..Full Article: Source

Could Silver Reach $100 By 2017?

Posted on 24 July 2014 by VRS  |  Email |Print

An upward trend is afoot in the silver space, says Sean Rakhimov, editor of SilversStrategies.com. Rakhimov believes that at $26/ounce the reversal of the downward trend in silver will be confirmed and silver investors should set their sights on the next resistance level—$32/ounce. And if that threshold is breached, silver will test $50/ounce and more.
My outlook for silver for the next two or three years is somewhere between $50 and $100/oz. It could be shorter; it could be longer, but that’s not critical. I’m going to stay with it for the cycle; it could be another 10 years to the end of the cycle. I do not expect this next leg to be final but I expect it to be a substantial run comparable to 2010–2011 when silver went from roughly $10 to $49.50/oz. The next move could go from about $20 to roughly $100/oz, but that will take time………………………………………..Full Article: Source

Where is gold headed?

Posted on 23 July 2014 by VRS  |  Email |Print

Half way through 2014, markets remain confused where gold prices are headed. Investors are still in dilemma and are now looking at fresh set of factors that will drive the price trajectory for rest of the year. While there was no real sign of sustained economic strength in 2013 for the world economy, just the idea of Federal Reserve in the US may start tapering at some point was enough to send gold bullion prices lower and the “bull run” in gold ended losing around 30 per cent of its value last year.
Investors lean toward gold and other precious metals as a hedge against both a weak dollar and inflation. A tapering of the Federal Reserve’s monetary policy suggests that the US economy is getting stronger………………………………………..Full Article: Source

Gold price to roll back H1 gains, average below $1,300/oz in 2014

Posted on 23 July 2014 by VRS  |  Email |Print

Gold will drift lower in the second half of 2014, leading to a second yearly drop in the average price after a dizzying decade-long rally, as U.S. monetary policy returns to normal and Asian demand is weak, analysts forecast in a Reuters poll.
The survey of 31 analysts and traders this month returned an average forecast for the third quarter at $1,270 an ounce, down from the average first-half price of $1,290 an ounce. In the last three months of the year, it is seen averaging $1,255………………………………………..Full Article: Source

Gold price gains on geopolitical uncertainty

Posted on 23 July 2014 by VRS  |  Email |Print

Weakness on equity markets helped gold prices rise slightly on Monday as heightened geopolitical tensions in Ukraine and Gaza boosted the demand for safe-haven assets. Gold for August delivery was 0.3% higher at $1,313.90 per troy ounce on the Comex division of the New York Mercantile Exchange.
The metal declined by 2% last week as comments from Federal Reserve Chair Janet Yellen about a possible sooner-than-expected rise in interest rates sent the dollar to a four-week high against 10 major currencies………………………………………..Full Article: Source

Respite for gold investors as metal enjoys strong 2014

Posted on 23 July 2014 by VRS  |  Email |Print

Gold investors are enjoying some respite in 2014 after a long period of falling prices, with the precious metal emerging as one of the year’s best plays to date.
Since the start of the year to 11 July, the price of bullion has firmed by 11% to nearly $1,339 per ounce. Silver, which typically mirrors the fortunes of gold, has also enjoyed strong gains, moving 10% higher to $20.75 per ounce. In contrast, global equities, as measured by the MSCI AC World index, have risen 6%………………………………………..Full Article: Source

Middle East grabs gold

Posted on 23 July 2014 by VRS  |  Email |Print

The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion.
MKS (Switzerland) SA, a Geneva-based bullion trader and refiner, expanded into Dubai three years ago and employs 25 people there, with the gold trade an “important market,” said Frederic Panizzutti, chief executive officer of MKS Precious Metals DMCC in the emirate. A spot gold contract due to start on the Dubai Gold & Commodities Exchange this year will draw business from London, said Gerhard Schubert, head of gold and commodities at Arab Banking Corp., a Bahrain-based bank………………………………………..Full Article: Source

Gold gains set to reverse as hedge funds cut bets on rally

Posted on 22 July 2014 by VRS  |  Email |Print

Money managers trim net-long positions as gold price rally snaps, but investors are still adding to holdings through ETPs backed by metal. Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011.
Money managers trimmed their net-long position by 8.5 per cent in the week to July 15, US government data showed. Prices dropped 2 per cent last week, the first loss since May and helping to erase US$1.38 billion from the value of exchange-traded products (ETPs) backed by the metal………………………………………..Full Article: Source

Gold over $1,300; conflicts spur safe-haven bids

Posted on 22 July 2014 by VRS  |  Email |Print

Gold stabilized near $1,310 an ounce on Tuesday as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal’s safe-haven appeal. Spot gold was little changed at $1,311.16 an ounce by 0009 GMT, after ending flat in the previous session.
The United States, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500………………………………………..Full Article: Source

Geopolitics Keeps Safe-Haven Bid in Gold Market

Posted on 22 July 2014 by VRS  |  Email |Print

Gold prices are moderately higher in early U.S. trading Monday as heightened geopolitical tensions keep a safe-haven bid in the market. August Comex gold was last up $8.70 at $1,318.00 an ounce. Spot gold was last quoted up $5.60 at $1,317.00. December Comex silver last traded up $0.261 at $21.205 an ounce.
Geopolitics remains on the front burner of the market place early this week. Last week’s downing of a Malaysian airliner on the Russia-Ukraine border and Israel’s ground offensive against Hamas on the Gaza strip are the dominant fundamentals in the markets Monday morning………………………………………..Full Article: Source

3 More Reasons to Invest in Gold Right Now

Posted on 22 July 2014 by VRS  |  Email |Print

Gold is typically perceived to be a hedge against inflation, and with better than expected U.S. economic growth along with the European Union and China implementing economic stimulus packages, inflation is expected to grow. Furthermore, ongoing instability in the Middle East is driving crude prices higher, making economic growth more expensive, which will translate into higher global inflation.
Growing inflationary pressures coupled with increasing economic volatility, as witnessed with the emerging markets sell-off earlier this year, and mounting geopolitical uncertainty will drive demand for gold higher………………………………………..Full Article: Source

Will Gold price crash below $1,200?

Posted on 22 July 2014 by VRS  |  Email |Print

Over the past few weeks we have seen mining stocks make a transition out of a stage one base and into a new bull market. This transition is likely to be complete this week.
Since May they have been going higher. Two weeks ago they had a nice surge up to their March highs and the 250 level on the HUI. Last week though they dipped for a few days below that level………………………………………..Full Article: Source

Precious metals dealers search for better benchmarks

Posted on 22 July 2014 by VRS  |  Email |Print

Amid pressure from regulators, a new system for determining benchmark silver prices will be put in place from mid-August, while reforms are also under discussion in the gold market. Industry observers say increasing participation will be crucial to restoring confidence in the benchmarks.
The daily silver and gold fixings represent two of the oldest commodity benchmarks in the world, dating back to 1897 and 1919, respectively. But now, their long lives appear to be coming to an end. The silver fix is to be held for the last time in mid-August, while industry discussions were underway aimed at ‘modernising’ the gold fix as Energy Risk went to press. In both cases, the developments will bring significant changes to the way benchmark prices are set for precious metals………………………………………..Full Article: Source

Top 3 Silver Miners For $30 Silver

Posted on 22 July 2014 by VRS  |  Email |Print

Silver mining companies offer big leverage to a rising price of silver and should be considered by silver bulls. Investors should look for low-cost producers in politically stable mining jurisdictions.
Great Panther Silver, Endeavor Silver and Coeur Mines are three of my favorite silver miners to play a rally………………………………………..Full Article: Source

Silver ETFs Are Having a Good Summer

Posted on 22 July 2014 by VRS  |  Email |Print

Gold gets all the glory, but silver’s no slouch. The price of silver has risen 10 percent since the end of May, more than double the gains in gold, bonds and stocks. This comes after a three-year slump when silver was down 50 percent, trailing gold by 30 percent and the S&P 500 Index by 100 percent. Until recently, it had a dubious distinction as one of the few things left in the investment universe that hadn’t rallied in recent years.
Silver suffered a 2.2 percent price drop on July 14 — gold fell as well — on fears that the Fed may raise interest rates sooner than expected. Both metals have since rebounded. And the fundamentals look solid: Silver is benefiting from a drop in total supply, a pickup in manufacturing and increased demand from China………………………………………..Full Article: Source

Hedge Funds Cut Bullish Gold Wagers as Rally Snaps: Commodities

Posted on 21 July 2014 by VRS  |  Email |Print

Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011. Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.
Gold climbed 9 percent this year, outpacing gains for commodities, equities and Treasuries, partly as tensions between Ukraine and Russia increased demand for a haven. The gains are set to reverse as the economy improves and the Federal Reserve “eventually” increases U.S. interest rates, the World Bank said in a report July 17………………………………………..Full Article: Source

Gold to head north on geo-political tensions

Posted on 21 July 2014 by VRS  |  Email |Print

In the international market, spot gold prices dropped two per cent to $1310.8 per troy ounce. The metal touched a high of $1324.7 on Friday but came off the peaks soon on profit booking. News of the shooting down of a Malaysian Airlines plane in Ukraine increased geopolitical tensions and helped gold — a classic haven — to edge up.
However, the sharper drop in price in the initial part of the week on fears of an early increase in interest rates in the US made gold close in the negative zone for the week………………………………………..Full Article: Source

Gold spikes on Malaysia Airlines crash

Posted on 18 July 2014 by VRS  |  Email |Print

The price of the safe haven metal surged amid market nervousness over the crash in Ukraine. Safe-haven gold spiked and stocks fell as investors took fright at the loss of a passenger jet in Ukraine near the border with Russia.
Gold, a shelter for investors in times of uncertainty, surged as much as 1.9pc on reports the Malaysia Airlines aircraft, which was carrying 295 people, had been shot down………………………………………..Full Article: Source

Gold edges above $1,300/oz as Russia sanctions hit equities

Posted on 18 July 2014 by VRS  |  Email |Print

Gold rose on Thursday, extending the previous day’s recovery from four-week lows as investors took advantage of lower prices to buy and as a fresh round of U.S. sanctions on Russia weighed on stock markets. The sanctions, the toughest yet imposed by the United States, also helped send palladium to 13-1/2-year highs. The metal is chiefly sourced from Russia.
Spot gold was up 0.4 percent at $1,303.60 an ounce at 1340 GMT, while U.S. gold futures for August delivery were up $4.90 an ounce at $1,304.70. Spot prices fell more than 3 percent over the first two days of this week to their lowest since mid-June, at $1,291.70………………………………………..Full Article: Source

The Return of Gold Hedging

Posted on 18 July 2014 by VRS  |  Email |Print

It’s baaack… That’s right, I’m talking about gold hedging, the gold stock investor’s bane. You see, gold miners “hedge” by agreeing to sell a portion of their future gold production at a fixed price. That way, if prices fall, they’re guaranteed a better profit.
Hedging was all the rage during the late 1990s and early 2000s, a period in which gold lost more than half its value. At the time, even mining company executives didn’t think gold prices would move up. But with most of their production hedged at relatively low prices, many miners missed out on the gold price boom of the last decade………………………………………..Full Article: Source

Metals exchanges eye gold price fix mandate

Posted on 18 July 2014 by VRS  |  Email |Print

Gold tender process follows silver fix mandate won by CME and Reuters.The world’s top commodities exchanges are already circling in the hope of securing a potentially lucrative new mandate to run the gold price fixing process.
The London Gold Market Fixing (LGMF) said on Wednesday it wanted to appoint a third party administrator to assume responsibility for the administration of the gold price discovery process. ……………………………………….Full Article: Source

Sticking around for $50-$100/oz silver - Rakhimov

Posted on 18 July 2014 by VRS  |  Email |Print

Precious metals characteristically start going up after a prolonged decline, yet early in the reversal they rarely inspire any confidence because the last dozen or so similar moves fizzled after a 10–20% move. This could be one of those. Silver is at $21 per ounce ($21/oz) now, maybe next week it will test $18/oz again. It’s anybody’s guess but I believe that toward the end of the year we’ll probably see higher numbers—maybe substantially higher.
This new replacement for the silver fix would, at least for the next year or two, have less tinkering with it than had historically been going on with the fix. On that basis, the price should become more volatile. On balance it’s probably going to be positive for the silver price………………………………………..Full Article: Source

A Look At Gold Prices And Quantitative Easing

Posted on 17 July 2014 by VRS  |  Email |Print

Gold has been a bit reactionary over the past days bouncing around on geopolitical stress and words from the US Federal Reserve Chief. Mario Draghi just a month ago sent the metals market on a whirlwind when the central bank moved to help the eurozone recovery moving to negative interest rates. Lately global stress shifted from Iran to Ukraine and then to Iraq.
With tensions between Palestine and Israel reaching war, Iraq has been pushed off the front pages of the papers. Gold peaked just a week ago close to 1350 and tumbled yesterday to below 1295 and stands flat this morning at 1297.10 after Fed Chair Janet Yellen’s testimony before the US Senate. Yellen said U.S. labor markets are far from healthy and signaled the central bank would not be in a hurry to hike interest rates………………………………………..Full Article: Source

Gold is still looking good – but watch this price level closely

Posted on 17 July 2014 by VRS  |  Email |Print

Just before New York’s opening bell on Monday somebody dumped 14,000 gold contracts onto the market. That’s 1.4 million ounces (a contract is 100 ounces), or $1.8bn worth – around a 65th of annual global production.
And it followed a 6,000-contract dump earlier in the day as markets opened in Europe. Is somebody trying to get the price down? Gold ended last week at $1,340 an ounce. Then, on Monday afternoon, it touched $1,302. That near-$40, 2.5% drop was its biggest daily plunge since December 2013 – the nadir (so far at least) of gold’s bear market………………………………………..Full Article: Source

Gold demand to rise?

Posted on 17 July 2014 by VRS  |  Email |Print

Gold held above a one-month low on speculation the biggest decline this year may spur demand as holdings in the largest exchange-traded product backed by the metal expanded to the highest level since April.
Holdings in the SPDR Gold Trust climbed this year, rebounding from a 41 percent contraction in 2013, even as the Federal Reserve pressed on with cuts to stimulus. The assets rose 8.68 metric tons to 808.73 tons yesterday, the biggest tonnage gain since October 2012, data from the company’s website showed. Fed Chair Janet Yellen testifies to lawmakers today and may offer clues on the timing of rate increases………………………………………..Full Article: Source

New silver price is ‘improvement’ on fix

Posted on 17 July 2014 by VRS  |  Email |Print

The unfortunate name will disappear. So too will the private teleconference, as well as the ownership by a handful of banks that have run the London Silver Fix – the global benchmark price – since 1897. And the cloak of secrecy over the trading volumes will be lifted.
But anyone thinking there has been a complete change in the way the daily snapshot of the silver market is conducted would be mistaken. The new benchmark, to be administered jointly by Thomson Reuters and the CME Group from August 15, keeps some of the main features of the silver fixing, in particular the auction-style process used to calculate the reference price………………………………………..Full Article: Source

World’s Largest Silver Producing Countries: Peru

Posted on 17 July 2014 by VRS  |  Email |Print

Peru was once a world leader of silver mine supply but has now fallen to third globally. While the country does boast some large primary silver producing mines, Antamina, the country’s largest silver producing mine is primarily a copper mine, with silver constituting as by-product.
Chungar, also one of the largest silver producing mines in Peru, is primarily a zinc producing mine. Peru’s production peaked in 2009 at 126 million ounces of silver followed by three consecutive years of decline. The country bounced back in 2013 and is expected to produce nearly 120 million ounces of silver in 2014………………………………………..Full Article: Source

Yellen Testimony Described As Mostly Neutral For Gold; Prices Decline Anyway

Posted on 16 July 2014 by VRS  |  Email |Print

Traders and analysts are characterizing Federal Reserve Chair Janet Yellen’s congressional testimony Tuesday as largely neutral for the gold market.
About an hour into her testimony, prices suddenly slipped below $1,300 an ounce for the first time since June 19. But most observers said they did not feel that the Fed chief had suddenly sounded more hawkish – other than suggesting rates could rise sooner than expected if the labor market keeps improving rapidly………………………………………..Full Article: Source

Did Goldman Sachs just blatantly manipulate the gold price down?

Posted on 16 July 2014 by VRS  |  Email |Print

If the gold market was a horse race then after yesterday’s sudden fall for no apparent reason observers would be calling for a stewards’ enquiry. Certainly those looking at a replacement for the London gold fix ought to be paying attention.
Just days after Goldman Sachs renewed its propaganda onslaught against the precious metal in a long article on Bloomberg the price dropped by 2.3 per cent, its biggest one day drop this year. Did it fall or was it pushed?……………………………………….Full Article: Source

Gold Prices Poised to Continue Their Breakdown

Posted on 16 July 2014 by VRS  |  Email |Print

It’s the proverbial pie in the face for traders who were sure gold was destined for higher highs. On Monday, gold prices, along with the SPDR Gold Shares (GLD), plunged a stunning 2.3% — the biggest one-day dip of the year — when Portugal’s debt crisis didn’t cause the country to sink into the ocean and drag the rest of Europe down with it.
The closing price of gold on Monday was $1,306.70 per ounce, pulling the commodity’s price to its lowest level since June 18. That was the day before gold prices soared after Janet Yellen vowed to keep interest rates low, and thereby keep the U.S. dollar suppressed………………………………………..Full Article: Source

Gold and silver smashdown: More to come?

Posted on 16 July 2014 by VRS  |  Email |Print

Well, hardly had our article yesterday on a potential smashdown in gold and silver been published on site for a couple of hours than, hey presto, it seems to have happened. Or at least started. According to reports a massive $1.37 billion sale of gold futures hit the market at New York open.
This initially drove the gold price down by around $20 before it recovered a little maintaining a level just above $1300 an ounce where it stayed overnight and in choppy morning trade in Europe. This morning has seen some strength on a rebound, though, taking the yellow metal back up above $1310 at the time of writing suggesting greater resilience than yesterday’s heavy seller(s) may have contemplated. Silver has been following gold’s lead as it is wont to do. ……………………………………….Full Article: Source

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31