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Gold’s Rally Far From Being Over - Capital Economics

Posted on 11 April 2016 by VRS  |  Email |Print

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

China Goes Prospecting for World’s Gold Mines

Posted on 11 April 2016 by VRS  |  Email |Print

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

Now, India’s very own gold coins

Posted on 11 April 2016 by VRS  |  Email |Print

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

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

Posted on 08 April 2016 by VRS  |  Email |Print

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

Gold Prices Settle Higher Amid Flight to Quality

Posted on 08 April 2016 by VRS  |  Email |Print

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

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

Posted on 08 April 2016 by VRS  |  Email |Print

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

Investors Rush to Snap Up Gold Funds as Price Bounces

Posted on 08 April 2016 by VRS  |  Email |Print

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

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

Posted on 08 April 2016 by VRS  |  Email |Print

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

Gold Sees Safe-Haven Demand on European Union Worries

Posted on 08 April 2016 by VRS  |  Email |Print

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

Can Silver Keep Pace With Gold?

Posted on 08 April 2016 by VRS  |  Email |Print

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

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

Posted on 08 April 2016 by VRS  |  Email |Print

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

Gold price swings ease as investors assess US growth outlook

Posted on 07 April 2016 by VRS  |  Email |Print

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

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

Posted on 07 April 2016 by VRS  |  Email |Print

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

Big Trouble Ahead For Copper Is Good For Silver Prices

Posted on 07 April 2016 by VRS  |  Email |Print

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

Gold Funds See Outflows after Touching a 2-Year High

Posted on 07 April 2016 by VRS  |  Email |Print

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

UBS: Platinum Group Metals Driven By External Factors For Now

Posted on 07 April 2016 by VRS  |  Email |Print

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

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

Posted on 06 April 2016 by VRS  |  Email |Print

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

Gold prices to decline in second quarter

Posted on 06 April 2016 by VRS  |  Email |Print

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

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

Posted on 06 April 2016 by VRS  |  Email |Print

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

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

Posted on 06 April 2016 by VRS  |  Email |Print

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

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

Posted on 06 April 2016 by VRS  |  Email |Print

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

Clashing Views on Gold

Posted on 05 April 2016 by VRS  |  Email |Print

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

Is gold steadying itself for a major bull run?

Posted on 05 April 2016 by VRS  |  Email |Print

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

The Biggest Reason the Price of Gold Will Rise in 2016

Posted on 05 April 2016 by VRS  |  Email |Print

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

Hedge funds aren’t wavering on gold price rally

Posted on 05 April 2016 by VRS  |  Email |Print

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

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

Posted on 04 April 2016 by VRS  |  Email |Print

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

Gold Getting Stale? – Charts and COTs

Posted on 04 April 2016 by VRS  |  Email |Print

Notice on the very short term chart, a 2 hour run, gold has been in a steady decline since the middle of last month with rallies attracting selling at the key resistance levels noted on the chart. Price is currently holding below $1212 – $1210.
Initial resistance begins near $1225 and extends higher towards $1228. Above that lies $1237-$1240. Watch out if that low near $1205 were to give way. There still remain a large number of spec longs in this market. On a percentage basis, this is the largest combined large spec long position going back past 2011………………………………………..Full Article: Source

Gold Prices: Here’s Why Gold Prices Could Soar

Posted on 04 April 2016 by VRS  |  Email |Print

Remember last year when some people were saying that gold prices would crash because the U.S. Federal Reserve would raise interest rates? Well, they couldn’t be more wrong. Since December 16, 2015—the date of the first Fed rate hike since the financial crisis—the gold spot price has surged 14.3%. Going forward, there are still quite a few catalysts that could send the price of the shiny metal even higher.
While several Fed people have been calling for more rate hikes, Fed Chair Janet Yellen thought otherwise. Speaking at the Economic Club in New York on Tuesday, Yellen said that the Federal Open Market Committee (FOMC) would “proceed cautiously” with interest rate policies, and that caution “is especially warranted.”……………………………………….Full Article: Source

Gold Rush by Russia Makes Up for Billions Lost in Currency Rout

Posted on 04 April 2016 by VRS  |  Email |Print

Here’s why Governor Elvira Nabiullina is in no haste to resume foreign-currency purchases after an eight-month pause: gold’s biggest quarterly surge since 1986 has all but erased losses the Bank of Russia suffered by mounting a rescue of the ruble more than a year ago.
While the ruble’s 9 percent rally this year has raised the prospects that the central bank will start buying currency again, policy makers have instead used 13 months of gold purchases to take reserves over $380 billion for the first time since January 2015………………………………………..Full Article: Source

Gold Lovers Bet Party Isn’t Over After Big First-Quarter Gain

Posted on 04 April 2016 by VRS  |  Email |Print

Even after a lackluster March, money managers are betting the best-performing commodity last quarter still has further to run. While gold futures have dipped from a 13-month high, hedge funds are the most bullish since January 2015.
The precious metal posted its biggest quarterly advance in three decades as turbulent financial markets and ebbing global economic growth boosted demand for it as a haven. Federal Reserve Chair Janet Yellen said last week that U.S. central bankers should “proceed cautiously” on plans to raise interest rates because of risks from the global economy. London-based research firm Metals Focus Ltd………………………………………..Full Article: Source

Gold may drop below $1,200 an ounce in coming months

Posted on 01 April 2016 by VRS  |  Email |Print

Gold prices are likely to slip below $1,200 an ounce in the months to come, GFMS analysts at Thomson Reuters said in a report on Thursday, with U.S. interest rates expected to rise and physical demand remaining soft. The metal has rallied more than 16 percent this year, reaching a 13-month high of $1,282.51 an ounce this month, but may struggle to maintain those gains, the report said.
“Following three consecutive years of annual price declines, gold has recorded a blistering start to 2016,” GFMS said in its Gold Survey 2015. “Such an impressive performance has been largely attributed to a reduction in risk appetite among investors and fresh interest in safe haven assets.”……………………………………….Full Article: Source

Splitting the Difference in Gold Analysis

Posted on 01 April 2016 by VRS  |  Email |Print

No one can agree on what just happened in gold, let alone what comes next in 2016, writes Adrian Ash at BullionVault. “Gold heads for best quarterly rally in 25 years,” says data and news provider Bloomberg. Not so, say competitors Thomson Reuters. “Gold poised for best quarter in nearly 30 years.”
What’s 5 years between arch-rivals? The two news-wires’ headline writers can’t agree on the key driver of gold’s sharp Q1 rebound either. Bloomberg says “safe haven demand”; Reuters says “dovish Fed” comments on future rate rises………………………………………..Full Article: Source

Gold scores biggest quarterly gain in nearly 30 years

Posted on 01 April 2016 by VRS  |  Email |Print

Gold futures settled higher Thursday, scoring their best quarterly performance since 1986—a year when “Top Gun” was the most popular movie. Bullion has benefited as the Federal Reserve’s dovish stance on policy has softened the highflying U.S. dollar.
Prices for the most-active contracts saw a monthly gain of less than 0.1%—the smallest of the year, but gold jumped 16.4% in the first three months of 2016, its strongest quarterly showing since the third quarter of 1986, according to FactSet………………………………………..Full Article: Source

Is gold headed for a correction? Top consultancies offer up mixed price outlooks for 2016

Posted on 01 April 2016 by VRS  |  Email |Print

The world’s top two gold consultancies have offered up mixed outlooks for prices in 2016. Metals Focus and Thomson Reuters GFMS each launched their 2016 gold reports on Thursday. Both firms are cautious on gold in the short term, as they see prices pulling back in the second quarter after rising a whopping 16 per cent in the first quarter.
But Metals Focus thinks the second half of 2016 will be very strong, while GFMS is optimistic but more guarded. Metals Focus predicted gold will peak at US$1,350 an ounce in the fourth quarter, up from US$1,235 currently………………………………………..Full Article: Source

Gold price holds $1,240/oz following US Fed comments

Posted on 31 March 2016 by VRS  |  Email |Print

The gold price pared back from its earlier highs, but remained trading firmly in positive territory following a cautionary statement on Tuesday by the US Fed Chair Janet Yellen. Yesterday, Yellen’s tone contrasted with the hawkish views of various Fed members, who offered their support for a rate hike as soon as April, but is more in-line with the March Fed statement, which warned on global risks and resulting instability.
“Yellen’s comments clearly indicate that the risk of another delay is significant, particularly if economic data were to unexpectedly weaken and/or financial market volatility to increase again,” Credit Suisse noted………………………………………..Full Article: Source

Where are Gold Prices Headed?

Posted on 31 March 2016 by VRS  |  Email |Print

The best performing precious metal for the week was platinum, however still down -2.35 percent. Price action was driven by increased auto demand in the European Union, reports Market Realist, which rose 14 percent in February. Platinum and palladium is used in the production of catalytic converters.
Germany announced this week that it wants half of its gold reserves back by the year 2020, reports Bloomberg. Bundesbank, the country’s central bank (which has gold in London and New York), has repatriated 1,400 metric tons, or 41.5 percent, of Germany’s gold reserves to Frankfurt………………………………………..Full Article: Source

Central bank action may rejuvenate gold in Europe

Posted on 31 March 2016 by VRS  |  Email |Print

Gold prices remain low in historical terms, despite a rally at the start of this year, but demand may yet appear from an unexpected source. Some precious metal experts see interest returning to Europe, in part because the push towards negative interest rates has made depositing cash with banks less and less rewarding.
“Although gold is very much driven by U.S. Federal Reserve (Fed) policy, the impact of European Central Bank (ECB) policy decisions may become increasingly relevant for gold price action, as concerns about negative interest rates gain traction among investors,” UBS strategist, Joni Teves, said in a report this month………………………………………..Full Article: Source

Good as Gold: Why Russia and China Are Busy Buying Bullion

Posted on 31 March 2016 by VRS  |  Email |Print

The currencies of Russia and China are moving to become as “good as gold,” F. William Engdahl notes, explaining why the countries are buying gold at a steady pace. Since US President Nixon unilaterally abrogated the 1944 Bretton Woods Treaty in 1971 the US dollar has been no longer backed by gold; however, gold still remains as a store of value which paper money cannot compete with.
Remarkably, the Central Bank of Russia became the world’s leading purchaser of gold, as it bought 356,000 ounces of the precious metal in February 2016, according to the International Monetary Fund (IMF). In general, Russia increased its reserves of monetary gold by 208.4 metric tons in 2015 and continues to buy the precious metal at a growing pace………………………………………..Full Article: Source

Here’s How We Could See $2,000+ Gold Bullion

Posted on 31 March 2016 by VRS  |  Email |Print

After a stellar start to 2016, gold prices have pulled back a little. With this, the negative sentiment towards the precious metal is back; we are hearing about how there could be more downside again.
Don’t get lured in by the noise! Here’s what you really need to know: gold prices are setting up to soar big-time. You will kick yourself later if you don’t pay attention to the precious metal now. This may sound bold, but the last bull market in gold prices we saw after 2002 may look menial compared to the one that’s coming………………………………………..Full Article: Source

China investors drive gold price spike as bullion beats jewellery

Posted on 30 March 2016 by VRS  |  Email |Print

Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewellery and contributing to the metal’s price rise of about 15 per cent from six-year lows in December.
Typically, gold purchases in China are strongly associated with jewellery buying around the Lunar New Year holiday, which this year fell in early February. But uncertainty confronting global economies along with forces in Chinese markets have driven up gold demand from a different sort of buyer: the hard-nosed investor………………………………………..Full Article: Source

Gold touches lowest in six weeks following global move

Posted on 30 March 2016 by VRS  |  Email |Print

Gold hit its lowest in six weeks as markets widely awaited confirmation of the US Federal Reserve’s stance on interest rates. A Fed official had hinted last week of more rate increases this year than estimated earlier. This renewed confidence is resulting in the dollar gaining against major global currencies.
Standard gold in Zaveri Bazaar declined to Rs 28,235 per 10 g, a level not seen since February 10. The metal, however, closed with a marginal recovery of Rs 40 to Rs 28,275 per 10 g on Tuesday amid thin trading due to a jewellers’ strike against the excise levy of 1 per cent………………………………………..Full Article: Source

Negative interest rates spark 2016 gold rush - but can German buyers push prices even higher?

Posted on 30 March 2016 by VRS  |  Email |Print

Almost a quarter of world GDP lies in economies whose central banks now have negative interest rates of some form. This experimental policy – used variously to weaken strengthening currencies and attempt to stimulate growth – has its fans, but investors have not been among them.
“There’s a sense that central banks are running out of ways that they can stimulate the economy,” says Chris Beauchamp of IG. As Deloitte economist Ian Stewart, among others, has pointed out, while in theory negative rates should encourage banks to lend and consumers to spend, in practice, they could just prompt individuals and companies to hold physical cash instead………………………………………..Full Article: Source

Precious-metals funds emerge as a powerful leveraged gold play

Posted on 30 March 2016 by VRS  |  Email |Print

The stunning run so far this year by equity precious-metals mutual funds might be enough to temp some investors and financial advisers to try and jump on the bandwagon. A better strategy, however, would be to take a lesson from the rally in order to be prepared to catch the next one.
As a broad category, equity precious-metals funds have lapped the field since the start of the year, cranking out an average gain of more than 36%, according to Morningstar. The category performance more than doubled the 15% gain by the next best category, commodities precious metals, which includes just one fund………………………………………..Full Article: Source

Who sets the gold price?

Posted on 29 March 2016 by VRS  |  Email |Print

How is the price of gold established? Scratching the surface, the answer seems obvious: it is a result of a free interplay of market forces. However, there is no single gold market; the yellow metal is traded in many places.
Who then sets the price of gold? London or New York? Which of them shapes the price discovery process? What is the relationship between the LBMA Gold Price and Comex futures and spot prices? As the chart below shows, there is an almost perfect correlation between London and New York prices; but which leads the dance?……………………………………….Full Article: Source

Is the Dollar Gold Price controlled by JPM in Cooperation with the BIS?

Posted on 29 March 2016 by VRS  |  Email |Print

In this paper we conclude that JP Morgan [JPM] in cooperation with the Bank of International Settlements [BIS] controls the dollar gold price by using their very dominant position in gold derivatives in the US Banking System.
JPM held during 1999 – 2014 an average of 3.262 paper metric tons gold (derivatives) available for interventions on the development of the dollar gold price with the BIS as counterparty. Furthermore we conclude that the paper volume sets the dollar gold price and that there is almost no influence on the dollar gold price from the physical supply and demand………………………………………..Full Article: Source

Chinese Investors See Golden Opportunity

Posted on 29 March 2016 by VRS  |  Email |Print

Jewelry demand takes a back seat to demand for coins and bars as a haven from global economic uncertainty. Chinese investors have been snapping up gold bars and coins, overshadowing the usual purchases of gold jewelry and contributing to the metal’s price rise of 16% from six-year lows in December.
Typically, gold purchases in China are strongly associated with jewelry buying around the Lunar New Year holiday, which this year fell in early February. But uncertainty confronting global economies along with forces in Chinese markets have driven up gold demand from a different sort of buyer: the hard-nosed investor………………………………………..Full Article: Source

Gold Still a Hot Commodity Even as Rally Starts to Fade: Chart

Posted on 24 March 2016 by VRS  |  Email |Print

Investors are still pouring cash into gold funds, even though prices haven’t done much this month. Assets in exchange-traded funds have kept consistently increasing, with total holdings near a two-year high. Gold has dropped 2.9 percent since March 10.
“It’s peculiar that ETFs were net buyers even as prices dropped, but the narrative has shifted and remains more supportive for gold,” said Bernard Dahdah, a commodities analyst at Natixis SA in London………………………………………..Full Article: Source

Gold Price Tests ‘H&S Neckline’ at $1220

Posted on 24 March 2016 by VRS  |  Email |Print

Gold Prices slid 2.5% to 3-week lows at $1220 per ounce Wednesday morning as the Dollar rose on the FX market and world stock markets crept higher as Brussels police continued to hunt suspects in yesterday’s deadly terrorist attacks. Government bond prices retreated, and US crude oil lost 1.3% to drop towards $40 per barrel – a 7-year low when reached at the tail-end of 2015.
The Chinese Yuan also slipped further from its strongest Dollar value of 2016 to date, as the International Monetary Fund denied rumors of any “secret deal” between Washington and Beijing regarding FX rates at last month’s G-20 summit of major economy finance ministers………………………………………..Full Article: Source

Could Soc Gen’s Bearish Gold Calls Be Coming True

Posted on 24 March 2016 by VRS  |  Email |Print

French Bank Societe Generale has been bearish on gold since the start of the year, despite the metal’s 15% gains. With gold down this Wednesday, hitting a three-week low, could the bank be right?
Robin Bhar, head of metals research for Societe Generale, told Kitco News the recent gold price rally looks unsustainable. He explained that financial turmoil and expectations that the U.S. and global economies will fall into a recession have been the factors behind the move, but these expectations appear to be extreme scenarios………………………………………..Full Article: Source

Positive signs for gold as markets tumble

Posted on 24 March 2016 by VRS  |  Email |Print

Gold outperformed most other assets as global equity markets took a beating at the start of 2016, according to State Street Global Advisors. “We see encouraging signs that may support the gold market this year,” the firm said in a recent research note.
While interest rate hikes often exert some pressures on gold as bond yields rise and become more attractive to investors, the outlook of US rates remains uncertain after the first hike for nine years in December last year………………………………………..Full Article: Source

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