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Gold Bull Market Should Keep Its Shine, Charts Say

Posted on 19 August 2016 by VRS  |  Email |Print

With the Federal Reserve potentially raising interest rates this year and a stronger U.S. dollar being a likely result, gold’s rally could be nearing an end. After all, gold and the dollar generally have an inverse relationship.
However, as a chart watcher I think that all of this is already in the metal’s price. Therefore, analysis of the trend and other supporting factors gives us better odds of gold’s next move. Right now, gold is indeed tired but overall the rising trend is still very much intact. I look for higher prices later this year………………………………………..Full Article: Source

Why Global Outlook Gleams on Gold

Posted on 19 August 2016 by VRS  |  Email |Print

A reading of July’s Federal Reserve policy meeting minutes doused investor expectations of a near-term hike of lending rates. Gold can be seen rising as traders scramble for safe-havens in the absence of attractive yield-bearing assets.
Gold for December delivery could be seen at a session high of $1,361.45 a troy ounce in past midday trade trading in Europe on Thursday. The price of the yellow metal had already advanced earlier in the day in Asian trading………………………………………..Full Article: Source

Gold Boosted By Bullish ‘Outside Markets’

Posted on 19 August 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session moderately higher Thursday, supported by a lower U.S. dollar index and higher crude oil prices. December Comex gold was last up $8.00 an ounce at $1,357.00. September Comex silver was last up $0.102 at $19.75 an ounce.
The marketplace is focused on the slumping U.S. dollar index, which hit a seven-week low overnight. The weakening greenback is a bullish element for the raw commodity sector. Most major raw commodities on the world marketplace are priced in U.S. dollars. When the dollar depreciates against the other currencies, it makes commodities cheaper to purchase with non-U.S. currency………………………………………..Full Article: Source

LBMA says banks back its plan to change London gold market

Posted on 19 August 2016 by VRS  |  Email |Print

Members see an electronic trade repository as the best way to improve transparency. The body charged with regulating London’s $5tn a year gold market says banks in the city are backing its plans to bring greater transparency to the market as the London Metal Exchange prepares to launch a gold futures exchange.
Ruth Crowell, head of the London Bullion Market Association, said its members, which include some of the world’s biggest banks, see an electronic trade repository as the best way to improve transparency and address regulatory pressure that is threatening to drive up costs………………………………………..Full Article: Source

Gold demand surges amid fears for world economy

Posted on 18 August 2016 by VRS  |  Email |Print

Demand for gold jumped in the wake of the Bank of England’s decision to cut interest rates earlier this month, the Royal Mint has revealed. Sales of gold bars and coins jumped by half, while transactions of the precious metal leapt by a quarter as rates were chopped to 0.25 per cent.
Gold prices have soared by around 25 per cent this year - or 45 per cent in sterling terms, thanks to the weakened pound - from $1,060 to $1,330, amid investor fear of stock market turmoil. The bullion is seen as one of the safest places for cash in times of economic fear and turmoil, and comes amid numerous signs the global economy is slowing down………………………………………..Full Article: Source

Global demand for gold will continue to remain strong, and price higher: Experts

Posted on 18 August 2016 by VRS  |  Email |Print

The global economic crisis will continue to drive the demand for gold and silver worldwide. Bullion experts at the India International Gold Convention (IIGC) organized by Foretell Business Solutions unanimously expressed that global demand will continue to remain strong, and price higher.
Ultra-low real interest rates in the USA and elsewhere will continue to drive the demand for both the metals globally. Gold is expected to remain above $1270 per ounce, while silver will continue to remain above $17 per ounce in London market. “In India, demand will pick up in the second half of calendar 2016 after a dismal first half………………………………………..Full Article: Source

Here’s One Reason Why Gold Could Soon Skyrocket by 48.15%

Posted on 18 August 2016 by VRS  |  Email |Print

If you are looking for the next big trade, look at gold prices. The yellow precious metal is trading at severely low prices, and it may be set to provide massive gains. As it stands, there’s a gold rush in play, and no one is talking about it. We see consumers, investors, and central banks running to buy the precious metal. In the process, they could send gold prices through the roof.
Consider this: in the second quarter of 2016, central banks purchased 77 tonnes of gold. This amount is down year-over-year, but keep in mind that they have been net buyers of the precious metal for a very long time………………………………………..Full Article: Source

Spectacular Chinese Gold Demand 2015 Fully Denied By GFMS And Mainstream Media

Posted on 18 August 2016 by VRS  |  Email |Print

Debunking the Thomson Reuters GFMS Gold Survey 2016 report. New information provides a more detailed perspective on the Chinese domestic gold market. In the Gold Survey 2016 report by GFMS that covers the global gold market for calendar year 2015 Chinese gold consumption was assessed at 867 tonnes.
As Chinese wholesale demand, measured by withdrawals from Shanghai Gold Exchange designated vaults, accounted for 2,596 tonnes in 2015 the difference reached an extraordinary peak for the year. ……………………………………….Full Article: Source

How to invest in gold bars, bullion and investment funds

Posted on 18 August 2016 by VRS  |  Email |Print

There’s been a surge in demand for gold as interest rates fall. Here’s how you can put your money into it and what it might cost. The recent Bank of England Base Rate cut has led to a surge in demand from people wanting to invest in gold, says the Royal Mint.
It saw a 25% increase in transactions on its bullion website in the first week of August, as well as a 50% increase in sales of gold bars and coins, compared to the previous week. Falling returns on cash and bonds as a result of the Bank of England’s decision to cut rates is thought to be making investors turn to gold………………………………………..Full Article: Source

Is George Soros Calling a Top in Gold?

Posted on 17 August 2016 by VRS  |  Email |Print

George Soros is getting out of gold. The billionaire investor jumped back into trading this year with a big bet on the precious metal, buying up a 19-million share stake in the world’s largest gold producer, Barrick Gold But in the second quarter, Soros Fund Management sold the majority of his shares in the gold miner and his full stake in mining company Silver Wheaton, according to regulatory filings.
The first-quarter bet on gold looked particularly prescient, as the precious metal has rallied 26% this year………………………………………..Full Article: Source

What’s Currently Driving Gold?

Posted on 17 August 2016 by VRS  |  Email |Print

Precious metals have seen a tremendous rise in price, mostly due to a lower possibility of a US interest rate hike. Added uncertainty in the Markets due to the Brexit vote and other start-of-the-year issues such as the crude oil rout and the Chinese turbulence also played on gold. As a result, these triggered the haven appeal.
Gold and silver have risen about 26% and 43%, respectively, this year. Expectations that the Federal Reserve will hold off further interest rate hikes gave these metals some breathing room. The higher rate of interest offered on Treasuries raised the opportunity cost of holding non-yield-bearing precious metals………………………………………..Full Article: Source

TD Securities: Safe-Haven Interest In Gold To Continue

Posted on 17 August 2016 by VRS  |  Email |Print

TD Securities looks for any downward correction in gold to be contained and for safe-haven buying to continue. The metal has risen sharply this year but has been range-bound lately, with market worries about potential Federal Reserve rate hikes returning, causing some funds to liquidate positions, TDS says.
“Still, the risk of an equity correction and negative yields for some $13 trillion worth of fixed-income assets should see safe-haven interest in gold continue,” TDS says. “This should make any correction well contained………………………………………..Full Article: Source

Gold prices have nowhere to go but up: Jim Rickards

Posted on 16 August 2016 by VRS  |  Email |Print

Gold prices can go nowhere but up as central banks around the world try their utmost to spur inflation, author and gold market expert Jim Rickards said.
“Every central bank in the world says they want inflation…they’ve come nowhere close…but that just means they are going to keep on trying; central banks cannot allow deflation because it increases the real value of debt… they are not going to rest until they get it,” The James Rickards Project director said………………………………………..Full Article: Source

Gold headed to $1,500

Posted on 16 August 2016 by VRS  |  Email |Print

The gold price is trading slightly higher today as another major bank joined calls that the precious metal is heading higher in the nearest future. In a report published earlier in the week, analysts at RBC Capital Markets said they are increasing their forecast for gold next year, and expect the price to reach US$1,500 which is well up from their previous prediction of US$1300, although they see prices pulling back to US$1,300 by 2020.
They noted that global fears surrounding Brexit as well as expectations that the US Federal Reserve will hold off lifting interest rates this year, putting pressure on the US dollar will see the Gold price move higher………………………………………..Full Article: Source

Gold losing appeal for investors retreating from rally bet

Posted on 16 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1% in August as the US economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

RBC adds $200 to its gold price forecast

Posted on 15 August 2016 by VRS  |  Email |Print

Gold has been treading water above the $1,340 an ounce level recently, coming off two-year highs hit earlier in August. Year to date the metal has gained almost 26% or more than $280 an ounce. It’s been gold best first half run since 1980 when the price hit an all-time high on an inflation adjust basis.
The rally has surprised many analysts and at the start of the year the vast majority of investment and institutional analysts predicted gold would dip below $1,000 during the course of the year and average below last year’s uninspiring $1,160 an ounce………………………………………..Full Article: Source

Credit Suisse Reiterates Forecast Of $1,475 Gold In 4Q

Posted on 15 August 2016 by VRS  |  Email |Print

Credit Suisse has reiterated its late-June outlook that gold will rise to $1,475 in the fourth quarter. The view was included in a research note citing highlights from the World Gold Council’s report this week on quarterly demand trends, which showed that second-quarter demand rose from a year ago.
Credit Suisse says its outlook is “primarily due to continued investment demand through ETF (exchange-traded-fund) purchases and bar/coin hoarding on prolonged macro uncertainty and negative real interest rates – (with) 39% of sovereign debt traded with a negative rate on July 27th — along with our view for declining mine supply.”……………………………………….Full Article: Source

Gold and silver are 2016’s shining investments

Posted on 15 August 2016 by VRS  |  Email |Print

10 best-performing mutual funds so far this year in the US and Europe are all precious-metal funds. Gold and silver funds have topped the list of best-performing investment products so far this year, benefiting from a huge rise in the price of precious metals driven by fears over the global economy.
Precious-metal funds account for all 10 best-performing mutual funds in both the US and Europe, nearly doubling investors’ money during the first seven months of 2016, according to Morningstar, the data provider………………………………………..Full Article: Source

Gold Losing Appeal for Investors Stepping Back From Rally Bet

Posted on 15 August 2016 by VRS  |  Email |Print

Investors are growing more skeptical of gold’s lasting luster. Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1 percent in August as the U.S. economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016………………………………………..Full Article: Source

Missed out on the silver rally? It’s not over yet

Posted on 15 August 2016 by VRS  |  Email |Print

For investors who missed silver’s 42-per-cent rally this year, it’s not too late to jump in, according to the firm behind the world’s best-performing exchange-traded fund. The main reason for investors piling back in to precious metals this year – low interest rates – isn’t going away any time soon, said Andrew Chanin, chief executive officer of PureFunds, whose junior silver miner ETF has delivered holders a 278-per-cent return this year.
Silver is rallying the most among major commodities this year as about $9-trillion (U.S.) of debt tracked by the Bloomberg Global Developed Sovereign Bond Index offer yields below zero, meaning those who buy the debt and hold to maturity stand to lose money………………………………………..Full Article: Source

Gold Price Surge Seen Cutting India’s Demand This Year, World Gold Council Says

Posted on 12 August 2016 by VRS  |  Email |Print

A rally in gold prices since the start of 2016 will reduce purchases in India, the world’s second-biggest consumer, trimming import prospects amid high inventories, according to the World Gold Council.
At current price levels, consumers are estimated to buy about 750 metric tons to 850 tons this year, lower than a May forecast of 850 tons-950 tons and the 864.3 tons bought in 2015, P.R. Somasundaram, the managing director of the council for India, said in an interview in Mumbai. While a continued uptrend in prices will weigh on volumes in this half, a good monsoon may see some of the increase being absorbed because of better incomes, he said………………………………………..Full Article: Source

What’s behind the gold price rally, and will it hold?

Posted on 12 August 2016 by VRS  |  Email |Print

High demand, stock market valuations, stingy bond yields and unorthodox monetary policy may be stoking the rally, which seems to have legs. There are seemingly endless theories to explain the stunning gold-price rally this year, and most of them support more of the same for the precious metal.
Global gold demand reached 2,336 tons through the first six months of the year, led by investment demand — representing a record 1,064 tons — according to the World Gold Council. That growing demand has driven the price of gold up 27% this year, marking the best first-half performance since 1980………………………………………..Full Article: Source

Why investors should expect the gold price to rise much higher, and how to invest in it

Posted on 12 August 2016 by VRS  |  Email |Print

Geir Lode, the veteran investor who is head of global equities at Hermes, has asserted that wider economic conditions mean the gold price will go up in the coming years, and revealed the share he is buying to profit from the market movements.
He remarked that, ‘Historically gold has been seen by investors as a safe haven protecting the downside in a portfolio. Over the next two to three years we believe an increased allocation to gold is likely due to macro-economic uncertainty, higher geopolitical risk, and low or even negative interest rates………………………………………..Full Article: Source

WGC Report Shows H1 Gold Demand Highest On Record

Posted on 12 August 2016 by VRS  |  Email |Print

The latest Gold Demand Trends report from the World Gold Council (WGC) is now out with data supplied by London-based precious metals research consultancy, Metals Focus. It shows the highest level of H1 gold demand on record, largely on the back of investment demand - particularly in gold ETFs, which absorbed 580 tonnes in the first half of the year.
Overall, this countered a fall in net central bank gold sales and falling consumer demand in the world’s two biggest countries for this in India and China………………………………………..Full Article: Source

Brexit leaves investors bullish for gold bullion

Posted on 12 August 2016 by VRS  |  Email |Print

Brexit and the global spread of negative bond yields sparked the biggest investor stampede into gold of any first half on record. Investment demand for the precious metal hit 1,064 tonnes in the first six months of this year, with overall gold demand, which includes spending on jewellery, hitting its highest level since the depths of the financial crisis in 2009, the World Gold Council said.
Alistair Hewitt, head of market intelligence at the council, said: “The expansion of unconventional monetary policy creates uncertainty but it also significantly reduces the opportunity cost of holding gold.”……………………………………….Full Article: Source

Gold investment at highest ever level – 16% above previous record

Posted on 12 August 2016 by VRS  |  Email |Print

For the first time, investors were the largest buyers of gold for two consecutive quarters. Hedge funds and other western investors have been piling into gold this year, pushing investment to a record high and driving the price of bullion to its biggest first-half gain since 1980.
The latest report from the World Gold Council, which represents gold miners, indicates that global gold demand reached 2,335 tonnes in the first six months of the year………………………………………..Full Article: Source

India questions London gold benchmark

Posted on 11 August 2016 by VRS  |  Email |Print

India has said it is setting its own gold standard, being among the largest consumers of gold historically. The Indian Bullion & Jewellers’ Association declares opening and closing gold prices daily based on which sovereign gold bonds are priced. The London Bullion Market Association fixes gold’s opening and closing prices internationally.
Addressing a seminar in Mumbai, IBJA President Mohit Kamboj said the London Bullion Market Association quotes did not match prices in India. Ruth Crowell, chief executive officer of the London Bullion Market Association, reacted to this observation stating, “Whether it is the Indian gold standard or London gold standard is a matter of deliberation. The industry need to sit together to make it happen.”……………………………………….Full Article: Source

World Gold Council, LME to launch LMEprecious in 2017

Posted on 11 August 2016 by VRS  |  Email |Print

The World Gold Council, LME and several key market participants plan to introduce a suite of exchange-traded and centrally-cleared precious metals products.
Gold market development organisation, the World Gold Council, and futures exchange, the London Metal Exchange (LME), together with key market participants including Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale will be launching the initiative as a means to drive greater market transparency and to support and aid ongoing regulatory change………………………………………..Full Article: Source

Signs Are Silver Bull Market Is Consolidating

Posted on 11 August 2016 by VRS  |  Email |Print

Having hit a target, silver has formed what is believed to be an intermediate top over the past five weeks or so, which it should soon start to descend from, says technical analyst Clive Maund.
On its three-month chart, we can see this presumed topping pattern started with the appearance of a prominent “Gravestone Doji” or “Shooting Star” candlestick early in July, with its negative implications being amplified by its having occurred on very high volume. While moving averages are in bullish alignment, the now yawning gap between the 50-day and 200-day makes a correction likely………………………………………..Full Article: Source

Platinum metals join the precious rally

Posted on 11 August 2016 by VRS  |  Email |Print

Demand from car producers means sector fundamentals are supportive. Implied benchmark borrowing costs dribble ever lower. The 10-year gilt yield fell through 0.55 per cent amid the Bank of England’s fresh largesse.
Meanwhile, the dollar’s latest rally seems to have stalled. This is a good environment for gold. By mid-session on Wednesday, the yellow metal was back above $1,350 an ounce and eyeing the two-year high of $1,375 hit last month. Its rally has energised the whole precious metals sector. Silver is back above $20 an ounce and the platinum group metals are joining in the fun………………………………………..Full Article: Source

Bullish prediction put gold price at US$1,500 by year end

Posted on 10 August 2016 by VRS  |  Email |Print

Despite the global mining industry witnessing three continuous years of slump arising mainly from the plummeting commodity prices, especially gold, latest bullish prediction has it that gold is likely to hit US$1,500 by close of the year.
According to General Secretary of the Mineworkers’ Union, Prince William Ankrah, the upward surge is certainly good news for the industry even though bearish commentary ascribes the recent jump to two factors, namely; the British exit from the EU, and the quantitative easing by the US Federal Reserves, which they posit could be short-lived………………………………………..Full Article: Source

Gartman Still Bullish Despite Lower Gold Price Post-Jobs

Posted on 10 August 2016 by VRS  |  Email |Print

One veteran gold investor remains bullish on the metal, especially in non-U.S. dollar terms, even though gold is still trading lower since jobs data Friday turned sentiment toward the U.S. economy more positive. Dennis Gartman of the popular newsletter The Gartman Letter said the employment data was “demonstrably less strong” than it appeared to be.
“Let’s say this was a strong number, much stronger than people anticipated, but there are some circumstances incumbent in it that reduce that number or reduce the bullishness that most people want to put into it,” he noted………………………………………..Full Article: Source

This is another important step in the modernisation of the gold market

Posted on 10 August 2016 by VRS  |  Email |Print

The London Metal Exchange plans to broaden its scope to take advantage of the lucrative world of precious metal trading through a suite of exchange-traded and centrally-cleared precious metal products.
To be called LMEPrecious, the initiative is a collaboration between the LME and World Gold Council, with support from Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale. LMEprecious will host spot, daily and monthly futures, options and calendar spread contracts for gold and silver. It is likely to include platinum and palladium contracts down the line………………………………………..Full Article: Source

Further weakness seen in Gold in coming days

Posted on 10 August 2016 by VRS  |  Email |Print

Citi Research cautions that gold could fall some more in the coming days after Friday’s stronger-than-forecast U.S. employment report showing 255,000 new jobs in July.
Gold prices fell immediately after the report as the U.S. dollar rose and traders factored in an increased possibility of a Federal Reserve rate hike. In past years, negative moves in gold post payrolls have tended to fade in the days following the data print, as shown by average cumulative returns of 0.5% in the three days following NFP Fridays on which gold returns were negative from 2004 to present, Citi added………………………………………..Full Article: Source

Will Indian gold consumption recover?

Posted on 10 August 2016 by VRS  |  Email |Print

How India will address issues that have roiled the market this year will be the question many will ask at this week’s Indian International Gold Convention in Agra. Several political and economic issues this year threaten the country’s position as one of the two leading gold-consuming nations – the other is China.
Last year, India consumed 668.5 tonnes of jewellery, according to Metals Focus’ annual report, up six percent from 632.2 tonnes in 2014 and 615.7 tonnes in 2013. This compares with 753.4 tonnes in China and overall global consumption of 2,397 tonnes………………………………………..Full Article: Source

Gold Rush Fuels ‘Best Year Ever’ for Precious Metals Funds

Posted on 10 August 2016 by VRS  |  Email |Print

Investors worldwide have poured a total of $51 billion into commodity-focused ETFs and similar investment products, Barclays estimates. The bulk of that total, $28.8 billion, went to precious metals funds. Last summer, the commodities sector was frozen in a half-decade long bear market with few signs of a thaw in the near future.
Now, it’s hot once again, with gold and silver funds set to see record-breaking inflows of cash. “Precious metals, and gold in particular, have been the most favored commodity sector,” according to a recent report from Barclays, which estimated flows into and out of commodity funds worldwide………………………………………..Full Article: Source

Why Silver Prices Could Crash Soon if They Don’t Break Out of This Range

Posted on 10 August 2016 by VRS  |  Email |Print

From Taki Tsaklanos: with silver prices at a critical juncture, we’ll soon get confirmation of whether the metal is in a cyclical bull market or a secular bear market. Silver has acted very strong in 2016. However, silver miners have been the real deal.
We observe some potentially concerning facts when it comes to the metals. First and foremost, the whole world is favoring precious metals, which is, from a sentiment point of view, a red flag. From a chart perspective, we see that silver has reached an incredibly important area right. It is no surprise that three trendlines of secular importance coincide within that area………………………………………..Full Article: Source

The victory for gold bulls is only just beginning

Posted on 09 August 2016 by VRS  |  Email |Print

The expansion of unconventional monetary policy will feed demand. Gold prices have rallied more than 30 per cent since the lift-off in US interest rates in December. A sharp reversal in pricing, sentiment and positioning driven by a myriad macro and micro factors has left the gold bears and bulls as polarised as ever.
The bearish camp, which has featured prominent and respected analysts like Goldman Sachs, tends to have a constructive view on the US dollar, the ability to raise interest rates, normalise global monetary policy, and generally a benign view on the global economy and inflationary risks………………………………………..Full Article: Source

Gartman Still Bullish Despite Lower Gold Price Post-Jobs

Posted on 09 August 2016 by VRS  |  Email |Print

One veteran gold investor remains bullish on the metal, especially in non-U.S. dollar terms, even though gold is still trading lower since jobs data Friday turned sentiment toward the U.S. economy more positive. Dennis Gartman of the popular newsletter The Gartman Letter said the employment data was “demonstrably less strong” than it appeared to be.
“Let’s say this was a strong number, much stronger than people anticipated, but there are some circumstances incumbent in it that reduce that number or reduce the bullishness that most people want to put into it,” he noted………………………………………..Full Article: Source

Gold Back to Futures on London Metal Exchange After Thirty Years

Posted on 09 August 2016 by VRS  |  Email |Print

Three decades after London’s exchange-traded gold contract flopped, it’s coming back. The London Metal Exchange, along with the World Gold Council and a group of banks and trading firms, are starting a new venture called LMEprecious, which will introduce centrally-cleared gold and silver contracts in the first half of next year, and later add platinum and palladium, according to a joint statement.
The LME is moving into gold to capture part of the $5 trillion over-the-counter market in London, the global hub for trading the metal, as regulators push for more regulation over commodities trading and centralized clearing………………………………………..Full Article: Source

Silver Prices Could Soar to $22 If This Happens in September

Posted on 09 August 2016 by VRS  |  Email |Print

Since the start of 2016, silver prices have seen a huge rally. Silver is the best-performing precious metal, returning 47% so far this year. That outpaces gold prices, which are up about 26% over the same period. Since the gold/silver ratio was in silver’s favor going back about five months, I told you the ratio would see a correction that would let the silver price outpace the gold price. We saw that happen over the last two weeks.
But the price of silver may have gotten a little ahead of itself relative to gold. I highlighted that idea for you two weeks ago, and silver has seen violent swings since then………………………………………..Full Article: Source

Gold Stocks Are In A Bull Market: How To Make It Work For You

Posted on 08 August 2016 by VRS  |  Email |Print

Gold and gold mining shares have reversed and are showing signs of having entered a sustainable bull cycle. Gold miners will make for excellent medium-term investments, although some companies will outperform. We outline how to pick these outperformers and to profit from them.
Gold is in a bull market. We believe that gold has been in a secular uptrend for most of the 21st century, although it is clear that gold experienced a cyclical decline that began in 2011……………………………………….Full Article: Source

Gold Price Will be ‘Twitchy’ for Next Quarter (Video)

Posted on 08 August 2016 by VRS  |  Email |Print

Randgold Resources Ltd. reported an 8.5 percent drop in second-quarter profit after operational problems at two of its African mines led to a decline in gold output. Net income fell to $49 million from $53.6 million a year earlier, The Jersey, Channel Islands-based company said in a statement on Thursday.
Gold production slid 6.2 percent to 281,494 ounces. Randgold said full-year output will be in the lower half of its 1.25 million to 1.3 million-ounce target range. Production dropped after a milling circuit breakdown at its Tongon mine in Ivory Coast and technical challenges at its Kibali mine in the Democratic Republic of Congo. “We had a difficult quarter,” Chief Executive Officer Mark Bristow discusses with Bloomberg’s Anna Edwards and Manus Cranny on “Countdown.”……………………………………….Full Article: Source

Good US jobs news hits gold price

Posted on 08 August 2016 by VRS  |  Email |Print

Gold prices extended losses on Friday after a better-than-expected jobs report dented safe-haven demand and increased concerns that the Federal Reserve could raise interest rates in coming months.
Gold for December delivery settled down 1.7 per cent at $US1344.40 a troy ounce on the Comex division of the New York Mercantile Exchange, its biggest one-day loss since May 24. The US economy added 255,000 jobs in July, beating economists’ expectations of 179,000 and signalling that the labour market is on strong footing………………………………………..Full Article: Source

Gold price rally sparks $50 billion of commodity investments

Posted on 08 August 2016 by VRS  |  Email |Print

Investors poured just under $51 billion into commodity markets during the first seven months of the year according to new research from UK investment bank Barclays Capital. That was the largest inflows since 2009.
The rise in commodity values combined with the new money invested in the sector saw a $74 billion spike in the value of commodity assets under management since the start of the year. The positive investment flows in 2016 came largely on the back of gold investments with precious metals representing almost $30 billion of total inflows in the first seven months………………………………………..Full Article: Source

Why a brewing global economic storm is turning gold into the perfect trade

Posted on 05 August 2016 by VRS  |  Email |Print

Gold is poised to benefit from a “perfect storm” of fewer viable investment alternatives and bigger risks, according to an industry group that is the sponsor of one of the world’s biggest gold exchange-traded-funds.
Analysts have interpreted weak Japanese government bond demand—such as that seen for a 10-year auction earlier this week—as a sign that investors are losing faith in “unconventional monetary policies,” said the World Gold Council in its August monthly report. “In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks and low quality bonds to their asset mix,” said the World Gold Council………………………………………..Full Article: Source

Silver Trouncing Gold Signals Bull Market May Continue

Posted on 05 August 2016 by VRS  |  Email |Print

An ounce of gold buys the least amount of silver since 2014, which may signal to some investors that precious metals are set for further gains. In a bull market for precious metals, silver usually outperforms gold, and the reverse tends to be the case in a bear market.
The ratio between the two fell to the lowest in three decades in 2011 when gold climbed to a record. Silver may continue to outperform its sister metal into 2017, according to Georgette Boele, a currency and commodity analyst at ABN Amro Bank NV………………………………………..Full Article: Source

Going for Gold: Price of Bullion Surges as China and Russia Amass Precious Metal

Posted on 05 August 2016 by VRS  |  Email |Print

China and Russia are steadily accumulating gold as they seek to reduce dependence on the US dollar, financial information website Marketwatch reported. Russia and China’s policy of buying gold has helped the price of the precious metal to reach its highest level for more than two years, according to financial information website Marketwatch.
On August 2 the price of gold future contracts for December delivery closed at $1,372.6 per troy ounce, their highest level since March 2014. “China and Russia, the world’s No. 1 and No. 3 producers, are catching up to the big industrial countries in stocks of bullion in their official reserves,” remarked Marketwatch analyst David Marsh………………………………………..Full Article: Source

‘A perfect storm’ is making gold one of the hottest assets on the planet

Posted on 04 August 2016 by VRS  |  Email |Print

“A perfect storm” in markets has left investors scrambling to add gold to their portfolios for protection, according to the World Gold Council. Investors have another prime and relatively safe choice in the government bonds of developed markets, but that has been compromised by “unconventional monetary policy,” the council said in its market update for August.
The yields on developed-market government bonds have trended lower as demand has risen. Sovereign authorities like the European Central Bank are stoking this demand through their bond purchases, which are pushing down yields………………………………………..Full Article: Source

Gold near 2016 high on haven demand

Posted on 04 August 2016 by VRS  |  Email |Print

Gold prices traded near their highest levels this year on Wednesday as investors sought havens on increasing concerns over global growth. Gold hit a high of $1,367 a troy ounce this week, just shy of its year high of $1,374.71 reached on July 11, before falling back to $1,357.40 late on Wednesday. The precious metal is up 28 per cent this year.
The price of gold has been driven by buying of gold exchange traded funds, which are backed by holdings of the metal. The funds’ holdings of the metal are at their highest level since July 2013, according to data compiled by Bloomberg………………………………………..Full Article: Source

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