Fri, May 22, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Bullion/Gold more

Don’t buy gold on Akshaya Tritiya

Posted on 20 April 2015 by VRS  |  Email |Print

This year, clients of Bengaluru-based financial planner Anil Rego have not yet asked him for advice on whether they should buy gold on Akshaya Tritiya. Given Indians’ general love for gold, this lack of interest might seem surprising as the festival, on the coming Tuesday, is considered an auspicious occasion to buy gold. Or, maybe not, given how returns from gold have fallen over the past couple of years.
“Gold should be part of your asset allocation. While equities will always do better than gold in the long run, having gold along with equities will reduce the risk in your portfolio and improve the returns,” Rego says……………………………………Full Article: Source

Silver Set To Lead The Metals Lower

Posted on 20 April 2015 by VRS  |  Email |Print

Markets and stocks had a solid week until Friday when weakness set in hard off resistance. It looks like we aren’t quite ready to move higher unless we can see markets come back strong Monday but we do have several of the heavyweight leading stocks set to report next week so that may change the market landscape dramatically and quickly.
I am a bit surprised though, with good numbers coming from the video streaming company, that stocks didn’t perform better to close out the week but that’s how it went. The stocks I’m holding have done very well and are still solidly above our buy levels for now and are holding up well but I may have to do some selling if that changes……………………………………Full Article: Source

Asia set to muscle out Europe in gold trading

Posted on 16 April 2015 by VRS  |  Email |Print

Asia can surpass Europe as the centre of gold trading, Intercontinental Exchange’s John Ho told delegates at the Dubai Precious Metals Conference, with Dubai potentially integral to this shift. “People believe that the Asian time has come, that trading in Asia is now and it needs to happen in an Asian time zone,” he said. “Europe is over, Asia is now.”
Ho, director of Asia Pacific at ICE, was speaking ahead of the exchange’s launch of a Singapore-based, physically settled kilobar gold futures contract. Although Dubai can become part of this key movement of gold from West to East given its strategic location between Europe and Asia, any hub requires trust before it can succeed, he warned………………………………………..Full Article: Source

BofA Merrill Lynch: Gold “could rise to $1,500/oz by 2017″

Posted on 16 April 2015 by VRS  |  Email |Print

Bank of America Merrill Lynch (BofAML) analysts believe the worst may be over for gold. According to a recent report, they see gold reaching $1,500/oz. by 2017. At the same time, a global BofAML survey revealed concerns of overvaluation in the equity and bond markets. A press release on the survey reads: “Bonds Seen as Most Overvalued in Survey’s History”
The issue of the Federal Reserve raising interest rates has been pressuring gold, but BofAML analysts believe gold will prevail: “We believe the upcoming Fed rate hike is the only major obstacle to sustained price rises.” They do expect the Fed to raise interest rates, but not sharply, and think gold may have already seen the worst of it: “While a normalization in rates is likely, aggressive rate hikes are not our base case, which is a reason we believe the worst may be over for goldafter the dreadful price collapse in 2013 and muted price movements in 2014.” [emphasis added]……………………………………….Full Article: Source

Gold Bullion To Max Out At $5,000 Per Ounce

Posted on 16 April 2015 by VRS  |  Email |Print

Renowned financial analysts and trends forecaster Martin Armstrong has said that gold will “probably max out at $5,000 per ounce” as “people lose confidence in government” and that we will see riots and unrest globally in the coming months – the fall of this year.
It a very interesting interview with Greg Hunter of the excellent USAWatchdog.com, Armstrong says: “Gold rises when people lose confidence in government. It has nothing to do with inflation. So, when you start to worry about government is not going to survive or who’s going to win, that’s when gold rises. Short term, we still have the risk of it going under $1,000 per ounce. It’s going to flip when everything is right. It will probably max out at $5,000 per ounce.”……………………………………….Full Article: Source

What will happen to gold price after Greek exit

Posted on 16 April 2015 by VRS  |  Email |Print

New study shows Greek bond yields as proxy for euro-zone break-up risk is more reliable than the strength of the US dollar in predicting the gold price. The real possibility of a Grexit is back on the cards. And with it a resurgent gold price.
New York gold futures moved back above the $1,200 an ounce level on Wednesday on news that Greece is preparing to declare a debt default by the end of April amid stalled negotiations with its international creditors………………………………………..Full Article: Source

Indian gold market subdued, premiums low and likely to stay so: sources

Posted on 16 April 2015 by VRS  |  Email |Print

The Indian gold market is not expecting any fireworks in terms of premium business in 2015, with most participants downbeat, expecting premiums to trade in a tight range of $1-$2/oz above the dollar spot price, sources said this week.
One broker said that unless the dollar gold price dramatically drops $100-$150/oz, it is doubtful that premiums will move higher from the current range. He noted that Indian physical buyers have become too savvy and that as soon as the price in local currency terms dips, they are quick to buy. However, the local market has ample supply, so premiums see little reaction………………………………………..Full Article: Source

Global gold market to consolidate in the long term

Posted on 15 April 2015 by VRS  |  Email |Print

The global gold market will likely continue to consolidate in the long term as volatility in the greenback will boost the metal’s prices. “This is given the US Federal Reserve’s (Fed) hesitation in raising interest rates,” said international foreign exchange broker ForexTime Ltd’s chief market analyst, Jameel Ahmad.
In a press conference today, Jameel said the global gold price was expected to move between US$1,140 (RM4,220) and US$1,210 an ounce for now. On the local front, the physical price of gold stood at RM138.13 a gramme as at 9.30am today, down 12 sen from RM138.25 at yesterday’s close………………………………………..Full Article: Source

Any gold price rally will be sweet but short

Posted on 15 April 2015 by VRS  |  Email |Print

On Monday gold for delivery in June – the most active futures contract – drifted further below the psychologically important $1,200 an ounce level, briefly falling to levels last seen at the beginning of the year. On the Comex division of the New York Mercantile Exchange, gold touched an intraday low of $1,183.70 an ounce before recovering to above $1,190 during late afternoon trade, a two week low.
Gold started 2015 with a bang rising to $1,307 an ounce three weeks into the new year, but by mid-March had fallen back to a near-four low of $1,148.20 an ounce. All attempts to break resistance at $1,225 since then has failed and a recent report by Credit Suisse quoted by Barron’s predicts renewed weakness for the metal in the second half………………………………………..Full Article: Source

Gold Market Is Becoming Very Data Dependent and Reactionary

Posted on 15 April 2015 by VRS  |  Email |Print

Gold has come back down below the key technical and psychological level of $1,200 where it has been trading range bound around all year. Tom Vitiello of Aurum Options Strategies tells TheStreet’s Jill Malandrino that gold is becoming more data dependent and reactionary.
Vitiello says the market feels fundamentally weak, but the structure will eventually correct itself. The key is getting longs back into the market getting through interest rate hike timing speculation, which is driving the headlines. $1,180 is a very important support level, although Vitiello sees gold moving lower beyond that to $1,130 in the near term………………………………………..Full Article: Source

Oil Bulls Boost Wagers by Most Since 2010 as Output Seen Peaking

Posted on 14 April 2015 by VRS  |  Email |Print

Speculators increased bullish oil bets by the most in more than four years, wagering that the U.S. production boom is slowing. Hedge funds boosted net-long positions on West Texas Intermediate crude by 30 percent in the seven days ended April 7, the biggest jump since October 2010, U.S. Commodity Futures Trading Commission data show.
Long bets rose to a nine-month high, while shorts tumbled 21 percent. U.S. crude output and inventories may peak this month amid a record drop in rigs exploring for oil, Goldman Sachs Group said………………………………………..Full Article: Source

Citigroup: ‘2016 to 2020 Period Could Be Supportive for Gold’

Posted on 14 April 2015 by VRS  |  Email |Print

This year hasn’t been a banner one for gold, with the precious metal advancing just 1 percent so far, but the precious metal might fare better next year, says Citigroup analyst Jon Bergtheil. A strong dollar, low inflation and expectations of a Federal Reserve interest-rate increase later this year have put a lid on gold in 2015.
The precious metal has been trading around $1,200. “Gold is still extremely vulnerable during 2015, but the 2016 to 2020 period could be supportive for gold,” Bergtheil writes in a report obtained by MarketWatch………………………………………..Full Article: Source

Gold price to end 2015 between $1,151-$1,250/oz: conference

Posted on 14 April 2015 by VRS  |  Email |Print

The gold price will end 2015 somewhere between $1,151 and $1,250/oz, delegates at the Dubai Precious Metals Conference voted Monday. In the closing remarks the audience was electronically polled on where the price will close the year, the results were down from $1,251-$1,350/oz at the start of the conference Sunday.
Still, 51% of delegates said they would prefer to be long the metal, up from 43% at the start. On the sidelines talking to Platts one banker said that overall mood at the conference was neither “bullish nor bearish, it’s neutral.”……………………………………….Full Article: Source

Hedge funds double bullish gold price bets

Posted on 14 April 2015 by VRS  |  Email |Print

Large scale speculators in gold futures continue to add to bets on a rising price even as the metal struggles to hold onto the $1,200 an ounce level. On Monday gold for delivery in June – the most active futures contract – drifted lower from Friday’s closing price hitting a low of $1,196.35 during late morning trade in New York.
Gold has recovered 4% from its 2015 low of $1,148.20 an ounce hit mid-March but has not been able to break through $1,220 an ounce resistance, stymied by a strong dollar………………………………………..Full Article: Source

Dubai/China trading partnerships seen as key to gold market’s growth

Posted on 14 April 2015 by VRS  |  Email |Print

Dubai will play an important role in the flow of gold to China as the latter aims to continually open its domestic markets to the international stage in a bid to become the world’s gold trading hub, sources said this week.
During a panel discussion at the Dubai Precious Metals conference, Song Yuqin, deputy general manager of the Shanghai Gold Exchange, said through a translator that China has “huge potential” for grabbing future gold trading and demand. Alongside Albert Cheng, World Gold Council’s managing director for the Far East, the pair discussed the Chinese government’s “one-belt, one-road” philosophy. Described as a revamped “Silk Road” trade corridor from West to East………………………………………..Full Article: Source

World Gold Council considers creation of new London exchange

Posted on 14 April 2015 by VRS  |  Email |Print

The way gold is traded in London may be set for a shake-up as the World Gold Council (WGC), the industry’s leading trade body, along with half a dozen banks, have agreed to explore the idea of launching a new bullion exchange in London. The idea of a new exchange comes as existing markets continue to fall while facing greater regulation, and increased competition.
The newspaper, citing people close to the discussions, claimed that the WGC, a trade group which consists of 19 gold miners, alongside at least five banks, has begun initial discussions which could result in a move away from the London Bullion Market Association’s bilateral over-the-counter gold market that has been criticized for its lack of transparency, to a centrally regulated market………………………………………..Full Article: Source

Gold Income Funds Can Have You Investing Like Warren Buffett

Posted on 14 April 2015 by VRS  |  Email |Print

Warren Buffett thinks every investor should own a little bit of gold. Yet, while on CNBC recently for an hour-long segment, the legendary investor also said that he prefers “investments” versus “speculative trades.” That is, he prefers to hold investments that earn money and generate income rather than ones that are hoped to go up in value.
Obviously that means Buffett prefers equities of companies that generate income for shareholders; commodities, like gold, of course do not generate income. Buying a commodity in the hopes that someone will pay you more for it later is purely speculative, and not as much within the Buffett playbook. ……………………………………….Full Article: Source

Gold to average $1,170/oz in 2015, rise $1,250/oz in 2016

Posted on 13 April 2015 by VRS  |  Email |Print

Gold would sell at an average price of $1,170/oz during 2015 and rise to an average of $1,250/oz in 2016, the Gold Fields Mineral Services (GFMS) team at Thomson Reuters forecast on Thursday. GFMS’s forty-ninth yearly gold survey found that the gold price had already bottomed in local currency terms but would fall further in dollar terms this year, before rising by year-end in an upward movement that would lead to gold averaging $1 250/oz in 2016.
“There are signs that confidence is starting to return,” the survey team said. Fourteen percent higher 2014 official sector purchases, at 466 t net, the second highest since the end of the gold standard, underpinned a structural shift towards price stability………………………………………..Full Article: Source

Thomson Reuters publishes GFMS Gold Survey 2015

Posted on 13 April 2015 by VRS  |  Email |Print

Thomson Reuters released “Gold 2015”, the 49th in the series of annual Surveys, looking at the shifts and developments in the global gold markets, their fundamentals and their drivers, over the year and setting the scene for future.
“Like most markets, gold takes time to recover from periods of turbulence and in early 2015 it is continuing the stabilisation of 2014 following the hurricane that swept through it in the previous year. Demand contracted sharply in 2014 as some key regions, notably China, suffered from over-purchasing in 2013, while lack of confidence in any near-term price recovery deterred investment purchases elsewhere. There are signs that confidence is starting to return, however, as the physical market adjusts and takes comfort from the price stabilisation since November 2014………………………………………..Full Article: Source

It’s Time To Buy Gold

Posted on 13 April 2015 by VRS  |  Email |Print

Despite a rally this week, the broad market remains on edge and any downside in equity markets is likely to spur safe haven demand for gold. Treasury bond performance has mirrored that of gold recently, showing that after a period in the wilderness gold is once again used as a hedge against equity market volatility. The gold chart pattern is set up very bullishly, and should the pattern play out we will likely see a $50 move to the upside in the near term.
In last week’s article I noted that if we were to move higher than $1217 early in the week we would then have a bullish 5 wave move up from the lows, and as long as we did not exceed $1193 on the subsequent retrace, the chances were that a rally would ensue………………………………………..Full Article: Source

What is Next for Gold and Silver Markets?

Posted on 13 April 2015 by VRS  |  Email |Print

Over the last year, precious metals markets have have been one of the most closely watched asset classes in the financial environment as price volatility has reached heightened levels on several occasions. For those looking for evidence that the declines have finished (and that the long-term uptrend has resumed), it will be critical to turn the attention back to the underlying economic data that will determine where sentiment moves in the broader market.
It is always a good idea to keep in mind that gold and silver tend to perform well when the rest of the market looks negative, as investors have historically used precious metals as a way of gaining safe haven exposure and to safeguard against potential rises in inflation………………………………………..Full Article: Source

Where Are Gold And Silver Heading Next?

Posted on 10 April 2015 by VRS  |  Email |Print

Gold and silver rebounded off their lows in the past few weeks thanks to the U.S. dollar’s pullback, dovish sentiment regarding Fed policy, oil’s bounce, and geopolitical turmoil. In the past week, however, precious metals have softened as the dollar bounced. Where are they headed next? Let’s take a look at some charts.
Gold bounced off of its $1,140 to $1,150 support zone after the March FOMC meeting that sent dollar reeling, but has since struggled at its key psychological level at $1,200. If gold’s bounce continues, $1,300 (the January high) is the next resistance level to watch. A decisive break below the $1,140 to $1,150 support zone or above the $1,300 resistance level is necessary to confirm gold’s next major directional move………………………………………..Full Article: Source

Surging dollar drops gold price through $1,200

Posted on 10 April 2015 by VRS  |  Email |Print

On Thursday gold futures retreated more than $10 an ounce to below the psychologically important $1,200 an ounce level for the first time since end-March. Gold for delivery in June – the most active futures contract – was bid at $1,194.70 during lunchtime trade in New York not far off its day low as it retreats from a six-week intraday high struck on April 1.
Gold bounced off a near 4-year low of $1,148.20 an ounce mid-March but the metal is trading more than $110 an ounce below its 2015 high reached in January. Silver has had the worst of the change in sentiment, trading as low as $16.14 an ounce – down 6% on the week and almost 14% below it January peak. Platinum is down 10.1% since its January high, while palladium futures have lost 8.4% in just over a month………………………………………..Full Article: Source

Gold Price ‘Favors Break to $1300′

Posted on 09 April 2015 by VRS  |  Email |Print

Gold Prices bounced from a retreat near last week’s closing level lunchtime Wednesday in London, rallying as US stock markets opened the day higher but European equities retreated from a new record high. With the Dollar rising ahead of today’s release of minutes from the US Federal Reserve’s March policy meeting, wholesale gold recovered $5 per ounce from $1205.
The Shanghai Gold Exchange’s international contract earlier closed its busiest session yet at a $1.70 per ounce discount to London quotes, having traded 3 times as much value as the bourse’s formerly dominant domestic Au(T+D) contract. SGE international contracts allow domestic and foreign institutions to trade Yuan held in offshore accounts for metal stored in the city’s free-trade zone………………………………………..Full Article: Source

There’s still no hope for the gold market

Posted on 09 April 2015 by VRS  |  Email |Print

The gold market is still resting on a shaky foundation of sentiment. You may recall that this is the same conclusion I reached a month ago. And, just as contrarian analysis concluded then, gold has not since mounted a rally. Though there has been a lot of volatility — including an $18 rise on Monday and a $7 decline on Tuesday — gold today is barely changed from where it stood in early March.
And, yet, the average short-term gold timer monitored by the Hulbert Financial Digest is more bullish today than then. As a result, contrarian analysis is even less bullish on gold today than it was a month ago………………………………………..Full Article: Source

Gold supply boom is ending

Posted on 08 April 2015 by VRS  |  Email |Print

The biggest gold bust in three decades is about to end a six-year expansion in mine output. From Russia to South Africa to North America, the biggest producers saw profits turn to losses as prices plunged, forcing them to cut spending on mines in half over three years.
While bullion output will probably reach a record in 2015, the increase will be the smallest in at least six years, before production drops 1 percent in 2016, according to Barclays PLC. Mines supplied 3 114 metric tons last year, an all-time high valued at about $127 billion, after companies stepped up investment to capitalise on prices that surged more than fivefold in the decade through 2011………………………………………..Full Article: Source

Gold price to range between $1,165-$1,245/oz in April

Posted on 08 April 2015 by VRS  |  Email |Print

Gold will range between $1,165 and $1,245 per ounce this month, based on currency variables, INTL FCStone said in its monthly report. The spot gold price was last at $1,211/1,212, an increase of $9 on the previous close. Yesterday, the gold price jumped to $1,224.40, the highest since February 17.
“We think that the Iranian framework agreement reached recently, a likely resolution to the Greek issue and weaker macro numbers out of the US, should weaken the dollar short-term and further boost gold,” it said in the report. On the flip side, oil prices, which have been correlating quite strongly with gold recently, could generate a downward impact………………………………………..Full Article: Source

World Gold Council quiet on reports of London-based exchange

Posted on 08 April 2015 by VRS  |  Email |Print

The World Gold Council would not comment Tuesday on reports that it and a group of banks have been in talks about opening an exchange in London — where about 70% of the world’s bullion trade takes place over the counter — to try to increase market transparency.
“We are constantly exploring potential market development initiatives,” a WGC spokeswoman said. “So, it is in the normal course of business that we are engaged in discussions with a number of individuals and organizations regarding the operation of the global gold market.”……………………………………….Full Article: Source

Gartman: Gold is going higher

Posted on 07 April 2015 by VRS  |  Email |Print

Gold prices climbed to their highest level in more than six weeks on Monday on the back of Friday’s disappointing jobs number, which sent the dollar index lower and left traders searching for safety. According to Dennis Gartman of “The Gartman Letter,” the move higher in gold could just be getting started.
The Dow Jones industrial average finished higher by triple digits on Monday after opening the session down by more than 115 points. The day’s volatility marked the fourth session this year in which the Dow was both up and down by triple digits in the same day. Gold prices held relatively steady throughout the session, maintaining gains as the equity markets turned positive………………………………………..Full Article: Source

Gold attracts buyers on tepid economic data

Posted on 07 April 2015 by VRS  |  Email |Print

Gold prices shot higher on Monday, supported by Friday’s surprisingly weak jobs report. June gold GCM5, -0.52% rose $17.70, or 1.5%, to settle at $1,218.60 an ounce. May silver SIK5, -1.55% added 41 cents, or 2.5%, to $17.11 an ounce.
Major markets were closed on Friday as the U.S. reported a far smaller increase in jobs in March than analysts had expected. On Monday, the Institute for Supply Management said its nonmanufacturing index fell to 56.5% in March from 56.9% in February, indicating the service sector grew at a slower pace………………………………………..Full Article: Source

LBMA admits London gold market can’t be transparent with central banks in it

Posted on 07 April 2015 by VRS  |  Email |Print

Central bank involvement may prevent the London gold market from ever becoming really transparent, the chief executive of the London Bullion Market Association has told a Bank of England study group. The LBMA chief executive, Ruth Crowell, made the assertion in a long statement dated January 30 and sent to the bank’s “Fair and Effective Market Review” committee, which is studying regulation of the currency and commodity markets.
The LBMA statement was found on the bank’s Internet site by gold researcher and GATA consultant Ronan Manly. While Crowell wrote that the LBMA welcomes more transparency in the London gold market, particularly through “post-trade reporting,” she also praised gold lending by central banks for providing “liqudity” to the market, asserting that “it is vital that the role of the liquidity provider is not diminished but in fact strengthened to make sure the markets remain fair and effective.”……………………………………….Full Article: Source

JP Morgan lowers gold, silver price forecast for 2015

Posted on 02 April 2015 by VRS  |  Email |Print

The sharp decline in gold prices during February and Early March has forced JP Morgan to lower its gold price forecast for the entire year 2015. According to them, prices of the yellow metal are likely to drop further during the second and third quarters of the year. However, strong physical buying may offer some support during Q4 2015. JP Morgan has also lowered the average silver price forecast for the year.
The gold price forecast for the full year has been lowered by 3.6% to $1,188 per ounce. The U.S. interest rate hikes may drag gold prices, despite temporary boosts from geopolitical events. The escalating tensions in Yemen and deadlock over Iran nuclear deal may provide temporary support to gold prices………………………………………..Full Article: Source

Goldman Sachs warns that peak gold may happen in 2015

Posted on 02 April 2015 by VRS  |  Email |Print

Goldman warns that peak gold may happen in 2015. New report says there are only “20 years of known mineable reserves of gold”. Discoveries of new sources of gold production peaked in 1995 despite major bull market .
Production lags new finds in 20 year cycle – Indicates 2015 may be year of peak gold production. Production in major gold mining countries has dropped in recent years. This will provide support and should lead to higher prices in long term. For many years, we have written about ‘peak gold’ and the ramifications of the underappreciated peak gold phenomenon for the gold market………………………………………..Full Article: Source

Gold price to average $1,183/oz this year, silver $16.20/oz – BarCap

Posted on 02 April 2015 by VRS  |  Email |Print

Gold should hammer out a base this year and next, providing good buying opportunities for the long-term investor, Barclays Capital said on Wednesday. The broker sees gold averaging $1,183 per ounce this year. Spot metal was last at $1,185.40/1,186.20, up a $2.50 increase on Tuesday’s close.
With the relationship between gold and US interest rates crucial to prices, the timing and extent of the Federal Reserve’s raising of US interest rates from near-zero levels will be closely watched. BarCap expects the increases to be gradual, with the first increase to come later in the year. “A June rate hike would have exposed a weak gold price floor, whereas in September, physical demand tends to strengthen in light of seasonal buying in India. Thus, although a rate hike is likely to lead to disinvestment, physical demand should buffer prices, limiting the downward pressure,” it said………………………………………..Full Article: Source

Metals Focus forecasts gold price to average $1,190 in 2015

Posted on 01 April 2015 by VRS  |  Email |Print

Metals Focus sees a more stable gold price this year despite a forecast for a wider market deficit, it said. It sees the metal averaging $1,190 in 2015 after bottoming out at $1,080, it said in a report on Tuesday, This suggests reduced volatility in the market this year, with gold currently trading around $1,180 per ounce, effectively unchanged since the start of the year.
Selling pressure will emanate from a forecast 73-percent drop in net investment in ETF holdings following a drop of 80 percent in 2014, it said. But pressure may well be limited by better prospects for gold bar sales in Asia, following a slump in demand in 2014 owing to a reversal in the Chinese market. ……………………………………….Full Article: Source

Metals Focus: 2015 could be end of gold bear cycle

Posted on 01 April 2015 by VRS  |  Email |Print

Look for continued weakness in the short term, with the price maybe bottoming out $100 per ounce below where it is today, says Metals Focus in its inaugural Gold Focus report.The seers naturally trot out Asian demand as helping to save they day, but more interestingly suggest 2015 as the year the tremendous growth in supply over the past two decades comes to an end.
Further, producer hedging - selling future supply today - is expected to remain flat at levels far lower than seen a few years back.As for rate the start of U.S. rate hikes - widely anticipated and hurting gold’s price at least in dollar terms - it could be a sell the rumor, buy the news moment for the yellow metal as punters realized the pace of hikes will be slow, with real rates remaining negative for years to come………………………………………..Full Article: Source

Natixis sees gold averaging $1,150/oz in 2015

Posted on 01 April 2015 by VRS  |  Email |Print

The gold price could average $1,150 and $1,055 per ounce in 2015 and 2016 respectively as the normalisation of Federal Reserve monetary policy and further currency weakness in Europe and Japan drive the dollar higher, Natixis said in a report released on Monday.
The members of the Fed’s policy board are locked in what has become an increasingly public debate on when will be the right time to raise interest rates, which have been near zero since December 2008. The current market consensus is that the first increase will happen in the second half of this year………………………………………..Full Article: Source

Silver to hit $26 (£17.68) per ounce by end of 2016

Posted on 01 April 2015 by VRS  |  Email |Print

Macroeconomic consultantancy Capital Economics has reiterated its above consensus forecast for the silver price of $23 per ounce for the end of the year, rising to $26 for the end of 2016. Julian Jessop, head of Commodities Research at Capital Economics, said in a note on March 27: “Silver has out-performed gold this year during periods when the prices of both have been rising, as usual, but it has also held on to more of its gains when both have struggled. This supports our relatively bullish view on the outlook for silver prices over the remainder of 2015 and in 2016.”
Jessop continues to see plenty of upside for silver, which has massively under-performed gold since2011. He cited the ratio of the price of an ounce of gold to that of silver is now around 70 ($1,200/$17), compared to a long-run average of around 60………………………………………..Full Article: Source

Silver forecast to average $16.39/oz this year – JP Morgan

Posted on 01 April 2015 by VRS  |  Email |Print

Silver prices should track gold at an average ratio of 72:1 as larger economic trends prove more potent than supply/demand fundamentals, JP Morgan said on Tuesday. “The large macro themes – US rate hikes, strong dollar, potential for upticks in geopolitical risk – that will drive gold prices will also largely influence silver prices throughout 2015 and 2016,” JP Morgan said.
“From a fundamental perspective, continued growth in the global economy should underpin growth in industrial applications for silver but cheaper alternative materials and thrifting will likely temper some of this growth,” said the bank, which said that industrial application demand will grow by 2.5 per annum over the next two years………………………………………..Full Article: Source

Natixis forecast sees gold price averaging $1,150/oz in 2015

Posted on 31 March 2015 by VRS  |  Email |Print

The gold price could average $1,150 and $1,055 per ounce in 2015 and 2016 respectively as the normalisation of Federal Reserve monetary policy and further currency weakness in Europe and Japan drive the dollar higher, Natixis said in a report released on Monday.
The members of the Fed’s policy board are locked in what has become an increasingly public debate on when will be the right time to raise interest rates, which have been near zero since December 2008. The current market consensus is that the first increase will happen in the second half of this year. ……………………………………….Full Article: Source

In 20 years, the world may run out of minable gold

Posted on 31 March 2015 by VRS  |  Email |Print

In another two decades rare commodities may become seriously scarce. According to Goldman Sachs, the world has about 20 years each of known minable reserves of gold diamonds and zinc. Platinum copper and nickel reserves only have about 40 years or less left.
“The combination of very low concentrations of metals in the Earth’s crust, and very few high-quality deposits, means some things are truly scarce,” Eugene King, European metals and mining analyst at Goldman Sachs, wrote in a recent research note. “Gold has been used as a measure of wealth for more than 4,000 years, as the ancient Egyptians soon worked out that gold was not only shiny and heavy, but rare,” he said………………………………………..Full Article: Source

Silver’s outperformance versus gold to stay: Capital Economics

Posted on 31 March 2015 by VRS  |  Email |Print

According to senior analysts at Capital Economics, Silver has risen 8% in dollar terms year-to-date in 2015. During the same period, gold has appreciated only by 1%. This outperformance by silver is expected to continue in 2015 and 2016, noted Julian Jessop, Head of Commodities Research at the London-based economic research consultancy.
Gold had witnessed continuous upward journey for seven days in a row. However, the geopolitical tensions surrounding Saudi attack on Yemen, worries over Greece debt situation and the shaky US dollar had resulted in sharp rise in gold prices. However, the prices of the yellow metals settled under the $1,200 per Oz on account of strong profit booking. Overall, gold prices ended higher during the week……………………………………….Full Article: Source

Silver’s outperformance versus gold set to continue suggests economist

Posted on 30 March 2015 by VRS  |  Email |Print

Gold eased back after a strong run that had seen the spot price rise for seven straight days. Uncertainty over the situation in Yemen, Greece and a rare bout of the wobbles for the dollar spurred the rise, but some profit taking saw spot gold ease US$5 to just under US$1,200.
Even so, it was a good week for the metal, but even more so for near neighbour silver. It has risen by 8% in dollar terms in 2015 to date, whereas gold is up barely 1% said Capital Economics. Julian Jessop, Head of Commodities Research, said silver normally does better when prices of both metals are rising, but this time it has also proved more resilient in bouts of weakness………………………………………..Full Article: Source

Hedge funds bet gold gain to fizzle

Posted on 30 March 2015 by VRS  |  Email |Print

Hedge funds are betting that gold’s recent rally won’t last and are holding the biggest wager ever that prices will decline. The net-long position in gold dropped by 9.9 per cent to 31,653 futures and options in the week ended March 24, according to U.S. Commodity Futures Trading Commission data published three days later.
That was the lowest since Dec 2013. Short holdings rose for a seventh straight week to 84,022 contracts, the highest since the data begins in 2006. Even as futures climbed for two straight weeks, some investors have shied away from the metal. Global holdings in exchange-traded products backed by bullion declined every week in March………………………………………..Full Article: Source

World Gold Council Tells China to Increase Gold Reserves

Posted on 27 March 2015 by VRS  |  Email |Print

China should increase its gold holdings to around 5 percent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6 percent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said.
“The ideal amount should be at least 5 percent of its total forex reserves,” Wang told Reuters in an interview in Hong Kong. China last raised its gold holdings in April 2009, when reserves rose to 33,890,000 troy ounces (about 1,054 tonnes), from 19,290,000 troy ounces, according to central bank data. The holding was unchanged as of December 2014………………………………………..Full Article: Source

Yuan and Gold: Old Enemies Should Finally Become Friends

Posted on 27 March 2015 by VRS  |  Email |Print

The Communist Party had good reason to avoid the use of gold when it set up China’s financial system, but having a reserve of the metal offers a range of benefits. We’ll never know if there really were 200 chests of gold on the steamer Taiping, as depicted in John Woo’s recent movie The Crossing, but we can verify that 1,317 cases of central bank records were sunk with the ship in 1949.
These documents, including the Draft Agreement on Gold, were the only legal basis the government of the Republic of China had to move the former central bank’s gold reserves to Taiwan so they could be used to “pre-pay military expenses.” With the situation on the mainland growing dire at the end of 1948, Chiang Kai-shek began planning to move all treasury assets to Taiwan, including gold reserves intended to back “jinyuanquan,” the paper money issued by the ROC government in 1948………………………………………..Full Article: Source

Further downside on gold prices limited – CPM

Posted on 27 March 2015 by VRS  |  Email |Print

This time of year usually sees the release of three major analytical reports on the gold market – from CPM in the USA and from Metals Focus and GFMS in the UK – and CPM’s Jeff Christian kindly let me have a copy of the former’s analysis which was released earlier this week.
The CPM Gold Yearbook comprises over 250 pages, mostly of statistics and comment, some of which most will agree with whether from the bullish or bearish factor of gold followers, whereas other elements may raise the hackles, particularly of the gold ultra bulls for whom Christian and his team are bêtes noires – primarily because Christian is an adamant anti-gold price manipulation standard bearer, and is prepared to defend his position right in the lion’s den on occasions………………………………………..Full Article: Source

Gold price leaps past $1,200 on safe haven buying

Posted on 27 March 2015 by VRS  |  Email |Print

Amid nervousness on US bond and equity markets which are back in negative territory for the year and a spike in oil prices sparked by chaos in the Middle East gold leaped past the psychologically important $1,200 an ounce level on Thursday.
Gold for delivery in June – the most active futures contract – gained $21.76 or 1.8% hitting a high of $1,219.76 early on, before pulling back in early afternoon trade in New York to around $1,206 an ounce, still a three-week high. The gold price is up more than 6% after dropping to a 2015 low of $1,148.20 an ounce last week and has now retraced almost 40% of its losses since the 2015 high above $1,300 reached in January………………………………………..Full Article: Source

HSBC ‘cautiously optimistic’ of gold price outlook in 2015

Posted on 26 March 2015 by VRS  |  Email |Print

HSBC is “cautiously optimistic” of the gold price outlook for 2015, predicting a trading range of $1,120/oz-$1,305/oz with an average price of $1,234/oz, the bank said late Tuesday, March 24. “The possibility that deflationary pressures could bring on negative rates in some economies helps reaffirm our cautiously optimistic view on gold,” head analyst James Steel said.
However, in Steel’s view gold prices are not “entirely hostage” to monetary developments. “The recent price slump below $1,150/oz may be encouraging greater demand from price sensitive emerging market buyers, notably, but not exclusively, in India and China,” Steel said………………………………………..Full Article: Source

Bank of America: Gold Price Could Hit $1,300 by May

Posted on 26 March 2015 by VRS  |  Email |Print

CNBC reported that MacNeil Curry, the Bank of America Merrill Lynch’s head of global technical analysis, believes that a near-term correction in the US dollar and declining yields on Treasuries may lead to a “sustained and sizable” gold price rally. The yellow metal might even rise above $1,300 per ounce by the end of May.
As quoted in the market news: ‘Rates are headed lower, and the dollar is likely to remain in a corrective sequence in general,’ said Curry. ‘Gold should rally in that environment.’ According to Curry’s chart work, gold has been in a ‘sizable corrective phase’ since November 2014. But recently, the yellow metal has shown signs of life. Moreover, Curry points out that gold’s inverse relationship to the dollar appears have broken down, which he interprets as another bullish sign for bullion………………………………………..Full Article: Source

banner
banner
May 2015
S M T W T F S
« Apr    
 12
3456789
10111213141516
17181920212223
24252627282930
31