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Gold: Why You Should(n’t) Care About Brexit

Posted on 23 June 2016 by VRS  |  Email |Print

Right now, global markets are dancing to the Brexit beat. Traders plow money into equities and sell gold every time a poll leans toward the UK staying in the EU. Fifteen minutes later they are reversing because a poll says it’s a tossup. We feel if you are invested in Gold you shouldn’t care. If you are trading Gold you should.
First: let’s quickly look at the logic behind the market’s gyrations on Brexit perception. The UK Leaves: GBP Gets Slammed- Sterling devalues quickly from what can best be called “separation anxiety”. Stocks are Sold- in a riskoff frenzy. Gold Rallies- as a hedge against uncertainty………………………………………..Full Article: Source

Why Gold, Why Now?

Posted on 23 June 2016 by VRS  |  Email |Print

During my most recent webcast a couple of weeks ago, I had the pleasure of being joined by the CEO of the World Gold Council (WGC), Aram Shishmanian. As expected of someone of his stature, Aram brought another level of insight and expertise to our discussion of gold’s Love Trade and Fear Trade.
You might wonder what the WGC does exactly. In Aram’s words, it focuses on “innovation and integration to create the gold market” around the world. Among other important endeavors, the group “lobbies governments to make their countries appropriately pro-gold” and is the only agency in the world to “train central bankers in the use of gold.”……………………………………….Full Article: Source

Brexit gold rush: Scared Brits stockpile bars & coins, just in case

Posted on 23 June 2016 by VRS  |  Email |Print

UK citizens worried about the potential fallout of a Brexit are stockpiling gold bars and bullion coins in their safes at home. Searches for the phrase “home safe” have skyrocketed on Google, coming in at 61 percent higher than the previous peak in November 2008 during the global financial crisis, according to data obtained by the Telegraph.
The UK’s official producer of gold and silver coins, Royal Mint, said its sales have soared by 32 percent in June, with customers desperate to buy signature gold bars and Britannia bullion coins………………………………………..Full Article: Source

Silver is significantly underpriced

Posted on 23 June 2016 by VRS  |  Email |Print

Silver is used in many different sectors, including manufacturing, technology, jewellery, and tableware. It’s a good bet to place, when worry over the economy is rampant, due to a disappointing jobs report in May, confusion from the Fed, and concern over the Brexit vote taking the United Kingdom out of the EU.
Investors are flocking toward things with more value than paper currency, and one of those things is silver. With precious metals prices soaring this week, month, and year on the back of flailing Fed credibility, it is not entirely surprising that assets in exchange-traded funds backed by silver have swelled as investors seek a haven from global economic and political risk………………………………………..Full Article: Source

The yellow metal is all aglitter

Posted on 22 June 2016 by VRS  |  Email |Print

After falling six per cent in May, gold prices have gained momentum in June, recovering from the low of $1,199.60 per ounce on May 30 to $1,286 at present, rising around 7 per cent.
The recent rally is a combination of two key events that dominated the price trajectory of the yellow metal. The prime driver was the US Federal Reserve meeting, which was scheduled on June 14-15; the other event is the Brexit referendum on June 23………………………………………..Full Article: Source

Gold prices could rise almost 10% on Brexit

Posted on 22 June 2016 by VRS  |  Email |Print

Gold prices could swing both ways, depending on whether Britain votes to leave or remain with the European Union (EU). With fears of Britain’s exit (Brexit) receding in the past few days, gold prices have fallen and stock markets have rallied. However, should Brexit happen, gold prices could hit as high as $1,400 per ounce from Tuesday’s $1,283, according to an analyst.
“While it (Brexit) may also support the dollar thereby creating some headwind giving the negative correlation we see an increased risk that gold could be propelled towards $1400, the 2014 high,” the Khaleej Times quoted Ole Hansen, head of Commodity Strategy at Saxo Bank, as saying………………………………………..Full Article: Source

Switzerland gold exports jump 20% to 177.3 mt in May, highest this year

Posted on 22 June 2016 by VRS  |  Email |Print

Gold exports from Switzerland totaled 177.3 mt in May, up 20% from 147.8 mt reported in April, and the highest level since December, Swiss federal customs data showed Tuesday. The figure is 69% higher than 105.1 mt reported a year earlier.
Exports to China were 36% higher on the month at 19 mt in May, while exports to Hong Kong were 2.5-times as large at 24 mt. Exports to the US were also up on the month, to 18.9 mt in May, from just 2.3 mt in April………………………………………..Full Article: Source

Why gold could crash or soar this week

Posted on 22 June 2016 by VRS  |  Email |Print

Britons will go to the voting booth on 23 June in what could mark a historic date for the country, while the outcome could have a lasting impact on the global economy as a whole. Although much has been said and written about the potential Brexit, the consequences of a ‘leave’ decision are still unclear.
Overnight, for instance, George Soros warned that an exit from the EU risks ‘Black Friday’ for the United Kingdom, as reported by The Guardian, while others suggest that Brexit would be a complete non-event. One way or another, the upcoming referendum vote has created much uncertainty………………………………………….Full Article: Source

HSBC: Gold May React ‘Vigorously’ To Polls Ahead Of U.K. Referendum

Posted on 22 June 2016 by VRS  |  Email |Print

Gold may respond “vigorously” this week to any perceived changes in how U.K. citizens may vote Thursday in a referendum on whether to leave the European Union, says HSBC. The metal rose last week on polls showing the “leave” camp was ahead, but has given up some ground now with more recent polls showing the “remain” camp just might win after all.
Polls remain tight, however. “The U.K. referendum presently appears the most influential factor in the gold market and as opinion polls shift and investor perceptions of the likely referendum outcome change, even slightly, we expect the gold market to respond, possibly vigorously,” HSBC says. ……………………………………….Full Article: Source

Is silver next for Chinese speculative investors?

Posted on 22 June 2016 by VRS  |  Email |Print

The roulette game all started in the fall of 2014, about two years after Chairman Xi Jinping came to power and became the general secretary of the Communist Party of China. Xi Jinping had campaigned for socialist economic reform, including a sweeping anti-corruption drive, cutting excess production capacity, tightening of housing credit, and clamping down on gaming in Macau.
Public feedback was initially positive. However, largely as a result of those policies, Beijing was facing an increasingly grim economic growth outlook which was the worst in more than two decades*. Manufacturing activity in China slowed along with the global economy and the construction sector stagnated………………………………………..Full Article: Source

Will Trump or Hillary Be Good for Precious Metals Prices?

Posted on 22 June 2016 by VRS  |  Email |Print

This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.
There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we can’t even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country………………………………………..Full Article: Source

How Brexit vote will shape the price of gold

Posted on 21 June 2016 by VRS  |  Email |Print

Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.
Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16………………………………………..Full Article: Source

Brexit Fears Boost Gold Price

Posted on 21 June 2016 by VRS  |  Email |Print

As the world awaits Britain’s referendum vote to the leave the European Union, investors are flocking to safe havens. Gold jumped to a month-high last week with uncertainty over the coming election leaving investors anxious. Additionally, the much anticipated Federal Reserve meeting this month is adding to the uncertainty.
British voters will decide on the 23rd of this month whether the UK should stay in the EU. The debate over the consequences of a Brexit has raged over the past several months………………………………………..Full Article: Source

Safe haven demand adds sheen to gold

Posted on 20 June 2016 by VRS  |  Email |Print

Gold continues to remain on a strong footing. The “Brexit” fear in the market is helping the yellow metal regain its safe haven status. Bullion prices surged for the third consecutive week. The global spot gold price rose 1.9 per cent last week to close at $1,298.65 per ounce.
Gold prices have skyrocketed 7 per cent over the last three weeks. Gold broke above the psychological $1,300 mark last week to make an intraweek high of $1,315. But prices reversed lower on Thursday after the campaigning in the UK for the referendum was stopped following the murder of Labour MP, Jo Cox. However, gold bounced back once again from the low of $1,276 on Friday to close just below $1,300………………………………………..Full Article: Source

Uncertainties of Brexit making gold attractive as safe asset

Posted on 20 June 2016 by VRS  |  Email |Print

The outcome of Thursday’s Brexit referendum will chart the price of gold in the next six to 12 months, but, in the longer term, investors and analysts agree that bullion is an asset to hold. The immediate trigger for any gold price moves will come in the wake of the referendum, which could see Britain leave the European Union.
Robin Tsui, exchange traded fund (ETF) gold specialist of Asia-Pacific at State Street Global Advisors, said: “If Britain does decide to vote for an exit, this would trigger more uncertainties. There are also risks that other countries may follow Britain to vote for an exit………………………………………..Full Article: Source

Brexit Alarms Propel Gold Investors to Near Record Rally Wagers

Posted on 20 June 2016 by VRS  |  Email |Print

The turbulence sweeping global markets has reignited investors’ passion for gold. Global central bankers have sounded the alarm that a British exit from the European Union could be disruptive to the global economy.
Anxiety about the June 23 vote contributed to more than $1 trillion of value being wiped from global equities last week as bullion futures reached the highest in almost two years. Hedge funds are holding the second-biggest bet ever that the metal will rally further, falling just short of a record reached in 2011………………………………………..Full Article: Source

Silver Sleeping On the Job

Posted on 20 June 2016 by VRS  |  Email |Print

In the time of the ancient Babylonians - long before the periodic table - there were seven sacred metals: gold, silver, copper, iron, tin, lead and mercury. In Roman and Greek Mythology, the First Age was called Golden, the Second Age Silver. Apollo, the god of truth and light, and teacher of medicine, carried a silver bow.
The hieroglyph of Isis (Egyptian moon goddess) is a crescent and images of her are usually reproduced with her standing on the Crescent. This has also become the symbol for silver – on old maps a crescent shows the location of a silver mine………………………………………..Full Article: Source

Gold price nears two-year high

Posted on 17 June 2016 by VRS  |  Email |Print

Gold prices soared to their highest level in nearly two years Thursday, a day after the Federal Reserve lowered projections for how much they expect to tighten monetary policy in the next few years. Gold for August delivery closed up 0.8 per cent at $US1,298.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices hit $US1,318.90 a troy ounce earlier in the session, the highest level since August 2014. An uneven recovery in the US and slow growth abroad appear to have eroded the Fed’s hawkishness, with a greater number of officials now seeing scope for just a single rate increase this year, rather than two………………………………………..Full Article: Source

Gold price bulls kept faith as hedge funds wavered

Posted on 17 June 2016 by VRS  |  Email |Print

A big factor supporting the gold rally – the best start to the year in more than a decade – have been investors in physical gold-backed exchange traded funds. Global vault holdings have swelled to 1,883 tonnes, the highest since December 2013 following net inflows of more than 400 tonnes so far this year – a dramatic reversal of the trend during the last three years when a staggering 1,198 tonnes left funds.
As the chart shows the more than 6% decline in the price of gold in May did not deter ETF investors from picking up more metal and doubling down on their conviction of a rising gold price………………………………………..Full Article: Source

Understanding Gold And Silver ETFs

Posted on 17 June 2016 by VRS  |  Email |Print

If you have begun recently to consider investing in gold or silver — congratulations for thinking outside the box of conventional asset classes. Whether you’ve arrived at this point due to the recent turbulence in the stock market, or you’d like to diversify into an asset class that will always maintain some intrinsic value, or you’d simply like to profit from an increase in the price of gold or silver, you’ve made an important step toward protecting your wealth and profiting in the future.
And if you’ve followed our analysis in other articles, you know why we anticipate significant rises in the price of both metals in the coming years………………………………………..Full Article: Source

European investors buy heavily into gold ahead of Brexit poll

Posted on 16 June 2016 by VRS  |  Email |Print

Gold prices are spiraling with a rise in uncertainty in the developed world. In America, the ongoing meeting of the Federal Reserve is expected to decide on whether to raise policy rates. And, there is the June 23 referendum in Britain on whether to leave the European Union (’Brexit’).
If rate increase in the US and Brexit does happen, European investors will look for hedging in a safe haven, gold at present. SPDR, the largest exchange traded fund for gold, has seen its holdings rise nearly 40 per cent since January and 9.7 per cent since April. Since the beginning of May, its gold holdings have risen on a net basis by 94 tonnes, indicating investor buying. For, recessionary conditions will accelerate in Britain if it chooses to opt out of the EU, which is positive for gold………………………………………..Full Article: Source

HSBC: Gold will explode if Britain votes for a Brexit

Posted on 16 June 2016 by VRS  |  Email |Print

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time.
Gold is seen as a haven for cash. It does not pay a coupon like a bond, and it does not pay a dividend from a stock, but it does mean you own ounces in a physical precious metal that you can hold onto………………………………………..Full Article: Source

The Brexit Vote Could Push the Price of Gold to $1,400

Posted on 16 June 2016 by VRS  |  Email |Print

Ahead of the June 23 Brexit vote, analysts at the Australia and New Zealand Banking Group (ANZ) have said the price of gold could reach as high as $1,400 an ounce. From today’s opening gold price of $1,288.10, that’s an 8.6% increase. And hitting that mark would be a gain of 31% from when the bull run started at the end of 2015.
We know that investors are going to be flooded with Brexit news over the next few days. But we also know the mainstream media won’t analyze the impact of a Brexit on gold prices………………………………………..Full Article: Source

Fitch: Gold Price Assumptions Raised amid Global Uncertainty

Posted on 16 June 2016 by VRS  |  Email |Print

Fitch Ratings raised its gold price assumption to $1,100/oz from $1,000/oz as uncertainty, driven by negative interest rates in parts of Europe and elsewhere, combined with reduced US rate hike expectations, have driven investment sentiment for gold in first-half 2016.
Our updated global gold price assumptions incorporate upward revisions for all forecast years, reflecting the current market price environment and evidence of price support during the forecast period. Gold prices are expected to continue to be supported by strong retail investment demand, continued central bank purchasing and global financial turmoil. (Press Release)

Should investors be seeking safety in gold?

Posted on 16 June 2016 by VRS  |  Email |Print

Global gold investment shot up to the equivalent of 617.6 tonnes in Q1 this year, the second highest quarter on record, according to figures from the Global Gold Council and equivalent to $27.2bn (£18.8bn) based on prices of $1,250 an ounce. The industry body attributed the upsurge in demand to negative interest rates, stock market volatility and concerns about global growth.
ETFs were the “main engine” of this growth, according to the organisation, seeing inflows of 363.7 tonnes following three years of almost uninterrupted outflows. At BlackRock, one of the largest ETF providers, gold-based ETPs saw $4.1bn (£2.8bn) of inflows in May, second only to bond funds for net flows at the asset manager, while its gold miners ETFs saw inflows of $1.3bn………………………………………..Full Article: Source

Commerzbank: Supply Deficits To Underpin Prices Of Platinum, Palladium

Posted on 16 June 2016 by VRS  |  Email |Print

Supply deficits in platinum group metals are likely to continue, thereby supporting prices, says Commerzbank. Analysts project platinum will average $1,000 an ounce in the third quarter, $1,050 in the fourth and $1,100 in the first quarter of 2016. They see palladium at $575 in the third quarter, $625 in the fourth and $650 in the first three months of 2016.
“Supply is unlikely to be sufficient to cover demand yet again this year on both the global platinum and palladium markets,” Commerzbank says. “Both markets thus look set to record their fifth consecutive year in deficit, which in our opinion points to higher platinum and palladium prices. There are likely to be some limits to the anticipated price rises, however.”……………………………………….Full Article: Source

How gold prices can top $1,300 an ounce for good

Posted on 15 June 2016 by VRS  |  Email |Print

Gold’s narrow trading range — already four months old and counting — is likely to continue for awhile. That’s because current sentiment conditions don’t support a rally that will take gold significantly above the upper end of that range, currently around $1,300 per ounce.
To be sure, gold-market enthusiasm has risen steadily over the last two weeks as gold bullion has rallied $75 per ounce and gathered momentum that, in some eager gold bugs’ eyes, is enough to propel it above the $1,300 level for good………………………………………..Full Article: Source

Gold Prices: 3 Reasons Gold Prices Could Be About to Skyrocket

Posted on 15 June 2016 by VRS  |  Email |Print

Gold prices are up by more than 20% year-to-date, but the gain for gold bullion could be just getting started. There are three events that every gold investor should pay attention to, because they have the ability to cause a super spike in gold prices.
On June 23, Britain will be voting on whether the country should leave the European Union (EU) or stay. As it stands, it looks like the “Leave the EU” movement is surging. According to the Opinium Poll, commissioned by the Brexit-backing think tank Bruges Group, 52% of the respondents said they would prefer to leave the EU………………………………………..Full Article: Source

Is Gold-to-Silver Ratio Too High?

Posted on 15 June 2016 by VRS  |  Email |Print

The gold-to-silver-ratio is an indicator that shows how many silver ounces are required to purchase an ounce of gold. The gold-to-silver ratio is one of the most important parameters in the precious metals market, as it measures the relative value of gold and silver. Therefore, it is a useful tool indicating whether gold or silver is undervalued or overvalued relative to each other.
Investors can use the ratio as a timing indicator deciding when to buy gold or silver, or which metal to buy at any given time. When the ratio is low, it means that silver is overvalued relative to gold (and vice versa)………………………………………..Full Article: Source

BMO: Silver Lagging Gold But Expected To Continue Moving Higher

Posted on 15 June 2016 by VRS  |  Email |Print

Analysts at BMO Capital Markets say silver has been lagging gold again lately, but they expect silver to continue moving higher later this year. “There continues to be profit taking in silver, while gold speculative positions are seeing growing longs again,” BMO says.
“Earlier this year, silver prices lagged gold by about six weeks due to uncertainty around industrial activity globally. However, we note that the negative sentiment towards industrial demand has eased somewhat, especially given the outperformance of the steel complex.” The firm says silver industrial demand tends to be “sticky,” although this is often overlooked by markets………………………………………..Full Article: Source

Platinum – This Precious Metal Just Hit A Multi-Decade Extreme

Posted on 15 June 2016 by VRS  |  Email |Print

The gold to silver ratio is often cited as an indicator for the precious metals markets. When the ratio is high (gold is relatively strong versus silver), that typically corresponds with a cyclical low area in precious metals prices. When the ratio starts narrowing (silver gains strength versus gold), that typically corresponds with a cyclical bull market in precious metals.
The gold:silver ratio hit a multi-year high of over 83:1 earlier this year. It has since come down to 73.4:1, as of Friday’s close, as silver has gained strength in this year’s rally. On a historical basis, silver remains a relative bargain compared to gold. The ratio has much further to fall in a major bull market………………………………………..Full Article: Source

Gold price: Hedge funds pile back in

Posted on 14 June 2016 by VRS  |  Email |Print

On Monday, upward momentum in the gold price continued to build, supported by weakness in the US dollar, a negative interest rate environment and worries over event-risk such as Britain leaving the EU.
In brisk early afternoon trading on Monday gold futures in New York for delivery in August, the most active contract, jumped to a high of $1,290.30 an ounce, up just over 1% from Friday’s close and the highest in nearly a month………………………………………..Full Article: Source

How Is Volatility and Market Sentiment Impacting Gold?

Posted on 14 June 2016 by VRS  |  Email |Print

According to the latest figures out by BlackRock, global investors have dived into gold and gold-based exchange-traded funds since the beginning of 2016. On the basis of the reports, gold-tracking funds attracted almost $5.4 billion in the month of May, which drastically outpaced the investments in other asset class like corporate bonds and real estate.
These two stand as competitors for gold funds. These two sector funds together attracted only $4.7 billion. Now that could be a major victory for gold, or could we say that haven demands have helped………………………………………..Full Article: Source

Investors Betting on Oil Prices to Hit $100 a Barrel

Posted on 13 June 2016 by VRS  |  Email |Print

The massive plunge in the price of global oil prices has without doubt been one of the biggest triggers for the rising uncertainties in markets worldwide but over the past few months the prices have rallied and some traders and investors believe that the price would rise further in the days to come.
Plenty of traders have taken out contracts that would be triggered only when the price of oil touches $100 or more a barrel and that is without doubt a clear indication that they feel that the pries would continue to rise in the near term………………………………………..Full Article: Source

Is $10,000 gold on the horizon? One commodities expert says yes!

Posted on 13 June 2016 by VRS  |  Email |Print

As gold continues to rally in 2016, one of Wall Street’s most closely followed commodities watchers says we could be in the early days of a historic rally for the precious metal. However, the catalyst for gold’s gains could stem from a nerve-wracking sequence of events.
“We should expect the next global financial panic soon,” said Jim Rickards on CNBC’s “Futures Now” last week. “We have imploded twice in the last 16 years so get ready for the third one.” Rickards has penned numerous New York Times best sellers on the relationship between commodities and currencies………………………………………..Full Article: Source

Gold: It’s Not Just A Fed Trade

Posted on 13 June 2016 by VRS  |  Email |Print

In recent months, the short-term trading crowd has hijacked the gold market. Momentum traders and opportunistic day and swing traders have driven the price of gold higher and lower, on shifting whims and expectations regarding when the Federal Reserve might hike rates next.
Sure, monetary policy is one factor that impacts gold, but long-term gold investors need to remember that the yellow metal is much more than just a Fed trade. Here are 7 reasons why investors like gold: Gold is a wealth preservation and wealth building vehicle. Gold is a “hard” currency that can’t be debased or devalued by a government printing press………………………………………..Full Article: Source

BoAML looks for higher gold price and silver prices but….

Posted on 13 June 2016 by VRS  |  Email |Print

Bank analysts are beginning to buck the trend. The analysts usually play for safety so tend to be reactive to moves in the gold price, rather than proactive in going out on a limb and forecasting higher prices when their peers are mostly pessimistic. Thus earlier this year most bank analysts out there were forecasting lower gold prices ahead.
But, of course, the gold price has performed rather differently with a rise of around 20% from its lows late last year and the longer this has been going on the more willing some analysts have been to change their views, but still basically remain conservative overall………………………………………..Full Article: Source

Are Platinum Prices Set to Soar?

Posted on 13 June 2016 by VRS  |  Email |Print

Recession, Supply Deficit, and Market Appetite Will Play a Major Role in Platinum Prices. Platinum is the best buy among precious metals right now. It’s more affordable than gold and, some would argue, more useful. Trading now at around $1,000 an ounce, platinum could outperform both gold and silver over the next several months.
Platinum has much more in common with silver than it does with gold. That’s because, unlike gold, platinum plays a role as an important industrial metal. About 40% of the world’s platinum demand comes from the automobile industry………………………………………..Full Article: Source

Billionaire Investors Back A Gold Price Rally In 2016

Posted on 10 June 2016 by VRS  |  Email |Print

It wasn’t so long ago that some of the more famous investor gurus were shrugging off gold as nothing more than shiny trinkets with no investment value. They were wrong. This safe haven is back, the recovery is clear, and there have been some very big changes of heart.
The biggest gold producers in the world have seen their share prices double this year. Not only are gold prices soaring, but producers are cutting costs and slimming down debt as they pave the way for gold to return to the top of the favored commodities list………………………………………..Full Article: Source

The Big Bet of 2016: Joining George Soros in Gold

Posted on 10 June 2016 by VRS  |  Email |Print

Investors pile into the metal, up 20% this year, and mining stocks, which have vaulted even more. There is a new gold rush on. Abating expectations for Federal Reserve rate increases have fueled a fresh boom in everything that glitters, from gold futures to the shares of gold-mining firms to exchange-traded funds that give traders a way to bet on gold’s daily rise and fall.
Front-month Comex gold futures have been among the best-performing major asset classes in financial markets this year, up about 20% as of Thursday………………………………………..Full Article: Source

Three reasons why gold won’t tank

Posted on 10 June 2016 by VRS  |  Email |Print

Talk of upcoming Fed rate hikes has caused gold to give up some of this year’s gains. But we believe that the potential downside for gold is limited. Real U.S. interest rates – the key determinant of the gold price – are likely to fall further into negative territory.
In 12 months we forecast gold to be near its current price of $1200 an ounce, retaining most of its bounce from below $1100 since the end of last year. Gold has been among the best performers this year. The precious metal has outshone equity markets and high yield bonds with a gain of nearly 15 percent, to trade at $1215 an ounce………………………………………..Full Article: Source

Gold is sending a warning signal: Bouroudjian

Posted on 10 June 2016 by VRS  |  Email |Print

The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said. That “red flag” is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks.
“It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,” the co-founder and director of UCX said……………………………………….Full Article: Source

Silver Acting Like ‘Gold on Steroids’ as Assets Near Record High

Posted on 10 June 2016 by VRS  |  Email |Print

For all the concerns whether the rally in precious metals will last, investors are close to making the biggest bet ever on silver. Silver funds have taken in a wave of new cash this year and assets are approaching an all-time high. Prices are up 25 percent in 2016, tracking a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.
“We’re still seeing big chunks of managed money coming into the silver market,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “Inflows from our clients match those at the all-time highs of early 2011.”……………………………………….Full Article: Source

Gold sector M&A to be smaller in scale as big asset sales dry up

Posted on 09 June 2016 by VRS  |  Email |Print

Evolution Mining chairman Jake Klein says the string of big deals that Australian mid-tier gold companies have made to grow their portfolios and attract global investor interest is all but over.
The Australian gold sector benefited from a significant round of transactions over the past two years, as global majors Newmont Mining Corporation and Barrick Gold divested the majority of their Australasian assets to ambitious local miners, including Evolution, Northern Star Resources and OceanaGold. Klein said it was “difficult to see more large assets moving hands” as the majors turned their focus to cash flows from their remaining assets amid a resurgence in the gold price………………………………………..Full Article: Source

Actually, Gold Can Provide Income: Here’s the Trade

Posted on 09 June 2016 by VRS  |  Email |Print

As gold stocks surge, this options trade lets investors pocket income as long as prices don’t fall. Gold, which defies traditional valuation metrics, keeps attracting buyers in anticipation of further gains. This is incredible because stocks, which can be valued based on cash flow, are dancing around record highs and it’s hard to find anyone who is confident about the near-term future.
But the SPDR Gold Trust , even though it is up some 14% this year in what appears to be a knee-jerk reaction to simmering fears that the world economy is in bad shape, is in a full-fledged bull market. ……………………………………….Full Article: Source

How Are Gold Miners Placed in a Volatile Gold Price Environment?

Posted on 09 June 2016 by VRS  |  Email |Print

Gold investors became worried after the release of the Federal Reserve’s April minutes, which were more hawkish than expected. This put the summer rate hike back on the table, causing gold to lose some of its sheen. Gold lost 5.1% in 11 trading sessions after the minutes were released.
The Market was also awaiting the May jobs data to get a sense of the direction of Fed’s monetary policy. The data came in markedly below expectations, lowering the chances of a Fed rate hike in June………………………………………..Full Article: Source

World Silver Survey Shows Indian Market Still Growing

Posted on 09 June 2016 by VRS  |  Email |Print

“The World Silver Survey 2016,” an annual report published by The Silver Institute, said Asia’s silver mine output went up last year by 1% to 165.1 million ounces, following a 3% drop in 2014. A major part of the decrease originated from lead and zinc production sources with a lesser drop from primary silver mines. The bulk of the loss could be traced to mines in China and Kazakhstan.
For India, silver production showed a “notable rise” last year, of over two-fifths, or by 3.6 million ounces, to reach a record production total for the country of 12.0 million ounces. Total physical demand in 2015 saw a 3% increase in 2015, driven by higher retail investment, jewelry and silverware fabrication and solar and ethylene oxide catalyst demand………………………………………..Full Article: Source

Gold Ends Near Steady Amid Chart Consolidation

Posted on 08 June 2016 by VRS  |  Email |Print

Gold prices ended the U.S. say session near unchanged levels Tuesday, amid mild profit-taking pressure and some normal backing and filling on the charts following recent good gains. The gold market bulls still possess the overall near-term technical advantage.
That means the path of least resistance for prices in the near term will remain sideways to higher. August Comex gold was last up $0.10 an ounce at $1,247.60. July Comex silver was last down $0.017 at $16.43 an ounce………………………………………..Full Article: Source

Gold appetite in May was the strongest in over 3 years

Posted on 08 June 2016 by VRS  |  Email |Print

Buyers took advantage of gold’s price volatility to boost their holdings in May, according to data from BullionVault. The increase in buying lifted a key measure of gold investment to its highest level in roughly three years, BullionVault’s report, released on Tuesday, shows.
The Gold Investor Index, run by internet-based metals exchange operator BullionVault, jumped to 55.8 in May—its highest level since April 2013. It stood at 53.5 in April………………………………………..Full Article: Source

Another Gold Bull Market to Begin in 2016?

Posted on 08 June 2016 by VRS  |  Email |Print

3 Reasons to Remain Bullish on Gold Prices. Despite all the negativity, gold prices continue to trend higher. Expect more upside ahead in 2016. The yellow precious metal is setting up to reward investors big time.
There are three things you have to keep in mind when looking at the gold market: higher prices could attract more investors, demand already remains solid and could increase, and the supply side remains constrained. When looking at the supply side, gold prices are still not high enough for producers to flood the market………………………………………..Full Article: Source

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