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Are You Smarter Than The Gold Market?

Posted on 26 October 2016 by VRS  |  Email |Print

“Markets are never wrong – opinions often are” said Jesse Livermore, a legendary American stock trader of the 1920. Trading your opinion can be dangerous to your P/L statement. At the end of the day, the market is always right. Recent gold market action has been choppy and “noisy.”
Both the bulls and the bears are biding their time. At times like this, even fundamental traders and investors can find important clues on the chart. Here are 3 important signals the daily gold chart is showing now: The 2016 gold uptrend pattern is broken. The late September/early October sell-off broken the rising bull trendline drawn off the December 2015 low on the daily gold chart…………………………………..Full Article: Source

Gold price: Hedge funds abandoning market at record pace

Posted on 25 October 2016 by VRS  |  Email |Print

Gold has been on the defensive since the start of October and is still down nearly $50 after falling to a four month low of $1,243 on October 7. Year to date the metal is still managing gains of nearly 20% or more than $200 an ounce, one of its best annual performances since 1980.
But there are signs that hedge funds active on the derivatives market have lost confidence in gold’s ability to claw back losses suffered since mid-July when the metal touched a two-year high near $1,380 an ounce…………………………………..Full Article: Source

Is Gold’s Real Value $2,000 an ounce?

Posted on 25 October 2016 by VRS  |  Email |Print

Gold steadies and is set to end the week higher, on track for its first weekly gain in four weeks and one expert sees the cards stacked in the metal’s favor. Ken Hoffman of Bloomberg Intelligence released a report this month, which shows the current pressure in gold prices is namely driven by the looming rate hike – but that Fed concerns are just masking long-term positives for the metal.
Gold was on track Friday to post its first positive weekly close in three weeks, many analysts suspect that the correction –which started with a 5% drop at the start of the month — has run its course…………………………………..Full Article: Source

Bank Moves Signal Slide In Gold Price

Posted on 25 October 2016 by VRS  |  Email |Print

Gold prices are sliding as investors look to move their money to take advantage of a hike in US interest rates later this year. Gold for December delivery has lost more than 3% of value – the biggest drop since December 2013.
At US$1,265 an ounce, the price has rebounded a little but is still down on the $1,350 an ounce price of a month ago. To try to stem the flow of money out of gold, trade body The World Gold Council is arguing that higher interest rates may not result in a lower gold price…………………………………..Full Article: Source

Gold Miners Forecast for 2017

Posted on 25 October 2016 by VRS  |  Email |Print

The gold mining space performed incredibly well in the first half of 2016. But will the gold space perform as strongly in 2017? The charts, unfortunately, say no. The WSJ was quite optimistic earlier this year, with this bullish gold miners forecast.
And if we had to believe this analyst on CNBC, he would have already flashed a buy signal a couple of weeks ago, as his gold miners forecast was based was based on the Market Vectors Gold Miners ETF testing its 50 day moving average, a technical indicator which averages prices of the previous 50 trading days. Though technical indicators are not a bad thing as such, its value is really limited as a stand-alone indicator…………………………………..Full Article: Source

Hedge Fund Manager Sees $1,400 Gold By 2017

Posted on 25 October 2016 by VRS  |  Email |Print

Gold prices are expected to push past $1,400 an ounce in 2017, according to one billion-dollar hedge fund. In a recent interview with Bloomberg, Mark Mobius, executive chairman of Templeton Emerging Markets Group – which has assets under management of more than £1.6 billion — said that he could see gold prices rallying 15% in 2017 as he expects the Federal Reserve to keep interest rates low next year.
“The Fed is going to increase the rates by a little bit but not excessively and there is no guarantee that a rise in interest rates will put people off. A lot will depend on the real rates,” said Mobius, in the interview, on the sidelines at an event in Mumbai, India…………………………………..Full Article: Source

Why gold is glittering this Diwali

Posted on 25 October 2016 by VRS  |  Email |Print

This Diwali may turn out to be one of the best in recent years for jewellers. The mood on the street is buoyant after gold rallied by more than 20 per cent over the past year, although there has been a bit of price correction ahead of the festival season.
This has increased the number of footfalls in jewellery showrooms, and jewellers are offering various schemes to boost sales. After a couple of dull seasons, we expect this season to see higher gold sales. Of course, given the price volatility of recent years, investors may wonder whether gold will yield superior returns going forward. It is a genuine concern: given that the domestic equity markets are hovering close to record levels, so beating returns from that will be tough…………………………………..Full Article: Source

Mobius Says Gold Will Gain in 2017 as Fed Goes Slow on Hikes

Posted on 24 October 2016 by VRS  |  Email |Print

Gold is set to advance by as much as 15 percent before the end of next year as the Federal Reserve goes slow on increasing interest rates and the dollar remains subdued, buoying bullion demand, according to Templeton Emerging Markets Group.
“The Fed is going to increase the rates by a little bit but not excessively and there is no guarantee that a rise in interest rates will put people off,” Executive Chairman Mark Mobius said in an interview at a Bloomberg event in Mumbai. “A lot will depend on the real rates.”…………………………………Full Article: Source

It’s time to invest in gold: Haywood

Posted on 24 October 2016 by VRS  |  Email |Print

The gold industry has firmly overcome so many obstacles in 2016, while at the same time reinventing itself, that there are no signs of the weakness some analysts talk about. This is the main takeaway from Haywood Securities latest Gold Producers Industry Report.
The investment dealer remains constructive on the yellow metal sector by pointing to its relatively stable prices and producers’ optimized operations………………………………….Full Article: Source

I buy gold on Dhanteras day

Posted on 24 October 2016 by VRS  |  Email |Print

R Srinivasan, MD, Priyanka Bullion, in Madurai, has been in the bullion dealing business for a long time. The North Indian tradition of buying gold during Dhanteras, as part of Diwali, leads to good business during the festival season.
Wanting to buy gold on Dhanteras has increased in recent years, says Srinivasan. This year, too, bookings from his customers have already started. “The influence of North India has increased and people down South, too, think that buying gold on Dhanteras is auspicious. More than jewellery, women now want to buy it as bars of 20/30 gram…” His customers aside, Srinivasan himself too buys gold from the market during Diwali. “I buy for my children, the investment made that day brings luck…”…………………………………Full Article: Source

Gold: Behind the biggest rally of the year and where it’s headed next

Posted on 21 October 2016 by VRS  |  Email |Print

Love it or hate it, you can’t ignore it. Gold’s stunning 20 per cent rally has made it one of the best performing assets in calendar 2016, vexing those who disregard it, and lining the pockets of its faithful supporters.
Buoyed by Brexit and an uncertain US Federal Reserve, gold bugs rejoiced as their favourite store of value soared from $US1076 ($1404) on January 1 to a record high of $US1365 ($1781). The question on everybody’s lips now, however, is whether or not the drivers of the past 12 months can continue to support the precious metal, propelling gold to fresh highs, or whether its moment in the sun has passed…………………………………….Full Article: Source

Is Gold’s Success Riding On The U.S. Election?

Posted on 21 October 2016 by VRS  |  Email |Print

Is gold’s momentum really dependent on the victor of the U.S. presidential election? According to RBC Capital Markets commodity strategist Chris Louney, a correlation has developed between Republican presidential candidate Donald Trump and gold.
Speaking with CNBC’s Futures Now, Louney said in an interview that “gold reacts when Trump’s chances of winning rise above 40 percent or below 20 percent in the mainstream media.” Over first seven months of the year, gold really “glittered,” he said, with uncertainty surrounding monetary policy and Brexit fears…………………………………….Full Article: Source

Consumers will be hit by bank rules on gold, say refiners

Posted on 21 October 2016 by VRS  |  Email |Print

Regulators are forcing lenders to cover their holdings of the precious metal. Gold refiners are warning that regulators’ plans that forces banks to utilise longer term funding against their holdings of the precious metal will ultimately make it more costly for consumers buying jewellery.
Banks lend gold to refiners, which typically use it to pay suppliers and customers, but under new rules proposed by the Basel Committee on Banking Supervision, the costs to banks could triple, according to the London Bullion Market Association…………………………………….Full Article: Source

Sell gold at $1,290-95/oz

Posted on 21 October 2016 by VRS  |  Email |Print

A strong intermediate resistance lies around $1,278-85 followed by a stronger one at $1,295-1,305. Only a fall below $1,250 could revive bearish hopes for $1,208-10 levels. The favoured view expects prices to test resistance around $1,295-1,305, while supports around $1,245-50 holds for the week.
But subsequently, we expect prices to dip again. Only a direct rise above $1,320 on high volumes on a closing basis could revive bullish hopes. Such a rise will hint that the downward correction has ended and the rally above $1,400 levels has begun…………………………………….Full Article: Source

Will gold price ‘ride the suspense’ to reach $1,300?

Posted on 21 October 2016 by VRS  |  Email |Print

Analysts predicts precious metal will survive political uncertainty in US and end year on a high. Gold looks set to buck three weeks of straight losses – and according to one analyst, it could “ride” political and economic uncertainty to a significant advance before the end of this year.
Prices hit a two-week high of $1,273 an ounce on Wednesday. Gold has since pared those gains a little, but at around $1,268 this morning, it is still heading for a weekly gain of around 1.5 per cent…………………………………….Full Article: Source

Why Gold ETFs See Robust Net Inflows against Actively Managed Gold Funds

Posted on 21 October 2016 by VRS  |  Email |Print

One of the dominant financial trends of the past decade has been a move by investors out of actively managed funds and into passively managed index funds or exchange traded funds (ETFs).
The latest example is the Illinois State Pension Board, which according to The Wall Street Journal, decided to jettison active mutual fund managers altogether, leaving only passively managed choices for its state workers. The reasons cited for the move into ETFs included lower fees and potentially better performance as many active managers fail to outperform their passive peers…………………………………….Full Article: Source

Chinese Gold Demand to Remain Firm in 2017 WGC

Posted on 20 October 2016 by VRS  |  Email |Print

One of the world’s largest gold-consuming nations is expected to see firm bullion demand this year and the next, according to one regional director of the World Gold Council.
WGC expects to see Chinese gold demand to remain firm between 900 and 1000 tonnes this year and nextIn an interview with Reuters, on the sidelines of the London Bullion Market Association’s annual conference in Singapore, Roland Wang, managing director for China at the WGC, said that the council is expecting total Chinese demand be between 900 and 1000 tonnes for 2016 and 2017……………………………………Full Article: Source

LBMA Attendees See $1,347/Oz Gold In One Year

Posted on 20 October 2016 by VRS  |  Email |Print

Gold will rise to $1,347 an ounce during the next year, according to a poll of attendees after the London Bullion Market Association’s annual conference in Singapore this week. The LBMA asks audience members where they think each of the precious metals will go as of the 2017 LBMA conference, which is scheduled for Oct. 15-17 in Barcelona.
Participants were most bullish about silver over the next year, the LBMA pointed out. The average of forecasts was $20.90 an ounce, which would be an increase of 18% from the early-morning price of $17.73……………………………………Full Article: Source

Gold Still Attractive Investment, Prices To Rally To $1,420 In Q4

Posted on 20 October 2016 by VRS  |  Email |Print

Although one international trading firm says gold might have a little farther to fall as the market prepares for an interest rate hike at the end of the year, its 2016 uptrend remains in place. In a recently published quarterly metals report, U.K. brokerage firm Sucden Financial warned that gold’s selling pressure since the start the fourth quarter might not be over as they expect gold to fall to a low of $1,230 an ounce in the near-term.
However, ultimately, the firm expects gold to recover from its recent bout of weakness and end the year — and the quarter — near it top range target at $1,420 an ounce……………………………………Full Article: Source

Why gold will rise no matter who becomes the next U.S. president

Posted on 19 October 2016 by VRS  |  Email |Print

Gold prices have enjoyed a hefty climb so far this year as the market continues to guess the pace and timing of the next U.S. interest-rate hike, but the battle for the U.S. presidency is set to take center stage as Election Day nears.
And it doesn’t matter if Republican Party nominee Donald Trump or Democratic Party nominee Hillary Clinton moves on to be the next president of the United States—gold is likely to come out a winner, George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, told MarketWatch…………………………………Full Article: Source

Does Goldman’s 2016 Gold Forecast Revision Match Current Prices?

Posted on 19 October 2016 by VRS  |  Email |Print

In the past one month, gold has seen a tremendous fall. From close to $1,350 an ounce, it has drifted to the $1,250 an ounce mark. The sudden and sharp decline in the metal was due to the negative sentiment in the gold market.
The possibility of an interest rate rise is affecting precious metals. Gold, silver, platinum, and palladium have fallen about 5.3%, 8.5%, 10.3%, and 2.7%, respectively, on a 30-day trailing basis. The fall may also be due to speculators cutting bets on higher prices of precious metals. Some analysts also assume a level below $1,250 to be a strategic buying opportunity…………………………………Full Article: Source

Gold to trade in a $1230-$1420/oz range in Q4

Posted on 19 October 2016 by VRS  |  Email |Print

The gold market will be subject to some nervousness in the fourth quarter of this year due to growing investor fears about the Federal Reserve raising rates in December, Sucden said. Still, the broker believes the metal will ultimately pass the test, it said on Tuesday, October 18 in a quarterly report produced in partnership with Metal Bulletin.
It expects gold prices to trade in a range of $1,230-1,420 per oz over the fourth quarter of the year – the uptrend that started late in 2015 is set to continue over 2017…………………………………Full Article: Source

TDS: ‘We Still See A Place In Many Portfolios To Hold Gold’

Posted on 19 October 2016 by VRS  |  Email |Print

While gold’s performance in the immediate future may hinge on economic data and Federal Reserve rate-hike expectations, analysts with TD Securities “still see a place in many portfolios” for the yellow metal.
Gold has fallen in October, but expectations for a December Federal Reserve rate hike are already factored into the market and many longs have already exited the futures, which may help the metal now hold chart support, TDS says. If U.S. economic data are strong, gold and silver could probe still lower. ………………………………..Full Article: Source

Metals to see buying till Q4, gold may hit $1,300/ounce: SocGen

Posted on 18 October 2016 by VRS  |  Email |Print

Metals like zinc and nickel could retain gains due to possible supply side pressures but others like aluminium and copper might slip into negative due to increased supplies, says Robin Bhar of Societe Generale.
Metals like zinc and nickel could retain gains due to possible supply side pressures by end of calendar year but others like aluminium and copper might slip into negative due to increased supplies, says Robin. “Copper supplies are expected to increase as more mines open up, while in aluminium idle capacities are expected to come on board,” Bhar said………………………………….Full Article: Source

An Expert Sticks With $1,900 Gold Call, $25 Silver (VIdeo)

Posted on 18 October 2016 by VRS  |  Email |Print

Although gold prices have come under pressure the past few weeks, Monty Guild, founder of L.A.-based Guild Investment Management says he remains bullish, and is still calling for the metal to climb up to $1,900 an ounce within a two to four year time frame.
Gold and silver markets ended slightly higher Monday in quieter trading. Market participants are looking for new fundamental information to drive the markets. December Comex gold was last up $1.50 an ounce at $1,257.00. December Comex silver was last up $0.044 at $17.48 an ounce…………………………………..Full Article: Source

Singapore makes another bid for Asia to help set gold price

Posted on 18 October 2016 by VRS  |  Email |Print

Singapore will study the possibility of bringing the gold benchmark pricing in London to users in Asia, in a move that would also allow market participants in the world’s top consuming region to help set the price of bullion.
Home to the world’s biggest buyers China and India, Asia’s importance has been on the rise as the key source of demand for gold, but bullion traders in the region are often exposed to intraday price volatility and overnight foreign exchange risks with benchmark prices currently being set out of London…………………………………..Full Article: Source

IBA aims to increase users of the LBMA Gold Price with central clearing

Posted on 18 October 2016 by VRS  |  Email |Print

In a bid to increase participation of the London Bullion Market Association Gold Price, administrator ICE Benchmark Administration said Monday that it will be introducing central clearing of the price discovery mechanism in March 2017, backed by a loco London futures contract.
Finbarr Hutcheson, president of IBA said that the number of participants in the LBMA Gold Price has grown from four to 13 since launching in 2015 “and we continue to see strong demand from other firms, which we believe the introduction of central clearing will further support.”………………………………….Full Article: Source

Gold Price Trends ‘Downwards’ in Short Term

Posted on 18 October 2016 by VRS  |  Email |Print

Gold traded in a narrow range between $1250 and $1256 per ounce on Monday, after it fell nearly 0.6% to a 1-week low of $1246 last Friday and closed the week at $1251.
“Because the possibility of a December rate hike is increasing, generally, the trend of gold price is downwards but in the short term we think that there could be relatively a mild technical correction,” said Jiang Shu, chief analyst at gold mining group Shandong, who sees gold reaching $1270 in the short term before sharply falling back on expectations of a US rate hike…………………………………..Full Article: Source

Should you go for gold exchange traded fund or gold bond?

Posted on 18 October 2016 by VRS  |  Email |Print

As Indians, we love our gold. Not just to display, gift and bequeath, but also as an investment. For investment, we have been used to buying physical gold, but that has changed over the past few years. Just when we got used to owning gold through the exchange-traded fund (ETF) route, the government introduced another way to buy and hold gold: through gold bonds.
Gold ETFs track the price of domestic gold. You make a profit if the selling price is higher than buying price, minus costs. An ETF’s net asset value is expressed in terms of per unit cost of gold and returns closely correspond to gold price returns less adjustment for cash held in the fund. In a gold bond, returns are linked to gold price, and you get a sweetener of 2.75% interest per year…………………………………..Full Article: Source

This is the commodity to play: Gartman

Posted on 17 October 2016 by VRS  |  Email |Print

Investors looking for a buy should still look to gold, even as the U.S. dollar rallies, according to commodities king Dennis Gartman. While the greenback has strengthened in the past week, Gartman and other market watchers argue that bullion is still interesting to watch given its short term trends versus the dollar.
In a research note this week, Wells Fargo Investment Institute said the commodity appeared “oversold”, and was ripe for a bounce back in price. “I find it fascinating that gold has held reasonably well, even tries to rally as the dollar has gotten stronger over the course of the past six or seven days,” said Gartman……………………………………..Full Article: Source

Is It Over For Gold?

Posted on 17 October 2016 by VRS  |  Email |Print

Gold prices have been sliding recently, partially reversing the gains made over the last year. The big question for many investors is whether the move means that the bull run is over? This is not a trivial question. Gold suffered a two-decade bear market from 1980 through 2000 where prices sank from $850 a troy ounce to a low of less than $300.
The decade before that, 1970 to 1980 saw tremendous gains, from a low of $35 up to the then all-time high of $850. So there it is; is the recent pullback a blip, or is it the harbinger of something bigger……………………………………..Full Article: Source

Three Reasons To Be Bullish On Gold

Posted on 17 October 2016 by VRS  |  Email |Print

Since the peak of the last gold bull market in September 2011, both buyers and sellers (mostly miners) of gold have been mired in a titanic and frustrating struggle to find an equilibrium clearing range, a price range that will ensure a steady amount of supply and demand growth year-in and year-out.
Unfortunately for many gold prognosticators (and gold bulls), unprecedented monetary and political events have conspired to thwart both gold producers and investors in finding a steady price range, resulting in heightened price volatility……………………………………..Full Article: Source

HSBC: A Global Trade Slowdown Is a Reason to Buy Gold

Posted on 17 October 2016 by VRS  |  Email |Print

Analysts at HSBC Group Inc. are telling clients that gold may be about to have another shining moment, as the precious metal’s status as a safe haven asset could boost prices, given the prospect of a looming downward shift in globalization.
The firm’s Chief Precious Metals Analyst James Steel says in a note published on Friday that “demand for gold is often stimulated by the same factors that fan protectionist and populist sentiment” and that “abrupt declines in cross border trade, investment and immigration, the dislocation of global economic policies, and a beggar-thy-neighbor approach to trade is almost tailor-made for higher gold prices.”…………………………………….Full Article: Source

Safe havens face correction

Posted on 17 October 2016 by VRS  |  Email |Print

Kerr Neilson, the founder of Platinum Asset Management and who ranked as one of the Australia’s wealthiest men in this year’s BRW Rich List with a personal wealth of nearly $2 billion, believes the financial aberration that caused his $23bn fund such pain over the last year is now close to its nadir.
“We can detect there’s a huge change taking place and that’s ­interesting to us,” he said, pointing to the numerous safe havens that are now subject to the start of a sharp correction. Investors are now betting on imminent and steady interest rate hikes in the US and the gold price notched up its biggest weekly slump in three years last week……………………………………..Full Article: Source

UBS: Gold is setting up for a big comeback

Posted on 14 October 2016 by VRS  |  Email |Print

Gold is set for a comeback six to 12 months from now, according to UBS. As long as the Federal Reserve sees no reason to raise interest rates in a hurry, gold should do well, according to strategists at the bank’s Chief Investment Office Wealth Management Research arm.
They see gold prices climbing to $1,350 per ounce over the next year, up 7% from its current level. Because gold does not bear any interest, it loses appeal when rates rise and investors go after better alternatives……………………………………Full Article: Source

Gold is going back to $1,050 says Wells Fargo analyst

Posted on 14 October 2016 by VRS  |  Email |Print

Gold and commodities entered a drawn out bear market five years ago and there are many more years of pain to go, says John LaForge with Wells Fargo. “The reality is gold is a commodity and commodities have entered a long bear market,” said LaForge. LaForge is the head of Real Asset Strategy at Wells Fargo.
“Traditionally those long bear markets for commodities average about 20 years—and that is using data back to 1800—and we are only in year five.”…………………………………..Full Article: Source

Gold coins to be most preferred this festive season: World Gold Council

Posted on 14 October 2016 by VRS  |  Email |Print

This festive season, Indians are more likely to purchase branded gold coins because of the quality assurance and Government of India backing them, a World Gold Council report said. Gold has been considered as an auspicious metal in Indian society and hence holds a special place. Along its ties with Indian traditions, Indians have been buying as an instrument for investment.
Prime Minister Narendra Modi, had launched the Indian Gold Coin, as an initiative under Gold Monetisation Scheme. These gold coins have 24 karat purity and hallmarked by the Beureau of Indian Standards (BIS). The coins are made with tamper proof packaging and available in sizes from two to 100 grams……………………………………Full Article: Source

Sell Gold Now – A Note from GoldCore CEO Stephen Flood

Posted on 14 October 2016 by VRS  |  Email |Print

It has never been more important to own gold as part of a diversified portfolio. The form your gold investment takes is just as important as owning it in the first place. ETFs and pooled gold may not be functional in extreme markets and may themselves be subject to systemic risk events.
We are living in extraordinary times and key to any investment plan that can weather the coming global financial storm is access to all important – liquidity……………………………………Full Article: Source

London gold market boosts transparency with new platform

Posted on 13 October 2016 by VRS  |  Email |Print

In 2017 physical gold trades by LBMA members will be reported to a platform run by Boat Services. The London Bullion Market Association, which oversees the city’s $5tn gold market, has named the financial technology firms that will run its electronic platform in an effort to bolster trading transparency for the precious metal.
Starting in the first quarter of next year, physical gold trades by LBMA members will be reported to a platform run by Boat Services, a London-based company that provides financial trading technology, and its partner Autilla, another fintech start-up……………………………………..Full Article: Source

Gold price savaged by bears but rebound rally can be identified

Posted on 13 October 2016 by VRS  |  Email |Print

Who stole the gold? The yellow metal’s dramatic fall from $1,340 to below $1,260 is a break-and-enter theft on a grand scale. It’s going to take a while to find out who stole these profits from open long positions. But what’s more important is to assess the extent of the damage and the potential for recovery.
Let’s start with damage assessment. The fall below the historical resistance and support level near $1,290 is critical. It would be reasonable to expect that this level would provide support for any retracement but instead gold fell straight through this level. Chalk one up for the bears……………………………………..Full Article: Source

Gold price ‘uptrend is over’, says ABN Amro

Posted on 13 October 2016 by VRS  |  Email |Print

The gold price “uptrend is over”, Dutch bank ABN Amro analyst Georgette Boele has said in a note to clients, reports BullionVault. Mounting speculation that the US Federal Reserve will increase interest rates again before the end of the year is weighing on sentiment towards the metal and Boele says a host of technical indicators suggest its 2016 rally has run out of steam.
Rising interest rates are bad news for non-yielding gold, as this boosts the attraction of alternative, income-paying assets. It also tends to help the dollar, against which gold is held as a hedge……………………………………..Full Article: Source

Is gold in meltdown?

Posted on 13 October 2016 by VRS  |  Email |Print

Gold appears to have its price hanging on a dodgy thread. Our “big picture” report back in August had proposed the possibility of weakness to $1,248 and this movement is proving rather accurate. Accurate, aside from the unpleasant detail our $1,248 was briefly broken during the Friday session.
This opens the trapdoor to incredible levels of doom. The situation now is we must regard gold as heading to a bottom of $1,163 on the current cycle. There’s a chance $1,218 will provoke some sort of bounce but, unless some miracle can get the price above ‘blue’ (Currently $1,339), we’ve little choice but to view $1,163 as very possible……………………………………..Full Article: Source

Our Bullish Gold Price Prediction for the End of 2016

Posted on 13 October 2016 by VRS  |  Email |Print

Gold prices have fallen more than 4% in October, but our latest gold price prediction shows prices climbing by the end of 2016. In fact, Money Morning Resource Specialist Peter Krauth believes gold prices will climb by double digits before 2017.
But before we share Krauth’s 2016 gold price prediction, we wanted to make sure Money Morning readers understood why gold prices are so volatile right now. On Oct. 4, gold prices dropped $43 in just one day. “Most pundits are saying gold prices dropped because the U.S. dollar rallied after Richmond Fed President Lacker made his case for raising rates,” Krauth said on Oct. 7……………………………………..Full Article: Source

Here’s What Could Drive Gold to a Record in Next Two Years

Posted on 13 October 2016 by VRS  |  Email |Print

Rising inflation and sagging confidence in the ability of central banks to revive global growth will drive up gold, according to Incrementum AG, which says bullion could climb to a record in the next two years.
Consumer prices are set to rise as oil rebounds, while low or negative interest rates and bond buying by central banks have failed to boost economies, said Ronald Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101 million). Incrementum was the top precious metals forecaster last quarter, Bloomberg-compiled data show……………………………………..Full Article: Source

Citi Not Expecting Quick Silver Return To August Highs

Posted on 13 October 2016 by VRS  |  Email |Print

Citi Research is not looking for silver to regain its highs from August any time soon. Spot silver broke below $18 an ounce on Oct. 4 for the first time in three months, following the initial European Central Bank announcement to potentially taper the bond-buying program, Citi says.
“The same day saw the gold:silver ratio jump to 71x (times) — from a 2H’16 average of 68x — during intra-day trading as silver price returns fell below 30% YTD (year to date) for the first time since June,” Citi says……………………………………..Full Article: Source

Now may be the right the time to invest in gold

Posted on 12 October 2016 by VRS  |  Email |Print

Despite recent falls in the price of gold, now may be the time to add exposure to the precious metal thanks to demand from Asia, experts suggest. Gold prices performed well earlier through 2016, hitting a two-year high of $1,366 per ounce in July this year, but have since slumped. Prices are down 6 percent over the past two weeks and finished around $1,254 at the end of Monday trading. Year-to-date, gold prices are up 18 percent.
However, many are seeing this as a price correction, which may be a good opportunity for investors looking to add exposure to the yellow metal and build more favourable positions……………………………………….Full Article: Source

What is the Future of the Gold Price?

Posted on 12 October 2016 by VRS  |  Email |Print

When 2016 is history and we reflect on the year that was, the gyrations in the price of commodities, and the companies that produce them, will undoubtedly be one of the key areas of focus. At the start of the year, commodities were deeply unpopular and unloved yet have been dramatically rehabilitated in the view of market participants.
This is evidenced by the sharp recovery in spot prices, related share prices, positive fund flow data and a significant drop in those speculating on further falls. Despite this sharp change in sentiment, commodity investment remains largely unpredictable in the short-term and volatility numbers remain abnormally high on most measures……………………………………….Full Article: Source

Is the gold price headed back to US$1,000 an ounce?

Posted on 12 October 2016 by VRS  |  Email |Print

Gold bulls won’t like it much, but the odds of the gold price sinking towards US$1,000 an ounce or even lower are growing. After hitting a high of around US$1,384 an ounce just a few months ago, the gold price has dropped to US$1,260 an ounce, including the biggest weekly fall in more than three years.
And it’s all got to do with signs of improvement in the US economy. According to Bloomberg, a resilient jobs market and gains for the service economy have signalled that expansion can continue even if rates rise. It also means there’s little need for investors to invest in safe-haven assets like gold……………………………………….Full Article: Source

Citi Not Expecting Quick Silver Return To August Highs

Posted on 12 October 2016 by VRS  |  Email |Print

Citi Research is not looking for silver to regain its highs from August any time soon. Spot silver broke below $18 an ounce on Oct. 4 for the first time in three months, following the initial European Central Bank announcement to potentially taper the bond-buying program, Citi says.
“The same day saw the gold:silver ratio jump to 71x (times) — from a 2H’16 average of 68x — during intra-day trading as silver price returns fell below 30% YTD (year to date) for the first time since June,” Citi says. “Given RSI (Relative Strength Index) levels suggest both gold and silver prices are now oversold, the recent buying trend from Chinese investors immediately post the ‘Golden Week’ holiday and the pending U.S. presidential elections may help to counter any further MTD (month-to-date) price unwind.”………………………………………Full Article: Source

Are commodities a good investment?

Posted on 11 October 2016 by VRS  |  Email |Print

Commodities derive their investment returns very differently from other investments like stocks and bonds, and that makes them a good diversifier, said Andy Kapyrin, director of research at RegentAtlantic in Morristown.
“Most investors do not buy commodities directly and put them in storage. Rather, they buy funds that invest in futures contract for the commodity,” he said. “The futures typically trade in line with the underlying commodity they track, but can deviate over longer time periods.”…………………………………Full Article: Source

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