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Silver demand to fall 7 percent in 2014 -Thomson Reuters GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Demand for silver will post a 7 percent decline in 2014 because of a slower pace of buying by jewelers and industrial fabricators in the first three quarters of the year, metals consultant Thomson Reuters GFMS said on Tuesday.
Harmonized European sales tax rates that started in January have driven up retail silver investment product prices, reducing demand on the continent, the Thomson Reuters unit said in an interim market review. Thomson Reuters GFMS said it expected total physical demand, which includes jewelry, coins and bars, silverware and industrial fabrication, to fall 6.7 percent to 1,004.5 million troy ounces (31,243.44 tonnes) in 2014 from a record high of 1,077 million ounces (33,498.44 tonnes) last year………………………………Full Article: Source

Silver Physical Demand Forecast to Drop 6.7% in ’14: GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Physical demand for silver will decline 6.7 percent this year, driven by a slump in coins and bars, as prices headed for the second straight yearly decline, Thomson Reuters GFMS said.
Consumption will fall to about 1 billion ounces from 1.08 billion in 2013, according to a Thomson Reuters GFMS report released today on behalf of the Washington-based Silver Institute………………………………Full Article: Source

Gold heading to $700 but other commodities set to bounce: Ramsey

Posted on 19 November 2014 by VRS  |  Email |Print

Commodities prices have seen a sharp decline in the second half of this year. The price of crude oil has dropped below $80 a barrel and is hovering around four-year lows. Platinum, copper and silver are all trading sharply lower as well since June. The Bloomberg commodity index is down 15%.
Increased supply and slowing global demand is pushing down prices. The slowing Chinese economy in particular is weakening commodities because demand for everything from corn to cotton to copper is down……………………………………Full Article: Source

Credit Suisse: ‘We Are Bearish Gold’

Posted on 19 November 2014 by VRS  |  Email |Print

“We are bearish gold.” Credit Suisse is newly out with a huge report on its outlook for 2015, and among its 10 best trade ideas for next year: short gold.
The firm’s technical analysis team puts a price target of $950 on the precious metal for the end of next year, and Credit Suisse’s David Sneddon says that from a technical analysis standpoint, and his team that gold’s recent break below $1,180 confirmed a bearish “triangle” continuation pattern……………………………………Full Article: Source

Could Gold Really Jump 15% in December?

Posted on 19 November 2014 by VRS  |  Email |Print

The Swiss might be responsible for bringing early holiday cheer to gold bulls this year by delivering a big boost to bullion demand. On November 30, the people of Switzerland will vote on a referendum that could force the Swiss National Bank (SNB) to reverse a selling spree of the country’s gold reserves.
Switzerland still has large bullion holdings, but the country used to own a lot more of the precious metal. The SNB began selling its gold around the year 2000 when prices were extremely low. The selling continued through 2008 and the Swiss gold reserves now represent just 8% of the Swiss National Bank’s assets……………………………………Full Article: Source

Elliott Wave analyst sees big gold and silver price surge ahead

Posted on 19 November 2014 by VRS  |  Email |Print

As usual the bank analysts are great at making forward price predictions based almost entirely on the current performance of whatever commodity they are analysing. It means they almost all inevitably miss any major turning points in price performance.
This is particularly true of those forecasting precious metals prices and recently, given the sharp price falls which took gold down to around $1140, silver to $15 and platinum to below $1180, many of the banks have been rapidly adjusting their forward price predictions ever lower……………………………………Full Article: Source

The Fund that Reshaped the Gold Market

Posted on 19 November 2014 by VRS  |  Email |Print

The first U.S. exchange-traded fund to give investors a stake in gold was the fastest-growing financial product of its kind when it launched 10 years ago. Today, SPDR Gold Trust , better known by its ticker symbol GLD, is the fastest-shrinking.
The fund’s trajectory mirrors the metal’s appeal as an investment. GLD’s holdings swelled in the wake of the financial crisis, reflecting the wave of investors seeking a haven who drove gold prices to record highs in 2011……………………………………Full Article: Source

Hedge Funds cut gold bets in fastest exit this year

Posted on 19 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a five-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Swiss yes vote won’t really boost gold price

Posted on 18 November 2014 by VRS  |  Email |Print

Gold was trading sideways on Monday after last week’s recovery from four-and-half-year lows, but traders hoping for a stronger showing following a Swiss referendum on gold may be disappointed. The Swiss go to the polls on November 30 in a referendum that will lay down new rules for the country’s central bank concerning its gold reserves.
Surveys are divided about support for the “Save Our Gold” camp that would force the Swiss National Bank to hold 20% of its reserves in gold, repatriate bullion held outside its borders and halt all sales, and not everyone even agrees that a yes vote would lift gold prices…………………………………Full Article: Source

Gold miners’ pain could be investors’ gain

Posted on 18 November 2014 by VRS  |  Email |Print

It looked like gold-mining stocks finally bottomed out about a year ago. After prices for the yellow metal peaked in the summer of 2011 at around $1,900 an ounce, they crashed almost 40% to around $1,200 at the start of 2014. Gold miners were brutalized, with the Market Vectors Gold Miners ETF plummeting 65% from September 2011 through January of this year.
But in 2014, the sector regained its footing as gold prices firmed. The Gold Miners ETF bounced back about 30% from January to mid-March. It didn’t last: Gold prices crumbled again and now lie at their lowest levels in 4 1/2 years. And gold miners have caved in as a result…………………………………Full Article: Source

ECB could buy gold to revive economy

Posted on 18 November 2014 by VRS  |  Email |Print

Declining economic data may “theoretically” leave the door open for the European Central Bank to buy assets including gold and shares. Gold, shares, and exchange-traded funds (ETFs) - the European Central Bank (ECB) may turn to buying any or all of these in an attempt to boost inflation in the currency bloc.
Yves Mersch, a member of the ECB’s executive board, said that the purchase of these assets was “theoretically” an option for the central bank, which earlier this year resolved to “take further unconventional measures to counteract a lengthy period of lower inflation”…………………………………Full Article: Source

Gold Price Golden Bottom?

Posted on 18 November 2014 by VRS  |  Email |Print

If commodities and gold are ready to reverse then the first thing that has to happen is the dollar needs to form a top. I think that may have occurred on November 7th when the last employment report was released. Notice how the dollar formed a key reversal on that day, that was retested Friday and failed, forming a bearish engulfing candlestick.
Considering that the daily cycle is now on day 22 and late in the cycle timing band, the odds are good that the reversal Friday marked at least a daily cycle top in the dollar index. If that’s the case then the euro’s daily cycle should have bottomed………………………………..Full Article: Source

‘Modi effect’ aids surge in gold import

Posted on 18 November 2014 by VRS  |  Email |Print

India’s gold import bill for October rose 280 per cent over a year before, to $4.18 billion. Imports of silver surged 136 per cent, to $686 million. These import bills are the highest since May 2013. Apart from marriage and festival-related demand, imports are also rising due to lower prices of both precious commodities.
The World Gold Council (WGC) said the rise in demand for gold over recent months — it has picked up pace since June — was due to the “Modi effect”. It said in a report on the demand trend for the quarter ended September: “General sentiment among the Indian populace is on the up, aided by confidence in the new government…………………………………Full Article: Source

Chen Lin Says Gold Miners Need to Produce at $1,000/oz or Less to Survive

Posted on 18 November 2014 by VRS  |  Email |Print

How low can gold go? Chen Lin expects a probable near-term low of $1,000/ounce. The author of the What is Chen Buying? What is Chen Selling? newsletter says that at that price we can expect a bloodbath of companies, both large and small. Gold cannot be kept down forever, however, and once the bottom is in, those miners that have survived will be in an enviable position, able to buy lucrative assets at bargain prices.
I am not a big fan of conspiracy theories, but Goldman published a report in early September calling for $1,000/oz gold by the end of 2014. As I saw it, this call was quite aggressive. Goldman will lead and probably has been leading a group shorting gold aggressively. Kitco has published a report arguing that should gold fall to $1,000/oz, this would be catastrophic for most gold miners. The shorts, unfortunately, probably don’t care about gold mining companies and the jobs of those who work for them. They just want to make money. If the gold miners go under, they’ll be very happy…………………………………Full Article: Source

Hedge funds cut gold bets as demand eases

Posted on 18 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 per cent, US government data showed. Holdings tumbled 49 per cent over three weeks, the most since December last year. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009 as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 per cent from this year’s peak in March. Investor appetite for bullion has diminished as the US dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, US equities reached records and inflation failed to accelerate…………………………………Full Article: Source

Hedge Funds Cut Gold Bets in Fastest Exit This Year: Commodities

Posted on 17 November 2014 by VRS  |  Email |Print

Hedge funds extended their fastest exit from gold this year, cutting bullish gold wagers for a third week. The net-long position in New York futures and options fell 14 percent, U.S. government data show. Holdings tumbled 49 percent over three weeks, the most since December. Assets in exchange-traded products backed by the metal dropped to the lowest since 2009, as the World Gold Council said third-quarter global demand was the weakest in almost five years.
While prices had their biggest two-day rally since June at the end of last week, gold is still down 15 percent from this year’s peak in March. Investors’ appetite for bullion has diminished as the dollar strengthened to a four-year high, the Federal Reserve moved closer to raising borrowing costs, U.S. equities reached records and inflation failed to accelerate……………………………………Full Article: Source

Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM

Posted on 17 November 2014 by VRS  |  Email |Print

“Finally!” in English, “Por fin!” in Spanish and “About bloody time!!” in Australian. The belated rally in gold and silver finally got underway when it was least expected. The contrarian wins again!
The final bear market rally in gold and silver kicked off after a fake out move lower and should end with a fake out move higher. That’s the way I see it anyway. Of course the permabulls will be back out in force again calling the next great bull market now in progress and this rally should terminate when those calls reach fever pitch……………………………………Full Article: Source

Are You Preparing For $10,000 Gold?

Posted on 17 November 2014 by VRS  |  Email |Print

If someone told you back in the year 2001, when gold was below $300, that within 10 years it would approach $2000, would you have thought them to be crazy? What if someone now tells you that gold can go from the $1000 region to $10,000 within the next 10-15 years? Sounds just as crazy, right? Well, since many of you already think I am crazy, then I guess this will just be par for the course.
Yes, this article is being written by one of the very few who came into 2014 exceptionally bearish on the precious metals. Remember my line that “2014 will be the year of the whipsaw and the year the bulls die?” Again, the market has followed through very nicely on both. But, not all the bulls have been vanquished just yet, and it should only be a matter of time until they are……………………………………Full Article: Source

Could Gold Reach $800?

Posted on 17 November 2014 by VRS  |  Email |Print

They say beauty is in the eyes of the beholder. And what could be more beautiful than bullions of pure gold? Gold has always held a special allure for jewelry lovers. But it has also been a key investment commodity. Gold has been regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge.
Since 2011, however, gold has topped out and has fallen almost 40 percent from its all-time highs, far below bulls’ anticipated targets. Silver, too, has crashed, along with many other base metals. Growth in developed and underdeveloped economies has slackened considerably of late, a reflection of the slowdown in the manufacturing industries around the world. In fact, at this point, there is no good reason for investors to hold gold in the U.S……………………………………Full Article: Source

India regains position as world’s top gold consumer

Posted on 14 November 2014 by VRS  |  Email |Print

India regained its position as the world’s top gold consumer overtaking China in the third quarter as demand for jewellery surged almost 60 per cent, according to new data from the World Gold Council.
Lower prices, the new administration of Prime Minister Narendra Modi, and better prospects for economic growth provided an “encouraging backdrop” for gold demand, the industry group said in its latest quarterly report………………………………..Full Article: Source

Global Demand for Gold Declines as China’s Appetite Wanes

Posted on 14 November 2014 by VRS  |  Email |Print

China’s demand for gold plunged in the third quarter, the latest setback for a market already suffering from waning investor appetite. The 37% slide in China acted as a drag on global demand, which fell 2% from the year-earlier period, industry group World Gold Council said in report released Thursday.
Gold prices are 39% below record highs hit in August 2011 with the latest leg of the selloff tied to expectations that the U.S. economy will continue to pick up speed in the coming months. Many money managers believe that could prompt the Federal Reserve to raise short-term interest rates next year. Higher rates are likely to further dim the allure of the precious metal, which yields nothing and costs money to hold…………………………………Full Article: Source

Don’t rush to invest in gold

Posted on 14 November 2014 by VRS  |  Email |Print

With gold prices having fallen about 20% in the past year, many investors wonder whether it is a good time to by gold or further fall is expected. The answer to both is ‘yes’. Gold prices are likely to be under pressure for some more time.
“With favourable conditions for an appreciating dollar, and given the strong correlation between gold and the dollar, we would not be surprised if the price of gold dropped below $1,100/ounce during the first half of 2015,” says a report from Natixis Commodities Research…………………………………Full Article: Source

Gold: The One Commodity Buffett and Bernanke Just Don’t Understand

Posted on 14 November 2014 by VRS  |  Email |Print

The Royal Mint gets it. Because I see such deep value in gold today, I was exploring various national mints last week, looking to buy some bullion — maybe some Austrian Philharmonics, some Canadian Maple Leafs or a few Britannia’s from the U.K.
And while reading through the bullion site for Britain’s Royal Mint, I came across some highly unexpected commentary. While the likes of Ben Bernanke, Warren Buffett and others here in the States offer inane commentary on the uselessness of gold, the 1,100-year-old Royal Mint had this to say: Gold is the ultimate store of value. Gold is the original and still the most far-reaching global currency…………………………………Full Article: Source

Geopolitical pressure and physical demand buoy gold prices

Posted on 14 November 2014 by VRS  |  Email |Print

The gold price remained range-trading, consolidating its recent gains amid a lack of directional cues due to a quiet data calendar. Elsewhere, news that Russian tanks and military vehicles are pouring into Ukraine may aid safe haven support in the near term, as well as sporadic physical buying providing buoy to prices.
The political conflict between Russia and Ukraine which had gone quiet in recent months threatened to flare as NATO accused Russia of sending troops and military equipment into Ukraine in the past week. General-Major Igor Konashenkov, a Russian Defense Ministry official, dismissed the comments as anti-Russian “hot air” and said “there was and is no evidence” behind the NATO accusations…………………………………Full Article: Source

Here’s why gold could be headed to $800

Posted on 13 November 2014 by VRS  |  Email |Print

Over the last several years, gold has been simultaneously regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge. Gold’s beauty, it seemed, was in the eye of the holder. But in the absence of a full-scale geopolitical crisis, economic collapse, or other “black swan” event, there is no good reason to hold gold — at least here in the U.S.
Since 2011, gold topped out and has fallen almost 40 percent from its all-time highs, failing to meet the bulls most aggressive targets. Silver, too, has crashed, as have many base metals, used in manufacturing around the world, reflecting much slower than expected growth in both developed, and developing, economies………………………………………..Full Article: Source

Investor Exit Shakes Off Gold Boredom as Volatility Rises

Posted on 13 November 2014 by VRS  |  Email |Print

The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility that’s giving some investors more reason to sell.
The metal’s 30-day volatility is close to the highest since January, according to data compiled by Bloomberg. The measure in October touched the lowest since 2010, with investors ignoring gold in favor of equities for most of the year………………………………………..Full Article: Source

Gold Price Seen Flat in 12 Months by LBMA Conference

Posted on 13 November 2014 by VRS  |  Email |Print

Gold Prices held around $1167 per ounce in London on Wednesday, trading near the upper-end of the last week’s 4% range as Western stock markets slipped after regulators imposed heavy fines on 5 global banks for manipulating currency-market benchmarks.
The UK’s FCA and United States’ CFTC settled with Citibank, Royal Bank of Scotland, J.P.Morgan , HSBC and UBS – the last three of whom are also bullion market makers – for a total of $3.4 billion “for failing to control business practices” in their foreign exchange (FX) operations………………………………………..Full Article: Source

Gold price could fall to $800/oz: Metals merchant

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices could tumble towards $800 to $900 an ounce, not seen since the 2008/2009 financial crisis, as the metal is no longer seen as a decent portfolio diversifier, metals merchant and hedge fund Red Kite said on Monday.
Analysts and traders surveyed by Reuters last week predicted that prices could fall to $1,000 by the end of the year, revisiting that level for the first time since 2009. In the physical markets, buying in China – the top consumer – remained steady but at subdued levels on Tuesday. Local prices were about $1-$2 an ounce higher than the global benchmark, unchanged from the previous session………………………………………..Full Article: Source

Investment banks caution investors on gold

Posted on 12 November 2014 by VRS  |  Email |Print

The gold price that rebounded strongly on Friday failed to sustain its rally as bearish sentiments started showing signs of dominance. Meantime, investment banks continued to lower gold price forecasts and advise investors to be cautious on gold.
UBS has lowered its short-term gold price forecasts. However, the bank feels that the recent decline in gold prices is ‘overdone’. Gold’s one-month price forecast has been lowered from earlier $1,250 per ounce to $1,180 per ounce. The average gold price forecast for the entire year 2014 too has been lowered from $1,270 per ounce to $1,230 per ounce………………………………………..Full Article: Source

Gold Prices Flat Near 4.5-Year Lows

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices rallied $10 per ounce in London trade Tuesday, hitting $1156 – a new 4.5-year low when first reached last week – as world stock markets ticked higher but crude oil fell again. “The gold price has continued to trend lower,” says a new note from US investment bank Goldman Sachs, “on the back of the strong US Dollar, rising real interest rates and better-than-expected US economic data.”
Looking 12 months ahead, “we should see prices stabilise” says the London market-making bank. But gold prices could first fall to $800 per ounce, reckons Michael Sheehan, a portfolio manager at Redkite Capital, as disappointment grows with gold as a “diversifier” he told the London Bullion Market Association’s 2014 conference in Lima, Peru………………………………………..Full Article: Source

Gold prices to fall further over next 5-7 yrs: Morningstar

Posted on 12 November 2014 by VRS  |  Email |Print

According to Michael Coop, , head of Multi Asset Strategies, Morningstar gold is going for further slowdown as people still have significant component of the gold that they purchased 5-10 years ago. And the risk of them to divest that as they have become a bit pessimistic about the outlook and are seeing losses.
There are three things investors need to remember when they decide whether to hold gold in their portfolios. First is that over the long-term gold has been a reliable store of value and has kept its purchasing power and so, you could buy the same quantity of goods with gold now which you could 50-200 years ago. People tend to hold gold like an insurance against inflation. ……………………………………….Full Article: Source

Silver Demand Returning, in Patches

Posted on 12 November 2014 by VRS  |  Email |Print

Silver is showing signs of a rebound, particularly in India, as prices hover near 4 ½-year lows. Investors are bailing on the metal and its traditional role as a store of value in favor of a resurgent U.S. dollar. However, in isolated but vital markets such as India’s, demand is booming. U.S. coin sales are strong, and the technical and anecdotal evidence is building that this market is turning around.
“There is a tsunami in silver. Investors are pouring in,” said Ashish Mundhra, managing director of Mundhra Bullion, an Indian dealer. Of late, silver has seen a rough spell. Spot prices for the white metal dropped to as low as $15.24 a troy ounce on Thursday, the lowest since February 2010………………………………………..Full Article: Source

Small Investors See Silver Lining

Posted on 12 November 2014 by VRS  |  Email |Print

Mom-and-pop investors are loading up on silver despite a price drop that has left the metal at a four-year low. The enduring interest can be seen in iShares Silver Trust , the largest exchange-traded fund that buys silver bars and is a popular bet for individual investors. As cash pours in, the ETF has accumulated 345 million ounces of silver, close to a 3½-year high.
Another indicator of the metal’s untarnished allure: The U.S. Mint said Wednesday it sold out of one ounce American Eagle silver coins, a quintessential small-investor purchase. October saw the Mint’s strongest silver coin sales since January 2013, the last time the Mint sold out of its silver inventory………………………………………..Full Article: Source

With dollar on a tear, gold and silver rout far from over: Poll

Posted on 12 November 2014 by VRS  |  Email |Print

Gold’s rout may be far from over, with many analysts and traders surveyed by Reuters predicting prices could fall to $1,000 per ounce by the end of the year, the first time at that level since 2009, even after Friday’s 3-percent short-covering rally.
A rush of physical buying in the past week - from jewelry in Shanghai to coins in Germany - may prove to be a dead-cat bounce that is too feeble to offset a broader trend of selling by investors betting on further gains in the dollar, U.S. equities and an improving U.S. economy, according to the survey of more than two dozen analysts and traders………………………………………..Full Article: Source

Gold price claws back decline, but it may soon sink to $1,000/oz

Posted on 11 November 2014 by VRS  |  Email |Print

Analysts and traders surveyed by Reuters have predicted that gold prices could fall to $1,000 per ounce by the end of the year for the first time since 2009. The case against gold comes from a stronger dollar, a robust equities market and an improving US economy – a factor that could also prompt the Fed to tighten monetary policy.
Gold slipped nearly one per cent in early trade on Monday after a short covering rally in the previous session fuelled by a softer-than-expected US jobs report. Despite a 3 per cent jump on Friday, gold remained below a key $1,180-an-ounce level that could pressure the metal back to 4-1/2-year lows reached last week on a strong dollar and fears regarding an upcoming rate hike by the US Federal Reserve………………………………………..Full Article: Source

Gold Prices Fall on Profit-Taking

Posted on 11 November 2014 by VRS  |  Email |Print

Gold prices fell Monday, as a rising dollar prompted traders to lock in profits after last week’s sharp rally. Some analysts believe Friday’s rally was only a brief respite for gold prices. With the Federal Reserve set to raise rates next year while the Bank of Japan and European Central Bank remain on an easing path, the dollar is likely to continue its ascent, pushing gold down further, said Suki Cooper, an analyst at Barclays.
“The strength of the dollar appears to be an insurmountable hurdle for gold,” Ms. Cooper said in a note to investors. “Gold is taking its cue from currency movements and rates expectations, suggesting further downside pressure.”……………………………………….Full Article: Source

UBS lowers gold price forecast but recent decline ‘overdone’

Posted on 11 November 2014 by VRS  |  Email |Print

UBS has revised its short-term gold price forecast lower but said that recent declines in the metal are overdone. Spot gold dropped to four-year lows last week at $1,131.70 but rebounded strongly on Friday. It was last at $1,171/1,172.80 per ounce, down $6.80 loss on Friday’s close.
The bank has altered its one-month price target on the metal to $1,180 per ounce from $1,250 previously but kept its three-month forecast unchanged at $1,200. It lowered its average price forecast for the full year to $1,230 from $1,270 but left its 2015 average forecast at $1,200. “Although our new one-month price is lower than our previous forecast, it reflects a recovery from an overdone move to the downside,” UBS said in a note on Monday………………………………………..Full Article: Source

$1,100 gold price needed for Chinese physical demand spur

Posted on 11 November 2014 by VRS  |  Email |Print

The physical gold market in China has completely dried up, with local sources telling FastMarkets that prices will have to fall another $40-50 to spur buying. With spot gold on international markets bottoming out at $1,145.50/1,146.20 per ounce, its lowest since April 2010 and down significantly from its 2014 peak of $1,388, many had expected China, the world’s largest consumer of gold last year, to return to the market in force to pick up metal at bargain prices.
In April 2013, when prices sank to $1,350 per ounce from nearer $1,600, Chinese buyers were fundamental to its recovery back to $1,500. But spot premiums on the Shanghai Gold Exchange are now at par, having fallen from as much as $6 over spot for 1kg bars at the start of October, highlighting the lack of demand for metal………………………………………..Full Article: Source

HSBC: $1,131/Oz Key Technical-Chart Support Area For Gold

Posted on 11 November 2014 by VRS  |  Email |Print

Gold’s strong reversal upward late last week resulted in a “hammer bottom Japanese candlestick pattern” and leaves the area around $1,131 a pivotal support level, say HSBC technical analysts.
This type of pattern “occurs when, after a downtrend, the market makes a strong move down during the week but closes back up towards the open and highs of the week. It is a sign that the bears could be losing control of the market,” HSBC says………………………………………..Full Article: Source

Why Silver Is the Only Precious Metal You Should Even Consider Buying

Posted on 11 November 2014 by VRS  |  Email |Print

The precious metals have been hammered recently as a rapid climb in the U.S. dollar has overshadowed any safe haven demand for gold, silver, platinum, and palladium. A higher greenback is a negative for precious metals because they are U.S. dollar denominated commodities. What this means is that when the U.S. dollar appreciates it makes these commodities more expensive for holders of international currencies, and thereby reduces their demand.
We know that history repeats itself and everything is cyclical. This means eventually the price of these metals will rebound, but right now given the climate, there is one metal that is best positioned to rally, and that is silver. Here is why………………………………………..Full Article: Source

Precious Metals demand is shifting to emerging markets, led by China and India

Posted on 11 November 2014 by VRS  |  Email |Print

Since 2006, when India and China absorbed about a third of total gold global mining supplies, the average of India and China per capita GDP has approximately tripled to $4,100 (in 2013) with a total population of 2.7 billion. This rapid per capita GDP growth trend is likely to continue and has the potential to accelerate. China surpassed India in 2013 as the world’s largest consumer of gold.
Together, China and India consumed about 70% of global gold production in 2013, up from about 32% in 2006. In many emerging markets, cultural - and in some cases - religious affinities for the precious metals , notably gold are boosting demand………………………………………..Full Article: Source

Gold Slides as Assets in Global ETPs Drop Most This Year

Posted on 11 November 2014 by VRS  |  Email |Print

Gold resumed its retreat in New York, falling for the eighth time in nine sessions, on signs of waning investor demand. Money managers cut their bullish wagers on the metal by the most this year, U.S. government data showed after the market settled on Nov. 7.
Holdings in global exchange-traded products backed by bullion tumbled 1.4 percent last week, the biggest drop in 2014. Prices reached a four-year low last week on a stronger dollar and expectations that the Federal Reserve will raise interest rates as the economy improves, cutting demand for a store of value………………………………………..Full Article: Source

Gold Bulls Accelerate Retreat to This Year’s Fastest Pace

Posted on 10 November 2014 by VRS  |  Email |Print

Hedge funds made their biggest cut of the year in bullish gold wagers as prices tumbled to the lowest since 2010. The net-long position in New York futures and options contracted 36 percent as long holdings fell the most in almost two years, U.S. government data show. Investors sold 14.4 metric tons of bullion held through exchange-traded products last week, trimming assets to the least since August 2009.
Gold dropped 15 percent from this year’s high in March as signs of a stronger U.S. economy drove the dollar to a five-year high and fueled speculation that the Federal Reserve is moving closer to raising interest rates. Lower oil costs are helping to keep inflation in check and U.S. equities touched records………………………………………..Full Article: Source

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Gold recovers, but will it sustain?

Posted on 10 November 2014 by VRS  |  Email |Print

Gold dropped to a four-year low of $1,132/ounce on Friday, but made a smart recovery later to close at $1,177.9/ounce, thanks to a weak jobs report in the US. The US Department of Labor reported that the country added 214,000 jobs in October.
This was lower than analysts’ expectation of an addition of 233,000 jobs and ushered in hopes of a delay in rate hike. There was also a spurt in tensions in the Ukraine border that helped gold prices. Dozens of army tanks and vehicles from Russia are reported to have entered Ukraine’s eastern border on Friday. Silver and platinum, however, couldn’t manage a recovery………………………………………..Full Article: Source

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A Major Low in Gold Price?

Posted on 10 November 2014 by VRS  |  Email |Print

It’s been a while since I have written an article on Gold, but the recent price action could well be the very clue we have been looking for. I have been very bearish Gold for a number of years/months, month by month the market has slowly moved towards the $1150 target we have been looking for.
You can clearly see its not hearsay, the result speaks for itself, our target was hit this past week, whilst many Gold pundits have been trying to pick a low, we are wavepatterntraders.com stuck to our guns and kept looking lower, one by one the Gold bulls seem to be capitulating, as the market moved towards our long standing target………………………………………..Full Article: Source

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Permanent gold backwardation = global meltdown ahead

Posted on 10 November 2014 by VRS  |  Email |Print

This article discusses the meaning of gold backwardation and its relationship with the global economy. Antal Fekete warned many years ago that a “permanent gold backwardation” would act as a financial black hole that would consume the entire global financial system. Subsequent “scholars” found (minor) flaws in his argument. However (I believe) Fekete was right and that his warning is particularly pertinent today - as gold now enters its fourth year in (or near) backwardation.
First - some definitions. The GOFO (gold forward rate) measures the difference between the spot gold price and the forward (futures) price, measured as a percentage, quoted individually over 1, 2, 3, 6 and 12 months. GOFO is (a swap rate) paid by the gold owner, who puts up his gold as collateral to borrow dollars………………………………………..Full Article: Source

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Silver demand coming back, say experts

Posted on 10 November 2014 by VRS  |  Email |Print

Gold and silver are on a falling streak. Gold, a hedge against inflation and considered a store of value, and silver have been falling over the past two years from earlier peaks. This fall has aggravated and investors have started looking at these as an opportunity. Between the two, silver is emerging as a stronger bet for the long-term.
Investors have looked at silver as a surrogate for gold, especially when the gold trade faces restrictions. In India, several restrictions have been placed on gold import, after it was held to be putting pressure on the current account deficit. Silver is finding incremental demand from jewellers; non-traditional investors have also started looking at silver for investment, as prices are falling………………………………………..Full Article: Source

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Gold price bears take charge of bullion

Posted on 07 November 2014 by VRS  |  Email |Print

When the price of gold collapsed in the summer of 2013 Chinese buyers stepped in sensing a bargain, in the process putting China ahead of India as the world’s largest consumer of the precious metal.
This year, however, Chinese buyers have been conspicuous by their absence – and gold prices this week have hit a four-year low. Retail consumption fell by a fifth to 754.8 tonnes in the first nine months of the year compared with the same period last year, according to the China Gold Association, and few analysts believe it will rebound in the coming months even though bullion is at a five-year low in local currency terms………………………………………..Full Article: Source

Gold still expensive relative to other commodities

Posted on 07 November 2014 by VRS  |  Email |Print

Despite the rout in Gold, the metal is still highly expensive relative to Silver and other commodities. The gold silver ratio currently hovers at the five-year high levels which may be indicative of further decline in gold prices. One ounce of the yellow metal is fetching more than 74 ounces of silver, the most since March 2009.
Silver has outpaced gold’s declines since the end of 2012, falling 49% till yesterday, while gold dropped 32%. Moreover, the gold silver ratio is climbing because Silver has more industrial uses and the weak demand due to global growth slowdown is further affecting the prices. On the other hand, Gold usually finds support on safe haven appeal during the times of economic slowdown………………………………………..Full Article: Source

Will the Swiss Referendum Turn Around Gold?

Posted on 07 November 2014 by VRS  |  Email |Print

Gold is in free fall. But a Swiss vote later this month might help stoke a rebound in the yellow metal and alter the contours of the gold market for years to come. Though it sounds farfetched, a referendum in Switzerland on Nov. 30 could force the hand of the Swiss National Bank to buy billions of dollars in gold and never sell.
So far, gold prices have paid little mind to the vote, slumping nearly 13% over the past three months as a rising dollar and diminishing inflation expectations have eroded gold’s appeal………………………………………..Full Article: Source

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