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Global Economy Unruffled by Brexit but Threats Loom

Posted on 26 August 2016 by VRS  |  Email |Print

Safe havens such as gold and the yen have given up most of their post-Brexit gains, while equity markets have rallied - but are there other threats around the corner? Sentiment in financial markets has soured since April, especially after the Brexit referendum. Most analysts have revised down their growth expectations for 2016 and 2017 and cut their inflation forecasts.
Monetary policy, accordingly, is now expected to remain accommodative for longer than previously thought. The odds of a recession in the medium term are now higher, in the eyes of the market, although most analysts do not expect one this year. The experience, however, from previous episodes of volatility post-2008 suggests that the pessimism might be overdone………………………………………..Full Article: Source

Look Past OPEC Freeze Hype to Really Understand Oil’s Advance

Posted on 26 August 2016 by VRS  |  Email |Print

For all the feverish speculation of OPEC action that’s roiling oil markets, the real reason for crude’s recent recovery probably lies elsewhere. Oil futures have rallied more than 10 percent since the Organization of Petroleum Exporting Countries said it would hold informal talks in Algeria in late September, fueling expectations it could revive a pact on freezing production.
Banks from Citigroup Inc. to Bank of America Merrill Lynch see a simpler explanation for the rebound: the global oil oversupply is finally dissipating. A narrowing discount — also known as contango — on immediate supplies of Brent crude is the “clearest indicator” that the two-year glut is fading, Credit Suisse Group AG said………………………………………..Full Article: Source

China’s Decline in Oil Production Echoes Globally

Posted on 26 August 2016 by VRS  |  Email |Print

China’s struggling oil sector has entered a challenging new phase: long-term decline of its domestic production. Oil production in China likely peaked last year at around 4.3 million barrels a day, according to new data and interviews with industry executives.
The development has significant implications globally, including the potential for higher crude prices over time as China steps up imports to meet rising demand at home. “The turning point that we’ve been searching for, for years, is happening now,” said Kang Wu, vice chairman for Asia at energy consultancy FGE. As an oil producer, he said, “China is entering long-term stagnation and decline.”……………………………………….Full Article: Source

Iran oil minister to attend Algeria Opec meeting

Posted on 26 August 2016 by VRS  |  Email |Print

Iran’s oil minister Bijan Zanganeh will attend a meeting of Opec ministers in Algeria in September, the country’s state news agency Shana said on Thursday. The gathering towards the end of next month will be held on the sidelines of an International Energy Forum industry conference.
For several days oil prices had moved higher in response to reports that Iran would attend the meeting. This fuelled speculation that Iran may take part in any coordinated action to prop up the oil market………………………………………..Full Article: Source

Commodities Rout Is Far From Finished As Glencore’s Profits Sink 66%

Posted on 25 August 2016 by VRS  |  Email |Print

Commodities colossus Glencore dipped to one-month lows in Wednesday business after latest half-year numbers highlighted the ongoing malaise whacking raw materials markets. Glencore was last dealing 5% lower after announcing that net income slumped by two-thirds between January and June, to $300m, a result that narrowly missed broker estimates.
The business saw revenues at its Metals and Minerals division dip 4% in the first six months, to $30.9bn, as much of the base metals complex continued to struggle. Bellwether metal copper saw its value sink 21% in the period, for example, to $4,707 per tonne, Glencore noted………………………………………..Full Article: Source

Russia Sees Oil At US$50 Till Late 2017

Posted on 25 August 2016 by VRS  |  Email |Print

The Russian Economy Ministry said in a statement it expected crude oil prices to remain stable at their current range of US$45-50 over the next two years, with a sustainable improvement beginning in late 2017.
The latest rally in prices, according to the ministry’s statement, has “a speculative nature” and will not last long. This was proven yesterday when the American Petroleum Institute released its weekly report on inventories, stunning the market with a 4.46-million-barrel buildup, when almost all analysts expected a draw and the only group – polled by S&P – that forecast an increase was much more modest in its expectations, at a build of 200,000 barrels………………………………………..Full Article: Source

Who Is More Credible – The Fed or OPEC?

Posted on 25 August 2016 by VRS  |  Email |Print

Almost on cue oil prices quickly reversed course and traded higher on Tuesday when news broke that “Iran is sending positive signals that it may support group action to lift the oil market,” according to MarketWatch.
The ​Organization Of Petroleum Exporting Countries (OPEC) is due to hold an informal meeting next month to discuss stabilizing the oil market. This has left investors bewildered in the last few weeks as oil volatility increases. Earlier in the day, oil traded lower when Goldman Sachs reportedly said that both the oil prices and the crude market’s fundamental recovery remain fragile………………………………………..Full Article: Source

Oil could take another dive, just in time for new round of OPEC rumors

Posted on 25 August 2016 by VRS  |  Email |Print

The next trough in oil prices could come just as OPEC members gather in Algeria next month — and that could make for an interesting, and more unpredictable outcome. While most analysts say OPEC members are all talk, and no action, some say there is an outside chance members could feel pressured enough to act if crude prices are in free fall.
Members of the Organization of the Petroleum Exporting Countries have said they would discuss at their late September meeting whether a freeze or some other action is needed to stabilize oil prices, after a number of high-profile failures to reach an agreement………………………………………..Full Article: Source

Saudi Arabia Holds China Market Share Lead on Record Oil Output

Posted on 25 August 2016 by VRS  |  Email |Print

Saudi Arabia kept its spot as China’s biggest oil supplier for the first seven months this year after pumping record output in July, even as Russia threatens to overtake the kingdom in their contest for sales to the world’s largest energy consumer.
The biggest crude exporter shipped an average of 1.05 million barrels a day to China in the year through July 31, giving it a market share of 14 percent, according to Bloomberg calculations based on data that China’s General Administration of Customs published Wednesday. Russia’s share was 13.6 percent, the data show………………………………………..Full Article: Source

Iraq has not yet reached its full oil market share: PM Abadi

Posted on 25 August 2016 by VRS  |  Email |Print

Iraqi Prime Minister Haider al-Abadi on Tuesday said Iraq had not yet reached its full oil market share, suggesting that the country would prefer not to restrain its crude output as part of any possible OPEC agreement to lift prices.
“Iraq is still below what it should produce,” Abadi told a news conference in Baghdad, in response to a question on whether his government would be open to such an agreement………………………………………..Full Article: Source

UBS: ‘Any Downside Should Ultimately Be Limited’ In Gold

Posted on 25 August 2016 by VRS  |  Email |Print

UBS looks for any potential damage from Federal Reserve hawkishness to be limited. “The focus this week will be Fed Chair Yellen’s speech at Jackson Hole, where investors will look for guidance on Fed policy,” UBS says in an early-week research note.
“We expect Fed comments to hint at the potential for a hike later in the year – improving U.S. data and hawkish comments from the Fed could weigh on gold, especially given positioning has lingered close to all-time highs.” Net speculative length on Comex as of Aug. 16 was around 91% of the all-time high, despite a decline over the past six weeks, UBS says………………………………………..Full Article: Source

Gold Pressured By Bearish Outside Markets

Posted on 25 August 2016 by VRS  |  Email |Print

Gold and silver prices are modestly lower in subdued early U.S. trading Wednesday. The outside markets are in a bearish posture for the precious metals on this day, as crude oil prices are lower and the U.S. dollar index is higher.
December Comex gold was last down $3.70 an ounce at $1,342.30. December Comex silver was last down $0.06 at $19.01 an ounce. Nymex crude oil futures prices are lower in early U.S. trading today. Crude prices are still in a near-term uptrend, however………………………………………..Full Article: Source

Not even OPEC can save the struggling oil market now, Goldman Sachs warns

Posted on 24 August 2016 by VRS  |  Email |Print

OPEC production freeze or not, the oil market is not going to recover anytime soon, as troubled oil-producing nations prepare to ramp up production and pave the way for hundred of thousands of barrels to be released into an already oversupplied market, Goldman Sachs warned.
Libya, Iraq and Nigeria — which all have suffered from severe supply disruptions — last week started to show the first signs of ramping up production, seen as posing a risk to oil’s nascent recovery, according to the bank………………………………………..Full Article: Source

Oil sector shares jump on Iran-Opec hopes

Posted on 24 August 2016 by VRS  |  Email |Print

Oil companies broadly advanced on Tuesday as crude rebounded, buoyed by speculation that Iran will attend a meeting of Opec producing countries next month. Members of the oil producing cartel are expected to meet to discuss actions to support the crude market, which despite Brent rallying 34 per cent this year remains 57 per cent below a 2014 peak.
Brent crude, the global benchmark, reversed earlier losses and rose 1.6 per cent to $49.96 a barrel after Reuters said Iran was “sending positive signals” about supporting joint efforts, citing unnamed sources in Opec and the oil industry………………………………………..Full Article: Source

Saudi Arabia isn’t flooding oil market ahead of freeze talks: Kemp

Posted on 24 August 2016 by VRS  |  Email |Print

Saudi Arabia’s oil production hit a record in July, according to published statistics, and is likely to hit another in August, according to industry sources. Some analysts have interpreted the increases as an aggressive demonstration of the kingdom’s ability to ramp up output ahead of an informal meeting of oil ministers in Algeria next month.
In this view, Saudi Arabia is increasing output as a warning to rivals that if there is no agreement on a production freeze it has the means to continue raising its output and intensify the pain for all oil exporters……………………………………….Full Article: Source

Iraq has not yet reached its full oil market share, says PM

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq’s prime minister said the country has not yet reached its full oil market share, suggesting his government would not restrain crude output as part of any possible OPEC agreement to lift prices.
“And the capping, we are not open to that because Iraq is still below what it should produce,” Haider al-Abadi told reporters, responding to a question about whether the second-largest OPEC producer would be open to such a deal………………………………………..Full Article: Source

Gold heads for first monthly drop since May

Posted on 24 August 2016 by VRS  |  Email |Print

Concerns grow over potential Fed rate rise. Gold is heading for its first monthly drop since May, as angst grows that a second rate rise since last December from the US Federal Reserve will end a stellar rally that has sucked almost $13bn into the largest exchange traded fund backed by the yellow metal this year.
After a record year so far, flows into the SPDR Gold Shares are dipping this month in a sign of investors’ nervousness over whether gold can extend its 26 per cent gain this year, according to traders and analysts………………………………………..Full Article: Source

How Venezuela is impacting the gold market

Posted on 24 August 2016 by VRS  |  Email |Print

Global central banks continued to be buyers of gold in the first half of 2016, and while the pace of purchases is expected to slow, demand is likely to hold steady. “There is still no appetite for sales, but outside of Russia and China, few purchases either,” analysts at Macquarie Capital Markets said on Tuesday.
They estimate central banks bought 166 tonnes of gold and sold 22 tonnes in the first half of the year, producing a net purchase of 144 tonnes………………………………………..Full Article: Source

Growth through new ways, a well-timed focus for global economy

Posted on 24 August 2016 by VRS  |  Email |Print

Growth as a focus of global efforts is on top of the agenda of the upcoming G20 summit to be held in east China’s Hangzhou City, which is in a well-timed response to the economic difficulties or crises troubling both developed and developing countries.
This is what the Sept. 4-5 summit under China’s presidency will be trying to commit a coordinated global effort to, with a difference to be made that is spelled in its theme “Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy.” China’s ideas and initiatives highlight adjustment and cooperation in seeking a way to get out of the global economic sluggishness to benefit both developed and developing countries while calling for joint efforts from both………………………………………..Full Article: Source

Oil Reverses Gear Into a Bear Market (Video)

Posted on 23 August 2016 by VRS  |  Email |Print

Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bull to a bear market in less than three weeks.
Oil fell after the longest run of gains in four years as Iraq seeks to increase exports amid a global overhang of crude inventories and as Nigerian militants call an end to hostilities. UBS Head of UK Investment Office Geoffrey Yu discusses with Bloomberg’s Anna Edwards on “Countdown.”……………………………………….Full Article: Source

Is Oil in a Bull or Bear Market? Depends on the Day

Posted on 23 August 2016 by VRS  |  Email |Print

Oil has been in a bull market recently. Or was that a bear market? It can be tough to keep track when crude shifts as much as it does. West Texas Intermediate has gone from a bull market into a bear market, or vice versa, five times this year, according to WSJ Market Data Group.
That’s the most times since 1998, when it also crossed five times, according to the data, which is based on continuous front-month futures contracts. A gain or loss of 20% typically signals the start of a bull or bear market, respectively. After entering one, it takes a 20% move in the opposite direction to switch courses. A move of that size is big, so it typically doesn’t happen all that often — except in 2016………………………………………..Full Article: Source

Morgan Stanley throws cold water on hopes of any OPEC freeze deal

Posted on 23 August 2016 by VRS  |  Email |Print

Energy investors got all excited last week on hints of a freeze deal among major oil producers, but anyone hoping for coordinated action to boost the struggling oil market is bound for disappointment, according to Morgan Stanley.
In a note out on Monday, strategists led by head of energy commodity research Adam Longson warned that an output agreement between members of the Organization of the Petroleum Exporting Countries remains “highly unlikely” as the cartel members battle for market share………………………………………..Full Article: Source

Global economic outlook “stable, but not secure”: PIMCO

Posted on 23 August 2016 by VRS  |  Email |Print

The future over the next three to five years, as seen through the lens of PIMCO’s Secular Outlook, is stable but not secure. “[W]hile we do not see a global economy heading toward recession, we also do not see readily available means to stimulate aggregate demand and drive accelerated growth,” the piece reads.
Citing the most immediate and prevalent dynamic – diminishing returns from central banks’ monetary policy and probable inadequacy of fiscal policy to fill the gaps – the outlook predicts volatility that will leave investors vulnerable to both negative and positive shocks………………………………………..Full Article: Source

Moody’s calls bottom on commodity price collapse – but the pain isn’t over

Posted on 22 August 2016 by VRS  |  Email |Print

The dizzying price falls in metals such as aluminium, zinc, copper and nickel have bottomed out, ratings agency Moody’s has declared – but the mining industry will still feel the pain of low prices. Moody’s has upgraded its outlook for the global base metals industry from negative to stable, but warned prices will stay low for longer.
“We view prices for base metals as having likely bottomed following the sharp decline beginning late last year, and consequently we have revised our price sensitivity assumptions,” said Carol Cowan, a Moody’s senior vice president………………………………………..Full Article: Source

Oil Enters a Bull Market (Video)

Posted on 22 August 2016 by VRS  |  Email |Print

Oil has capped its strongest weekly gains in five months after WTI and Brent entered a bull market. Bloomberg’s Anthony DiPaola reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

Arabian Gulf markets remain quiet amid oil’s return to $50 mark

Posted on 22 August 2016 by VRS  |  Email |Print

Arabian Gulf shares began the week in quiet fashion on Sunday, with a return to US$50 oil proving little stimulus for investors. Brent crude futures closed the week at above $50 per barrel despite drifting lower on Friday, ahead of Opec talks next month to discuss production levels.
Analysts are sceptical about the chances of such talks producing a cut in production, with further significant price gains unlikely in the short term. “We see the upside as being limited from here and expect Brent crude will find resistance in the $50 to $52 [per barrel] area before correcting lower back into our preferred third-quarter range between $45 and $50 [ per barrel],” wrote Ole Hanson, the head of commodity strategy at Saxo Bank………………………………………..Full Article: Source

Saudi Arabia shows its ability to move oil markets

Posted on 22 August 2016 by VRS  |  Email |Print

Saudi Arabia demonstrated its ability to move oil markets last week with Brent crossing $50 following comments by Oil Minister Khalid Al-Falih that the kingdom was “ready to take action”, said a leading analyst.
Following the Brexit vote on June 23, oil dropped more than 20 per cent, thereby moving into a technical bear market. Within the past few weeks, however, a 22 per cent rally has taken it straight back into bullish territory, said Ole Hansen, head of commodity strategy at Saxo Bank, in a commentary………………………………………..Full Article: Source

Opec likely to cap production at meeting

Posted on 22 August 2016 by VRS  |  Email |Print

Oil nations meeting next month may be more willing to cap production at current levels rather than cut output, according to Suhaimi Ilias, group chief economist, Maybank Investment Bank.
“It is possible that the Organisation of Petroleum Exporting Countries (Opec), perhaps together with the likes of Russia, may cap output at current levels at next month’s meeting (in Algeria from Sept 26-28) but we are less optimistic of a cut in output,” said Suhaimi. While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, former Opec president……………………………………….Full Article: Source

Mining companies sweat the big and small stuff

Posted on 22 August 2016 by VRS  |  Email |Print

As big as houses and capable of carrying more than 200 tonnes of ore, giant haul trucks are the workhorses of vast mines from Mongolia to Chile. Chief executives have found a new use for the yellow monsters made by Caterpillar and Komatsu: as proof of the narrow focus and limited horizons of today’s global mining industry.
The captains of a sector that was ablaze with dealmaking at the height of the commodities boom, from 2006 to 2012, have firmly turned away from grandiose ambitions. In today’s depressed commodities environment, with persistent doubts over the direction of prices, mining companies’ leaders are determined to show they can sweat the small stuff — or in the case of haul trucks, the large stuff………………………………………..Full Article: Source

Commodities Bear Market Begins to Splinter (Video)

Posted on 19 August 2016 by VRS  |  Email |Print

Alexander Dryden, strategist at JPMorgan Asset Management, discusses commodities and why he says we are entering the next phase of stabilization for the market. He speaks with Guy Johnson on Bloomberg Television’s “On The Move.”.………………………………………Full Article: Source

Bullish chart patterns across many commodity-related equities have triggered a move by active traders

Posted on 19 August 2016 by VRS  |  Email |Print

According to Investopedia, the technical data available on commodities and mining companies is prompting traders to dive into mining commodity markets. “Bullish chart patterns across many commodity-related equities have triggered a move by active traders toward increasing exposure to physical assets and the companies that explore, develop and produce mineral properties,” wrote trade-focused journalist Casey Murphy this week.
Murphy singled out Newmont Mining, BHP Billiton and Rio Tinto as top picks based on charting data. “The [Newmont share] price has found support near a major trendline on each attempted pullback so far in 2016,” the report stated………………………………………..Full Article: Source

Oil swings back into bull market

Posted on 19 August 2016 by VRS  |  Email |Print

Brent crude rises above $50 a barrel on hopes of Opec production cap and drop in US stockpiles. The main global oil benchmark rose above $50 a barrel on Thursday afternoon, taking crude back into bull market territory, as hopes of an Opec production cap and a surprise drop in US crude stockpiles helped power a recovery in prices.
Less than three weeks after falling into a bear market — defined as a drop of more than 20 per cent from the recent peak — oil has now gained for six straight days and is up over 20 per cent from this month’s low………………………………………..Full Article: Source

Why oil prices just stampeded into bull-market territory

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices officially charged into a bull market Thursday as the prospect of an output freeze by major producers, data showing the first weekly fall in U.S. crude supplies in a month, and a decline in the dollar boosted prices.
Crude-oil prices have advanced more than 20% from their Aug. 2 low over the past several sessions, signifying a bull-market run. September West Texas Intermediate crude climbed by $1.43, or 3.1%, to settle at $48.22 a barrel on the New York Mercantile Exchange………………………………………..Full Article: Source

Gold Bull Market Should Keep Its Shine, Charts Say

Posted on 19 August 2016 by VRS  |  Email |Print

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

Gold Boosted By Bullish ‘Outside Markets’

Posted on 19 August 2016 by VRS  |  Email |Print

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

The Global Economy has a Darker Side

Posted on 19 August 2016 by VRS  |  Email |Print

A Paris prosecutor recently called for the former CEO and six senior managers of telecoms provider, France Télécom, to face criminal charges for workplace harassment. The recommendation followed a lengthy inquiry into the suicides of a number of employees at the company between 2005 and 2009.
The prosecutor accused management of deliberately “destabilising” employees and creating a “stressful professional climate” through a company-wide strategy of “harcèlement moral” – psychological bullying………………………………………..Full Article: Source

Oil, Metals, and a Rebalancing of Commodities Supplies (Video)

Posted on 18 August 2016 by VRS  |  Email |Print

David Wilson, director of metals research and strategy at Citigroup, and Michael Cohen, head of energy commodities research at Barclays, discuss supply growth in the metals and energy markets, . They speak with Bloomberg’s Alix Steel on “Bloomberg ‹GO›.”.………………………………………Full Article: Source

Oil Era Not Over Yet, OPEC Will Help Rebalance Market

Posted on 18 August 2016 by VRS  |  Email |Print

It is premature to say that the oil era is nearing its end, Saudi researcher and economic adviser Yousef Al-Zamel told Sputnik. According to him, meetings between OPEC members and non-OPEC producers would help the oil market.
“Oil is still the main energy source in the world. I think that alternative energy sources are too expensive and not very popular so far,” the expert pointed out.”It is too early to say that the oil era is coming to an end,” Al-Zamel added………………………………………..Full Article: Source

OPEC’s Former Head Says Conditions Right for Oil-Freeze Deal

Posted on 18 August 2016 by VRS  |  Email |Print

OPEC is on course to strike an output-freeze deal with fellow oil producers in Algiers next month because its biggest members are already pumping flat-out, the group’s former president said.
While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year………………………………………..Full Article: Source

Gold demand surges amid fears for world economy

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

When will China economy bottom out?

Posted on 18 August 2016 by VRS  |  Email |Print

China’s economic growth has started to slow down markedly since 2012. And the long-awaited bottoming sign has proved illusive over the past few years. According to a new forecast made in a China Daily article, the growth slowdown could come to an end in one or two years. But it remains to be seen if the prediction proves correct.
It’s widely believed that China’s slowdown since 2012 is mainly a result of the aftershock of the 2008 global financial crisis and the backfiring of the nation’s policy response. Beijing promptly rolled out a 4-trillion-yuan stimulus package back then to counter the crisis. The scheme appeared to work as GDP growth reached 9.6 percent, 9.1 percent, 10.4 percent and 9.3 percent respectively between 2008 and 2011………………………………………..Full Article: Source

Commodity bounce fails to spark Europe markets

Posted on 17 August 2016 by VRS  |  Email |Print

European stocks finished firmly in the red on Tuesday, as strong performances in oil, mining stocks and sterling failed to electrify markets. The pan-European STOXX 600 wavered throughout trade, ending down 0.79 percent provisionally. Most sectors closed in negative territory; however basic resources ended up 1.3 percent.
On the bourses front, the U.K.’s FTSE 100 fell 0.68 percent, as sterling rose against the dollar. Meanwhile, France’s CAC 40 closed 0.83 percent down and Germany’s DAX slipped 0.58 percent………………………………………..Full Article: Source

Iran Undecided on Joining OPEC Meeting

Posted on 17 August 2016 by VRS  |  Email |Print

Iran has made no decision about joining an OPEC meeting on oil output next month and doesn’t expect to reach the production levels that its government has previously said are required before it can make an output agreement, an oil-ministry spokeswoman said Tuesday.
Oil prices have been gaining since last week when Saudi Arabia signaled it would work with other oil producers to stabilize prices. The statements cast a doubt on the success of informal talks due next month in Algiers to revive efforts to tighten output, report Benoit Faucon and Summer Said………………………………………..Full Article: Source

Looking to precious metals? Watch these trends

Posted on 17 August 2016 by VRS  |  Email |Print

The depreciation of the Chinese renminbi and its impact on precious metals has gone largely unnoticed, says Scott Vali, vice-president of equity for CIBC Asset Management. But, “[China] continues to depreciate that currency, and that’s a deflationary shock [to] the global system,” says Vali, who manages the Renaissance Global Resources Fund.
However, “we’re still fairly constructive on gold. There are always gyrations in the near term but [gold’s] well supported as we look out.” The U.K. referendum and threat of Brexit has also affected the bullion market. “Brexit has increased the uncertainty around growth rates not only in the U.K., but has also now put question marks around the sustainability of the Eurozone and [its] growth,” says Vali………………………………………..Full Article: Source

BHP makes record loss after commodity rout and Brazil disaster

Posted on 17 August 2016 by VRS  |  Email |Print

BHP Billiton, the world’s biggest miner, has reported a record loss of $6.4bn (£4.9bn) following a fatal dam disaster in Brazil, a slump in the price of commodities, and a bet on fracking in the US. Miners are struggling due to a sharp fall in commodity prices, sparked by concerns that a slowdown in the Chinese economy could leave a surplus of raw materials.
Andrew Mackenzie, chief executive of the London-listed company, said the last 12 months have been challenging and that commodity prices are likely to remain volatile, even if long-term demand remained robust………………………………………..Full Article: Source

Going Global: Clues in the world economy

Posted on 17 August 2016 by VRS  |  Email |Print

All eyes may be on the domestic post-EU referendum economic outlook, but during this period of global economic volatility it’s important that UK businesses keep a close watch on the bigger picture.
There has been no shortage of negative data on the UK economy – in particular the latest Lloyds Bank purchasing managers’ index, which reported that business activity in July slipped further below the long term average to a level, which if sustained, indicates some contraction in the economy………………………………………..Full Article: Source

U.S. Stocks Get Lift From Commodities Sector

Posted on 16 August 2016 by VRS  |  Email |Print

All three major U.S. stock indexes close at records; miners, chemical producers and industrial companies were among the biggest gainers. U.S. stocks advanced to records Monday, led by gains in commodity-linked shares as crude oil prices reached a one-month high.
All three major U.S. stock indexes closed at all-time highs on the same day Monday, a feat they accomplished Thursday for the first time since 1999. The gains have come during relatively light trading. Monday’s U.S. stock-trading volume was the lowest since the Friday before the Memorial Day holiday………………………………………..Full Article: Source

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