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Gold regains shine in August amid market turmoil

Posted on 01 September 2015 by VRS  |  Email |Print

Gold has had its best month in seven. The yellow metal rose 3.6 per cent to $1,134.93 an ounce in August — its best month since January, when it jumped 8.4 per cent. Gold’s lacklustre performance for much of the year (even through the crisis in Greece and Ukraine) prompted chatter that it was losing its safe haven appeal, as the market increasingly focused on the looming rate rise from the Federal Reserve.
As an asset which offers no yield, gold came under pressure amid speculation that a rate rise would push investors to higher yielding assets………………………………………..Full Article: Source

Kuwait- Resilience Of Shale And Disappointment Of OPEC

Posted on 31 August 2015 by VRS  |  Email |Print

Almost nine months have passed since the historic OPEC meeting when its swing producer role was abolished and its members were allowed to produce as much oil as they can in order to cause the oil prices to reduce so that US shale oil producers would be forced out of business. However, the opposite happened. Shale oil producers are still in business even though oil prices have dropped below 50 per barrel.
In fact, USA oil production is at its peak with production of more than 9.5 million barrels a day, and is bound to increase further. So where did OPEC go wrong? Despite having all kinds of information regarding energy and being in daily contact with both sides of the market consumers and producers, it still failed to estimate the power of the shale oil producers. In fact, it even failed to know the actual cost for producing one barrel of shale oil………………………………………..Full Article: Source

Gold Bulls Pile In Just Before Bullion Loses Its Job as a Haven

Posted on 31 August 2015 by VRS  |  Email |Print

Gold bulls piled into the metal in hopes that the turmoil sweeping financial markets would finally help revive prices. They were wrong. Instead of a rally, futures in New York fell for four straight sessions even as global equities plunged to a two-year low. Rather than providing a refuge from the meltdown, gold’s volatility rose right along with a measure of equity turbulence, diminishing its appeal as a haven.
As stocks started to recover, the metal kept falling because of reports that signaled gains for the U.S. economy. It’s been a tough two years for investors in gold, which first fell into a bear market in April 2013. More than $52 billion has been wiped from the value of physical bullion funds since then. ……………………………………….Full Article: Source

HSBC trims metal price forecasts

Posted on 31 August 2015 by VRS  |  Email |Print

HSBC has lowered its silver and platinum group metals price forecasts for this year and next citing a recent drop in prices and weaker Chinese demand. “Even a modest Chinese slowdown has the capacity to drive prices of these metals lower, and we believe those concerns have led to the sharp price falls,” the bank said in a note.
China is a major importer of all three metals for use in the car, industrial and jewellery sectors. Silver prices had fallen to six-year lows, while palladium prices touched a five-year low on August 26. The broad-based commodity declines may be encouraging margin call liquidation and fresh selling in platinum group metals, HSBC said………………………………………..Full Article: Source

Natural Gas Rises as Commodities Rebound From Global Selloff

Posted on 26 August 2015 by VRS  |  Email |Print

Natural gas futures gained for the first time in three days, rebounding from an 11-week low Monday amid a global rout in commodities, as hotter weather may spur demand from power plants. Temperatures in New York may reach 89 degrees Fahrenheit (32 degrees Celsius) on Aug. 29, 8 above normal, according to AccuWeather Inc.
The heat may put a dent in a gas glut while traders claw back some of yesterday’s across-the-board losses stemming from a currency devaluation in China, according to Bob Yawger, director of the futures division for Mizuho Securities USA Inc………………………………………..Full Article: Source

Opec powerless to halt oil price slide, warns former group president

Posted on 25 August 2015 by VRS  |  Email |Print

Opec is powerless to arrest the slide in oil prices unless producers outside the group such as Russia match any cuts in output, according to a former president of the group. With oil prices plummeting due to global oversupply, the Organisation of the Petroleum Exporting Countries (Opec) would be unable to stabilise the market on its own, Abdullah bin Hamad Al-Attiyah said.
The group - which is mainly comprised of Middle Eastern and South American oil producers - would need agreement from other oil-producing nations. “I don’t see any light at the end of the tunnel,” said Mr al-Attiyah. “Opec and non-Opec need to agree to support the market.” Brent crude is down 57pc over the last year to $43 per barrel with pressure mounting within Opec for an emergency meeting of oil ministers to discuss the price slide………………………………………..Full Article: Source

Iran Looms Large Over the International Oil Market

Posted on 21 August 2015 by VRS  |  Email |Print

About 60% of oil market experts view supply as the main driver of prices today, compared to the dollar’s value at 20%. Iran’s nuclear deal with the West could lift crushing sanctions and unleash millions of barrels of Iranian oil onto an already saturated market.
Iran could now be hoarding over 50 million barrels on tankers in the Persian Gulf, versus the 30-40 million barrels previously thought. This is well over double what Iran was believed to be holding 16 months ago and would exacerbate the glut that has plummeted oil prices to six-year lows at $41/barrel, down from $100 last year………………………………………..Full Article: Source

Did China Kick-Start A New Bull Market In Gold?

Posted on 21 August 2015 by VRS  |  Email |Print

Many have written about the devaluation of the Chinese currency last week, in particular its causes and consequences. In mainstream media, most opinions are centered around the weakness of the Chinese economy which is now growing less than 7%. Logically, they argue, China wants to stimulate exports and stabilize the currency by ‘de-pegging’ it from a strengthening dollar.
The alternative media basically is focused on a new phase in the currency war, the aim to control capital outflows, and, obviously, the wish of China to enter the IMF’s based SDR currency system (for which a free market currency is a prerequisite). While all that could be true, we believe there is something much more important going on. Something that truly everyone is missing………………………………………..Full Article: Source

Yuan Devaluation Adds to Commodities Gloom

Posted on 20 August 2015 by VRS  |  Email |Print

Another great game is certainly afoot in global financial markets, and China has announced its presence with authority. The bout, of course, is the currency war. On August 11, China devalued its currency by the largest amount in one day since 1993. By doing so, it joined a phalanx of countries around the world that have actively depreciated their currencies against the U.S. dollar.
Markets have been roiling ever since. This is especially true for commodities, which are already in a weakened position. But all the drama seems to be a bit of an overreaction………………………………………..Full Article: Source

OPEC Is Toast as US Wins the Energy War

Posted on 20 August 2015 by VRS  |  Email |Print

When OPEC decided last November to keep the spigots open despite lower oil prices, many of us predicted doom for U.S. shale producers. The Saudis, we thought, would use low prices to bankrupt those upstart Americans.
Some upstarts did go bankrupt, but others surprised us with their adaptability. OPEC is still falling apart as energy exporters fend for themselves. Even the strongest members look increasingly vulnerable to low oil prices………………………………………..Full Article: Source

Listen up, gold bugs: HSBC predicts a year-end recovery

Posted on 17 August 2015 by VRS  |  Email |Print

The precipitous downturn in gold has taken the market to levels not seen since March 2009 but low prices may contain the seeds of the next rally, according to HSBC. The bank projects prices will end the year as much as 10 percent higher than current levels; gold closed at $1,114 an ounce on Friday.
Gold has struggled to regain its allure this year, down 6 percent since January, as investors continue to shun the precious metal in favor of higher yielding assets such as equities. But there could be some light at the end of the tunnel, with HSBC offering food for thought on the possibility of a gold resurgence. In a report on Friday, the bank set out five reasons its experts believe gold prices could recover to $1,200 per ounce to $1,225 towards the end of the year………………………………………..Full Article: Source

Thanks to China, It’s Time to Look at Slumping Commodities

Posted on 13 August 2015 by VRS  |  Email |Print

The drop in Chinese construction is pulling the rug out from under commodity prices, so investors seeking to do some bottom fishing may want to get out their rods and reels, said Patrick Chovanec, chief strategist at Silvercrest Asset Management. “This is the point in the cycle where you actually want to start looking for value and getting ready for the next part of the cycle,” said Chovanec.
Regarding the Chinese decision to devalue its currency, Chovanec regards the policy as a mistake because it further limits the U.S. Federal Reserve’s ability to maneuver. The People’s Bank of China’s so-called “one-off” correction was taken a step further on Wednesday as the central bank devalued the yuan by another 1.6% after a 1.9% devaluation a day earlier………………………………………..Full Article: Source

Base Metals Continue To Struggle

Posted on 12 August 2015 by VRS  |  Email |Print

For many commodity traders there are few correlations as strong as that of base metals and global stock markets. As you can see from the chart of the Powershares DB Muli-Sector Commodity Trust MetalsFund (DBB), a common measure used to track metals such as aluminum, zinc and copper, you’ll see that the bears recently sent the price below the support of a key trendline.
Notice how the confined trading range has controlled the price of the ETF since late 2011. At this point, the recent break below the support level suggests that the momentum is likely to increase and that a sharp move lower could be in the cards. From a risk management perspective, bearish traders will likely look to protect their positions by placing a stop-loss order above the upper resistance level, which is trading near $14.33………………………………………..Full Article: Source

What a rout in commodities has done to long-term bond yields

Posted on 11 August 2015 by VRS  |  Email |Print

Demand for long-term Treasury bonds has been rising over the past four weeks, as an overarching flight-to-safety theme has emerged out of the global rout in commodities sparked in part by worries about a slowdown in China’s economy.
Treasury investors have been moving money from short-term to long-term Treasury bonds causing a phenomenon that is known as a “flattening yield curve.” “Most [Treasury investors] seem to be playing the curve flattening strategy ahead of the Fed’s September meeting,” Tom di Galoma, head of rates and credit trading at ED & F Man Capital Markets, said in a note………………………………………..Full Article: Source

Gold Suffers Longest Fall in 15 Years. Still Analysts Don’t See Recovery Anytime Soon

Posted on 11 August 2015 by VRS  |  Email |Print

Global gold prices ticked higher on Monday but stayed within striking distance of a 5-1/2-year low, after solid US job gains in July suggested the Federal Reserve could raise interest rates as early as next month.
The metal fell for a seventh week in a row last week, its longest such retreat since 1999, having struggled to pull away from a 5-1/2-year trough of $1,077 reached during a late rout in July. Spot gold was up 0.3 per cent at $1,096.10 an ounce by 0622 GMT, recovering from an early low of $1,089.40. US gold for December delivery gained 0.2 per cent to $1,096 an ounce………………………………………..Full Article: Source

A Cheer and a Half for Cheap Commodities

Posted on 10 August 2015 by VRS  |  Email |Print

Commodities markets have taken a beating this summer. Oil, coal, coffee, soybeans, copper, iron and nearly every other commodity has fallen sharply in price, upending currency markets and inflicting pain in large parts of the world economy. But few Americans are complaining. Unless you are trading soybeans or have been focused on the battered shares of companies like Exxon Mobil and Chevron, or on sinking currencies like the Brazilian real or South African rand, you may not have noticed the commodities debacle.
The collapse in oil prices is all too evident in oil shale states like North Dakota and Oklahoma, as well as in nations like Canada, Mexico, Brazil, Russia, Norway and Saudi Arabia — but it has not intruded into the daily experience of many Americans………………………………………..Full Article: Source

Poor commodities: an asset without a central bank backer

Posted on 07 August 2015 by VRS  |  Email |Print

Commodity investors stung by the four-year bear market made one simple mistake: investing in an asset class not backed by a central bank. Whereas equities and bonds have benefited from very meaningful support, direct and indirect, from central bank asset-purchase programmes, commodities have not.
That may or may not be good policy; certainly you can argue that the current downdraft in commodities prices reflects a singular lack of inflation risk in the global economy. That might argue for more quantitative easing, but given that what we’ve had so far has neither generated much inflation or kindled demand for raw materials, it would be hard to be too sure that more central bank buying of financial assets would help commodities prices………………………………………..Full Article: Source

This Precious Metal Needs a Silver Bullet

Posted on 06 August 2015 by VRS  |  Email |Print

Once prized as a precious metal that could be put to practical use, silver is now getting the worst of both worlds. Like gold, silver has lost its shine among investors who are no longer seeking a shield from market turmoil or a store of value to protect against inflation.
Silver’s use as an industrial metal also is on the wane as growth in world economies, particularly China, starts to slow. “Silver is getting whacked from both sides,” said Ed Meir, a commodity analyst with brokerage INTL FCStone. It has added up to a bad few months for all things silver………………………………………..Full Article: Source

5 Extraordinary Things That Will Shake Up Precious Metals

Posted on 05 August 2015 by VRS  |  Email |Print

These are extraordinary times for the precious metals markets. And not just because of the headline price action. Underlying developments in the supply-and-demand fundamentals for physical gold and silver are extraordinary in their own right.
If recent trends could be summed up in one word, it would be bifurcation. On one hand, the paper market (i.e., futures contracts) continues to be heavily pressured in a bearish direction by extraordinary levels of institutional short-selling. On the other, the physical market is heating up with robust investor buying and increasingly bullish long-term supply/demand prospects………………………………………..Full Article: Source

Gold’s Amazing Resiliency

Posted on 04 August 2015 by VRS  |  Email |Print

Gold has certainly had a rough summer, facing withering selling pressure from record futures shorting. The resulting new secular lows have greatly exacerbated the already-extreme bearish psychology long plaguing this metal. But considering the howling headwinds gold has suffered in recent years, it has actually proved amazingly resilient. This indicates strong latent demand due to accelerate as sentiment shifts.
The consensus view on gold today is overwhelmingly bearish, with virtually everyone convinced it is doomed to spiral lower indefinitely. They argue that gold yields nothing, so therefore why bother owning it? Especially with the first Fed rate hikes in over 9 years looming! As interest rates begin inexorably mean reverting higher, rising yields will leave gold even farther behind. Keynes’ “barbarous relic” can’t compete………………………………………..Full Article: Source

Why China, commodities won’t sway Fed: Ex-Fed prez

Posted on 29 July 2015 by VRS  |  Email |Print

As the Fed headed into its two-day meeting, former Richmond Fed President Al Broaddus said Tuesday it’s a “very close call” on whether policymakers will decide to increase interest rates for the first time in nine years in September or December.
“I think the expectation right now probably has to be December,” he told CNBC’s “Squawk Box”—though he personally would like to see a September hike. “I think they’d like to get on with it. And they should get on with it.” The motivation behind his urgency has nothing to do with worries about a “big bulge” in inflation around the corner, said Broaddus. “I’d just like to see us get it off the table. … It’s a distraction.”……………………………………….Full Article: Source

Commodities Hit The BRICs

Posted on 24 July 2015 by VRS  |  Email |Print

Aside from $ trillions in monetary stimulus from the world’s major central banks, a major source to the recovery from the 2008-9 global financial crisis emerged from the BRICs economies. The dependence on commodities exports from Brazil, Russia and China proved instrumental in these economies’ rapid comeback thanks to the cushion from rapid gains in agricultural and energy prices from 2002 to 2008.
But now that agricultural commodities have crashed, metals crumbled and energy plummeted, what becomes of the BRICs engine to the world economy? Russia continues to depend on oil and gas with 83% of exports coming from commodities. Brazil never diversified away from its dependence on iron ore, soya, coffee and sugar and boasts a 64% commodities/exports ratio………………………………………..Full Article: Source

In Commodities Meltdown, Gas Is a Fleeting Bright Spot

Posted on 24 July 2015 by VRS  |  Email |Print

In the meltdown that is the commodities market, natural gas has emerged as a bright spot, barely touched by the turmoil that’s contributed to a global slump. Oil has tumbled 19 percent over the past three months on the Bloomberg Commodity Index, and gold is down 8.6 percent, helping send the gauge to a 13-year low this week. And U.S. natural gas? Up 5.5 percent. That’s because shipments are limited for now to North America, where hot weather has boosted demand for the power-plant fuel.
That all changes when exports, starting as soon as this year, take the gas market global. The fuel has been eating away at coal’s market share at U.S. power plants. Liquefied natural gas exports stand to erode domestic supplies, giving coal a reprieve in the U.S. but thrusting the competition between the two fuels onto an international stage………………………………………..Full Article: Source

Gold price: six reasons it slumped – and why it could stay low

Posted on 23 July 2015 by VRS  |  Email |Print

The gold price mounted a modest recovery yesterday following a sharp fall on Monday, but after closing below $1,100 for the first time in five years it is still hovering around this key threshold. Analsts once predicted that gold prices would surge to $5,000 an ounce, but now many are saying that the precious metal could fall back through the $1,000 mark before the end of the year – and a slump into three figures could well trigger more falls.
Investors are beginning to take notice. Listed funds tracking the metal, which have been growing in popularity, saw the biggest outflow in two years on Friday, The Times reports. So what is driving the recent slump and is it likely to continue?……………………………………….Full Article: Source

If it doesn’t glitter, it is gold! Time to look at other assets?

Posted on 23 July 2015 by VRS  |  Email |Print

Gold has been consistently falling and was trading around its five-year low on Wednesday, reflecting sustained pressure on the metal. Experts feel that investors who are looking to get back into the yellow metal should wait for some more time as there is more downside left.
Besides, there are are other asset classes that have emerged more attractive since the global risks in the form of Greece, and China are fading and the US Fed is on course to begin raising rates this year itself………………………………………..Full Article: Source

Agricultural Commodities in the Spotlight

Posted on 20 July 2015 by VRS  |  Email |Print

Over the past month, prices of agricultural commodities including corn, soybeans, and wheat have spiked in response to poor growing conditions in North America and Europe. While the fundamental story may play out over the long term, this highlights the pronounced impact of weather conditions on the agricultural complex.
The Bloomberg Agriculture Subindex gained about 14% in the trailing one-month period through July 15. Longer-term performance, however, has been very uninspiring, as the index has posted annualized losses of more than 13% over the past three years. For those looking at potential investments in the category, there are some offsetting forces at play that are worth considering. The bullish thesis is based on a growing global population and a finite amount of arable land for farming. ……………………………………….Full Article: Source

Global growth outlook spooks crude oil

Posted on 20 July 2015 by VRS  |  Email |Print

After threatening to spiral upwards, crude oil prices have started to fall again. After registering a multi-year low at $42 in mid-March this year, WTI (West Texas Intermediate) crude oil prices on the Nymex began to head northwards. In a short span time of seven weeks, the commodity had appreciated 48 per cent to mark a high at $62.5 on May 6.
However, it has since failed to sustain its upward momentum and resumed its decline. Crude oil has now closed on a negative note for the third consecutive week, falling below a key technical support at $54. Financial factors such as the strong appreciation in the US dollar against major currencies, the global commodity rout due to lower Chinese growth, continued benign interest rates in the US and monetary easing in other regions have played a role in the renewed pressure on oil prices………………………………………..Full Article: Source

Oil in Latin America: The good oil boys club

Posted on 17 July 2015 by VRS  |  Email |Print

Latin America’s oil firms need more foreign capital, but a historic auction in Mexico shows that investors can be hard to attract. It should have been a day of high excitement. A public auction on July 15th marked the end of a 77-year monopoly on oil exploration and production by Pemex, Mexico’s state-owned oil company, and ushered in a new era of foreign investment in Mexican oil that until a few years ago was considered unimaginable.
The Mexican government had hoped that its first-ever auction of shallow-water exploration blocks in the Gulf of Mexico would successfully launch the modernisation of its energy industry. In the run-up to the bidding, Mexico had sought to be as accommodating as its historic dislike for foreign oil companies allowed it to be. Juan Carlos Zepeda, head of the National Hydrocarbons Commission, the regulator, had put a premium on transparency, saying there was “zero room” for favouritism………………………………………..Full Article: Source

China copper: CIF import offers inch up on ‘normal fluctuation,’ trades thin

Posted on 16 July 2015 by VRS  |  Email |Print

Spot import offers for London Metal Exchange-registered brands of copper cathode on a CIF China basis inched up due to “normal price fluctuation” despite thin trade on the prevailing weak import interest, industry sources said Wednesday. Platts lifted its CFR China copper premiums assessment to $60-70/mt Wednesday, from $55-65/mt last week on higher indications heard in the market.
A Southeast Asian trader indicated the CIF China premiums at $60-70/mt, up around $5/mt from last week, as he had seen a slight pickup in demand from China market participants due to a brief arbitrage opportunity between the LME and Chinese copper prices. A second Southeast Asian trader, however, heard steady premiums around $65/mt………………………………………..Full Article: Source

Iran Deal Raises Prospect of Fresh Oil Glut

Posted on 15 July 2015 by VRS  |  Email |Print

New supply could further pressure prices, but any selloff depends on Tehran increasing production in the face of competition. A nuclear deal between Iran and six world powers raises the specter of a fresh oil glut further pressuring prices, but any selloff depends on how successfully Tehran can increase production and sell crude in the face of competition.
The possibility of up to a million new barrels of Iranian oil flooding global markets, the amount Iranian officials aim to deliver within months, comes at a critical time. China’s stock-market turmoil in recent weeks could slow an economy that was expected to account for a lot of energy-demand growth………………………………………..Full Article: Source

Will OPEC allow Iran to increase oil supply?

Posted on 10 July 2015 by VRS  |  Email |Print

Iran, as never before, is close to resolve its problems related to the economic sanctions. Despite the protraction of the talks between the P5+ 1 (the US, UK, Russia, China, France and Germany) and Iran, there are quite real chances for success. One of the results of lifting the sanctions imposed on Iran will be the country’s access to the world energy resources’ market.
Iranian authorities have already expressed readiness to double the oil supply from the current 1.2 million barrels per day to 2.3 million barrels if the sanctions are lifted. The country started to prepare the ground for his several months ago: it said that OPEC member states should make room for Iran to allow it to increase the export. Currently, Iran calls for returning to the individual quotas for oil production for the OPEC members………………………………………..Full Article: Source

Commodities Plunge on Fears of China Cutback

Posted on 09 July 2015 by VRS  |  Email |Print

Prices for a raft of commodities sank to multiyear lows this week, as China’s inability to stem the slide in its domestic equity markets intensified fears about economic growth in one of the world’s largest consumers of oil, metals and food.
Coming after a brief period of rising prices, the sudden downturn served as a reminder to investors of the weak fundamental outlook for several commodities already beset by weak demand and excessive supply………………………………………..Full Article: Source

Let commodities lead the way

Posted on 09 July 2015 by VRS  |  Email |Print

There are two ways to diversify an economy: by responding to markets or by bureaucratic mandate. Smart governments will look to how the market is contributing to diversification in Canadian industry.
Canada’s C-suite leaders, unfortunately, favour the bureaucratic mandate route, seeking more investment in the clusters of Toronto and Waterloo to drive more technology jobs. As recent history with BlackBerry (formerly RIM) has shown us, and before that Nortel, our country’s high-tech track record, so favoured by the diversify-by-decree set, is spotty at best………………………………………..Full Article: Source

Goldman Sees Negative Loop in Commodities From Excess Money

Posted on 09 July 2015 by VRS  |  Email |Print

It’s going to take a prolonged slump in commodities to break a cycle of too much money and excess production, according to Goldman Sachs Group Inc. The market is caught in a “negative feedback loop,” where lower raw-material prices are strengthening the dollar and lowering production costs for countries with weaker currencies, Goldman analysts wrote in a report.
That boosts the prospects of higher U.S. interest rates and a reduction in emerging-economy debt, according to the bank. Demand for commodities will subsequently decline, capping prices and further reinforcing the greenback, it said. “Commodity markets still have access to far too much capital relative to future demand and a declining cost structure,” analysts including Jeffrey Currie in New York wrote in the note………………………………………..Full Article: Source

London loses golden touch as China’s build-up of bullion continues apace

Posted on 08 July 2015 by VRS  |  Email |Print

London, the traditional home/hub of the world’s gold trade, could be slowly losing its grip on power as more and more of the world’s physical gold moves from London’s vaults to Asia, chiefly China. This part of the story isn’t really anything new. Since 2013 when Western investors started to liquidate Exchange Traded Fund holdings of gold, and the dollar price in turn started its descent from historic highs, China has been stocking up gold.
Now, exact data of gold imports is sketchy at best, as the mainland doesn’t officially report figures, so analysts use fancy calculations from Hong Kong and Switzerland to get to a rough number. ANZ, for instance, said recently that as much as 75% of the world’s gold reserves have now been shipped from London vaults to the Middle East and China………………………………………..Full Article: Source

OPEC output update

Posted on 06 July 2015 by VRS  |  Email |Print

OPEC recorded its highest output since August 2012 in June as the bloc pumped over 32.1 million b/d. Total production is 2 million b/d higher than OPEC’s recently rolled over production target and is 744k b/d higher than a month earlier, according to Emirate NBD.
The biggest increase came from Iraq, where production surged by 567,000 b/d to 4.39 million b/d, its highest ever recorded output. Saudi Arabia raised production by 150k b/d to 10.45m b/d as OPEC’s largest producer maintained its policy of increasing output to secure market share………………………………………..Full Article: Source

Indian gold still at heavy discount, inventories keep rising

Posted on 03 July 2015 by VRS  |  Email |Print

The heavy discount on physical gold remains intact across much of India this week while high inventories and dwindling demand continue to take their toll. Discounts are still averaging around $8 per ounce to the London spot price on .995 gold in Ahmedabad, a gateway for gold into Mumbai, although larger international dealers are still holding out for smaller discounts or even parity on some higher-quality brands, they said.
Large inventories have been amassed since late last year and a seasonal slowdown is in full effect, they added. The country has imported a sizeable volume of gold since the removal of the 80:20 legislation in November – around 63 tonnes in May, 81 tonnes in April and 125 tonnes in March. Sources suggest another 50-60 tonnes came in to India in June………………………………………..Full Article: Source

Output of most commodities in India at half or two-third of world average

Posted on 25 June 2015 by VRS  |  Email |Print

With a good progress of rains across the country, as policy makers are busy tracking the area being planted under different crops and the crops competing with each other for area, the agribased industry is worried about getting more yield from the same area.
With yields of most commodities barring wheat and rice, at half to two-thirds of the world average yields, processors and exporters think focus on improving yields is the only way to increase production. “Demand for soybean is more than its supply as the productivity levels have been stagnant. We cannot compete with the top soymeal exporting countries as our yields are just about one-third of the world average yields,” said Devish Jain, chairman, Soybean Processors’ Association of India (SOPA)………………………………………..Full Article: Source

Russia’s much-needed oil price bump unlikely to come any time soon

Posted on 19 June 2015 by VRS  |  Email |Print

Russia desperately needs high oil prices to lift its energy-fuelled economy out of recession. But according to some of Europe’s top oil executives and ministers who attended Russia’s version of the World Economic Forum in Davos, there will be no return to triple-digit oil any time soon.
Speaking on a panel at the St. Petersburg International Economic Forum (SPIEF), the showpiece business and investment conference of Russian President Vladimir Putin, Russian Energy Minister Alexander Novak said oil at about $65 (all figures U.S.) a barrel could endure for “two to three years.”……………………………………….Full Article: Source

Gold Is Down But Not Out

Posted on 15 June 2015 by VRS  |  Email |Print

Gold had a range of $10 on Friday, closing down slightly in the middle of that range at a bid of $1,181.30. Silver has been acting weaker than gold the last 30 days, 6.34% lower while gold is down 2.78%. Over the past year, silver is down 18.28% while gold is lower by 7.21%. This is not what investors in gold and silver want to see.
Meanwhile, over the past year, the dollar is up 17.75%. If you think about it, lovers of gold, your dollars should have bought you 17.75% more today versus a year ago. Conversely, if you bought gold a year ago, you are down 7.21% on that investment. But all is not negative, because your purchasing power went up because gold is priced in dollars………………………………………..Full Article: Source

OPEC pumping at highest level since Aug 2012: IEA

Posted on 12 June 2015 by VRS  |  Email |Print

The supply of oil from the Organization of Petroleum-Exporting Countries (OPEC) reached its the highest level since August 2012 in May, according to the latest oil market report from the International Energy Agency (IEA).
OPEC supply in May edged up to 31.33 million barrels a day (mb/d), according to the IEA, with Saudi Arabia, Iraq and the United Arab Emirates pumping at record monthly rates to keep output 1 mb/d above OPEC’s official supply target for a third month running………………………………………..Full Article: Source

OPEC says crude oversupply to ease by the end of 2015

Posted on 11 June 2015 by VRS  |  Email |Print

OPEC expects the oversupply of oil to ease in the coming months with demand picking up due to higher consumption in the developed markets. The group continues to predict US output will decline by the end of 2015.
“The projections for market fundamentals indicate that the current oversupply in the market is likely to ease over the coming quarters,” OPEC said in its report released Wednesday. The surplus on world markets will shrink to 440,000 barrels per day in the second half of 2015 if OPEC continues pumping at last month’s rate, the report said………………………………………..Full Article: Source

OPEC is experimenting, and the U.S. shale sector is the guinea pig

Posted on 10 June 2015 by VRS  |  Email |Print

OPEC has decided to stay the course, but that doesn’t mean there isn’t a rough ride ahead for the oil industry. The cartel late last week took no action to adjust oil production, agreeing to continue pumping about 30 million barrels a day. That is about a third of what the world consumes.
While some claim OPEC’s inaction means the group is now impotent, it’s important to remember that the cartel’s 12 nations still control 40 percent of the world’s oil reserves. It is, in fact, using its power to test the market, and the North American shale oil companies are the guinea pigs………………………………………..Full Article: Source

Gold Isn’t Cheap, Nor Should It Be

Posted on 09 June 2015 by VRS  |  Email |Print

Although it is not possible to determine an objective value for gold (the value of everything is subjective), by looking at how the metal has performed relative to other things throughout history it is possible to arrive at some reasonable conclusions as to whether gold is currently expensive, cheap, or ‘in the ballpark’.
In particular, gold’s market price can be measured relative to the prices of other commodities, the stock market, the price of an average house, the earnings of an average worker, and the real (purchasing-power-adjusted) money supply………………………………………..Full Article: Source

OPEC unlikely to lose oil market influence to US shale producers

Posted on 08 June 2015 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries (OPEC), which announced at its recent meeting that it would not change output levels, remains the dominant force in the global oil market, analysts said, despite the growing influence of US shale producers.
The 12-nation OPEC switched its production strategy in November to push down prices and hurt high-cost US shale producers, who need elevated prices to stay profitable. OPEC ditched its traditional role of supporting higher prices to boost revenues, and instead left its output ceiling unchanged at 30 million barrels per day - despite a collapse in prices and a stubborn global supply glut that is fueled partly by US shale………………………………………..Full Article: Source

Commodity prices weigh heavily on top 40 mining giants

Posted on 05 June 2015 by VRS  |  Email |Print

The tough fight faced by the global mining industry in 2014 would escalate into a brawl this year as mining companies worldwide struggled to emerge from depressed markets, PwC’s Africa Mining Centre of Excellence head Michal Kotze said on Thursday. Widespread government intervention, significant conflicts surrounding strategy debates and other internal industry conflicts, “huge” competition, weakening commodity prices with increasing short-term volatility and rising shareholder activism had left industry on the ropes.
A reduction in capital spend, somewhat higher production and “unexpected help” from currency devaluations and lower input costs had assisted the mining industry to “manage expectations” during 2014 despite continued headwinds from weak commodity prices, the latest PwC ‘Mine’ report showed. ……………………………………….Full Article: Source

Opec’s nervy quota kept competition at bay – but is it still calling the shots?

Posted on 05 June 2015 by VRS  |  Email |Print

By cutting back to 30m barrels a day this past November, Opec was said to have launched a price war for global market share. But the US oil boom still presents a heretofore unknown foe: another player capable of ramping up production.
The last time the Organization of Petroleum Exporting Countries (Opec) met, it wanted to send a message to oil producers that weren’t cartel members: cut it out. The members of the world’s most powerful energy club are likely to allow themselves a congratulatory smile when they meet again on Friday. The message was received………………………………………..Full Article: Source

OPEC’s Problem: There Is No Minister of Shale

Posted on 04 June 2015 by VRS  |  Email |Print

When Saudi Arabia launched a global oil-price war last year, most market players assumed America’s high-cost, financially fragile shale producers would be first to retreat. Some retreat. American companies have been quick to idle rigs and lay off workers, but U.S. onshore oil production has gone up since last fall, not down.
As oil ministers from member countries of the Organization of Petroleum Exporting Countries meet this week, they are grappling with the fact that the world’s new swing producer is a very different animal from their traditional competitors………………………………………..Full Article: Source

Gold investing demand stabilizes with prices

Posted on 04 June 2015 by VRS  |  Email |Print

Since hitting five-year lows at Christmas, gold investing sentiment amongst Western households has now seen the strongest sustained upturn since summer 2013, writes Adrian Ash at BullionVault.
That’s according to our latest Gold Investor Index, which counts buyers against sellers on the world’s No.1 vaulted bullion platform online. It’s further shown on our public Daily Audit of client property by the additional 1 tonne of gold bought by BullionVault users since February. That’s the heaviest addition by weight since the winter of 2012-2013……………………………………….Full Article: Source

Opec meets big oil in an altered landscape

Posted on 03 June 2015 by VRS  |  Email |Print

When the oil industry descends on Vienna this week it will survey a market transformed by Opec’s historic decision six months ago not to lower output to prop up falling prices. But the main event may not be Friday’s ministerial meeting, at which the 12-member cartel is widely expected to stick with the policy it launched in November.
Instead, many will be focused on a summit that will bring the world’s most powerful big oil executives face to face with the architects of Opec’s strategy that has forced them to slash costs and cut investment in new projects………………………………………..Full Article: Source

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