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Commodities Briefing - Category | Price Watch more

Material gains

Posted on 17 April 2014 by VRS  |  Email |Print

Commodities: As commodity prices become decoupled from equities, certain resources should again prove their worth as part of a diversified portfolio this year. After a lacklustre few years, commodities have had a short but strong run over the first few months of 2014.
Unfortunately, the recent bounce in the prices of selected resources probably does not represent the start of another bull market for commodities, but rather reflects more idiosyncratic influences on the supply-and-demand outlook for individual commodity groups. Broadly, commodities are unlikely to make up for past losses in 2014, although they should have a better year as the global economic outlook strengthens………………………………………..Full Article: Source

GCC budget breakeven oil price creeps up

Posted on 17 April 2014 by VRS  |  Email |Print

Budget breakeven oil prices in most Gulf Arab producers are creeping upwards, as governments continue to push through investment stimulus programs despite flatter production. The budget breakeven price is a useful tool to understand what price of oil is needed to ensure that a budget is in balance for a given level of government spending.
Breakeven prices for Gulf states shot up from an average of USD 43.2 per barrel in 2007 to USD 78.8 by 2011 in the wake of the Arab Spring, as governments unleashed billions of dollars of investment to appease their populations………………………………………..Full Article: Source

Bulls looking for $1.400 gold this year – can this level be reached?

Posted on 17 April 2014 by VRS  |  Email |Print

Gold will remain a strong safe-haven bet in spite of its recent seesawing price as the Ukraine crisis and expectations of a further pullback in U.S. equities will push the precious metal’s price higher, CNBC’s weekly sentiment survey showed.
Some of those surveyed believe gold has enough momentum to test the year’s highs near $1,400 an ounce last seen in mid-March, as investors strike a more risk-averse stance, shunning equities and rotating instead into safe-haven assets………………………………………..Full Article: Source

BMO: PGMs, nickel could buck 2Q seasonal trend; 2014 gold forecast revised to $1,263/oz

Posted on 17 April 2014 by VRS  |  Email |Print

This could be the year that certain industrially oriented metals rise in the second quarter, thereby bucking their seasonal trend, said BMO Capital Markets.
“Nickel and the PGMs (platinum group metals) are experiencing specific supply disruptions that, if sustained, could maintain upside price support through a traditionally weak season and potentially over the longer term,” the firm said. Copper has underperformed for the year to date but could improve as prices normalize to reflect a tight market this year, the bank said………………………………………..Full Article: Source

Can gold confound the markets and hit $1,400?

Posted on 16 April 2014 by VRS  |  Email |Print

Gold will remain a strong safe-haven bet in spite of its recent seesawing price as the Ukraine crisis and expectations of a further pullback in U.S. equities will push the precious metal’s price higher, CNBC’s weekly sentiment survey showed.
Some of those surveyed believe gold has enough momentum to test the year’s highs near $1,400 an ounce last seen in mid-March, as investors strike a more risk-averse stance, shunning equities and rotating instead into safe-haven assets………………………………………..Full Article: Source

Palladium is price king

Posted on 16 April 2014 by VRS  |  Email |Print

Palladium prices have increased 16 percent since the beginning of February. Palladium is the best performer among precious metals since 2011 and it is close to reaching the record levels it recorded in spring 2011.
MetalMiner Lead Analyst Raul De Frutos predicted another strong year for palladium as the South African Miners’ Strike continues and supplies of the metal are bought by automakers and other end users. Russia’s position as the largest producer of the metal worldwide and possible international sanctions against it by other governments also throw its ability to supply the metal into question………………………………………..Full Article: Source

Nickel drops most in two weeks on China demand concerns

Posted on 16 April 2014 by VRS  |  Email |Print

Nickel prices in London fell for the first time in two weeks, snapping the longest rally since 2010, as industrial metals slumped amid concern that the economy will falter in China, the world’s biggest consumer.
A report due tomorrow probably will show China’s gross domestic product expanded 1.5 percent in the first quarter, down from 1.8 percent in the fourth quarter, according to a Bloomberg News survey. Copper fell as much as 2.5 percent to below $3 a pound in New York, and aluminum dropped the most in more than a month in London………………………………………..Full Article: Source

Copper price leads metals lower while nickel eyes $18,000/t

Posted on 16 April 2014 by VRS  |  Email |Print

The nickel price finished an active Monday LME session firm and around a 14-month high but the rest of the complex were sideways to lower in Tuesday’s Asian session. The markets will be closely watching data out of China this week, as Beijing is set to release half of its monthly data this week.
In US data, March retail sales rose 1.1 percent against a forecast 0.8-percent increase, while February business inventories were up 0.4 percent. Little impact was seen from the releases on the metals, although it did help US stocks markets to bounce from the previous week’s slump………………………………………..Full Article: Source

UAE support for oil price as demand picks up

Posted on 15 April 2014 by VRS  |  Email |Print

Oil prices approaching US$110 a barrel are “acceptable” for producers and consumers, and Opec does not need to change its output target, said the UAE’s deputy energy chief. The group is scheduled to next meet in June in Vienna to debate its 30 million barrel per day (bpd) production ceiling, which has remained unchanged since December 2011.
“I don’t think there will be any change in the quota,” said Matar Al Neyadi, the undersecretary of the UAE Ministry of Energy. “The market is stable, the supply is stable. The price is acceptable and comfortable for the producing countries and the consuming countries.”……………………………………….Full Article: Source

Rising prices for natural gas put pressure on oil sands producers

Posted on 15 April 2014 by VRS  |  Email |Print

Oil sands companies, which have benefited from years of low natural gas prices, are once again facing rising costs as the commodity they need to fuel much of their operations becomes more expensive.
Increasing prices for natural gas hit hardest at projects that use steam to soften oil-rich bitumen deposits to the point where the bitumen can drain into wells from which it can be pumped to the surface. Natural gas is an unavoidable expense in these projects, because it is needed to heat water to create steam………………………………………..Full Article: Source

Oil prices steady as Libya woes ease

Posted on 15 April 2014 by VRS  |  Email |Print

Crude oil prices rose in early Monday trading amid tensions in Ukraine, but fell again after Libyan protesters ended their occupation of an oil port. The price of Brent crude futures briefly rose above $108 a barrel, but later fell back to $107.30.
Libya’s state oil firm said the port of Zawiya and its refinery had reopened and were operating normally. But pro-Russian militants are still occupying buildings in eastern Ukraine, ignoring a deadline to leave by Kiev………………………………………..Full Article: Source

Goldman Sachs keeps year-end gold target at $1,050

Posted on 15 April 2014 by VRS  |  Email |Print

Goldman Sachs is keeping its year-end price target for gold at $1,050 an ounce, according to a recent research note — despite a nearly 2% gain in prices for the yellow metal over the past two weeks.
Gold for June delivery was last up $10, or 0.8%, at $1,329 an ounce on the Comex division of the New York Mercantile Exchange. Prices, based on the most-active contracts, were poised for their highest close since March 21………………………………………..Full Article: Source

The current price of gold in April 2014

Posted on 15 April 2014 by VRS  |  Email |Print

Gold is frequently viewed as insurance in moments of economic volatility or worldwide political turmoil. However, in 2013, gold prices dropped 24% against the U.S. dollar, marking gold’s third-worst decline since 1975. The drop turned many investors off to the yellow metal.
But the current price of gold indicates that the precious metal is back. “Gold has rebounded from late December into mid-March, tacking on about $200 an ounce, or nearly 17%,” Money Morning Resource Specialist Peter Krauth said recently………………………………………..Full Article: Source

Here’s what you need to know about today’s gold price surge

Posted on 15 April 2014 by VRS  |  Email |Print

Demand for the lustrous metal has seen gold prices hit a three week high, with geopolitical risks seeing investors move towards the safe-haven asset. Seen as a hedge against inflation, other metals have also spiked as tensions over Ukraine heat up.
Palladium today sees an August 2011 high, as traders worry that US sanctions on Russia and labour strike in South Africa could limit supply………………………………………..Full Article: Source

Will silver break free from the $20 price range?

Posted on 15 April 2014 by VRS  |  Email |Print

The price of silver remained nearly unchanged during last week. On the other hand, gold bounced back following the release of the minutes of the last FOMC meeting. Will silver resume its rally anytime soon? Or will it tumble down? Let’s analyze the recent news that may affect silver and the silver ETFs.
The stagnation of silver is reflected in the little change in demand for silver ETFs such as iShares Silver Trust (SLV). Last week, the Silver Trust’s price inched up by 0.16%………………………………………..Full Article: Source

Platinum may stage short-lived rally to $1,600/oz

Posted on 15 April 2014 by VRS  |  Email |Print

The price of platinum could rally towards $1,600/oz if a 12-week strike over wages in South Africa persisted, but a significant cache of inventory would keep the metal on a tight leash.
Such was the message from Standard Bank which published its quarterly commodity forecast on April 14. It expected gold to bottom this year, iron ore to run into headwinds amid 100 million tonnes of excess supply, while the price of other industrial metals, aluminium amongst them, would be capped………………………………………..Full Article: Source

Speculators boost bullish oil wagers on OPEC output drop: Energy

Posted on 14 April 2014 by VRS  |  Email |Print

The group, which pumps about 40 percent of the world’s oil, reduced output to the lowest for March since 2011 as a standoff between the Libyan government and rebels kept exports near the lowest level since Muammar Qaddafi was driven from office.
Output from the Organization of Petroleum Exporting Countries fell for the fifth time in seven months, according to a Bloomberg News survey. The International Energy Agency, which advises oil-consuming countries, said April 11 that OPEC will have to pump more crude after a “steep drop” last month………………………………………..Full Article: Source

Venezuela needs 2014 brent oil price of $121: Deutsche

Posted on 14 April 2014 by VRS  |  Email |Print

Venezuela, holder of the world’s largest oil reserves, requires the price of Brent crude to average $121 a barrel this year, about $14 more than current prices, for the country’s government to balance its budget, according to Deutsche Bank AG.
The break-even oil price for the South American nation has fallen from about $150 a barrel last year, the bank said, after the government allowed its currency to weaken last month to alleviate shortages of imports including medicine, food and toilet paper. Oil producers Russia, Nigeria and Bahrain also need prices higher than $100 a barrel to balance their budgets this year, Deutsche Bank said………………………………………..Full Article: Source

Why the gold price per ounce is rebounding in 2014

Posted on 14 April 2014 by VRS  |  Email |Print

The latest news regarding the gold price per ounce is looking much better than the end of 2013. In 2013, gold bugs saw the gold price dropping 24% against the U.S. dollar. It was the third-worst decline in the history of gold since the year 1975.
But since the start of the New Year, the gold market has experienced a steady rise in price that shows promising returns in the near future. Specifically, the gold price per ounce has risen about 17% over the last four months alone………………………………………..Full Article: Source

North American oil glut to keep prices low, IMF says

Posted on 11 April 2014 by VRS  |  Email |Print

The International Monetary Fund said global crude oil prices have been relatively lower because of the growth in oil supply from North America. With U.S. oil production on pace to eclipse 9 million barrels per day near term, the trend should continue through next year.
Nearly all of the growth in global oil production is coming from the United States and Canada. Combined, North American production growth is around 1.2 million barrels per day from U.S. shale oil and Canadian oil sands. IMF said this growth was spilling over to the global marketplace. “Crude oil prices have edged lower, mainly as a result of the continued supply surge in North America,” it said………………………………………..Full Article: Source

US LNG will not cause European gas price drop: IEA economist

Posted on 11 April 2014 by VRS  |  Email |Print

Despite the expected growth of US LNG exports, Europe has “no hope” of seeing gas prices near US levels due to transportation costs, Fatih Birol, the International Energy Agency’s chief economist said Thursday.
LNG transportation costs, which include liquefaction, shipping and gasification costs, will add roughly $6/MMBtu and barely close the roughly $7/MMBtu differential between US and European gas prices, Birol said during a Center for Strategic and International Studies event………………………………………..Full Article: Source

IEE can determine regional oil price

Posted on 11 April 2014 by VRS  |  Email |Print

Iran Energy Exchange (IEE) has the potential of playing a key role in determining oil price in the region, Managing Director of Iran Energy Exchange Ali Hosseini said on Wednesday.Talking to IRNA, Hosseini noted that since Iran is an oil-rich country, IEE has the potential of increasing supplies from the current 3,000 barrels per day to 10,000 bpd.
“Iran aims to prepare the ground for the presence of foreign buyers of crude oil in the energy exchange and diversify products supplied to buyers, including gas condensate,” he said.The first crude oil transaction at Iran Energy Exchange took place on April 6………………………………………..Full Article: Source

Citi vs. Chevron: Two opposing views of the oil price future

Posted on 10 April 2014 by VRS  |  Email |Print

The direction of oil prices is once again a hot topic. In a recent Barron’s article, Ed Morse, Citigroup’s head of global commodity research, forecasts a collapse in global oil prices to $75 /b over the next three to five years.
By contrast, Chevron has announced that it is budgeting with $110/b oil for 2017, with the company’s CEO John Watson stating, “There is a new reality in our business… $100/bbl is becoming the new $20/bbl in our business… costs have caught up to revenues for many classes of projects.” And for good measure, he adds, “If $100 is the new $20, consumers will pay more for oil.”……………………………………….Full Article: Source

Gold price near two-week high amid Ukraine tensions

Posted on 10 April 2014 by VRS  |  Email |Print

Gold was trading near its highest in two weeks on Wednesday, bolstered by signs of increasing demand in China and as rising tensions over Ukraine burnished its safe-haven appeal.
But investors continued to pull money out of gold-backed exchange-traded funds, raising the risk that price gains could be short lived. Spot gold had risen 0.2 percent to $1,311.10 an ounce by 0646 GMT, after gaining 0.9 percent in the previous session. The metal hit a two-week high of $1,314.43 on Tuesday………………………………………..Full Article: Source

Monetary collapse and silver price not so orderly rise

Posted on 10 April 2014 by VRS  |  Email |Print

We are about to see the end of our current international monetary system. Based on much of the evidence that I have written about previously, this appears to be a certainty. The systematic build-up of this current monetary order went together with the gradual phasing out of silver from the monetary order.
This system, by its very nature, has been diverting value away from silver. To understand this, just imagine that silver was actually used as currency (like the paper Dollar is currently used); we would then have much less silver available for sale in the current silver market. Based on the demand and supply economic model, this would then mean that the silver price would rise significantly………………………………………..Full Article: Source

Does a US oil boom mean lower gas prices?

Posted on 09 April 2014 by VRS  |  Email |Print

Crude oil sourced in the United States is cheaper and therefore means less pain at the pump for American drivers. When adjusted for inflation, however, the price for a gallon of regular unleaded gasoline is still high because of international dynamics, AAA said Monday.
“Cheaper domestic crude has a significant effect on the price most of us pay at the pump,” AAA spokesman Michael Green told Oilprice. “U.S. refineries have access to cheaper crude oil than their overseas competitors, which provides a lucrative business advantage.”……………………………………….Full Article: Source

OPEC’s El-Badri says crude prices stable

Posted on 09 April 2014 by VRS  |  Email |Print

Crude prices are stable and the market has enough supply to meet demand, even amid geopolitical unrest in Europe and the Middle East, OPEC Secretary-General Abdalla El-Badri said.
The OPEC basket, a weighted average of the main export grade from each of the group’s 12 members, has stayed above $100 for a record 200 days, according to data from the Organization of Petroleum Exporting Countries’ Vienna-based secretariat compiled by Bloomberg………………………………………..Full Article: Source

Oil price to fall in 5-10 years globally

Posted on 09 April 2014 by VRS  |  Email |Print

Azeri analyst Elmur Soltanov thinks that the world price on oil might decrease for the next five years to the margin of $70-80. Many oil-producing countries are increasing oil extraction, which will eventually bring down the world oil price so that the current $100 USD paid for oil might degrease to around $75-80.
Economies of the oil-producing countries may face problems particularly in the countries where export of oil ensures the highest income. This will particularly hurt Russia’s economy if the West refuses to buy Russian gas and oil as a sanction targeted against Moscow for its occupation of Crimea………………………………………..Full Article: Source

EIA raises 2014 forecast on WTI crude-oil prices to nearly $96

Posted on 09 April 2014 by VRS  |  Email |Print

Spot prices for West Texas Intermediate crude oil are expected to average at $95.60 a barrel this year — up from a previous forecast of $95.33 a barrel, according to the monthly Short-Term Energy Outlook report issued Tuesday by the Energy Information Administration.
The EIA also lowered its 2014 price forecast for Brent crude, the European oil benchmark, to $104.88 a barrel from $104.92 in the previous report, and said it expects an average 2015 price of $4.11 per million British thermal units for natural gas, down from the $4.14 previously expected………………………………………..Full Article: Source

Gold price lift matter of time with Asian demand - Holmes

Posted on 09 April 2014 by VRS  |  Email |Print

The demand for the precious metal in Asia is truly phenomenal! In smaller countries like Indonesia, Thailand and Vietnam, consumption of gold totaled 300 tonnes in 2013, and according to Bloomberg, in 2014 mainland Chinese buyers purchased a total of 125 tonnes in February (including scrap). This number tops the 102.6 tonnes purchased in January and 97.1 tonnes purchased a year ago.
As I wrote about in February, Switzerland plays a role in the movement of physical gold into Asia as well. Home to many of the big gold refiners, Switzerland released monthly gold trade data this year for the first time in over 30 years, with the report showing that 80 percent of shipments went straight into Asia………………………………………..Full Article: Source

Copper price expected to fall, possibly test $6 000/t as supply surges – GFMS

Posted on 09 April 2014 by VRS  |  Email |Print

The global copper market is expected to post a moderate surplus this year, resulting in copper prices expected to remain under pressure, the fifth instalment of Thomson Reuters’ ‘GFMS Copper Survey 2014’ had found.
The average yearly price was expected to fall below $7 000/t in 2014 for the first time since 2009, with a test of the $6 000/t level deemed likely over the second half, the report had found………………………………………..Full Article: Source

Copper output surge adds to price pressure

Posted on 09 April 2014 by VRS  |  Email |Print

A surge in mine production could send copper prices down to $6,000 a tonne later this year – a level last seen in the immediate aftermath of the global financial crisis, according to a leading metals consultancy.
The price of the red metal has already fallen 10 per cent this year, to $6,675 a tonne, on concerns about a slowdown in China, which accounts for 40 per cent of global copper demand. But in its annual copper survey, Thomson Reuters GFMS predicts further price weakness and more pain for producers………………………………………..Full Article: Source

Oil price ‘fair’ despite geopolitical factors: Kuwait

Posted on 08 April 2014 by VRS  |  Email |Print

Kuwaiti Oil Minister Ali al-Omair said Monday that current oil prices are “fair” despite strong geopolitical factors impacting the region. OPEC member Kuwait is the world’s fourth-largest oil exporter, pumping around 3.0 million barrels per day, of which at least 2.6 million bpd are exported in the form of crude oil and petroleum products.
“There are geopolitical factors impacting oil prices… which are not only controlled by output levels and production capacity but also by political changes,” Omair said………………………………………..Full Article: Source

The correct price for crude oil

Posted on 08 April 2014 by VRS  |  Email |Print

With the flattish nature of its action over the past several months, oil seems to have reached a tipping point on price. It’s almost as if the charts are saying that oil either must break up or break down, if long-term trendlines are going to be respected.
Barrons took the opportunity to plump for a downside break last weekend, a prediction I have vigorously argued against in both print media and on-air. But one follower of mine made a very astute observation, pointing out to me that futures markets for crude oil ten years out are ‘predicting’ oil prices almost $20 lower………………………………………..Full Article: Source

Second quarter will not be a great time for gold prices

Posted on 08 April 2014 by VRS  |  Email |Print

Commodity analysts are expecting gold to remain weak in the next three months as seasonal factors, an improving U.S. economy and lack of bullish momentum drag prices down.
Ole Hansen, head of commodity strategy at Saxo Bank, pointed out that the second quarter is usually a quiet time for gold, but this year traders could be more sensitive to increased weakness in the next three months, especially after a strong first quarter………………………………………..Full Article: Source

Schiff: Rising inflation will drive up gold price

Posted on 08 April 2014 by VRS  |  Email |Print

Gold may have hit a six-week low last week, but Peter Schiff, CEO of Euro Pacific Capital, thinks it will rebound with a vengeance as inflation reappears. “Central banks around the world, particularly the U.S., are going to continue to create more and more inflation,” Schiff told “America’s Forum” on Newsmax TV.
“In fact, now the central bankers don’t even pretend they’re fighting inflation. They are fighting to create inflation. They’re telling us that inflation is a good thing, that the absence of inflation is a problem that the Fed has to solve.”……………………………………….Full Article: Source

Lack of interest sees gold price back below $1,300

Posted on 08 April 2014 by VRS  |  Email |Print

The price of gold fell back below the 1,300 an ounce level after traders booked profits on Friday’s brief post US jobs-numbers rally. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in late afternoon trade exchanged hands for $1,296.90 an ounce, down close to $7 compared to Friday’s close.
Volume was noticeably thin with 70,000 contracts traded, compared to average daily volumes on the exchange of around 200,000. Reuters quotes Jonathan Jossen, a COMEX gold options floor trader, as saying “investors are not taking any interest in the precious metals right now, and gold and silver are definitely in tight trading ranges.”……………………………………….Full Article: Source

Will silver’s rally last?

Posted on 08 April 2014 by VRS  |  Email |Print

The price of silver changed direction and rallied during last week. Is silver bound to recover anytime soon? Let’s examine the recent news that may affect silver and the silver ETFs.
The modest recovery of silver has reflected in the rise in demand for silver ETFs such as iShares Silver Trust (SLV). During the previous week, the Silver Trust’s price inched up by 0.5%. Conversely, other Silver investments such as Silver Wheaton (SLW) continued to fall and shed 1.6% from its value………………………………………..Full Article: Source

Zinc could hit $4,500/mt by end of the decade: CRU

Posted on 08 April 2014 by VRS  |  Email |Print

The price of zinc could get up to $4,500/mt by the end of the decade as supply is outstripped by increasing demand, CRU analyst Helen O’Cleary said Monday. The analyst — speaking at the Metal Events 6th International Zinc conference in Dubai — said that supply is likely to be outpaced by demand leaving a hole in the market propelling zinc to the lofty highs last seen in 2006/2007 of around $4,000-4,500/mt.
Three-months zinc priced on the London Metal Exchange closed the April 4 kerb session at $2,004/mt, it opened January 2, 2014, at $2,060/mt………………………………………..Full Article: Source

Second quarter will not be a great time for gold prices – Analysts

Posted on 07 April 2014 by VRS  |  Email |Print

Commodity analysts are expecting gold to remain weak in the next three months as seasonal factors, an improving U.S. economy and lack of bullish momentum drag prices down.
Ole Hansen, head of commodity strategy at Saxo Bank, pointed out that the second quarter is usually a quiet time for gold, but this year traders could be more sensitive to increased weakness in the next three months, especially after a strong first quarter………………………………………..Full Article: Source

China gold cuts costs to offset lower prices

Posted on 07 April 2014 by VRS  |  Email |Print

China Gold International Resources, the sole overseas listed arm of the nation’s largest gold miner, China National Gold Group, will raise output, cut production costs and scout for acquisition opportunities amid lower bullion prices.
The Hong Kong and Toronto-listed state-backed company would lower costs by improving metals recovery ratios, material procurement cost and advanced production techniques, said Song Xin, who was promoted from chief executive to chairman of China Gold in February………………………………………..Full Article: Source

Robert Cohen’s 3 drivers for the gold price in 2014

Posted on 07 April 2014 by VRS  |  Email |Print

The gold price is driven by global liquidity, fed by international balance-sheet expansions, impacted by trade deficits built up in countries like China. Over the last 40 years, one ounce of gold typically bought 15 barrels of West Texas Intermediate oil. That ratio has been knocked down to about 13:1.
Any significant catalyst that will erode fiat money purchasing power, such as falling industrial production, more unemployment or broader trade deficits, could take gold much higher………………………………………..Full Article: Source

Gold unlikely to see upside above $1320/Oz: Saxo Bank

Posted on 07 April 2014 by VRS  |  Email |Print

Gold prices witnessed a recovery towards weekend as US job growth data was less than expected and boosting safe haven demand for gold. US gold futures for June delivery rose 1.5% to settle at $1303.50 an ounce. Payrolls rose 192,000 in March which was below market expectations. With Fed Reserve indicating continuation of stimulus measures, gold stands supported at current levels.
Gold prices are unlikely to see any upside above $1320 an ounce in the near future due to lack of bullish news to drive the markets, according to Ole S Hansen, Head of Commodity Strategy at Saxo Bank………………………………………..Full Article: Source

Can gold drop below $1000?

Posted on 07 April 2014 by VRS  |  Email |Print

All I have been hearing of late is how gold will never see lower than the 2013 lows. People say it is simply not possible since it would be lower than its production cost. And, my answer to them is “so what?” Yes . . . so what?
Are you going to tell me that producers will not stop mining gold? And, again, if so, so what? Won’t that then make gold more scarce since less of it will be available, as mining will significantly slow, and then maybe we see a long term bottom?……………………………………….Full Article: Source

Gold poised for longest weekly slump since September before data

Posted on 04 April 2014 by VRS  |  Email |Print

Gold headed for a third weekly decline in the longest run of such losses since September before U.S. economic data that may show the labor market improved, backing the case for reduced monetary stimulus.
Bullion for immediate delivery fell as much as 0.2 percent to $1,284.27 an ounce, and traded at $1,284.61 by 9:28 a.m. in Singapore, declining for a second day, according to Bloomberg generic pricing. The metal is down 0.8 percent this week after sliding to $1,277.79 on April 1, the lowest since Feb. 11………………………………Full Article: Source

Speculations reversed - Gold price stealth rally 2014

Posted on 03 April 2014 by VRS  |  Email |Print

So far, 2014 has been a paradoxical year for gold. Many investors aren’t even aware that it has rallied almost 8%. On the rare occasion that the financial media mentions the yellow metal, it is only in the context of comparing the recent rise to last year’s decline.
In spite of this overwhelming negative sentiment, gold is experiencing a stealth rally as one of the best performing assets of the year. Let’s look at some important metrics of the most under-valued sector in this market…………………………………Full Article: Source

Gold bullion imports by Indian state hit 5-year lows in FY ‘14

Posted on 03 April 2014 by VRS  |  Email |Print

In accordance with the latest official trade data, the gold bullion imports by the country’s Northern state of Gujarat touched lowest levels in five years during the financial year FY ’14. The imports failed to cross even 100 metric tonnes this year.
As per trade figures released Monday, the total gold imports during the period from April ’13 to March ’14 amounted to 92 metric tonnes. The gold imports during the fiscal year plunged to nearly half when compared with the total gold imports of 193 metric tonnes during FY ’13…………………………………Full Article: Source

Here comes $75 oil

Posted on 02 April 2014 by VRS  |  Email |Print

The long-term outlook for global oil prices is lower, perhaps much lower, giving a strong boost to the U.S. economy while potentially crippling the economy of Vladimir Putin’s Russia. Vast new discoveries of oil and natural gas in the U.S. and around the globe could drive the oil price to as low as $75 a barrel over the next five years from a current $100.
The demand side, too, will put pressure on the supremacy of petroleum. For the first time in its 150-year history, the internal combustion engine can be run efficiently on alternative fuels from a number of sources, including natural gas. As these alternatives are increasingly introduced, global consumption of oil will slow its growth and flatten out………………………….Full Article: Source

US oil boom takes punch out of Putin on world crude prices

Posted on 02 April 2014 by VRS  |  Email |Print

The next move for world oil prices is likely lower, as growing U.S. oil supplies outweigh some of the impact of the geopolitical tensions surrounding Ukraine. The U.S. oil boom is having a bigger impact on world oil prices, and now the release of more crude via the southern leg of the newly opened Keystone pipeline running from Cushing, Okla., to Port Arthur, Texas, is creating a gusher of new supply in the Gulf Coast.
“I’m pretty bearish crude prices because I see there’s a significant amount of supply out there, and I suspect U.S. supply is going to continue to grow through the course of the year,” said Andrew Lipow, president of Lipow Oil Associates. “I suspect by the end of the year, we’ll be producing close to 9 million barrels a day.”…………………………Full Article: Source

Gold demand at ‘interesting crossroad,’ prices could hit $1,450 this year: Lear Capital

Posted on 02 April 2014 by VRS  |  Email |Print

Gold demand stands at an “interesting crossroad” so far this year, with “numerous conditions triggering market demand,” Lear Capital’s Chief Executive Officer Scott Carter said.
Lear Capital expects an average of around $1,400 an ounce for the year. It even sees gold reaching $1,450 this year. Many analysts, however, forecast average 2014 gold prices below $1,300 an ounce. Barclays last week raised its average 2014 gold price forecast to $1,250 from $1,205………………………….Full Article: Source

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