Thu, Sep 3, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Price Watch more

Oil price: Is current low sustainable?

Posted on 03 September 2015 by VRS  |  Email |Print

Recent volatility in the price of oil has led some analysts to re-examine the history of price swings for the commodity. Wednesday’s price, back to the recent lows branded “close to unsustainable” by HSBC strategists, came after an oil price spike on Monday that was bigger than any since the Gulf War broke out.
Oil is causing a headache for investors, with the price now down around 60 percent since 2014’s peak around $95 a barrel, and similar to the price fall seen during the 2008 global financial crisis. Brent crude was trading at around $48.90 on Wednesday, while U.S. crude oil prices were down more than 2 percent at around $44.40 a barrel………………………………………..Full Article: Source

Oil stages turnaround to top $46 a barrel

Posted on 03 September 2015 by VRS  |  Email |Print

Oil futures staged an intraday U-turn Wednesday, lifting U.S. prices back above $46 a barrel with analysts attributing the bounce to traders considering the details of the latest weekly U.S. petroleum supply reports and technical trading.
The reversal exemplified the extreme volatility the market has seen in recent days. A massive three-day streak of gains, which lifted West Texas Intermediate crude prices by more than 27% ended Tuesday with a loss of 7.7% as worries about China’s economy resurfaced………………………………………..Full Article: Source

4 Reasons Why Low Oil Prices Mean It’s Time To Shift To Renewable Energy

Posted on 03 September 2015 by VRS  |  Email |Print

With oil prices at six-year lows, now is a tempting time for consumers to buy a bigger car, fill it up with cheaper gas and hit the road. The smarter move is to use this moment to accelerate the shift to renewable energy.
While increased U.S. oil production has delivered short-term economic benefits, our ongoing dependence on oil is still creating serious risks to business investment, national security and the environment. Given the inherent unpredictability of the oil market specifically (and fossil fuel markets more generally), it’s fair to ask whether we should continue to invest in fossil fuels, or whether other options — including fuel efficiency and renewables — deserve greater attention………………………………………..Full Article: Source

Gold Price to Plunge to $800 an Ounce Next Year: ABN Amro

Posted on 03 September 2015 by VRS  |  Email |Print

Gold prices may plunge to $800 an ounce by the end of next year as investors are likely to turn extremely bearish on the yellow metal prices amid a strengthening US dollar. The prices of precious metal are estimated to fall to $1,000 an ounce by December this year, from the current level of $1,140 an ounce, according to ABN Amro.
A sharp decline in prices is likely to be led by a possible interest rate hike by the US central bank this year, apart from metal losing its sheen as a safe-haven asset. “We are of the opinion that gold’s safe-haven status has been reduced significantly,” Gulf News quoted the bank, as saying………………………………………..Full Article: Source

BoA ML cuts 2015, 2016 gold price forecasts

Posted on 03 September 2015 by VRS  |  Email |Print

Bank of America Merrill Lynch has lowered its gold forecast for this year, citing the macroeconomic backdrop and the persistent headwinds to the metal’s prices of late. It now sees gold averaging $1,122 per ounce this year, down 6.8 percent on its previous forecast, it said in a note on Wednesday. The spot gold price was last at $1,139.10/1,139.50, little changed from Tuesday’s close.
The bank also expects gold to fall below $1,000 in 2016 and to trade at an average of $950 in the first quarter of the year. “Continued hawkish comments from the Fed against falling inflation are our most notable concern,” the bank said. “The combination of higher nominal opportunity costs and lack of inflation has hardly ever been bullish in the past 40 years.”……………………………………….Full Article: Source

Oil Price Forecast 2015: Will the Oil Market Rebound from Here?

Posted on 02 September 2015 by VRS  |  Email |Print

Oil Price Forecast 2015: The WTI crude oil price is coming off one of the most volatile months since the Great Recession. WTI crude oil prices gained 3.5% in August. But the U.S. benchmark saw a 20% drop during the first three weeks followed by a 29% surge during the last week.
On Aug. 31, WTI oil prices skyrocketed 7.5% to settle at $49.20 a barrel. That marked the highest settlement since July 21. It also capped off the largest three-day rally since Iraq’s invasion of Kuwait in 1990………………………………………..Full Article: Source

Why are oil prices all over the map?

Posted on 02 September 2015 by VRS  |  Email |Print

Oil prices crashed last week only to rebound at lightning speed. On August 28, oil prices surged 10 percent, the largest one-day gain in seven years. So, what happens next for oil prices? On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads.
But there is a logic to what unfolded, just not the logic of the physical market for crude. Oil prices, as if we needed a reminder, are largely driven by speculation. Why else would oil prices plummet by five percent, then spike by 10 percent just a few days later? Not much changed in terms of actual supply and demand of oil in the intervening days………………………………………..Full Article: Source

Gold forecast to drop to $800 an ounce in 2016

Posted on 02 September 2015 by VRS  |  Email |Print

The overall sentiment towards the yellow metal will turn increasingly bearish next year and the prices are likely to hit below $1,000 by March, analysts have said. According to ABN Amro’s forecasts, the price of the bullion will trade hands at $1,000 an ounce by December this year. Prices will fall further in the coming year, with the rate hitting as low as $800 by December 2016.
The forecasts were contained in the Dutch bank’s research note issued last week which also highlighted ABN Amro’s position that the precious metal’s safe-haven status has been reduced significantly. As of Tuesday morning, spot gold stood at $1,141 an ounce, up slightly by 0.6 per cent on weak equities and US dollar………………………………………..Full Article: Source

Gold would be $1,450 if it followed oil price gains of the past three days

Posted on 02 September 2015 by VRS  |  Email |Print

The spotlight has been on the oil price over the past three trading days with a spectacular bounce of 27 per cent. Apply the same gain to the gold price and we would be looking at $1,450 an ounce. Experts are uncertain exactly why the oil price has rallied. There have been no fundamental changes to the oversupply or demand. If anything the economic data out of China points to weaker demand.
Commodities oversold? Markets do become oversold. Gold is another case to consider. Physical demand has picked up strongly since the Chinese equity crash while future supply is threatened by the low price………………………………………..Full Article: Source

Silver Price Set To Start 70s Style Rally?

Posted on 02 September 2015 by VRS  |  Email |Print

In terms of gold, silver is currently better value than at the beginning of the bull market in 2001. In November of 2001, when silver bottomed, the Gold/Silver ratio was about 66 compared to 78 today. In other words, gold has actually outperformed silver since the beginning of this precious metals bull market.
It is actually the historical norm for gold to outperform silver for most part of a bull market, except for the very last part. For example, this happened in the 70s, when gold was up on silver from the beginning of the bull market (let’s say about 1971) until almost the very end (about October 1979). So, during an almost ten-year bull market, silver only overtook gold about three months before the end………………………………………..Full Article: Source

Jim Rogers Still Optimistic On Commodity Prices

Posted on 01 September 2015 by VRS  |  Email |Print

When Jim Rogers speaks, investors listen. His Quantum Fund gained 4,200% to the S&P 500′s 47% from 1973-1983 – just one feat exemplary of Rogers’ market intuitiveness. The commodities guru is credited with calling the bottom in oil prices in the late 1990s.
On Aug. 24 – “Black Monday” – JimRogers appeared in an interview with BBC’s Radio 4. At the time, the Dow Jones Industrial Average had just seen its largest intraday decline in its 133-year history. It fell 1,089 points after the opening bell that day, ultimately closing down 586 points. The S&P 500 came within 34 points of triggering a market-wide circuit breaker………………………………………..Full Article: Source

Oil Prices Soar Amid Lower U.S. Output Estimates, OPEC Article

Posted on 01 September 2015 by VRS  |  Email |Print

Oil prices soared Monday, marking their strongest three-day rally since Iraq’s 1990 invasion of Kuwait, on doubts the global glut of crude would be as long-lasting as many investors and traders had earlier believed.
Precipitating the rally—crude rose 27% in three sessions—were several factors, including a downward revision of U.S. oil output and a report that sparked speculation the Organization of the Petroleum Exporting Countries may be considering cutting production. On Monday, the U.S. Energy Information Administration said U.S. oil production this year was lower than previously estimated………………………………………..Full Article: Source

BofA-ML cuts oil price forecast to $55-70 per barrel

Posted on 01 September 2015 by VRS  |  Email |Print

With concerns on China’s growth, expectation of rising Iranian oil production, and persistent dollar strength, Bank of America-Merrill Lynch has announced a cut in its Brent oil price forecast from $60-80 per barrel to $55-70 per barrel.
“But, we expect prices to rebound into the year-end, driven by an accelerating decline in non-Organization of the Petroleum Exporting Countries (OPEC) production led by the US, a temporary pickup in Chinese demand on monetary stimulus and seasonally strong global demand,” the body said. It added the OPEC could keep prices above $50 per barrel to fund their budgets………………………………………..Full Article: Source

OPEC says there’s ‘no quick fix’ for low oil prices

Posted on 01 September 2015 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries on Monday said there is “no quick fix” for the low oil-price environment and voiced concern about its impact on the petroleum industry. In commentary released Monday, OPEC said continuing pressure on prices “remains a cause of concern for OPEC and its members,” as well as for “all stakeholders in the industry.”
West Texas Intermediate and Brent crude futures have dropped by roughly half from the year ago level. On Monday, however, October crude was up nearly 6% at $47.86 a barrel on the New York Mercantile Exchange, while Brent crude on the ICE Futures exchange added 5.7% to $52.90 a barrel………………………………………..Full Article: Source

Gold Prices May Move Higher in September Says U.S. Global CEO

Posted on 01 September 2015 by VRS  |  Email |Print

As markets gear up for September, U.S. Global Investors CEO Frank Holmes said he expects to see a boost for gold in September. ‘Historically, when football season starts in September, gold is up,’ he said in an interview with Kitco News. He added that opportunities may present themselves in the gold space and in the mining sector.
Commenting on the announcement of billionaire investor Carl Icahn’s 8.5 percent stake in mining giant Freeport-McMoRan, Holmes said that more ‘activist investing’ may take place in the sector. ‘I think it’s very significant when you look at the sheer size and change in that [Freeport] stock price from its lows,’ he highlighted………………………………………..Full Article: Source

Are Depressed Gold Prices an Opportunity in Gold Stocks?

Posted on 01 September 2015 by VRS  |  Email |Print

The volatile trading over the past two weeks claimed many victims, but perhaps the most surprising of which was gold. In theory, gold prices should rise in times of fear and uncertainty, as gold is long considered an unofficial barometer of economic health. And the current dynamics are chock full of fear and uncertainty.
Yet the traditional safe-haven asset was cut down last week, losing 2% of value since Aug. 24 and causing gold stocks and gold miners to tumble as well. The precious metals selloff couldn’t have come at a worse time. Prior to the recent series of red ink, gold prices skyrocketed nearly 7% for the month of August — on pace for the best monthly performance in years………………………………………..Full Article: Source

Why So Much Oil Price Volatility? Blame The Speculators

Posted on 31 August 2015 by VRS  |  Email |Print

Oil prices crashed last week only to rebound at lightning speed. On August 28, oil prices surged 10 percent, the largest one-day gain in seven years. So, what happens next for oil prices? On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads.
But there is a logic to what unfolded, just not the logic of the physical market for crude. Oil prices, as if we needed a reminder, are largely driven by speculation. Why else would oil prices plummet by five percent, then spike by 10 percent just a few days later? Not much changed in terms of actual supply and demand of oil in the intervening days………………………………………..Full Article: Source

Gold price likely to average $1,025 an ounce this year

Posted on 31 August 2015 by VRS  |  Email |Print

Gold’s retail prices in Dubai continued to hold steady on Sunday although analysts are expecting the bullion to resume its weakness following the recovery of the global stock markets. Overall, there are still some bargains to be had for gold bugs in Dubai, with Sunday’s retail prices still lower compared to almost a week ago, when the yellow metal was retailing at Dh140 per gram for 24K.
As the US dollar picked up strength on Friday, the UAE dirham continued to rise against other currencies, with the Indian rupee pegged at 18.01 per dirham and Philippine peso at 12.7 on Sunday, slightly higher than Thursday’s exchange rates………………………………………..Full Article: Source

Gold may rise after Fed rate hike

Posted on 31 August 2015 by VRS  |  Email |Print

Gold prices plummeted again this week, closing at $1133.6/ounce, down 2.3 per cent. Data on Thursday showed that the US recorded a robust 3.7 per cent growth in GDP in the second quarter, higher than the estimate of 2.3 per cent. Silver and platinum too closed in the red at $14.5/ounce and $1,018/ounce respectively.
Strong US data has revived expectations among investors that the Federal Reserve may ignore problems in China and go ahead with a rate hike at its upcoming meeting in September. Given that gold is a non-interest bearing asset, the belief is that it will lose out in a rising rate environment, the reason why the metal was beaten down last week. BusinessLine evaluated the behaviour of gold prices after previous Fed rate hikes to find out if it works in practice………………………………………..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

Commodities strike six-year lows, set to enter new cycle

Posted on 28 August 2015 by VRS  |  Email |Print

Falling demand, rising production and faltering growth in the world’s second-largest economy China have sent many major commodities plummeting to their lowest level since 2009, with some experts predicting the start of a new cycle.
Oil prices this week dived to 6.5-year lows as commodities tumbled over concerns that China’s slowing economy will curb demand for metals and other vital raw materials which have helped feed its astonishing growth over the past three decades………………………………………..Full Article: Source

Could commodities make a real comeback soon?

Posted on 28 August 2015 by VRS  |  Email |Print

With oil prices surging after the global market turmoil of “Black Monday,” could investors regain their faith in commodities? If China fired enough stimulus into its economy, a longer-term bounce back in commodities could be on the horizon.
“We certainly think that the authorities in China have the firepower in terms of monetary and fiscal policy to enact enough stimulus for the economy to at least meet the growth rate they’re targeting,” Caroline Bain, senior commodities economist at Capital Economics, said………………………………………..Full Article: Source

Oil soars over 10 percent, biggest gain in six years as shorts scramble

Posted on 28 August 2015 by VRS  |  Email |Print

Oil rocketed more than 10 percent higher on Thursday, posting its biggest one-day rally in over six years as recovering equity markets and news of diminished crude supplies set off a short-covering scramble by bearish traders.
Snapping back from a deep two-month slump that knocked U.S. crude to 6-1/2 year lows below $40 this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased………………………………………..Full Article: Source

Iran says some in Opec do not want high oil price

Posted on 28 August 2015 by VRS  |  Email |Print

Iran’s Oil Minister Bijan Zanganeh blamed the latest drop in oil prices on some members of Opec and questioned whether any Opec emergency meeting would reach an agreement, the oil ministry’s news agency Shana reported.
“To balance the oil price… Opec members should balance their production. An emergency meeting has been requested and we don’t have a problem with that,” Shana cited Zanganeh as saying. “But as you know the result of Opec meetings should be approved by all members, I think some members do not want the price of oil to be high and they want to damage other countries by low prices.”……………………………………….Full Article: Source

Gold Prices Fall on Robust U.S. GDP Data

Posted on 28 August 2015 by VRS  |  Email |Print

Gold prices fell on Thursday as gains in U.S. equities on the back of upbeat economic data and a stronger dollar dulled trader interest in haven assets. Gold for December delivery, the most actively traded contract, fell $2, or 0.2%, to settle at $1,122.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
A rally in U.S. stocks triggered by brighter economic data pushed gold to its fourth straight day of losses as investors revisited their expectations for higher interest rates………………………………………..Full Article: Source

Oil Prices Fall on Less Gas Demand, Growing Glut

Posted on 27 August 2015 by VRS  |  Email |Print

Oil prices resumed falling after U.S. stockpile data showed a surprise drop in gasoline demand and record supplies of crude oil and petroleum products. The data reaffirmed growing concerns that the global oil market will remain awash in crude through the end of the year.
Oil prices have plunged in recent weeks on worries that the global glut of crude that halved oil prices in 2014 has yet to shrink. U.S. crude production remains near multidecade highs, despite large spending cuts by producers, and members of the Organization of the Petroleum Exporting Countries continue to pump at high levels………………………………………..Full Article: Source

Oil price dips below $43 – how low can it go?

Posted on 26 August 2015 by VRS  |  Email |Print

An acceleration in the recent fall in oil prices has continued, as the international benchmark dropped by more than seven per cent to settle close to $42 a barrel on Monday after a rout on global equity and commodity markets. Brent was recovering slightly on Tuesday morning and stood at $43.42 a barrel, but this still remains well below the $45 nadir it had reached in January.
Having been at fresh six-year lows, the Financial Times suggests it could remain depressed as traders remain cautious over demand from China, the world’s second-largest oil consumer, which is in the throes of a fresh financial panic, as well as resilient global exports that remain well ahead of consumption………………………………………..Full Article: Source

Why the oil price could be depressed for a generation

Posted on 26 August 2015 by VRS  |  Email |Print

Shale oil is undergoing an unheralded productivity boom – the scale of which has not been seen since the early days of IT – that will depress oil prices for a generation. That is the stark view of Neptune head of research Chris Taylor, which has led his firm to minimise exposure to the oil majors across its fund range.
Oil bulls are admittedly a rare breed in the current climate, with recent moves in the futures market signalling that the price will recover much more slowly than many have predicted. The Black Monday sell-off saw oil prices sink to a six-year low and down to levels not seen since the height of the financial crisis………………………………………..Full Article: Source

Will the oil price crash spur a Saudi/Opec rethink?

Posted on 26 August 2015 by VRS  |  Email |Print

The slide in crude oil prices to the lowest levels since early 2009 is truly alarming for all oil producers but a boost for major consumers, including the world’s shipowners. However, if turmoil in financial markets leads to a global economic slowdown then lower prices will be a mixed blessing.
The surplus of oil supply over demand — averaging nearly 2m barrels per day in 2015 and expected to still be 1m bpd in the first half of 2016 — is clearly the main factor behind lower prices but it now seems that oil is caught up in the wider collapse in commodities and equities markets fuelled by China’s stock market woes………………………………………..Full Article: Source

Gold price steady around $1,150/oz, dollar recovers

Posted on 26 August 2015 by VRS  |  Email |Print

Gold traded sideways on Tuesday morning after European stocks opened higher and the dollar recovered slightly despite Chinese equities extending losses. The spot gold price was last at $1,150.90/1,151.20 per ounce, little changed from the previous close. Trade has ranged narrowly from $1,146 to $1,156.90 so far.
The yellow metal peaked at its highest in seven weeks on Monday at $1,170 amid a global sell-off in equity markets that was triggered by renewed fears about the slowing Chinese economy. “Gold should continue to hold its value during the current market turbulence, however a material surge higher is unlikely as participants find liquidity by selling all asset classes, including precious metals,” MKS said in a note………………………………………..Full Article: Source

Are Silver Prices About to Hit $64?

Posted on 26 August 2015 by VRS  |  Email |Print

We have said many times that the outlook for silver is bright. The grey metal, unlike gold, is not only an investment vehicle, but also an industrial metal that has growing demand from electronics manufacturers and solar panel producers. This time, let’s look at one of the most important ratios in precious metals—the gold to silver price ratio.
You see, for the most part, precious metals prices move in the same manner: when gold goes up, so does silver, and vice versa. However, despite going in the same directions, the magnitude of the moves in gold and silver prices could differ. We use the gold to silver price ratio to track the divergence of the two metals prices. As you can see from the chart below, the ratio has been rising steadily since 2011………………………………………..Full Article: Source

Palladium slide exaggerated, short-covering and bargain hunting likely

Posted on 26 August 2015 by VRS  |  Email |Print

Palladium’s recent price fall is exaggerated and there is now room for short-covering and bargain hunting, market participants said. The metal fell to a low of $530 this morning – its cheapest since September 2010 – and was last at $550/555 per ounce, down $16 on Monday’s close.
Palladium prices have fallen 15 percent since Friday’s opening level – it is the hardest hit of the precious metals in the global crash that was triggered by renewed fears about the slowing Chinese economy. “[But] the extent of the price slide is exaggerated – after all, demand will grow this year despite a slowdown in the automotive industry,” Commerzbank said in a note, attributing the fall in the metal’s price mainly to speculative selling………………………………………..Full Article: Source

Copper: Why Price Of The Metal Could Affect You

Posted on 26 August 2015 by VRS  |  Email |Print

Why Should I Care About Copper? It is used in everything from cars to electricity transmission, so its price performance is considered an accurate reflection of the health of the global economy. Hasn’t Copper’s Price Been Falling Like Everything Else? Yes. Lower demand from China, the world’s biggest consumer of base metals, has meant prices have fallen to their lowest levels since 2009.
High-grade copper has fallen nearly 20% so far this year, helping to push Bloomberg’s Commodity Index to its lowest in 16 years. Although the metal is now trading at around $2.30 per pound - down from its record $4.60 in early 2011, the price hasn’t proved as volatile as the other commodities………………………………………..Full Article: Source

Outlook for base metal prices continues to grow cloudier: BMO

Posted on 26 August 2015 by VRS  |  Email |Print

Despite the second biggest price decline in the past 35 years, the outlook for base metals doesn’t look good, says a new report from BMO Capital Markets. “Although prices have tanked, we expect that markets will remain lacklustre or even test lower levels by the end of 2016, given strong headwinds blowing from multiple directions,” BMO said.
China and a strengthening U.S. dollar are the two biggest culprits weighing on base metals, leading to a 40-per-cent plunge in the CRB metal sub-index since the most recent peak. Only the price collapse of 2008 has been worse. BMO said there are plenty of signs that despite the pullback, the worst might not even be behind us………………………………………..Full Article: Source

Gold price falls despite haven status

Posted on 25 August 2015 by VRS  |  Email |Print

Gold prices have slipped as sharp declines in stocks forced some investors to sell profitable gold wagers to meet loan losses. The most actively traded contract, for December delivery, fell $US6, or 0.5 per cent, to settle at $US1,153.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold rallied to a seven-week high on Friday as some investors wagered that the Federal Reserve will delay raising interest rates in response to deteriorating economic conditions in China. Fed officials have said that despite progress in labor and property markets, the US economic rebound doesn’t yet warrant higher rates………………………………………..Full Article: Source

Gold to hit $1,200?

Posted on 25 August 2015 by VRS  |  Email |Print

Gold hovered near its highest level in almost seven weeks on Monday as worries over a slowing Chinese economy pushed investors away from risky assets and into those deemed as safe haven.
Asian equities tumbled, the US dollar retreated and industrial commodities from copper to oil slid to their weakest since 2009. Spot gold was little changed at $1,160.80 an ounce by 0236 GMT (6.36am UAE time), after touching a high of $1,165.11 in early deals………………………………………..Full Article: Source

Can Gold Rally to $1,300?

Posted on 25 August 2015 by VRS  |  Email |Print

Precious metal has advanced amid a plunge in commodity prices to 16-year lows, with RBC saying seasonal buying may offer a near-term boost. We have made significant changes to both our short and long term gold and silver price assumptions pulling back our average H2/15 gold price from US$1,288/oz to US$1,125/oz and have reduced our 2016 to 2017 gold price by 7% to 8%.
We have also pulled back our long term gold price by 7% from US$1,400/oz to US$1,300/oz from 2018 onward and we expect a combination of persistent US$ strength and weaker investment to limit the upside prices well below prior high trading ranges………………………………………..Full Article: Source

Don’t Dive Into Oil Yet

Posted on 24 August 2015 by VRS  |  Email |Print

With oil dipping below $40, is it time to dive in? A roughly 30% drop in the oil price since June naturally has both bulls and bears making pitches. For example, hedge funds have adopted an unusually short position in oil futures, signaling expectations of further declines, according to Ole Hansen at Saxo Bank.
Yet more than $1 billion has flowed into energy exchange-traded funds over the past month, suggesting other institutions and retail investors think the collapse is overdone. This is echoed somewhat in oil stocks. The SPDR S&P Oil & Gas Exploration & Production ETF initially staged a rally this month before succumbing to a selloff. Even so, it is down only about 7% versus a drop of around 14% for oil………………………………………..Full Article: Source

Don’t be fooled by recent run-up in gold prices, say pros

Posted on 21 August 2015 by VRS  |  Email |Print

Gold’s recent rally is impressive. Prices on Thursday hit their highest settlement since mid-July, but many analysts aren’t confident that the tide has fully turned for the yellow metal.
Fundamentals have certainly improved for the precious metal, which now trades around 5.3% higher month to date. On Thursday, December gold GCZ5, +0.53% climbed $25.30, or 2.2%, to settle at $1,153.20 an ounce on Comex, building on an $11, or 1%, climb from a day earlier amid a global selloff in stocks, including a more than 300-point plunge in the Dow Jones Industrial Average DJIA, -2.06% Thursday………………………………………..Full Article: Source

Is this gold price jump the turning point?

Posted on 21 August 2015 by VRS  |  Email |Print

On Thursday, gold shot up to a five-week high after dovish comments from the Federal Reserve threw fuel on currency fires already burning bright around the globe. In afternoon dealings in heavy volume gold futures with December delivery dates were priced at $1,153.10 an ounce in New York at its highs for the day and up $25.30 or 2.2% from Wednesday’s close. Gold is now up 6.4% from a more than five-year closing low of $1,084 struck August 5.
China’s shock currency devaluation that sent ripples through commodity dependent economies last week sparked the rally, while Fed minutes released on Thursday that indicated a rate hike is less likely in September led to a sell-off in the dollar, increasing jitters on currency and stock markets………………………………………..Full Article: Source

Three Reasons Oil Will Surge Past $70 By the End of the Year

Posted on 20 August 2015 by VRS  |  Email |Print

Oil has been demolished over the past year, falling from $100 a barrel to the low 40s. But one oil expert says things are about to turn the corner once again, and Brent crude is going to surge to $71 a barrel by the end of the year. Credit Suisse energy economist Jan Stuart spoke on Bloomberg TV yesterday, giving the reasons behind his big target.
I admit, my target looks very ambitious. The thinking behind it is that production is rolling already. We know that it’s higher than we thought it was going to be at this stage, but it is rolling. The question is going to be how fast, how far. We think United States crude oil production ends the year below 9 million barrels a day from the 9.6 high…Number two, demand is growing………………………………………….Full Article: Source

HSBC expects gold price to be up 10% by the end of 2015

Posted on 20 August 2015 by VRS  |  Email |Print

HSBC, the fourth-largest bank in the world, is predicting that the price of gold will be up 10 per cent by the end of this year and finish the year worth around $1,225 an ounce. Gold is down six per cent year-to-date.
The bank believes Goldman Sachs and other commentators are wrong to say gold will fall in price as interest rates go up. HSBC’s analysis of the data showed that the last four times that the Fed raised interest rates the gold price went up, not down………………………………………..Full Article: Source

Why oil prices could sink to $15 a barrel

Posted on 19 August 2015 by VRS  |  Email |Print

Oil prices have already taken a dramatic fall that’s saved consumers big time at the pump. Last week, crude tumbled below $42 a barrel, down from $100 last year. One big-name investor is predicting an even sharper drop. “There is no evidence whatsoever to suggest we have bottomed. You could have $15 or $20 oil — easily,” influential money manager David Kotok told CNNMoney.
A further decline to $15 a barrel would be huge. Oil hasn’t traded that low since early 1999, when gasoline at the pump was selling for under $1 a gallon. Kotok’s views on the economy and financial markets are closely watched. The 72-year-old co-founder of Cumberland Advisors manages more than $2 billion in assets and hosts an annual invite-only fishing trip that doubles as an economic summit. Known as “Camp Kotok,” the event lures leaders in finance to Maine each summer………………………………………..Full Article: Source

How Much Pressure Will Iran Put On Oil Prices?

Posted on 19 August 2015 by VRS  |  Email |Print

With the removal of sanctions on Iranian crude exports underway, the bearish price trend may continue through the end of the year, increasing the intensity of competition between oil exporters on a global scale. The preliminary agreement on lifting sanctions raised the prospect of more Iranian oil hitting the market, resulting in oil futures contracts’ prices hitting the lowest benchmark of a more than six-year lows on August 14.
Light sweet crude slid to $41.35 U.S. a barrel on New York Mercantile Exchange due to concerns over the global oil supply glut and staggering level of global demand shaken by slowdown in Chinese and Asian markets. Such low oil price level was reached last on March 4, 2009………………………………………..Full Article: Source

Citi lowers gold price forecasts for 2015, 2016

Posted on 19 August 2015 by VRS  |  Email |Print

Citi lowered its average gold price forecasts for this year and 2016 as weak macro themes and short-term fundamentals dominate the market, it said on Tuesday. The bank now forecasts gold prices to average $1,090 per ounce in the third quarter of this year, slipping further into the fourth quarter to $1,050. The bank forecasts an annual average price this year of $1,140 and $1,050 in 2016.
The spot gold price was last at $1,111.2/1,111.5, down $5.80 on the previous close. After testing $1,080 in the first week of August, gold prices rallied 1.7 percent last week after a surprise devaluation of the Chines yuan sparked renewed safe-haven buying and prompted short-covering in gold, which had recently reached all-time lows in COMEX money manager net length………………………………………..Full Article: Source

Why Iron Ore Prices Are Set To Fall to US$40

Posted on 19 August 2015 by VRS  |  Email |Print

Goldman Sachs isn’t bullish on iron ore. The bank has maintained a negative outlook for the long-term future of prices for some time. And it’s not shifting its position on the troubled commodity. If you’re one of the big Aussie iron ore producers, now is the time to start worrying.
The influential bank predicts iron ore prices could fall a further 30% by 2017. It predicts an expanding market supply, in addition to declining Chinese steel production. In other words, prices are heading in one direction only — down. Of particular interest is Goldman’s take on steel production. Once Chinese steel production ‘peaks’, the bank says a sharp contraction will follow suit………………………………………..Full Article: Source

Glencore mulls future of platinum mine as commodity prices plunge

Posted on 19 August 2015 by VRS  |  Email |Print

Glencore considering shutting Eland platinum mine in South Africa as price of the precious metal continues to tumble. Mining and commodity trading giant Glencore in mulling shutting down its Eland platinum mine in South Africa because of the falling price of the previous metal.
The FTSE 100 company is already under pressure because of tumbling commodity prices and is expected to announce a huge drop in profits on Wednesday when it announces interim results. In a statement Glencore confirmed the move, saying “ongoing poor market conditions in the platinum sector and difficult operational conditions at the mine” had driven the process………………………………………..Full Article: Source

Copper Dips Below $5,000 for First Time Since Financial Crisis

Posted on 19 August 2015 by VRS  |  Email |Print

Copper futures fell below $5,000 a metric ton for the first time since the financial crisis, dropping under a key level in a market that has been hit hard by concerns over the Chinese economy and by uncertainty for a metal widely regarded as a barometer of global economic health.
Copper’s decline comes as all metal prices continue their steep falls from the boom peaks of 2011. As with other base metals, copper has suffered from the oversupply that followed the boom and from concern over future demand from China, which consumes about 45% of the metal………………………………………..Full Article: Source

U.S. Oil Price Hits New Six-Year Low

Posted on 18 August 2015 by VRS  |  Email |Print

U. S. oil prices fell Monday to a fresh six-year low on concerns that the glut of crude oil is set to grow. Light, sweet crude for September delivery fell 63 cents, or 1.5%, to $41.87 a barrel on the New York Mercantile Exchange, the lowest settlement since March 3, 2009. Brent, the global benchmark, fell 45 cents, or 0.9%, to $48.74 a barrel on ICE Futures Europe.
U.S. oil prices have slid 11% so far this month as concerns mounted that persistently high crude-oil production from the U.S. and the Organization of the Petroleum Exporting Countries would keep the global market oversupplied through 2015………………………………………..Full Article: Source

Algeria Calls for Non-OPEC Output Cut to Stop Oil Price Slump

Posted on 18 August 2015 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries can do little to halt the oil price decline on its own and needs producers from outside the group to help in reducing global supplies, Algeria’s Energy Minister said.
“A supply reduction by OPEC alone cannot really guarantee a return to oil market stability,” Salah Khebri said at an event in Algiers, according to Liberte newspaper. As the 12-member group of crude producing nations accounts for 40 percent of the world’s supply, “there should be steps taken within OPEC and with non-OPECs.”……………………………………….Full Article: Source

banner
September 2015
S M T W T F S
« Aug    
 12345
6789101112
13141516171819
20212223242526
27282930