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World Bank optimistic on oil averaging at $41 this year

Posted on 28 April 2016 by VRS  |  Email |Print

World Bank boosted its forecast for oil prices this year, projecting that refinery demand will pick up and United States production cuts will steepen in the second half of 2016.
Crude prices will average $41 per barrel this year, which is still down 19 per cent from 2015, the Washington-based development bank said on Tuesday in its quarterly commodity-markets outlook. The bank in January had predicted a price of $37 per barrel, which represents a composite of projections for the Brent, West Texas Intermediate and Dubai Fateh blends………………………………………..Full Article: Source

Oil tops $45 a barrel for first time since November

Posted on 28 April 2016 by VRS  |  Email |Print

Oil climbed above $45 a barrel in New York today for the first time since November after U.S. industry data showed a decline in crude stockpiles. West Texas Intermediate futures rose as much as 2.6 percent, extending a 3.3 percent gain Tuesday.
Supplies fell by 1.07 million barrels last week, the industry-funded American Petroleum Institute was said to report. The World Bank boosted its forecast for oil prices this year, projecting that demand will pick up and U.S. output cuts will steepen in the second half of 2016………………………………………..Full Article: Source

Low demand in Asia may pull down gold price

Posted on 28 April 2016 by VRS  |  Email |Print

Gold prices that hit a 13-month high in March are likely to fall back in the short term because of a slump in demand from key Asian consumers, GFMS analysts said in a report on Tuesday.
Global gold demand tumbled by 24 per cent year-on-year to 781 tonnes in the first three months of the year, its weakest quarter in seven years, as buying from leading consumers India and China plummeted, GFMS said in the first-quarter update to its Gold Survey 2016………………………………………..Full Article: Source

Silver price jumps to near one-year high

Posted on 28 April 2016 by VRS  |  Email |Print

On Wednesday, silver jumped to the highest since mid-May last year, as the metal continues to be rerated against the gold price and industrial metals demand gets a boost.
Silver futures in New York for delivery in May, the most active contract, added nearly 2% in early dealings to trade at $17.48 an ounce, before paring some of those gains by the close………………………………………..Full Article: Source

World Bank sees US$41 oil this year, but cuts outlook for other commodities

Posted on 27 April 2016 by VRS  |  Email |Print

The World Bank is raising its 2016 forecast for crude oil prices to US$41 per barrel, up from the US$37 per barrel forecast at the start of this year, in view of “improving market sentiment and a weakening dollar”.
This forecast of firming energy prices, made in the World Bank’s latest edition of its Commodity Markets Outlook, is thus positive for producing countries in Asia and elsewhere, and also for central banks struggling to reverse persistent deflationary trends in their economies. The bank’s outlook for other commodities, however, is less bright………………………………………..Full Article: Source

Oil hits 2016 high after U.S. crude draw report, gasoline rally

Posted on 27 April 2016 by VRS  |  Email |Print

Crude oil prices hit 2016 highs on Tuesday on the back of a rally in the gasoline market and after an industry group reported a surprise draw in U.S. crude stockpiles. Brent and U.S. crude’s West Texas Intermediate (WTI) futures finished regular trading about 3 percent higher, riding on the coattails of a gasoline rally that hit August highs after a series of refinery hikes.
In post-settlement trade, both benchmarks rose more than 4 percent after the American Petroleum Institute reported a drawdown of nearly 1.1 million barrels in U.S. crude inventories last week versus a 2.4 million-barrel build expected by analysts in a Reuters poll………………………………………..Full Article: Source

Venezuela formally proposes non-OPEC producers attend Vienna meeting

Posted on 27 April 2016 by VRS  |  Email |Print

Venezuela has proposed that non-OPEC oil producers attend the group’s June meeting in Vienna to continue “dialogue and coordination,” according to a letter sent by the South American country’s oil minister to the Qatari energy minister, who is also the current OPEC president.
“We’ve formally proposed to continue Doha discussions in Vienna,” Venezuelan Oil Minister Eulogio Del Pino told Reuters on Tuesday………………………………………..Full Article: Source

Gold price could hit $1,300/oz on weaker dollar, global risks – HSBC

Posted on 27 April 2016 by VRS  |  Email |Print

The gold price has the potential to hit $1,300 this year thanks to gold-bullish factors including a weaker dollar, global risks and a modest recovery in oil prices, HSBC said. A move above $1,300 would take the yellow metal to the strongest since January 2015. Spot gold was last at $1,233.30/1,233.60 per ounce, down $3.70 on Tuesday’s close.
“We find two reasons that reaffirm our broadly bullish view on gold. The potential for US dollar weakness ahead, particularly vs the euro, helped by a truce in the currency wars. Gold could also benefit from hedging ahead of the UK referendum on remaining in the EU,” the bank said in a note………………………………………..Full Article: Source

Gold Sees Modest Gains as Bulls Continue to Show Resilience

Posted on 27 April 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session firmer Tuesday. The key “outside markets” were in a bullish posture for the precious metals markets, as the U.S. dollar index was lower and crude oil prices were solidly higher. Gold prices continue to show resilience despite a lack of major, fresh bullish fundamental news in the marketplace.
June Comex gold was last up $3.30 at $1,243.50 an ounce. July Comex silver was last up $0.101 at $17.16 an ounce. Gold prices erased early-morning losses in the wake of a weaker-than-expected U.S. durable goods orders report issued at 8:30 a.m. eastern time. The downbeat data falls into the camp of the U.S. monetary policy doves, who do not want the Federal Reserve to raise interest rates any time soon………………………………………..Full Article: Source

When commodity prices plunge

Posted on 26 April 2016 by VRS  |  Email |Print

The steady decline in primary commodity prices over the past four years, especially last year, shows financialisation of commodities has amplified instabilities. There was a period in the 2000s when primary commodity prices appeared to have bucked their long-term trend of stagnation or decline.
Between the trough of December 2001 and the peak of August 2008, the price index for all primary commodities (in US dollar terms) rose by 445 per cent — nearly four and a half times. This increase came after a decade of relative stagnation in nominal dollar prices (which reflected a decrease in relative prices of commodities) over the previous decade………………………………………..Full Article: Source

Commodity turnaround sparks bonds bounce and opportunities for the brave

Posted on 26 April 2016 by VRS  |  Email |Print

Commodity prices have rallied over the past few months, as have shares in the miners who extract them. It has been a fantastic ride if you managed to get on board at the low point.
Just to put it into perspective, the price of iron ore recorded in the Mid-Year Economic and Fiscal Outlook just before Christmas at an assumed $US39 a tonne has recently climbed to about $US70. You would have had to be brave and, just like riding the crest of those big waves in Hawaii, could have suffered a serious crash. So you are justly rewarded for taking the risk………………………………………..Full Article: Source

Indonesia sees oil price of $50 to $60 as ideal

Posted on 26 April 2016 by VRS  |  Email |Print

The recent meeting in Doha may not have yielded positive results in freezing production but it was successful in terms of participation and engagement from oil producing countries to stabilise oil prices, Indonesia Governor for Opec (Organisation of the Petroleum Exporting Countries) told reporters in Abu Dhabi.
“If the expectation is to freeze production, of course it was not achieved. But by having communication and engagement and getting participation from more countries it is a success. That was never done before,” said Widhyawan Prawiraatmadja Indonesia Governor for Opec and Special Advisor to Minister of Energy and Mineral Resources………………………………………..Full Article: Source

Hedge funds aren’t wavering on gold price rally

Posted on 26 April 2016 by VRS  |  Email |Print

Goldman Sachs not so much – sees $150 drop in near term. Gold has been drifting lower after hitting a 13-month high of $1,274 an ounce in March but remains up just under 17% in 2016. Large gold futures and options speculators or “managed money” investors such as hedge funds have also stayed bullish on the metal despite expectations of higher interest rates in the US later this year.
Hedge funds dramatically raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data………………………………………..Full Article: Source

Gold Price Target is $3,000 and Silver is $75 per Ounce

Posted on 26 April 2016 by VRS  |  Email |Print

Precious metals have posted their best quarter in nearly 30 years and mining stocks are soaring from oversold multi-year lows. Those that were willing to buy when everyone else was selling have been handsomely rewarded in 2016. But we believe the gains are just getting started.
After such a huge move to start the year, many have been anticipating a sharp pullback for gold and silver on profit taking. This would make sense, especially considering the record short positions by commercial traders. Plus, nothing goes straight up, not even deeply oversold assets awakening from a 4-year correction. It is almost always a roller coaster ride………………………………………..Full Article: Source

Gold Extends Early Gains Amid Bullish ‘Outside Markets’

Posted on 26 April 2016 by VRS  |  Email |Print

Gold prices are higher and trading near the daily high in late-morning dealings Monday. A lower U.S. dollar index is a bullish outside market force working in favor of the precious metals markets. Also, crude oil prices have recovered early losses and are holding slight gains, which is also a positive for the metals markets.
Lower U.S. stock index prices are also adding a bit of safe-haven demand for the gold market as midday approaches. June gold was last up $12.00 an ounce at $1,242.00………………………………………..Full Article: Source

Silver Prices: Silver Bullion Could Soar 147% in 2016

Posted on 26 April 2016 by VRS  |  Email |Print

Silver may not be as scarce as gold but it has become much more attractive to investors. While silver prices recently soared to an 11-month high, silver continues to provide investors with more upside potential than gold.
After a record four consecutive years of declines, silver has been rewarding precious metal bulls in 2016. Silver prices have been on a tear in 2016, and recently hit an 11-month high. Currently exchanging hands at around $17.00 an ounce, silver prices are up 23% year-to-date………………………………………..Full Article: Source

Iron ore price rally will run out of puff

Posted on 26 April 2016 by VRS  |  Email |Print

Rampant speculation in China’s iron ore and steel rebar futures markets that helped fuel a surprisingly strong rally in Australian iron ore miners in recent weeks may be starting to cool.
While China’s rebar inventories data yesterday showed supplies of the steel rod used in concrete fell for a seventh-straight week, prices of iron ore and rebar futures faltered after regulators acted to stop excessive speculation and analysts warned the price surge was unsustainable………………………………………..Full Article: Source

April Zinc Price Forecast: Surplus Becomes Deficit in 2015

Posted on 26 April 2016 by VRS  |  Email |Print

The International Lead and Zinc Study Group recently released new data that found the global market for refined zinc recorded a surplus during the first half of 2015, but was in deficit during the second half of the same year.
The London Metal Exchange, Shanghai Futures Exchange and Chinese State Reserve Bureau warehouse inventories — along with those reported by consumers, producers and merchants — decreased in 2015 with 79% of the refined zinc stored in LME warehouses in New Orleans. Want a short- and medium-term buying outlook for aluminum, copper, tin, lead, zinc, nickel and several forms of steel? Sign up for your free trial to our monthly buying outlook reports!……………………………………….Full Article: Source

Expect 10-15% growth in metal prices by FY17: StanChart Bank

Posted on 26 April 2016 by VRS  |  Email |Print

The Chinese property sector has recovered dramatically since the beginning of the year with an upswing in construction activity. This has had a positive impact on steel prices, says Nicholas Snowdon, metals analyst - global research at Standard Chartered Bank.
Nicholas Snowdon, metals analyst - global research at Standard Chartered Bank, expects 10-15 percent rise in metal prices by the end of the current fiscal. The dollar is going to weaken and oil prices will continue to rebound, he says………………………………………..Full Article: Source

Oil price corridor of $40-60/bbl new reality for next 5 years

Posted on 25 April 2016 by VRS  |  Email |Print

The oil price corridor of $40-60 a barrel is the new reality for the coming five years, Russian Deputy Minister of Economic Development Alexei Vedev said. “We assume the oil prices range of $40-60 [a barrel] is the new reality and the new normal situation for the next five years. The crisis also involves varying response of economic branches to the Russian ruble devaluation and change of environment. A natural structural transformation is taking place in our industry under influence of external factors,” the official said.
It was reported earlier the Ministry of Economic Development set the Urals oil price of $40 per barrel in the scenario conditions for the Russian economy in 2016-2019………………………………………..Full Article: Source

Why $80 could be ‘new normal’ for oil: Advisor

Posted on 22 April 2016 by VRS  |  Email |Print

The “new normal” for U.S. oil prices could be as much as double the current $40 per barrel, but don’t expect $65 to $80 crude until around 2018, long-time industry advisor Tom Petrie said Wednesday.
“We overshot on the downside, when we penetrated $30 [per barrel],” Petrie said, referring to the Feb. 11 bottom of $26.05 per barrel. Since then, WTI has surged about 45 percent. “Some of that recovery, shock though it was, was getting back into a more normal adjusted price.”……………………………………….Full Article: Source

Oil price builds on rally to hit five-month high

Posted on 22 April 2016 by VRS  |  Email |Print

Oil prices held firm following Wednesday’s surprise 6.5pc rally to reach a five-month high of just over $46 a barrel in early London trade.
The international Brent crude benchmark hit its highest level for the year after a closely watched US oil stock report showed lower than expected growth in an otherwise oversupplied market. On Wednesday, Brent closed at $45.80 a barrel………………………………………..Full Article: Source

Does the Gold Price Have the Legs to Extend and Drag Silver Higher?

Posted on 22 April 2016 by VRS  |  Email |Print

Most analysts explain the recent surge in the price of silver as a reaction to an increase in the Gold to Silver ratio. This is essentially just a clever way of saying that silver had become extraordinarily cheap compared to its precious metal cousin gold, and as such was viewed as a bargain by investors, who flocked to buy it.
The Gold to Silver ratio is a calculation of the number of ounces of silver it takes at any given time to buy an ounce of gold. Historically it has averaged about 50 but recently in March 2016 it rose to a peak of 82, and that is when silver started to move higher, recovering the difference in value………………………………………..Full Article: Source

Oil price above $38 is a rally traders will sell into, not a trend change

Posted on 21 April 2016 by VRS  |  Email |Print

The OPEC meeting confirmed that the era of cheap oil has not come to an end. Chart analysis of the Nymex oil chart in March suggested the rise in the oil price from $28 was a rally and not a trend change. The strong rally gain was a gift to traders but it was not enough to revitalize the oil industry because the rally faced significant resistance barriers.
However, oil is establishing a pattern of longer-term trend reversal with price oscillation around the $38 level. Price activity at this level will be the most significant factor in oil behavior in the next few weeks. If the price remains near to the $38 level, the longer-term outlook for oil is bullish………………………………………..Full Article: Source

Why One Analyst Believes Gold Could Hit $3,000 Per Ounce

Posted on 21 April 2016 by VRS  |  Email |Print

After finishing its best quarter in 30 years, gold extended its gains, rising more than 17.2 percent year-to-date to become the best performing asset class among other commodities, U.S. Treasury bonds and major world currencies and equity indices.
If we are entering a new gold bull market, it would be the first time since the previous one concluded in September 2011, when the metal reached its all-time high of $1,900 per ounce. Since 1970, we’ve seen five gold bull markets, each one lasting an average 63 months and returning an average 385 percent, according to the World Gold Council………………………………………..Full Article: Source

Oil prices: which countries have the largest supplies of oil?

Posted on 20 April 2016 by VRS  |  Email |Print

Oil prices plunged after the world’s top producers failed to reach an agreement on capping output aimed at easing a global supply glut, sparking fears it could set off another round of price falls.
Brent crude, the global benchmark, has lost 34pc over the past 12 months. We look at the countries that are sitting on the largest supplies of oil and are most susceptible to the tumbling price of crude………………………………………..Full Article: Source

Oil is headed to $30 after Doha

Posted on 19 April 2016 by VRS  |  Email |Print

Oil prices are under pressure following the failure of OPEC and major non-OPEC producers to agree on a production freeze at Sunday’s meeting in Doha. We expect Brent crude prices to drop toward $30 a barrel during the current quarter but recover to $55 a barrel in 12 months as the oversupply of oil dissipates towards the end of this year.
Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman reiterated before the Doha talks that the Kingdom would not freeze its output without Iran’s participation………………………………………..Full Article: Source

Why Oil Prices Aren’t Dropping More After Doha Talks

Posted on 19 April 2016 by VRS  |  Email |Print

The Doha oil meetings yielded no news of a production freeze. So why aren’t oil prices down more? Oil prices are down Monday after major crude producers failed to reach a deal to freeze production. But they’re not actually down by that much.
The U.S. crude oil benchmark fell more than 6% when the market opened, but it’s since walked back those losses and was recently down by just 2.4% at $39.41 a barrel. If it settles at that level, it wouldn’t even be one of the 10 biggest daily drops this year, in percentage terms………………………………………..Full Article: Source

Gold Prices ‘Buoyed’ by Failed Opec Oil Cuts

Posted on 19 April 2016 by VRS  |  Email |Print

Gold Prices rose Monday morning in London as oil prices stabilized from a sharp plunge following news that major producer nations had failed to reach an agreement on cutting output this weekend in Doha, Qatar, writes Steffen Grosshauser at BullionVault.
European stock markets recovered early losses but Asian equities closed sharply lower, plummeting from the highest weekly close in four months as Shanghai’s SSE Composite and Tokyo’s Nikkei 225 lost 1.4% and 3.4% respectively. Silver retreated to around $16.22 from Friday’s peak of $16.37 per ounce, its highest level since June 2015………………………………………..Full Article: Source

RBC: Gold Price Set To Push Higher As Inflation Picks Up

Posted on 19 April 2016 by VRS  |  Email |Print

“Analysis suggests a -0.5% real rate would imply a $1,380/oz gold price and a -1.0% real rate $1,546/oz” — that’s according to RBC’s April 10 Global Gold Outlook note, which takes a look at how lower real interest rates, coupled with a dovish Fed will impact the gold price.
Consumer prices in the United States rose 0.9% year-on-year in March of 2016, indicating that inflation is reemerging after a long period of dormancy. This should have sparked a more hawkish tone from Federal Reserve policymakers. However, the recent significant global volatility in January and February has left the path for rate hikes in 2016 much more uncertain and led to a sudden dovish turn by the FOMC……………………………………….Full Article: Source

The Gold Bear Market Is Over; Prices to Hit $1,350 in Q4

Posted on 19 April 2016 by VRS  |  Email |Print

The gold bear market is all over, this according to one well-known metals research firm. Speaking with Kitco News on Monday, Phil Newman, co-founder of the London-based firm Metals Focus also added that he sees improving prices throughout the year.
‘[L]ike many other people we see the bear market as over. Prices will continue to improve over 2016 and beyond this year,’ he said. Newman, a longtime gold forecaster, added that short-term, gold could weaken due to the uncertainty surrounding the rate hikes of the Federal Reserve………………………………………..Full Article: Source

Q2 Could Help Gold; But Metal Still Ending Year at $1,100/oz - Forecaster

Posted on 19 April 2016 by VRS  |  Email |Print

One known forecaster remains bearish on gold, even if he expects this quarter to be a little more exciting for the metal. Barnabas Gan, commodity economist for Oversea-Chinese Banking Corp. (OCBC), said he is sticking to his bearish calls for gold, looking for the metal to end the year at least $100 lower from current prices.
“We remain firm on our call for the FOMC to inject two more rate hikes this year, with the first one to come likely as early as June 2016,” he said in the OCBC’s latest commodities report released Friday………………………………………..Full Article: Source

Citi: Risk Aversion To Support Gold Prices In 2Q Before Tapering In 2H

Posted on 19 April 2016 by VRS  |  Email |Print

Citi Research looks for gold to remain underpinned in the current quarter but cautions that strength could abate later in the year. “We believe current price momentum may begin to ease after this quarter, averaging $1,200/oz for the year as a whole,” the bank says.
Citi lists a 60% probability of its base-case scenario, which would be gold holding current levels and maintaining a bid “as lingering risk aversion supports ongoing gold inflows in the second quarter, perhaps countered by better risk appetite in other asset classes, particularly oil and equities in 2H16.”……………………………………….Full Article: Source

Iron ore prices seen retreating on oversupply, says Citigroup

Posted on 19 April 2016 by VRS  |  Email |Print

The global iron ore market faces increasingly severe oversupply, according to Citigroup, which said the commodity’s gains will probably be reversed in the second half. Gains in production, including from miners that restarted output after this year’s rally, coupled with likely losses in steel prices, will combine to hurt iron ore, the bank said in a quarterly commodities report received Monday.
While iron ore’s price declines may have been delayed, they’re still coming, analysts led by Ed Morse wrote. Iron ore surged 23 per cent in the first quarter as Chinese mills ramped up output to take advantage of a rebound in steel prices, and some supply was disrupted in Australia. ……………………………………….Full Article: Source

How oil prices could have big impact on your portfolio

Posted on 18 April 2016 by VRS  |  Email |Print

Global equity markets could see a huge correction in the event oil prices fail to carry on their recovery and tumble to $10 per barrel, according to Raghu Suryanarayanan, executive director of risk and regulation research at MSCI.
The oil price has staged a partial recovery since it began to plummet in June 2014 but is still down more than 65 per cent from its last high. The trend downward in the oil price and ongoing wild fluctuations have been a huge driver of market sentiment, economies and asset prices around the globe over this near two year period, says Suryanarayanan………………………………………..Full Article: Source

Gold Could Be Heading Beyond $1,400

Posted on 18 April 2016 by VRS  |  Email |Print

Gold appears to have consolidated its position above $1,200. We believe there are several catalysts that could send the gold price higher. The Brexit vote is around two months away and could cause market turmoil. During the Grexit vote some believed gold would rise to $2,000 if they left.
We expect one rate hike from the Fed this year which should rule out any depreciation of gold from a strong USD. Gold producers or the ETF that tracks them could also be a good investment today………………………………………..Full Article: Source

Is the latest commodity price rally about to be cut short by a rising $US?

Posted on 15 April 2016 by VRS  |  Email |Print

Commodity markets have begun to feel the heat this week as the greenback has continued to edge higher against currencies such as the yen and the euro even though the US central bank continues to sound a very dovish tone on interest rates.
The US dollar’s rise comes as foreign currency traders are becoming anxious that central banks in Europe and Japan will adopt yet more monetary stimulus – including boosting their bond buying programs and cutting interest rates even deeper into negative territory………………………………………..Full Article: Source

An Oil-Price Recovery? We’re Not There Yet

Posted on 15 April 2016 by VRS  |  Email |Print

Oil prices have increased 60% since late January. Is this an oil-price recovery? Two previous price rallies ended badly because they had little basis in market-balance fundamentals. The current rally will probably fail for the same reason.
Although oil prices reached the highest levels so far in 2016 during the past few days, the global over-supply of oil worsened in March. EIA data released this week shows that the net surplus (supply minus consumption) increased to 1.45 million barrels per day. Compared to February, the surplus increased 270,000 barrels per day. That’s a bad sign for the durable price recovery that some believe is already underway………………………………………..Full Article: Source

BP CFO: Oil at $28 probably bottom for this year

Posted on 15 April 2016 by VRS  |  Email |Print

The sharp rise in oil prices doesn’t necessarily reflect market fundamentals, BP’s chief financial officer said Thursday. Speaking on the sidelines of the company’s annual meeting in London, Brian Gilvary said that expectations surrounding a large oil producers’ meeting in Doha, Qatar this weekend to discuss a possible output freeze are driving prices.
“I think maybe the price is getting a little bit ahead of the fundamentals,” Mr. Gilvary said. “When it comes down to about $28, that is probably now the bottom for this year. We could easily see the price coming off from where it is at the moment,” he added………………………………………..Full Article: Source

Gold Aiming For $1,350 By Year-End Says Famed Gold Expert

Posted on 15 April 2016 by VRS  |  Email |Print

It is amazing how quickly markets can change. Just look at the gold. In three months, the yellow metal has managed to shake off its bear market and is now in at the start of a new bull trend, this according to one known gold expert.
Although gold prices have seen a pullback in the last two sessions — with June Comex gold futures settling Thursday $21.8 lower at 1,226.5 an ounce — the market is still holding on almost 16% gains since the start of the year………………………………………..Full Article: Source

Commodity prices put pressure on Middle East

Posted on 14 April 2016 by VRS  |  Email |Print

Drop in oil and commodity prices expected to lead to more political instability in region. Governments across the Middle East and north Africa can expect to lose $2tn in income over the next five years as the slump in oil and commodity prices sends unemployment soaring and denies them tax receipts.
The drop in oil prices from their peak between 2004 and 2008, coupled with declines in metal and basic food prices, will force many governments to borrow to make up the difference, the International Monetary Fund said in its annual Fiscal Monitor………………………………………..Full Article: Source

Commodities crash flows to downstream prices in Japan

Posted on 14 April 2016 by VRS  |  Email |Print

The plunge in commodities prices is rippling out to finished products, weighing on consumer prices and foiling the Bank of Japan’s efforts to engineer steady inflation. Prices for final goods sank 2.1% on the year in March, the sharpest drop in three years and eight months, preliminary Bank of Japan data released Wednesday shows.
The producer price index declined on the year for a 12th straight month, dipping 3.8% to 99.6, the lowest reading since December 2009. Falling prices for upstream products such as crude oil and steel are making waves downstream. The slide in the final goods index that began in November has gradually picked up speed. Prices are declining not only for imports, but also for items made in Japan………………………………………..Full Article: Source

Why the oil price could jump to $60 - or ‘collapse’ again

Posted on 14 April 2016 by VRS  |  Email |Print

Traders seem convinced the market has bottomed, but analysts remain doubtful the Doha summit will achieve anything. Traders are broadly convinced there will be a deal to freeze most global oil production this weekend and that as a result, the oil price will not return to February’s 13-year low.
In fact, while most are predicting that international benchmark Brent crude will at least hold steady above $40 a barrel, some believe the recent rally will continue to push the price back towards the $60 a barrel level seen as the eventual “new normal”………………………………………..Full Article: Source

Barron’s: Gold to Hit $1,300, Here’s Why

Posted on 14 April 2016 by VRS  |  Email |Print

RBC Capital Markets says demand from China and India, physical gold ETFs and central bank purchases can push the precious metal higher, Barron’s reported.
RBC lifted its 2016 average gold price estimate by 9% from $1,150 per ounce to $1,250 per ounce, its 2017 forecast 8% from $1,200 to $1,300 and its long term forecast 4% from $1,250 per ounce to $1,300 per ounce, Barron’s reported………………………………………..Full Article: Source

Gold will soar 700% in near future

Posted on 14 April 2016 by VRS  |  Email |Print

An economist has claimed gold will soar in value in the coming years and cited cyber warfare as the number one reason people will pile into the commodity. James Rickards, chief global strategist at West Shore Funds, told Bloomberg Markets that the 21st century cyber age poses risks to digital money and wealth to all investors and savers.
He claims gold will climb to $10,000 an ounce if confidence in currency collapses, which he believes could happen as a result of another financial crisis. The precious metal is currently trading around $1,250 an ounce. ……………………………………….Full Article: Source

Profit-Taking Hits Gold; Silver Pushes Still Higher

Posted on 14 April 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session lower Wednesday, on a corrective pullback from recent gains, some profit-taking, and as investor risk appetite was on the upswing at mid-week. Silver prices did post modest gains and hit another 5.5-month high.
A solid rebound in the U.S. dollar index and weaker crude oil prices today also were bearish “outside markets” for the gold market on this day. June Comex gold was last down $12.80 at $1,248.10 an ounce. May Comex silver was last up $0.078 at $16.30 an ounce………………………………………..Full Article: Source

Traders Call Bottom of Oil Price Slump

Posted on 13 April 2016 by VRS  |  Email |Print

Global oil markets have hit the bottom of the barrel, according to a host of the world’s most senior oil traders. The chief executives of some of the world’s biggest energy merchants said Tuesday that the end is in sight for a near two-year slump in crude prices that has hammered energy companies’ earnings and sent shock waves through the global financial system.
“We’re going to have a lot of volatility going forward, but from here on, the trend is up,” Swiss trading house Gunvor Group’s CEO Torbjorn Tornqvist told the FT Commodities Global Summit in Lausanne, predicting a slow recovery to around $60 to $70 a barrel………………………………………..Full Article: Source

Why the oil price spike is a risk for markets

Posted on 13 April 2016 by VRS  |  Email |Print

Oil spiked on Tuesday as Russia’s Interfax news agency said that Russia and Saudi Arabia had agreed on a production freeze ahead of the upcoming OPEC meeting in Doha, regardless of whether other OPEC members participate or not.
Oil immediately spiked to its highest level since December. More importantly, it moved over the 200-day moving average for the first time since October 2014. In a range-bound market, a breakout to new highs is a big story………………………………………..Full Article: Source

China Gold Fix to create greater price transparency

Posted on 13 April 2016 by VRS  |  Email |Print

China is set to extend its influence in the gold market with the launch of a highly anticipated yuan-denominated gold fix on April 19. “As the largest producer and consumer of gold, it is only logical that they develop the infrastructure to trade, price and provide liquidity for gold in their own currency,” said John Butler, vice president and head of wealth services at GoldMoney.
Seamus Donoghue, chief executive officer of Singapore-based Allocated Bullion Solutions said the gold fix also provides the People’s Bank of China with the capability to control and stabilise the gold price………………………………………..Full Article: Source

Silver price climbs to $16 confirming gold’s breakout

Posted on 13 April 2016 by VRS  |  Email |Print

Hi Ho Silver, Away! Precious metals have registered a blistering start to the year. After more than four years of defeat, gold bulls once again have something to be excited about. The gold price is up 19% year to date and the mining stock ETF (GDX) is up over 60% since the start of the year. Not bad for a barbarous relic!
But one thing that generated some caution for precious metals investors has been silver’s underperformance. You see, silver typically leads gold higher and outperforms during major advances in the sector. ……………………………………….Full Article: Source

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