Wed, Apr 1, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Price Watch more

The way gold prices are set is changing forever

Posted on 20 March 2015 by VRS  |  Email |Print

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion.
Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year. More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday .Anyone can follow auctions online, rather than needing a line to a fixing dealer………………………………………..Full Article: Source

Silver to trend towards $14/oz by year-end – SocGen forecast

Posted on 20 March 2015 by VRS  |  Email |Print

The silver price will struggle going forward as the Federal Reserve starts hiking interest rates from June onwards, Société Générale said in a report. The French Bank expects that the Fed will raise interest rates by 25 basis points in June 2015, with this more likely followed by another hike of a similar magnitude later this year.
“As the labour markets gain traction and with the forecast for GDP growth at 3.5 percent this year, we see a high probability of a more aggressive rate hike during next year, to an extent that the interest rate cycle could peak at four percent by the end of 2017,” iSocGen said. Against a backdrop of a strengthening US economy, the bank predicts that the upward trajectory of the US dollar against most currencies will continue over the course of the year………………………………………..Full Article: Source

Everything you want to know about falling oil prices

Posted on 19 March 2015 by VRS  |  Email |Print

Why is the oil price falling? Mostly because of increased supply from America—up by 4m barrels a day since 2009. Although most crude exports are still banned, American imports have plummeted, contributing to a glut on world markets. Other producers have decided not to try to curb their production and keep the price up.
Why? The Organisation of Petroleum Exporting Countries is dominated by Gulf producers, notably Saudi Arabia. They have huge reserves to cushion the impact of low prices. They also hope that the slump will eventually shut down high-cost production, tightening the market again………………………………………..Full Article: Source

Oil prices rebound sharply after Fed move

Posted on 19 March 2015 by VRS  |  Email |Print

Oil prices staged a sharp rebound after the US Federal Reserve scrapped its low-rates guidance on Wednesday, weakening the dollar. US crude had marked a fresh six-year low earlier on Wednesday before the Fed ended a monetary policy committee meeting by dropping a pledge to be “patient” before raising rates, but cutting growth and inflation forecasts.
The new message pushed down the dollar, which tends to move in the opposite direction to commodities that are priced in dollars. Nymex April West Texas Intermediate crude, the US oil yardstick, rose $1.20 to settle at $44.66, erasing losses caused by data showing surging oil inventories inside the US………………………………………..Full Article: Source

Crude Oil Prices Drop Again, but They’re Unlikely to Hit $20

Posted on 19 March 2015 by VRS  |  Email |Print

The most pessimistic prediction has come from Citibank, which has said crude oil could fall as low as $20 a barrel this year, but prospects for $20 oil are as unlikely as the predictions for $60 oil were only a few weeks ago when it looked like an imminent and sustained recovery was just over the horizon. Fundamentally, there is little to stop oil’s slide right now. An interim January low of $43 was broken on Wednesday, and the chart analysts are finding it difficult to predict a bottom.
Oil stockpiles are still increasing, with 458 million barrels in storage, by far a new record. At the rate of increases in stockpiles, it is estimated that storage will be completely used up by the middle of May. With virtually nowhere to put oil, prices will again have nowhere to go but down………………………………………..Full Article: Source

Oil price slump is choking this OPEC economy

Posted on 19 March 2015 by VRS  |  Email |Print

Plunging oil prices are taking a heavy toll on one of Africa’s top producers. Nigeria’s currency is trading at a record low against the U.S. dollar, the stock market has slumped 15% this year — making it the worst performer in Africa — and financial reserves are being depleted.
“It’s going to be a very difficult year,” Nigeria’s Finance Minister Ngozi Okonjo-Iweala told CNN. “We’ve had a more than 50% fall in the price of oil and that has naturally impacted the economy.” Nigeria is currently pumping about 1.8 million barrels of crude oil per day, making it OPEC’s 7th biggest producer — alongside Angola………………………………………..Full Article: Source

Gold price to double by 2030 thanks to Asia

Posted on 19 March 2015 by VRS  |  Email |Print

Asia’s financial system liberalization and its population’s growing wealth are two key factors expected to boost demand for gold and push the price of the key commodity over US$2,400 an ounce by 2030, a report published Wednesday claims. According to the Australia and New Zealand Banking Group (ANZ) predictions, as incomes rise across Asia, particularly in China and India, so will the appetite for gold rings and necklaces.
In its report “East to El Dorado: Asia and the Future of Gold,” ANZ estimates that annual retail and investor demand for the precious metal in the 10 largest economies in Asia could double to 5,000 tonnes within 15 years. The bank dubbed these nations “the A10″ – China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam………………………………………..Full Article: Source

The Way Gold Prices Are Set is Changing Forever

Posted on 19 March 2015 by VRS  |  Email |Print

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion. Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year.
More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday. Anyone can follow auctions online, rather than needing a line to a fixing dealer………………………………………..Full Article: Source

Asian demand set to lift gold price to above $US2400 by 2030: ANZ

Posted on 18 March 2015 by VRS  |  Email |Print

The gold price could hit above $US2400 an ounce by 2030 on the back of the growing wealth of Asia’s populations, a major new study predicts. ANZ’s chief economist, Warren Hogan, one of the authors of the new report, said the Asian Century would have profound implications for the gold market.
He predicted a growing Asian middle class would buy more jewellery, a larger body of professional money managers would drive investment demand and regional central banks would purchase more gold to provide confidence in newly floated currencies. “These factors will, in our view, support a long term and significant increase in the gold price,” he said………………………………………..Full Article: Source

Will Gold Follow Oil and Fall Back Under $1,000?

Posted on 18 March 2015 by VRS  |  Email |Print

The drop in the price of oil has been monumental, and the oil and gas sector is starting to prepare for some much leaner times ahead. The question to ask is what really lies ahead in the larger picture, outside of oil. With the dollar rallying and with economic numbers slowing, what are the odds that gold takes a dive like oil did? Also, how correlated should the two assets be today versus in the past?
Knowing an answer here may require a crystal ball. Still, investors and speculators should start to consider whether gold could or would take on the same sort of sentiment as oil………………………………………..Full Article: Source

Oil plunges to a 6-year low. Is $30 a barrel next?

Posted on 17 March 2015 by VRS  |  Email |Print

Extremely cheap oil is back, and it may get even cheaper. Crude plunged 4% to as low as $42.85 a barrel on Monday. That’s the lowest price since March 2009 and marks the fifth consecutive day of losses. This should bring smiles to the faces of the millions of American drivers who have watched gasoline prices creep higher in recent weeks.
A month ago, people were talking about an “oil comeback.” Now that looks like just a mirage. More and more analysts predict prices of $40 or lower, at least in the near term. “I think the market almost has to have a $30-handle on it before it gets this out of its system,” said Tom Kloza, chief oil analyst at the Oil Price Information Service………………………………………..Full Article: Source

One key reason why oil prices may have further to fall

Posted on 17 March 2015 by VRS  |  Email |Print

Crude prices may be in a holding pattern for the time being, but the conditions under which they appear to have stabilized are anything but reassuring. Despite a saturated world market, North American production, whether it’s bitumen from Alberta’s oil sands or light oil from North Dakota or Texas, continues to increase. So why haven’t prices, in the face of all this supply, continued to fall?
The answer is storage or, more precisely, the record amount of oil that’s being poured into U.S. storage tanks and salt caverns, despite inventory levels that are already at all-time highs. Putting oil into storage is attractive to oil companies right now for two reasons. First, it effectively takes excess oil out of an already glutted market, which alleviates downward pressure on spot prices………………………………………..Full Article: Source

How the gold price will defy the skeptics and stage a huge comeback

Posted on 17 March 2015 by VRS  |  Email |Print

The dollar has staged such a stellar performance since the start of the year there is now an almost universal acclamation of its strength and a consensus that parity with the euro is very close. A strong dollar means a low gold price, or does it? Gold is actually one of the world’s best performing currencies this year, off just a couple of per cent compared with double-digits for the euro.
Dollar crash coming? That said if the dollar crashed then gold prices would undoubtedly surge as the only credible rival safe haven currency, except perhaps the Swiss franc. Where the gold skeptics have the argument wrong is their belief in the almighty dollar………………………………………..Full Article: Source

Poll: What determines the price of gold?

Posted on 17 March 2015 by VRS  |  Email |Print

Gold prices remained under pressure on Monday as the dollar stormed higher ahead of the Federal Reserve meeting this week. Speculation is swirling that chair Janet Yellen will remove the word “patient” from the FOMC’s post-meeting statement on Wednesday, paving the way for a rate hike in June.
In early Asian trade, spot gold slipped 0.2 percent to $1,155.36 an ounce, but marking a slight rebound from a more than three-month low of $1,147.10 attained last Wednesday after speculation of a sooner-than-expected rate hike sapped appetite for the precious metal………………………………………..Full Article: Source

Hedge funds cut bullish gold price bets 60% since January

Posted on 17 March 2015 by VRS  |  Email |Print

Large scale speculators in gold futures added massively to short positions – bets that prices will fall – ahead of Wednesday’s Federal Reserve meeting that will to set the tone for the gold market. On Monday the gold price held above the crucial $1,150 an ounce support level – likely to be severely tested in two days time if the US central banks’ Federal Open Market Committee pronouncements on rate hikes foresee a sooner-rather-than-later scenario.
The gold price closed below $1,150 during only two sessions in early November, but soon bounced back. For a sustained period of sub-$1,150 gold you have to go back to April 8, 2010………………………………………..Full Article: Source

Is Gold About To Plunge To $1,000 Or Even Lower?

Posted on 17 March 2015 by VRS  |  Email |Print

Since warning about a possible correction in gold and silver in late-January, gold has fallen by $125 and silver by $1.64. Though I am a longer-term fan of precious metals, I have been concerned in recent years about the risks posed by the ending of the commodities supercycle as well as the rising U.S. dollar, which trades inversely with precious metals and other commodities.
I intend to invest in precious metals for the longer run, but I have been waiting for the current bearish cycle to run its course before I commit. Like any investor, my goal is to get the most for my money, so I have been analyzing precious metals carefully to determine when they have finally bottomed………………………………………..Full Article: Source

Africa sets its sights beyond commodities

Posted on 16 March 2015 by VRS  |  Email |Print

The collapse of commodity prices has hit resource-dependent African countries hard, but it is forcing them towards economic diversification, presenting fresh opportunities for outside investors. The big bang in demand for raw materials, driven mostly by China, has been good for African mineral producers. Too good perhaps, as little effort was made during the boom years to lock in gains by diversifying.
Of Africa’s 54 countries, 24 rely on a select few mineral products to generate more than 75 per cent of their export earnings, according to a study by the African Development Bank (ADB). A further 20 countries that do not have much in the way of resources still managed to grow by more than 4 per cent, as regional benefits spilt across national boundaries………………………………………..Full Article: Source

Asian Buyers Seize on Oil-Price Spread

Posted on 16 March 2015 by VRS  |  Email |Print

It isn’t just the sharp drop in crude prices since last summer that has roiled the global oil industry. It is the way they have fallen. During the slump, U.S. oil prices have dropped further relative to Brent prices traded on London’s Intercontinental Exchange.
That has made it increasingly attractive for crude buyers in Asia to purchase oil from places such as Latin America, where producers set selling prices in line with the U.S.’s main West Texas Intermediate benchmark, instead of traditional providers in the Middle East that price off Brent………………………………………..Full Article: Source

Oil prices stabilizing, will continue to firm up: Saudi adviser

Posted on 16 March 2015 by VRS  |  Email |Print

Oil prices have started to stabilize around $60 a barrel in past weeks and will continue to firm up, while crude demand will grow stronger, an adviser to Saudi Arabia’s oil minister said on Sunday. The comments by Saudi oil adviser Ibrahim al-Muhanna suggested that the top oil exporter sees no need to reverse its policy of allowing the market to correct itself without cutting output, despite the steep price drop since June last year.
Kuwait’s OPEC governor said last week that OPEC was likely to extend its current production policy at the June meeting, in the first public comment on what will be a crucial decision determining the direction of global oil prices in the second half of this year………………………………………..Full Article: Source

Economists expect oil prices to average above $60 despite current volatility

Posted on 16 March 2015 by VRS  |  Email |Print

Oil prices may remain volatile for some time to come but will ultimately average above $60 for Brent. This is despite the fact that they presently remain below $60, which is due to the dollar’s unrelenting rally that is putting pressure on stocks and commodities, regional analysts say.
The dollar index posted a back-to-back weekly gain of more than two percent, setting up its strongest two-week performance in more than six years. John Sfakianakis, Middle East director at Ashmore Group, told Arab News: “A stronger dollar is good when it comes to purchasing power and cost of imports, especially as we are in a global deflationary environment. The dollar always plays a role when it comes to commodities and oil.”……………………………………….Full Article: Source

Gold still has a shot at $2,000 an ounce

Posted on 16 March 2015 by VRS  |  Email |Print

Contrary to some expectations that gold prices are more likely to fall, Capital Economics on Friday said they might actually top $2,000 an ounce. “Many of the latest headlines have focused on the negative implications of the surge in the dollar,” said Julian Jessop, head of commodities research at Capital Economics.
But “this misses the rather bigger point that the gold price has held up remarkably well given the extent of the dollar’s move.” “This resilience is arguably encouraging for the precious metal’s prospects when the focus returns to more supportive factors,” he said in a note Friday………………………………………..Full Article: Source

Tomorrow’s oil price? Guesses range from $20 to $200

Posted on 13 March 2015 by VRS  |  Email |Print

Predicting and diagnosing the trajectory of oil prices has become something of a cottage industry in the past year. Along with all of the excess crude flowing from the oil patch, there is also an abundance of market indicators that, while important, tend to produce a lot of noise that makes any accurate estimate nearly impossible.
First there is the oil price itself. The crash began last summer, and accelerated in November. Since then, predictions for oil prices for 2015 have been all over the map — from Citigroup’s $20 per barrel, to T. Boone Pickens’ prediction of a return to $100 per barrel. OPEC’s Secretary-General even said prices could shoot up to $200 in the coming years as a result of overly drastic cutbacks and a failure to invest in new production………………………………………..Full Article: Source

Why Analysts Expect Oil Price To Plummet Further

Posted on 13 March 2015 by VRS  |  Email |Print

The Energy Information Administration (EIA) of the US reported oil inventory data of the country on Wednesday. EIA report showed an increase of 4.5 million barrels in crude oil supplies during the last week, taking the inventory to 448.9 million barrels.
According to the EIA, this is the ninth weekly gain and represents an 80-year high level. Compared to this time last year, crude inventories are approximately 20% higher. West Texas Intermediate (WTI) futures are the benchmark of crude oil price in the US. The physical point of its delivery is in Cushing, Oklahoma, where crude oil supply has increased by 2.3 million barrels to reach 51.5 million barrels………………………………………..Full Article: Source

The Real Reason Behind the Oil Price Collapse

Posted on 13 March 2015 by VRS  |  Email |Print

It’s not overproduction in shale fields, and it’s not global economic stagnation. It’s something far more threatening to Big Oil’s business model. Many reasons have been provided for the dramatic plunge in the price of oil to about $60 per barrel (nearly half of what it was a year ago): slowing demand due to global economic stagnation; overproduction at shale fields in the United States;
The decision of the Saudis and other Middle Eastern OPEC producers to maintain output at current levels (presumably to punish higher-cost producers in the U.S. and elsewhere); and the increased value of the dollar relative to other currencies. There is, however, one reason that’s not being discussed, and yet it could be the most important of all: the complete collapse of Big Oil’s production-maximizing business model………………………………………..Full Article: Source

Gold price likely to average $1,160/oz in 2015 and $975/oz in 2016: BNP

Posted on 13 March 2015 by VRS  |  Email |Print

The outlook for gold continued to sour Thursday with BNP Paribas forecasting a a 2015 average of $1,160/oz and $975/oz in 2016, the French bank said in a research note. “Future policy action by the US Federal Reserve remains high on gold’s agenda. It will continue to dictate the pace at which the dollar appreciates (and official sector demand for gold declines) and accordingly how much downward pressure will be exerted on gold,” BNP analysts Harry Tchilinguirian and Stephen Briggs said.
The London Bullion Market Association Gold Price settled at $1,161.25/oz Thursday morning. The spot price had hit an intra-day year-to-date high of $1,307.98/oz January 22………………………………………..Full Article: Source

Did lower oil prices help the economy at all?

Posted on 12 March 2015 by VRS  |  Email |Print

The oil price plunge has been touted as a global growth elixir, but so far the impact on the economy has been subtle and it’s unclear when that will change.
“Local fuel prices have almost fully adjusted to lower crude oil prices,” Goldman Sachs said in a note last week after tracking data from 24 countries. But it expects the stimulus impact on the economy won’t be straightforward, depending on whether low prices are perceived as likely to persist and government policy responses………………………………………..Full Article: Source

Iraq builds up arrears to majors as oil price drops - sources

Posted on 12 March 2015 by VRS  |  Email |Print

Iraq is building up debts to the oil companies developing its giant fields, industry sources said, a further sign of how the oil-price drop is putting a squeeze on revenues in OPEC’s second-largest producer. Western oil companies including Royal Dutch Shell, BP and Exxon Mobil are working at Iraq’s southern oilfields under service contracts, which are currently based on a fixed dollar fee for additional volumes produced.
As a result of the halving of oil prices to around $56 a barrel from $115 in June, the amount of crude needed to pay the companies has roughly doubled - reducing revenue to a government fighting an Islamic State insurgency………………………………………..Full Article: Source

Gold sinks to $1,155; dirham at high vs rupee: Buy gold or remit?

Posted on 12 March 2015 by VRS  |  Email |Print

Gold price recently sank to a fresh four-month low of $1,155 per troy ounce yesterday on the back of a strong US jobs data and India’s surprise decision to maintain the import duty on the yellow metal.
Data showed America added 295,000 jobs in February, 55,000 more than economists expected. US unemployment rate is now at 5.5 per cent, the lowest it has been since May 2008. This is fuelling investor confidence in the economy and, therefore, equities, and further reducing gold’s safe haven appeal………………………………………..Full Article: Source

China ferrochrome: Domestic price supported by tight spot supply

Posted on 12 March 2015 by VRS  |  Email |Print

The domestic spot price of 50% Cr Chinese high-carbon ferrochrome was assessed flat on the week at Yuan 6,400-6,600/mt (equivalent to 78-80 cents/lb) — including 17% value-added tax and delivery — on Wednesday on support from spot supply tightness and word that Shanxi Taigang Stainless Steel had lifted its March purchase price.
Spot market supply — while not as tight as earlier this year before Chinese New Year holidays in mid-February because more Chinese ferrochrome producers have restarted production after the holidays — is still seeing some tightness as producers are prioritizing production for term contracts, sources said………………………………………..Full Article: Source

Global nickel prices set to pick-up in H2 2015: Citi Research

Posted on 12 March 2015 by VRS  |  Email |Print

Nickel prices are expected to recover globally in the second half of the year on declining nickel pig iron production, stronger demand from the European stainless steel market and reduced nickel ore availability, Citi Research said in a report Tuesday, March 10.
China’s NPI production is expected to fall to 377,000 mt this year, from 471,000 mt in 2014, with output already contracting by almost 33% year on year to a little over 30,000 mt (contained nickel) in January, Citi said. This follows a 29% year-on-year decline in Q4 last year. Cost pressures and environmental issues will likely constrain production, explained Citi………………………………………..Full Article: Source

Opec signals oil price war set to continue

Posted on 11 March 2015 by VRS  |  Email |Print

Opec’s Gulf oil producers have signalled that the cartel will persist with its current price war strategy when it gathers to decide on production quotas in June. Kuwait’s governor to the organisation told an energy conference in Qatar on Tuesday that the current policy of producing around 30m barrels per day of crude will continue.
“I think so because there is less than two months, removing weekend and summer time, before the next Opec meeting,” said Nawal Al-Fuzaia. “I don’t think there would be a big change in the oil market supply/demand in this time.”……………………………………….Full Article: Source

Al-Attiyah expects oil price around $60 a barrel by year-end

Posted on 11 March 2015 by VRS  |  Email |Print

HE Abdullah bin Hamad al-Attiyah, president of the Administrative Control and Transparency Authority expects to see oil price around $60 a barrel by the year-end. “We may not see a higher price…say $70 or more. It will take a few years,” al-Attiyah told Gulf Times on Tuesday.
Asked whether the era of $100 or more has ended, al-Attiyah, the former Deputy Premier and Minister of Energy and Industry said, “We should forget it for the time being.” Al-Attiyah said Qatar would be able to manage with oil price around $60 a barrel………………………………………..Full Article: Source

Why oil decline could get ugly again

Posted on 10 March 2015 by VRS  |  Email |Print

Still drilling at four-decade highs, the U.S. oil industry could help drive another price collapse in crude this spring. OPEC Secretary General Abdalla Salem el-Badri told a conference this past weekend that the cartel’s policy has hurt the U.S. shale oil industry and triggered a global reduction in capital spending that could ultimately lead to a shortage—and higher prices.
The U.S. industry, however, has not slowed its high levels of oil production, despite OPEC’s best efforts to curb drilling with lower prices. The U.S. has pumped more than 9 million barrels a day since early November, and last week it produced a multidecade high of 9.32 million barrels. Industry output has not been at such a level on a sustained basis since the 1970s………………………………………..Full Article: Source

Goldman Says $40 Oil Call May Be Too Low as Demand Surprises

Posted on 10 March 2015 by VRS  |  Email |Print

While the bank projects that oil will still reverse its recent advance, the failure of global inventories to increase amid weather-related disruptions and stronger-than-expected demand means there’s a risk prices will miss its target for the next two quarters, according to a report dated March 8. Morgan Stanley also said the oil market was “surprisingly healthy.”
Global benchmark crude prices rose in February for the first time in eight months, rebounding from an almost 50 percent loss in 2014 as U.S. production surged to a 30-year high. Sandstorms disrupted Iraqi exports while cold weather in the U.S. and a drought in Brazil bolstered consumption, according to Goldman Sachs………………………………………..Full Article: Source

Could oil slip to $40 a barrel? Goldman thinks so

Posted on 10 March 2015 by VRS  |  Email |Print

A lot has gone right for the oil market in recent weeks – weather related supply disruptions in the middle-east, rising demand, stellar refining margins and aggressive cost cutting by major producers. But is the rally running out of steam?
Brent, the international crude marker, and West Texas Intermediate, its US counterpart, have risen 26 per cent and 11 per cent respectively from their January lows, writes Neil Hume. That recovery followed a market rout that saw oil prices drop 60 per cent between June and January and hit $45 a barrel………………………………………..Full Article: Source

ANZ lowers gold price forecasts, sees metal testing $1,100/oz in Q2

Posted on 10 March 2015 by VRS  |  Email |Print

Gold is under pressure from a surging dollar and could test $1,100 over the next three months, ANZ predicted while lowering its price forecasts for the metal for the rest of the year. The US currency, which has breached the 1.10 barrier against the euro following a run of positive US economic measurements and the increased likelihood of a US interest-rate rise in the coming months, will continue to weigh on gold in the near term, the bank said in a note on Monday.
“Gold’s negative correlation with the USD means it will have a positive one with the euro, due to its weight in the dollar index basket. We think the EUR/USD’s break below 1.10 is critical, and opens up the possibility of a move towards parity,” it said. “This will clearly pressure the gold price, and suggests a further $80 per ounce downside move in gold is possible.”……………………………………….Full Article: Source

UBS trims gold price targets in face of bearish market conditions

Posted on 10 March 2015 by VRS  |  Email |Print

UBS trimmed its one-month target to $1,200/oz from $1,240/oz and its three-months price target to $1,170/oz from $1,200/oz due to a more bearish outlook for the gold price, the Swiss bank said Monday. The London Bullion Market Association Gold Price settled at $1,173.75/oz Monday morning from $1,175.75/oz Friday afternoon.
It had started last week at $1,216.75/oz. “Gold made its lowest weekly close since late November as the US employment reading beat expectations by some way and the dollar index strengthened to 12-year highs,” said Mitsubishi analyst Jon Butler Monday in a separate note………………………………………..Full Article: Source

Gold Price Steep Drop towards Long-term $900 Target Area

Posted on 10 March 2015 by VRS  |  Email |Print

Gold did almost exactly what we expected in the last update, it bounced from oversold off the support at $1190 - $1200, only to break sharply to new lows on Friday, crushed by the strength of the dollar. We got with the plot and are doing fine with bear ETFs, one of which rose by 25% on Friday alone. The dollar is remarkably strong especially given that its COTs and sentiment readings are already bearish by normal standards, so what is going on? - and where is the dollar headed?
The dollar is so strong because the world economy is about to finally disappear into the deflationary vortex, which our illustrious leaders have been fighting tooth and nail for so long now, which they should as they got us all into this mess in the first place………………………………………..Full Article: Source

Kuwaiti minister: Oil price likely to stabilize at $50-$60

Posted on 09 March 2015 by VRS  |  Email |Print

World crude prices are expected to gain this year or at least stabilize at between $50 and $60 a barrel, Kuwaiti Oil Minister Ali al-Omair was quoted as saying. “Forecasts for the oil price this year indicate that it will gain or at least stabilise between $50 and $60 a barrel,” the official KUNA news agency quoted Omair as saying late on Saturday in Bahrain.
The minister said prices are currently supported by conflict in Iraq and Libya and by a drop in sand oil and shale oil output. But that is counterbalanced by slow global economic growth, which is dampening demand, Omair said. World prices dropped at close on Friday as the dollar rose sharply, making dollar-priced crude more expensive for buyers using weaker foreign currencies………………………………………..Full Article: Source

Why Oil Prices Haven’t Hit Bottom Yet

Posted on 09 March 2015 by VRS  |  Email |Print

Investors looking at crude oil technicals and thinking the commodity looks like a good value right now are like the people who saw a white dress when the infamous photo of a blue dress crossed their newsfeeds. In this case, investors’ misperception comes from reports of oil rig shutdowns and crude’s ability to remain above a key technical level, suggesting the commodity has bottomed.
Those are distractions from a real fundamental issue — there’s too much oil and too few places to affordably store it, said Tim Evans, Energy Futures Specialist at Citi Futures. “I’m trying to keep my clients from becoming complacent about rising inventories as if they don’t matter because price action suggests we should look away from physical surplus in the market,” Evans said. “There’s substantial downside risk, particularly at the front of the WTI crude oil curve.”……………………………………….Full Article: Source

Rick Rule: Gold price ‘could easily see $1,000′

Posted on 09 March 2015 by VRS  |  Email |Print

Gold on Friday plunged more than $30 an ounce after a better-than-expected US jobs report saw the dollar soar to multi-year highs. In heavy trade of more than 20m ounces in New York, gold for delivery in April fell $32.33 an ounce or 2.7% from Thursday’s close hitting a low of $1,163.87 an ounce during one of the worst trading days in a year.
Gold is now at the lowest price since mid-November and more than $140 below its 2015 high struck January 22. Gold’s gains earlier this year were ascribed to safe haven buying amid currency turmoil, a slowing global economy, geopolitical concerns, the fallout of the collapse in oil prices and a debt crisis in the eurozone………………………………………..Full Article: Source

Nickel Prices Look Poised to Rebound

Posted on 09 March 2015 by VRS  |  Email |Print

Prices of nickel hit their lowest levels in more than a year last week, suggesting it is just another metal suffering from weaker Chinese demand growth and a strong dollar. But many traders and analysts think the long decline in nickel’s price is reaching an end, as China’s drive to produce more of a substitute product—nickel pig iron—shows signs of cracking. NPI is commonly used in China as a cheaper alternative to pure nickel for producing stainless steel.
China’s burgeoning output and usage of NPI has meant that the world has had plenty of spare pure nickel. That has put pressure on prices for the commodity: The benchmark three-month nickel futures contract on the London Metal Exchange is down around 30% in the past year………………………………………..Full Article: Source

The Price of Oil Is Down, So Why Is Production Still Going Up?

Posted on 06 March 2015 by VRS  |  Email |Print

Too much oil, too fast. That turns out to be the downside of the U.S. oil boom—at least if you’re an investor. Prices crashed, and America is pumping so much crude its running out of places to store it. One promising sign you may have heard about: The plunge in U.S. oil rigs.
Every week since 1944, oilfield-services company Baker Hughes has released a survey of rigs out drilling for oil. But it wasn’t until oil prices dropped by more than half that “rig counts” became part of everyday business vocabulary. Oil watchers are desperate for any sign of an end to the glut………………………………………..Full Article: Source

World Bank Analyzes Oil Price Plunge

Posted on 06 March 2015 by VRS  |  Email |Print

Rapid expansion of oil supply from unconventional sources, a significant change in OPEC’s policy stance, and weak global demand are driving the recent plunge in oil prices, according to a new paper by the World Bank. These underlying forces are buoyed by a strengthening U.S. dollar and the fact that oil production in the Middle East has not been severely disrupted by ongoing conflict, says the paper, titled “The Great Plunge in Oil Prices: Causes, Consequences, and Policy Responses”.
The paper, authored by John Baffes, Ayhan Kose, Franziska Ohnsorge, and Marc Stocker, presents a comprehensive analysis of the causes and economic and financial consequences of the oil price decline………………………………………..Full Article: Source

Storage dearth may drive oil prices to $30

Posted on 06 March 2015 by VRS  |  Email |Print

As the U.S. runs out of space to store its glut of crude-oil supplies, prices for the commodity could sink to as low as $30 a barrel. When storage is full, there is pressure on those holding oil in storage to “dump that inventory,” said Charles Perry, chief executive officer of energy-consulting firm Perry Management. So a space shortage could cause a drop in prices to the $30 to $40-per-barrel range, he said.
West Texas Intermediate crude — the U.S. benchmark — has already seen its prices halved from a year ago. A cost of $30 per barrel of oil represents a 40% drop from the current level, which stands near $51………………………………………..Full Article: Source

Expect low prices, more volatility in oil: Exxon CEO

Posted on 06 March 2015 by VRS  |  Email |Print

Investors should brace themselves for more volatility in the oil market, with prices staying around current levels for a while, Exxon Mobil CEO Rex Tillerson told CNBC.”There is the potential for there to be further pressure on the market for a period of time,” he said in an interview that aired Thursday on “Squawk Box.”
“I think people kind of need to settle in for what is likely to be a bit of a volatile time, and I think need to settle in for what may be volatile around this level we’re at.”……………………………………….Full Article: Source

Gold Price Set To Plunge Below $600

Posted on 06 March 2015 by VRS  |  Email |Print

Gold has been trading as expected in recent times but there has been something in the back of my mind that has been niggling me. That is the long term chart. While I have been feeling in rhythm with gold for quite some time now, I have kept the focus on the shorter term picture. However, now it is time to confront the issue.
Let’s get straight to it with the yearly chart. In previous analysis, I drew a Voodoo candle which called for a spike down to below US$1000 before a big reversal higher which closed out 2015 near its highs. This was assuming the 2014 candle would be a slightly positive candle. Well, my timing has been a little off and the 2014 candle turned out slightly bearish………………………………………..Full Article: Source

Gold falls below $1,200/oz after rising on ECB forecasts

Posted on 06 March 2015 by VRS  |  Email |Print

Gold eased on Thursday, changing direction and falling below $1,200 an ounce as short-covering dried up after buoying prices following the European Central Bank’s (ECB) announcement that it will lift its 2016 inflation forecast.
The ECB held interest rates unchanged at record lows while raising next year’s inflation expectation to 1.5 percent from 1.3 percent and predicting 2017 inflation at 1.8 percent. “The ECB is much more optimistic regarding growth and inflation than we are … people are looking at currency devaluation and see gold as an alternative,” Commerzbank analyst Daniel Briesemann said. Gold is usually viewed as a hedge against inflation………………………………………..Full Article: Source

Iron ore falls below $60 on China cuts vow

Posted on 06 March 2015 by VRS  |  Email |Print

The price of iron ore, a key steelmaking ingredient, dropped below $60 a tonne for the first time since 2009 as China vowed to cut overcapacity in the steel industry and close mills that violate pollution standards. Benchmark Australian iron ore for delivery to China fell $2.80, or 4.5 per cent, to $59.30 a tonne on Thursday, according to The Steel Index, a price reporting agency.
Iron ore futures on China’s Dalian exchange fell 3.1 per cent to a three-month low. Iron ore is a key profit generator for several large mining companies, including Rio Tinto, BHP Billiton, and Vale of Brazil………………………………………..Full Article: Source

Gold price languishes after Indian surprise

Posted on 05 March 2015 by VRS  |  Email |Print

The gold price failed to recover this morning after two days of losses resulting from India’s surprise decision to maintain an import duty on the metal.
Traders believe that US jobs data due on Friday might lead to a rally, reversing the downward trend that has seen the gold price drop from $1,300 per ounce at the end of January to little over $1,200 today. At noon, gold was trading at $1,204.02 per ounce, down 53 cents on Tuesday’s close………………………………………..Full Article: Source

banner
banner
April 2015
S M T W T F S
« Mar    
 1234
567891011
12131415161718
19202122232425
2627282930