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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

Why oil is about to tank

Posted on 12 April 2016 by VRS  |  Email |Print

Oil prices are on the march higher, again. It has been a volatile few weeks, with prices rallying fifty percent off their low from February, when they hit $26.05. After surging to $41.50, they then promptly fell to $35.24. Forty dollars beckons again this week.
The focus of the market has turned to the upcoming meeting among OPEC producers and Russia, this Sunday, in Doha, Qatar. Market participants are increasingly of the belief that the low prices have produced enough collective suffering to generate common cause among this increasingly disparate group………………………………………..Full Article: Source

Expert sees gold price crossing $3,000 in 3 years

Posted on 12 April 2016 by VRS  |  Email |Print

The price of gold could go up above $3,000 per troy ounce in three years, a precious metals expert said on Monday. Speaking at the Dubai Precious Metals Conference, Dr. Diego Parrilla, co-author of ‘The Energy World is Flat,’ said “a perfect storm for gold is brewing” as central banks have reached the point of no return.
“Central banks continue to push and test the limits of monetary policy, credit markets, and fiat currencies, which could result in gold prices above $3,000/oz within 3 years,” said Parrilla………………………………………..Full Article: Source

Gold Prices Unlikely To Slow Down, $1,350/oz In 2017: Credit Suisse

Posted on 12 April 2016 by VRS  |  Email |Print

Once again these are golden times for gold. The precious metal has regained some of the strength it lost over the last year after having a record high quarter in 2016. Gold prices gained 16% to 17% in the first quarter and are currently at $1,235/ounce. According to analysts at Credit Suisse, the precious metal is going to follow an upward trajectory throughout this year.
Michael Slifirski and Nick Herbert write in their FX and Commodities quarterly review that gold prices will peak at $1,350/ounce in the first quarter of 2017. The report further states that gold is likely to keep rising until the global economy stabilizes against fears of recession. Credit Suisse predicts a pullback in gold prices at the beginning of 2018 as real interest rates turn upwards………………………………………..Full Article: Source

Here’s why gold could rally to $1,300 by end of year

Posted on 12 April 2016 by VRS  |  Email |Print

A bullish trend is building gold futures. After posting its best return—around 16%— in the first three months of a calendar year in about 30 years, the yellow metal might have more room to run, said analysts at RBC Capital Markets in a research note dated April 10.
RBC raised its forecast for the yellow metal by 13% to $1,300 an ounce from a previous forecast of $1,150 an ounce by the fourth quarter 2016. It has raised its average price forecast for the metal in 2016 by 9%. RBC’s upgrade comes amid a 1.8% advance by gold futures in April, trading Monday at $1,258 an ounce………………………………………..Full Article: Source

$40 Per Barrel May Be The New $100 For Oil

Posted on 11 April 2016 by VRS  |  Email |Print

Who has been quickly preparing for a prolonged period of lower oil prices. Clearing out the rubble will be a good thing for the sector. Prolonging the inevitable would be a big mistake.
Why any market intervention will make things worse over the long term. The oil sector is a complicated market because there are a lot of conflicting interests becoming increasingly evident because of the emergence of the U.S. shale industry………………………………………..Full Article: Source

Gold At $10,000?

Posted on 11 April 2016 by VRS  |  Email |Print

After being in the doghouse for several quarters, gold rose up to the $1200s in recent weeks, trading places with equities and bonds. SPDR Gold Shares have lost 12.58% over the last five years, while S&P500 shares have gained 38.85%. But in Q1, equities and gold have traded places. GLD has gained 14.29%, while equities have lost 7.82%.
For years, holding gold has been considered a good “insurance” against the inflation that usually follows prolonged periods of monetary easing and rising commodity prices. Gold soared back in the 1970s, for instance, together with oil prices and accommodative monetary policies that fueled inflation………………………………………..Full Article: Source

Why Changes to London Gold Fix Could Send Gold to $5,000

Posted on 11 April 2016 by VRS  |  Email |Print

The gold price death spiral between 2011 and 2015 left a lot of analysts puzzled. Money poured out of precious metals and into stocks, driving gold prices into a deep slump. Now, an overhaul at the London Gold Fix could help reverse the tide, drawing in institutional investors and sending gold prices to levels we’ve never seen before.
But before we get to that, let’s quickly review what happened between 2011 and 2015. Precious metals fell as a group during that time, but the gold price slump was particularly strange in light of economic uncertainty around the world………………………………………..Full Article: Source

Iraq to lower oil price forecast to $32 a barrel in 2016 budget

Posted on 08 April 2016 by VRS  |  Email |Print

Iraq plans to lower the oil price forecast in its 2016 budget to about $32 a barrel from $45, widening its fiscal deficit by several billion dollars, the International Monetary Fund (IMF) and a senior government official told Reuters.
The new price estimate is based on the continued low level of global oil prices in recent months, said Marwa al-Nasaa, Amman-based IMF resident representative for Iraq. “We’re setting it closer to $30 based on the climate of international futures prices since November,” she told Reuters on Thursday………………………………………..Full Article: Source

Oil price flirts with $40 - but don’t expect it to go any higher

Posted on 08 April 2016 by VRS  |  Email |Print

The oil price has dipped below $40 a barrel, reversing strong gains earlier in the week, as analysts warn the price of Brent crude will struggle to move higher as stockpiles begin to flood the market.
“Millions of barrels of extra oil” could enter the market in the coming weeks and scupper future price gains, according to analysts at Saxo Bank. Ole Hansen, head of strategy at Saxo, said that oil traders have been snapping up cheap crude and storing it while they wait for higher prices, when they will then cash in………………………………………..Full Article: Source

Goldman Says Oil at $35 Is ‘Goldilocks’ Ideal for U.S. Explorers

Posted on 08 April 2016 by VRS  |  Email |Print

Oil at $35 a barrel is neither too high nor too low but just right to make shares of U.S. explorers worth buying, according to Goldman Sachs Group Inc. While prices of crude at that level are above cash costs of production, they will deter a rebound in shale output from occurring too early, the bank’s New York-based analysts including Brian Singer said in a report dated April 6.
Oil at $30 to $35 a barrel should keep the behavior of U.S. companies unchanged and help lift West Texas Intermediate to $55 to $60 a barrel in 2017, according to Goldman………………………………………..Full Article: Source

Gold Prices Settle Higher Amid Flight to Quality

Posted on 08 April 2016 by VRS  |  Email |Print

Gold prices settled higher in U.S. trading Thursday amid a broader flight to quality, as investors bet the Federal Reserve would be cautious on raising interest rates given uncertainty about global economic growth.
Gold futures for June delivery, the most actively traded contract, rose 1.1% to settle at $1,237.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Thursday’s action adds to a robust start to the year for gold futures, which are up some 17% so far………………………………………..Full Article: Source

Gold Close Above $1,240 Would Be “Impressive” - Gartman

Posted on 08 April 2016 by VRS  |  Email |Print

Gold is seeing strong support at the $1210-$1215 an ounce level says newsletter writer Dennis Gartman. The famed market watcher explains in his Thursday edition of The Gartman Letter that there has also been strong resistance along the trend line that extends back into mid-March.
“A close today above $1,240 would be most impressive, just as a close today below $1,210 would be most depressive,” he says. Gartman adds, “Our ‘money’ is on the former however, and our enthusiasm would be greater were we to see signs that India is back in the gold market in size.” Kitco’s Spot Gold was last quoted up $17.30 at $1239.60………………………………………..Full Article: Source

The Silver Price Will Rise in 2016 from This One Buying Trend

Posted on 08 April 2016 by VRS  |  Email |Print

The farther we get in 2016, the better the silver price outlook is. That’s promising news for investors seeking returns in an unstable commodities market. This fact may seem counterintuitive to most silver investors, though. That’s because they know the U.S. Federal Reserve plans to raise interest rates in 2016. And interest rates typically have an inverse relationship with the silver price.
Even so, there’s one trend that will cause silver prices to rise in 2016 despite the Fed’s meddling. But before we touch on this trend, let’s look at how interest rates affect the silver price………………………………………..Full Article: Source

Why oil price slump hasn’t boosted global economy – yet

Posted on 07 April 2016 by VRS  |  Email |Print

Goldman Sachs predicts rise back to $70 a barrel by the end of decade will drive improved growth. A steep and prolonged fall from grace for the international oil price, from around $115 a barrel in the summer of 2014 to as low as $27 earlier this year, was expected by the International Monetary Fund (IMF) to be a “shot in the arm” for the global economy, reports the Financial Times.
Oil has been stuck around $40 a barrel in recent weeks and was a little shy of $39 this morning. Last year, the IMF predicted a 0.5 per cent boost for every $20 drop. Instead, the fund this week warned that the already underwhelming global economic recovery is running out of momentum………………………………………..Full Article: Source

Russia sees oil price of $45-$50 per barrel ‘acceptable’ as it prepares for freeze deal

Posted on 07 April 2016 by VRS  |  Email |Print

Russia believes an oil price at $45-$50 per barrel is acceptable to allow the global oil market to balance, as it prepares to meet leading oil producers in Doha later this month, sources familiar with Russian plans said on Wednesday.
Leading oil producers plan to meet in Doha on April 17 to cement a preliminary deal reached between Russia, Venezuela, Qatar and Saudi Arabia in February to freeze oil output at levels reached in January, to curb a surplus on the oil market. “Now there is discussion of how long production will be frozen and ways to monitor the agreement,” one of the sources said………………………………………..Full Article: Source

Gold price swings ease as investors assess US growth outlook

Posted on 07 April 2016 by VRS  |  Email |Print

A gauge of price swings in gold fell to the lowest in almost two months as the prospect of a strengthening U.S. economy damped investors’ interest in the metal. Gold’s 30-day historical volatility dropped to the lowest since Feb. 10 and prices fell for the third time in four days amid signs the U.S. economy is improving.
Minutes of the Federal Reserve’s last meeting released Wednesday showed policy makers debated an April interest-rate hike, with several officials leaning against such a move and others saying it might be warranted. Gold advanced 17 percent last quarter, the largest such gain since 1986, on speculation that the Fed would delay raising interest rates amid a slowdown in global economic growth………………………………………..Full Article: Source

Oil prices lower on IMF’s ‘not-so-good news’

Posted on 06 April 2016 by VRS  |  Email |Print

Crude oil prices moved lower for a second straight day as the International Monetary Fund gauged the prospects of “mediocre” economy momentum. The IMF warned Chinese growth patterns may have a lingering ripple effect on the global economy.
Chinese slowdown last year dragged on broader economic momentum and 2016 started with a hiccup following steep declines in the benchmark Shanghai Composite Index. Speaking in Germany, IMF Managing Director Christine Lagarde said the global economy was moving forward and there were no signs of imminent crisis………………………………………..Full Article: Source

Oil price ‘can easily revisit’ sub-$30 lows

Posted on 06 April 2016 by VRS  |  Email |Print

The oil price “can easily revisit the lows seen earlier this year”, French bank BNP Paribas said in a note to clients, as bearish demand data added to concern over a deal to freeze excess supply.
Reuters cites the commentary after a report in the US showed purchases of gasoline products fell in January for the first time in 14 months and that overall crude oil consumption was down one per cent compared to last year. This comes ahead of a second quarter period that typically sees a dip in demand as refinery maintenance peaks………………………………………..Full Article: Source

Oil prices will slowly rebound, energy analysts predict

Posted on 06 April 2016 by VRS  |  Email |Print

Oil prices will gradually rebound over the next several years as the global surplus slowly gets used up, according to a forecast released on Tuesday. The analysis by Deloitte’s resource evaluation and advisory team predicts the price of West Texas Intermediate (WTI) crude will average $44 US this year, climbing to $55 US by 2018, $70 US by 2020 and $80 US by 2022.
“Our view is that the market has reached a relative bottom and the trend for the next number of months will be a shallow but rocky upward slope as certainty increases in the global ability to chew through oversupply in the coming months and years,” the report says………………………………………..Full Article: Source

Cheap Oil Means Record U.S. Trade Surplus With OPEC

Posted on 06 April 2016 by VRS  |  Email |Print

The U.S. has posted a surplus with the oil-producing bloc in 10 of the past 12 months, hitting a record $1.8 billion for February. Cheap oil, a strong dollar and slow growth abroad continue to break historical U.S. trade patterns.
In February, the average price per barrel of imported crude slipped to $27.48, the lowest mark since December 2003. Petroleum imports fell to the lowest level since September 2002. And the U.S. registered a trade surplus with Organization of the Petroleum Exporting Countries nations–the highest on record–according to Census Bureau data………………………………………..Full Article: Source

Gold prices to decline in second quarter

Posted on 06 April 2016 by VRS  |  Email |Print

Those who have held off buying gold jewellery lately due to rising prices may soon find themselves back into the market, with analysts predicting there could be some price declines during the second quarter of the year.
The precious metal posted a stellar performance in the first quarter of the year, with retail prices in Dubai rising by 15 per cent from the end of last year. However, there are certain factors that point towards prices going down anytime soon………………………………………..Full Article: Source

Gold Prices at a Crossroads; Morgan Stanley see $1250 achieved by Q4

Posted on 06 April 2016 by VRS  |  Email |Print

Charts are showing volatility may be on the horizon for the precious metal, but the question is in which direction will the price settle on?
Since breaking higher at the end of 2015 investors have been asking whether gold is really changing course and starting a new longer-term bull trend higher, or whether it is merely correcting in the midst of a bear market. Gold’s current technical position seems to ask the very same question; in terms of chart patterns and price action………………………………………..Full Article: Source

Oil price falls again as Iran backs away from production cuts

Posted on 05 April 2016 by VRS  |  Email |Print

Oil prices fell after Iran indicated it would continue to increase production and exports until it reaches the market position it enjoyed before the imposition of sanctions, oil minister Bijan Zanganeh was quoted by the semi-official Mehr news agency as saying.
Brent crude, the European benchmark for oil, down 0.36pc to $38.54 a barrel on Monday morning. West Texas Intermediate, the US benchmark, slumped 0.8pc to $36.49, extending Friday’s 4pc tumble………………………………………..Full Article: Source

The Biggest Reason the Price of Gold Will Rise in 2016

Posted on 05 April 2016 by VRS  |  Email |Print

Since we last checked in on the price of gold, the precious metal has seen some violent swings. Early last week, statements from the U.S. Federal Reserve pushed gold prices higher, but this boost only lasted about a day. The gold price retraced some of those gains shortly afterward and reacted to the movement in the U.S. dollar.
Despite its inconsistent performance last week, the price of gold’s movement has huge implications for where it’s headed in 2016. First, let’s look at how gold prices fluctuated last week………………………………………….Full Article: Source

Hedge funds aren’t wavering on gold price rally

Posted on 05 April 2016 by VRS  |  Email |Print

Equities, yields, oil, the dollar and gold were all in pull-back mode on Monday as the metal failed to capitalize on renewed worries about US and global economic growth. Traders in gold futures in New York pushed gold for delivery in June, the most active contract, to a week low of $1,215.70 an ounce in early afternoon dealings.
The weakness on gold markets since the 13-month high above $1,260 an ounce reached mid-March hasn’t shaken the conviction of deep-pocketed speculators that the metal is set to add to its $155 an ounce gain so far this year………………………………………..Full Article: Source

Commodity price slump brings change to African economies

Posted on 04 April 2016 by VRS  |  Email |Print

The prolonged commodity price slump has provided the impetus for sectorial rebalancing of African economies away from the extractive sector, towards a greater diversification of economic base, Economic Insight Africa Report by Oxford Economics said. In its quarterly briefing for the first quarter of 2016, it said the continent is at a threshold of a large-scale rotational shift towards the services and manufacturing sectors.
Although growing at a fast pace, the contribution of the manufacturing sector to Africa’s gross domestic product remains minimal. A retraction from the extractive sector opportunities, due to subdued commodity prices could provide scope for development of downstream activities. Moreover, development of the manufacturing sector would provide Africa with alternative to increase direct benefits derived from natural resources, including improved tax potential and job opportunities………………………………………..Full Article: Source

A former Opec insider tells how global oil pricing got flipped on its head

Posted on 04 April 2016 by VRS  |  Email |Print

From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains. Today, the producers who used to be price setters through supply control can produce only what costs less than the market price, which they no longer influence. Things will become normal only when we have the horse back before the cart………………………………………..Full Article: Source

A former Opec insider tells how global oil pricing got flipped on its head

Posted on 04 April 2016 by VRS  |  Email |Print

From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains………………………………………..Full Article: Source

Gold Prices: Here’s Why Gold Prices Could Soar

Posted on 04 April 2016 by VRS  |  Email |Print

Remember last year when some people were saying that gold prices would crash because the U.S. Federal Reserve would raise interest rates? Well, they couldn’t be more wrong. Since December 16, 2015—the date of the first Fed rate hike since the financial crisis—the gold spot price has surged 14.3%. Going forward, there are still quite a few catalysts that could send the price of the shiny metal even higher.
While several Fed people have been calling for more rate hikes, Fed Chair Janet Yellen thought otherwise. Speaking at the Economic Club in New York on Tuesday, Yellen said that the Federal Open Market Committee (FOMC) would “proceed cautiously” with interest rate policies, and that caution “is especially warranted.”……………………………………….Full Article: Source

Banks Raise Oil Price Forecasts But Remain Cautious

Posted on 01 April 2016 by VRS  |  Email |Print

Big banks have slightly raised their oil-price forecasts for the first time since August but remain cautious about crude’s outlook. A survey of 13 investment banks by The Wall Street Journal shows their average forecast increased by a dollar from the previous month, while U.S. crude prices have rallied by nearly 50% since their February lows.
The banks see Brent crude, the international oil-price benchmark, averaging $40 a barrel this year, and West Texas Intermediate, the U.S. oil gauge, averaging $39 a barrel………………………………………..Full Article: Source

The OPEC Meeting Will Boost Prices Following Never-Before-Seen Agreement

Posted on 01 April 2016 by VRS  |  Email |Print

Anticipation for next month’s OPEC meeting has been building, and it’s showing in the recent oil price rally. News of the OPEC meeting has put crude oil prices on track for their best month in almost a year.
The cartel’s sit-down next month will push prices higher due to a historic change expected to come out of the meeting. And one country’s reluctance to comply won’t be a factor, despite what some analysts think now…But before we get to that, here’s just how big oil’s rally was in March………………………………………….Full Article: Source

Gold may drop below $1,200 an ounce in coming months

Posted on 01 April 2016 by VRS  |  Email |Print

Gold prices are likely to slip below $1,200 an ounce in the months to come, GFMS analysts at Thomson Reuters said in a report on Thursday, with U.S. interest rates expected to rise and physical demand remaining soft. The metal has rallied more than 16 percent this year, reaching a 13-month high of $1,282.51 an ounce this month, but may struggle to maintain those gains, the report said.
“Following three consecutive years of annual price declines, gold has recorded a blistering start to 2016,” GFMS said in its Gold Survey 2015. “Such an impressive performance has been largely attributed to a reduction in risk appetite among investors and fresh interest in safe haven assets.”……………………………………….Full Article: Source

March Tin Price Forecast: Grading Above the Curve

Posted on 01 April 2016 by VRS  |  Email |Print

Tin prices are on the rise with demand remaining strong, yet a prolonged mining slump and other factors are contributing to tightened supply.
A metal used as solder for electrical circuits, tin is very much in need by an assortment of manufacturers. Yet major exporters, Indonesia and Myanmar, are shipping much less of it in the face of a multiyear slump that investment in mines and smelters sapped………………………………………..Full Article: Source

Hot-rolled coil steel prices in the US continue to rise

Posted on 01 April 2016 by VRS  |  Email |Print

Prices for hot-rolled coil in the US rose again Thursday as more market sources indicated firm offerings at higher prices with upside expected. Platts increased its daily HRC assessment to $455-$465/st from the previous $440-$460/st. The move reflects a $460/st midpoint, where the bulk of offers and transactions have been heard.
The daily cold-rolled coil assessment remained flat at $610-$630/st. Both prices are normalized to a Midwest (Indiana) ex-works basis………………………………………..Full Article: Source

Oil Prices Give Up Gains

Posted on 31 March 2016 by VRS  |  Email |Print

Oil prices inched higher Wednesday but sold off through most of the afternoon with opinions divided about the latest addition to U.S. stockpiles. The U.S. Energy Information Administration said Wednesday that stockpiles rose, but by less than analysts had expected, initially adding to overnight gains.
But stockpiles are still near record highs and the EIA data show refiners ramping up strongly, suggesting the oil industry is still willing to send more oil and gasoline onto already flooded markets, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk………………………………………..Full Article: Source

Gold price holds $1,240/oz following US Fed comments

Posted on 31 March 2016 by VRS  |  Email |Print

The gold price pared back from its earlier highs, but remained trading firmly in positive territory following a cautionary statement on Tuesday by the US Fed Chair Janet Yellen. Yesterday, Yellen’s tone contrasted with the hawkish views of various Fed members, who offered their support for a rate hike as soon as April, but is more in-line with the March Fed statement, which warned on global risks and resulting instability.
“Yellen’s comments clearly indicate that the risk of another delay is significant, particularly if economic data were to unexpectedly weaken and/or financial market volatility to increase again,” Credit Suisse noted………………………………………..Full Article: Source

Where are Gold Prices Headed?

Posted on 31 March 2016 by VRS  |  Email |Print

The best performing precious metal for the week was platinum, however still down -2.35 percent. Price action was driven by increased auto demand in the European Union, reports Market Realist, which rose 14 percent in February. Platinum and palladium is used in the production of catalytic converters.
Germany announced this week that it wants half of its gold reserves back by the year 2020, reports Bloomberg. Bundesbank, the country’s central bank (which has gold in London and New York), has repatriated 1,400 metric tons, or 41.5 percent, of Germany’s gold reserves to Frankfurt………………………………………..Full Article: Source

Central bank action may rejuvenate gold in Europe

Posted on 31 March 2016 by VRS  |  Email |Print

Gold prices remain low in historical terms, despite a rally at the start of this year, but demand may yet appear from an unexpected source. Some precious metal experts see interest returning to Europe, in part because the push towards negative interest rates has made depositing cash with banks less and less rewarding.
“Although gold is very much driven by U.S. Federal Reserve (Fed) policy, the impact of European Central Bank (ECB) policy decisions may become increasingly relevant for gold price action, as concerns about negative interest rates gain traction among investors,” UBS strategist, Joni Teves, said in a report this month………………………………………..Full Article: Source

Here’s How We Could See $2,000+ Gold Bullion

Posted on 31 March 2016 by VRS  |  Email |Print

After a stellar start to 2016, gold prices have pulled back a little. With this, the negative sentiment towards the precious metal is back; we are hearing about how there could be more downside again.
Don’t get lured in by the noise! Here’s what you really need to know: gold prices are setting up to soar big-time. You will kick yourself later if you don’t pay attention to the precious metal now. This may sound bold, but the last bull market in gold prices we saw after 2002 may look menial compared to the one that’s coming………………………………………..Full Article: Source

Aluminum Continues to Struggle below the $1,500 Price Level

Posted on 31 March 2016 by VRS  |  Email |Print

Aluminum prices are a key driver of aluminum companies’ price movements. Aluminum producers such as Alcoa (AA), Century Aluminum (CENX), Norsk Hydro (NHYDY), and Rio Tinto (RIO) have varying sensitivities to aluminum prices. In this part of the series, we’ll look at the current trend in aluminum prices.
Aluminum has now closed below the crucial price level of $1,500 per metric ton for three consecutive days. The spread between 3M and cash contracts now stands at ~$11 per metric ton. Note that aluminum moved into backwardation in February 2016………………………………………..Full Article: Source

Hidden force behind oil’s rise: sabotage by terrorists

Posted on 30 March 2016 by VRS  |  Email |Print

Oil prices have surged on hopes of a freeze in global production. But a more hidden factor is also fueling the price spike: terror attacks on oil facilities.
Sabotage to key oil pipelines have driven global supply outages to “elevated” levels estimated at more than 3 million barrels per day, according to the Royal Bank of Canada. For instance, last month a critical pipeline in Nigeria was bombed, taking around 250,000 barrels of crude offline until May………………………………………..Full Article: Source

Oil at $45-$50 Is a Fair Price for World’s 4th-Biggest Buyer

Posted on 30 March 2016 by VRS  |  Email |Print

Crude at $45 to $50 a barrel is enough to encourage India’s own exploration without squeezing fuel consumers, according to the oil minister of the world’s fourth-largest user.
While the collapse in prices has created a buyers’ market and boosted India’s bargaining power amid an oversupply, low crude is “challenging” for the nation’s own oil fields, Dharmendra Pradhan said in an interview in New Delhi on Monday. The government’s priority is to protect the interest of consumers and simultaneously attract investments in domestic production activity, he said………………………………………..Full Article: Source

Commodity Prices: The Cycle Turns?

Posted on 29 March 2016 by VRS  |  Email |Print

Rising commodity prices have given the Asia-Pacific’s miners a much-needed boost. Is this really a turning point? On March 24, U.S. oil futures settled at around $39 a barrel, up nearly 50 percent on January’s 12-year low of below $27. Meanwhile, the benchmark copper price on the London Metal Exchange closed at $4,945 a ton, up 15 percent from its six-year low in January, while iron ore prices have risen by nearly 30 percent this year to more than $50 a ton.
The iron ore price posted its biggest one-day gain on record on March 7, surging 19 percent to $62.60 a ton after Chinese Premier Li Keqiang pledged to spend 1.65 trillion yuan ($250 billion) on building roads and 800 billion yuan on railway construction, as part of efforts to ensure a minimum gross domestic product (GDP) growth rate of 6.5 percent for the next five years………………………………………..Full Article: Source

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