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What’s Next for Silver Prices in 2016 After the Fed’s Latest Fumble

Posted on 04 August 2016 by VRS  |  Email |Print

It wasn’t surprising the U.S. Federal Reserve announced on July 31 it was keeping interest rates unchanged, sending silver prices soaring 3.8% that day. But if you missed out on those gains, don’t panic. Money Morning Resource Specialist Peter Krauth projects silver prices in 2016 will climb even higher.
Today, we’ll share Krauth’s prediction. But first, we wanted to make sure Money Morning readers understand why the Federal Reserve has such a big impact on the price of silver. When the Fed raises interest rates, precious metals like gold and silver are seen as less desirable investments………………………………………..Full Article: Source

Surprising Drivers Of Gold: How To Position Yourself

Posted on 03 August 2016 by VRS  |  Email |Print

Brexit has had an unexpected impact on the stock market. The FOMC market was essentially a win-win for gold. On a risk-adjusted basis, long GDX and short GLD makes sense.
The number of factors impacting the movement of gold - as represented by the SPDR Gold Trust ETF - is often too numerous to count. Furthermore, the impact of the most important factors on the price of gold change rapidly, in terms of both importance and, on occasion, in terms of direction………………………………………..Full Article: Source

Is the Commodities Slump Coming to an End?

Posted on 02 August 2016 by VRS  |  Email |Print

Mark Bennett, chief executive officer and managing director at S2 Resources, discusses the uptick in exploration spending, commodity prices and his outlook for gold, nickel and iron ore. He speaks to Bloomberg’s Rishaad Salamat on “Trending Business” from the Diggers and Dealers Conference in Kalgoorlie, Australia.……………………………………….Full Article: Source

Gold price rally ‘set to continue’

Posted on 02 August 2016 by VRS  |  Email |Print

The rally in gold prices is expected to continue as global uncertainty and volatility persists while economic growth remains weak, former International Monetary Fund deputy head John Lipsky says. In the face of a global outlook based on negative risks and pockets of problems, Australia’s financial system is still rated as one of the most resilient in the world, Mr Lipsky says.
“The happy news for the gold miners is that in the near term the uncertainty is not a bad thing for the gold price,” Mr Lipsky told the Diggers and Dealers Mining conference in Kalgoorlie on Monday………………………………………..Full Article: Source

New OPEC Chief Faces Fragile Unity (Video)

Posted on 01 August 2016 by VRS  |  Email |Print

OPEC’s new boss starts work tomorrow against a backdrop of sinking oil prices. Mohammed Barkindo will also be leading an organization that’s been divided over output policy. Bloomberg’s Dan Murtaugh reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

Go for Gold, or Not Really Sold?

Posted on 01 August 2016 by VRS  |  Email |Print

For some readers, gold is a necessary piece of the puzzle; for others, it’s no better than iron pyrite. Gold’s shimmer has been bright this year. The price of gold has jumped 26% for the year to date through July 28, and the typical fund in the equity precious metals Morningstar Category is up 109% over the same period.
And investors have channeled more than $660 million into precious metals funds in the first half of 2016 (through June 30). We recently asked Morningstar readers whether they had an allocation to gold in their portfolio, and if so, why. On the flip side, we also wanted to hear from those who had no interest in gold. If readers claimed they wouldn’t touch it with a 10-foot pole, we wanted to know why not………………………………………..Full Article: Source

How Donald Trump Changed My Mind About Gold

Posted on 29 July 2016 by VRS  |  Email |Print

If you poke around on the internet, you’ll find a lot of people who have criticized me for being a “gold hater.” Here are two different pieces that took me just a few seconds to find. There are plenty of tweets out there saying the same thing.
These people have been basically right. Over the years, I’ve said a lot of bad stuff about gold — how it’s a lousy currency, how it’s just a rock that shouldn’t have any value, how love of it is primitive and irrational, how it has no justifiable basis in the economy. But I’m changing my mind, and it’s all due to Donald Trump………………………………………..Full Article: Source

Buy Commodities; They Shouldn’t Be Tanking

Posted on 27 July 2016 by VRS  |  Email |Print

There’s a new meme going around that claims that we’re heading into a global economic slowdown. It sounds a lot like the other dire warnings that we heard in February, May and most recently in June right after the Brexit vote: “Slowdown! Crash! Recession! Catastrophe!” But the fearmongers were wrong then, and I believe that they’re wrong now.
Granted, the global economy isn’t growing very rapidly. But it is growing — and has defied all expectations of a recession so far because we continue to see high and rising levels of fiscal stimulus from the world’s major economies. That means the United States, China, Japan and very soon even the European Union (I predict)………………………………………..Full Article: Source

2016 superstars: Gold And Silver Miners

Posted on 25 July 2016 by VRS  |  Email |Print

The first half of 2016 was definitely good for those who invested in precious metals. However, great results of gold and silver are nothing to compare to the equity of miners. Since the bottom of 18 January index of small miners (with a capitalisation of 5 bn USD or below) nearly tripled.
I have a lot of reasons to be glad because of this. My ‘Intelligent Investor’ students were given GDXJ buy recommendation when its price was 19 USD. Today it is 49 USD. After such a great race to the top should we start looking for cheaper assets?……………………………………….Full Article: Source

Brexit sparked economic volatility and uncertainty

Posted on 22 July 2016 by VRS  |  Email |Print

The British move fast. While we wrestle for a couple of years with the succession of leadership in the White House, the British have in swift days bounced out Prime Minister David Cameron, and his successor Theresa May, is already governing in 10 Downing Street.
Cameron had no choice but to fall on his sword since for the sake of a squabbling Conservative Party, beset by a reactionary far right, he miscalculated the risk of a national referendum of dubious constitutionality. Britain has got along quite well without the kind of constitution written by the U.S. framers, but this time Britain’s ‘muddling through’ just did not work………………………………………..Full Article: Source

Charts, Not Fear, Guide Gold Market

Posted on 21 July 2016 by VRS  |  Email |Print

The eight-day $120 rally in gold in reaction to the Brexit vote cleaned out those who remained on the short side and caused a new flood of buying as the long side of the gold market became even more crowded .
As I pointed out on July 9th “The latest data from the CFTC shows that the long positions of money managers have made another new high even though margins were recently raised. In my experience this is a dangerous combination and I continue to think the long side is risky now.”……………………………………….Full Article: Source

Gold and Other Precious Metals’ Brexit Bounce Has Legs

Posted on 20 July 2016 by VRS  |  Email |Print

Gold and most precious metals are still gaining from the bounce they received after the U.K. voted to leave the European Union and most bankers and analysts expect that to continue. In contrast, European aluminum premiums are falling.
Britain’s vote to leave the European Union has led analysts to raise their gold price forecasts again this year, after the decision shook up financial markets and sparked a rally in the precious metal to two-year highs………………………………………..Full Article: Source

Climbing Gold and Silver’s Wall of Worry

Posted on 20 July 2016 by VRS  |  Email |Print

Confidence is slippery, even when you are a metals investor sitting atop the best performing assets of 2016. It doesn’t help when 4 years of a miserable bear market remains fresh in our memories. Any weakness in prices and it can feel like markets are getting ready to plunge right back to $13 silver and $1,000 gold.
That feeling is called the “Wall of Worry”, and bulls are going to have to climb it by staying in the market even if their emotions are telling them to bail. Let’s review the last 6 weeks because they are quite instructional………………………………………..Full Article: Source

Global Trouble From Low Commodity Prices (Video)

Posted on 19 July 2016 by VRS  |  Email |Print

Carl Weinberg, chief economist at High Frequency Economics, talks about the global economic consequences of low commodity prices, currency wars, and interest rate disparities. He speaks on “Bloomberg Surveillance.” .………………………………………Full Article: Source

Gold Price Forecast: Long-Term Pattern Targets $2,700

Posted on 19 July 2016 by VRS  |  Email |Print

Gold has been hot recently. Even now during the summer months, which is typically the slowest time of year for the shiny yellow. Yet, even with the $110 intraday surge on June 24th after the affirmative Brexit vote, gold still has some work to do to convince the remaining bears that a change in the down trend from 2011-2015 is officially upon us.
In this article, we present the critical technical crossroads that gold finds itself in…and what the ramifications of a breakout from this level will signal for long-term investors………………………………………..Full Article: Source

Are the Events in Turkey Bullish for Commodities?

Posted on 18 July 2016 by VRS  |  Email |Print

UBS Wealth Management’s Wayne Gordon discusses the outlook for commodities with Bloomberg’s Betty Liu and Yvonne Man on Daybreak Asia.”.………………………………………Full Article: Source

Why is the gold price rising? Five forces driving the precious metal

Posted on 15 July 2016 by VRS  |  Email |Print

Hoarding gold is a centuries-old reaction to times of crisis, and the aftermath of the EU referendum vote is no different. The yellow metal has soared in value since Britain voted to leave the European Union as investors shoot towards traditional “safe haven” assets. Prices have reached a three-year high as Brexit worries intensify.
An ounce of gold is now worth $1,327 (£1,003), up from $1,257 on June 23. However, the spike follows a sustained rally in the gold price throughout the year. The metal is now worth a quarter more an ounce than it was at the end of 2015………………………………………..Full Article: Source

Gold Price Of $1,400 Is Just The Start - VanEck

Posted on 14 July 2016 by VRS  |  Email |Print

Although gold prices are down from last week’s two-year high, one investment firm sees $1,400 an ounce as just the start as the market remains in a new bull uptrend.
In a report released Tuesday, Joe Foster, gold strategist at VanEck, said that the firm is expecting gold prices to reach $1,400 an ounce in the second half of the year, adding “and we do not believe it will end there.” Tuesday, August gold futures have seen renewed selling pressure with prices last trading at $1,336.50 an ounce, down almost 1.5% on the day………………………………………..Full Article: Source

Silver prices surge nearly 50%, but beware of the devil’s metal

Posted on 14 July 2016 by VRS  |  Email |Print

Silver prices have leapt nearly 50 percent so far this year, reversing three years of losses, but history shows investors hoping to hop aboard the bandwagon should be wary. A surge in gold and upbeat prices of industrial metals, along with prospects for yet more monetary stimulus from leading central banks, have prompted some heart-stopping moves.
“I’ve lost hair this year,” one silver trader said after the market shot up by almost a third in one month alone. “And about 20 pounds.” On the face of it, silver has a lot of appeal. It tends to track gold prices, but its low liquidity usually leads it to outperform the move in gold by around 1.5 times………………………………………..Full Article: Source

Post-Brexit gold rush pushes price to two-year high

Posted on 12 July 2016 by VRS  |  Email |Print

Gold has proven a popular investment after Britain’s vote to exit the European Union. Investments sold as “safe” are often anything but, however. If you thought the Brexit vote was scary, check out the full page newspaper ad that recently appeared in The New York Times recounting all the horrors in the present tense, as if they were still unfolding: The vote “topples” the British government, “crushes” the pound and “wipes away” billions in stock market wealth.
Then came the purpose behind all the panicky prose. “Buy Gold Now!” Investors have done just that, pushing up the price of the metal to a two-year high………………………………………..Full Article: Source

Could gold rally end in a rout?

Posted on 12 July 2016 by VRS  |  Email |Print

I always find it curious how investors react to political crises. As Brexit fever was in full throttle, thousands of perfectly sensible folk decided to dump their cash into gold coins. Why on earth would anyone think that Brexit would make any difference to gold prices?
I suspect I am missing the point. Brexit was almost perfectly timed to fan the flames of already growing alarm among investors about impending recession, diminishing returns for QE, and a more general sense the debt bubble may burst soon………………………………………..Full Article: Source

How to make money in this lousy market

Posted on 11 July 2016 by VRS  |  Email |Print

Being an investor is tricky these days. There’s broad agreement that the stock market is pricey, the economic recovery is long in the tooth and central banks really can’t do much more to prop up growth.
Hardly anyone is predicting market Armageddon, but this is not the “get rich quick” era. The word on Wall Street is: Prepare for lousy stock and bond returns for years. That doesn’t mean you’ll lose money, but don’t expect to rake in the usual 7% to 8% return on stocks and 3.6% on bonds, according to investment firm Bernstein. Even private equity returns aren’t what they used to be………………………………………..Full Article: Source

Why This Aussie Firm Says Gold to ‘Certainly’ Hit $1,500, Maybe Even $1,900

Posted on 11 July 2016 by VRS  |  Email |Print

Another bullish call on gold. Surprise, surprise. But, this Sydney-based firm sees the potential of a $200-500 rally in gold because of what’s happening in Asia. “You have to look at the long term in gold…more people are coming into the market looking for gold and there’s not much there, so gold’s has got the potential to rally quite strongly,” Barry Dawes of Paradigm Securities said.
“I think we’re certainly going to see $1,400 quite soon and I think we’ll certainly see $1,500 by year end and maybe even that $1,900.” Positive sentiment towards the yellow metal has been prevalent with Bank of America Merrill Lynch being the latest among a slew of banks to up their gold price forecast for this year………………………………………..Full Article: Source

Commodities Rally Is Fizzling Out as Merchant Fund Sees Oil Drop

Posted on 08 July 2016 by VRS  |  Email |Print

The best is probably over for commodities this year as the Brexit vote adds risks to global growth and oil is set to retreat, according to the Merchant Commodity Fund, which returned 9 percent in the first half.
The fund, run by ex-Cargill Inc. employees Doug King and Michael Coleman, has changed its commodities outlook to neutral from bullish earlier this year. The U.K. vote to exit the European Union has led to uncertainty and growth remains lackluster in top user China, King said. Oil may drop to $40 to $45 a barrel within three weeks as stockpiles fall more slowly than expected, he said………………………………………..Full Article: Source

Let’s Explore our Silver Price Forecast in 2016

Posted on 08 July 2016 by VRS  |  Email |Print

Silver prices have now climbed more than 40% in 2016, prompting investors to call for a silver price forecast for the remainder of the year and beyond. Today (Thursday), silver prices have pulled back slightly to $19.77, but we see this as only a short-term slide.
Several factors lead us to an encouraging silver price forecast for the rest of 2016. Let’s take a look. Investors snapped up silver throughout June for several reasons. Investors sought safe-haven assets, particularly precious metals, in the wake of the June Federal Open Market Committee Meeting (FOMC) amid fears that interest rates could be hiked………………………………………..Full Article: Source

Economy Needs to be Integrated into Environment, Not Other Way Around

Posted on 08 July 2016 by VRS  |  Email |Print

BP’s Statistical Review of World Energy is a standard industry reference document. It’s a useful indicator of trends, if occasionally the victim of politics. But the newest edition brings welcome news that the growth of global carbon emissions paused in 2015, partly to do with a shift to renewables, and partly the result of passing economic conditions, both notable in China.
But BP, the company that once promised to go “beyond petroleum”, is sticking firmly with oil and gas. Its get-out strategy from appearing over-fossilized in attitude, is to call for a “meaningful carbon price,” advocated by its chief economist, Spencer Dale………………………………………..Full Article: Source

Perils of investing in commodities like gold & oil

Posted on 07 July 2016 by VRS  |  Email |Print

In order to help investors become better at navigating the stock market, Jim Cramer revealed some of the biggest mistakes he has made in over 30 years of investing. “Frankly, there are so many mistakes here that it might take a bit to explain them all,” the “Mad Money” host said.
He learned that when it comes to investing in commodity stocks, investors must know that it doesn’t matter which ones they pick — like going for a better balance sheet or higher growth — if the underlying commodity is hit. If that happens, they will all go lower………………………………………..Full Article: Source

Gold Shines but Other Commodities Have a Disastrous Time

Posted on 07 July 2016 by VRS  |  Email |Print

The bullish case for gold remains even as other commodity futures slump on concerns about global growth. The long weekend in the U.S. did little to keep the rest of the world calm about Brexit fallout, so gold — typically seen as a safe haven in times of market volatility and uncertainty — continues to see inflows.
As the world seeks some political leadership, central bank ineptness is weighing on global fixed-income yields and creating an unstable currency environment. This continues to make gold attractive………………………………………..Full Article: Source

What Australia’s election uncertainty means for climate policy

Posted on 07 July 2016 by VRS  |  Email |Print

As the CEO of Australia’s leading industry association for companies operating in the low carbon economy, I have been fielding a wide range of questions from members, media, other industry bodies and interested international observers on what the uncertain election results means for national climate policy.
As the votes are still being counted, and we wait for a definitive result, I have taken the opportunity to provide some personal observations on the most frequently asked questions that have come across my desk in the last few days………………………………………..Full Article: Source

Where Are Oil Prices Going? Watch the Pump

Posted on 06 July 2016 by VRS  |  Email |Print

To learn where oil prices are headed next, some analysts are saying, watch the refined-product markets. Gasoline is typically the star of the energy market in the summer, as consumers fill up their tanks for road trips. But this year, gasoline isn’t just cheap. It’s so cheap that it makes diesel, a fuel that typically sees more wintertime demand, look pricey.
Gasoline futures are recently trading down 5.6% at $1.4281 a gallon on the New York Mercantile Exchange, while diesel futures are down 4.3% at $1.4464 a gallon………………………………………..Full Article: Source

The world’s experts believe gold will climb in value

Posted on 06 July 2016 by VRS  |  Email |Print

Gold has been attracting the attention of the masses for a while now, and for good reason. Throughout the first half of the year, the commodity grew in price by around 25%. However, experts like Marc Faber, Peter Schiff, and, even Ron Paul, believe that the value of the commodity is likely to climb, much much higher.
“Global growth has contracted, in other words, growth rates have been reduced and many countires are in recession already. That has nothing at all to do with Brexit… Brexit is actually not an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers,” -said Marc Faber………………………………………..Full Article: Source

Japan Sees Strong Retail Gold Demand Following Brexit Vote

Posted on 06 July 2016 by VRS  |  Email |Print

The fallout of Britain’s referendum to leave the European Union less than two weeks ago continues to be felt around the globe as consumers buy safe-haven assets like gold. In Japan, the asset of choice has been physical bullion.
Tuesday, Japanese media reported that gold retailer Tanaka Kikinzoku Kogyo K.K has seen purchases of its gold bullion products increase 1.8% since the Brexit vote passed. According to Japanese Newspaper Yomiuri Shimbun, retail gold purchases in the last week is comparable to demand seen in 2008 following Lehman Brother’s collapse, which led to the global financial crisis, or in 2014 when the Japanese government raised the consumption tax rate to 8%………………………………………..Full Article: Source

Investors hold the gold as risk-appetite goes cold

Posted on 05 July 2016 by VRS  |  Email |Print

The amount of cash invested in gold funds has jumped by one-third since the beginning of the year, as investors become more and more desperate to squirrel their money away in safe havens.
Data from Bloomberg showed holdings in bullion-backed exchange-traded funds (ETFs) swelled to 1,959 tonnes at the end of June, up from 1,458 at the beginning of the year, with a flurry of new investments off the back of the UK’s decision to leave the EU………………………………………..Full Article: Source

Rio Tinto says commodities rout far from over

Posted on 04 July 2016 by VRS  |  Email |Print

The new chief executive of Rio Tinto has warned there is no end in sight to the commodities downturn, saying a supply glut will continue to put pressure on prices for the mining company and its rivals.
Jean-Sébastien Jacques, who became chief executive of the Anglo-Australian company this weekend, said in an interview with the Financial Times that supply was still outstripping demand for most major raw materials that Rio mines………………………………………..Full Article: Source

Why Goldman thinks its $50 oil forecast could be wrong

Posted on 01 July 2016 by VRS  |  Email |Print

Most oil market pundits will tell you how hard it is to predict where the black stuff is heading. And while Goldman Sachs is the most influential commodities bank, like pretty much every forecaster, it has been known to get things wrong.
Now it’s said that crude could trade below its $50 forecast in the second half of 2016 due to higher-than-expected output from Organisation of Petroleum Exporting Countries (Opec) member Nigeria, Bloomberg reported………………………………………..Full Article: Source

Brexit Gold Rally Seen Cutting Indian Imports to 7-Year Low

Posted on 01 July 2016 by VRS  |  Email |Print

The surge in gold prices after Britain’s vote to quit the European Union will deal a further blow to demand in India, the second-largest consumer, and may cut imports to the lowest in seven years, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation.
Purchases from overseas are seen slumping to about 700 metric tons this year, Bamalwa said by phone from Kolkata on Wednesday. That’s a decline of 23 percent from 2015 and the smallest since the country imported 559 tons in 2009, data from the London-based World Gold Council show………………………………………..Full Article: Source

3 Reasons Why This Gold Rally Can Last

Posted on 01 July 2016 by VRS  |  Email |Print

The story of the year in financial markets has been gold’s underdog rally from multi-year lows. Can it last? Heiko Ihle at Rodman & Renshaw says that yes, indeed, the rally can continue. The analyst sees a “paradigm shift in sentiment for the gold market” and outlines three factors that we feel should “not only support gold at current levels,” but “potentially continue to push prices higher going forward.”
The SPDR Gold Shares (GLD) added 0.2% to $126.14 in recent trading. Here’s more: “The next bull market in precious metals and precious metal related equities has begun. Our updated price deck of $1,300 per ounce gold and $17.50 per ounce silver reflects what we believe to be the dawn of a new era.”……………………………………….Full Article: Source

Which Commodities Will Benefit From Brexit?

Posted on 30 June 2016 by VRS  |  Email |Print

Buy gold but be cautious around oil and copper, that’s the main takeaway from Deutsche Bank’s special commodities report entitled “commodities weathering the Brexit storm”.
Most commodity markets remain plagued by oversupply, but the gold market is set to see increased demand over the next 18 months. There are a number of political risk events set to unfold during this period, which are only set to add to the global economic uncertainty that’s been thrown up as a result of Brexit…………………………………………………………………………………Full Article: Source

Gold is about to drop, and this play will let me cash in big when it does

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s run is almost done, according to gold trader Andrew Keene of AlphaShark, and he has just the way to profit from an expected slide in the precious metal. The yellow metal has had an incredible year, and that has sent most gold-mining stocks soaring. But with market uncertainty appearing to settle amid the post-Brexit vote rebound, Keene thinks the metal is due for a turn lower.
Keene has picked one gold stock that he sees following an expected downtrend for the metal in the coming months. Barrick Gold (ABX), the world’s largest gold-mining company, has seen its shares on the rise since September of last year, following the gold rally……………………………………….Full Article: Source

Gold is back

Posted on 30 June 2016 by VRS  |  Email |Print

Significant downturn in economic growth and rising uncertainty over the political developments have helped gold become a new emerging bull market, with the price expected to rise to US$2,300 within the next 24 months, according to a Liechtenstein-basesd asset and wealth management firm.
Incrementum AG’s study, “In Gold we Trust”, said that the first step had already been taken and early this year gold celebrated an impressive comeback, exhibiting strong vital signs, and recording its strongest quarterly performance in 30 years, which was fuelled by fears over ‘the recovery of the post-Lehman economy’……………………………………….Full Article: Source

Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s investment case has been strengthened by the U.K.’s vote to quit the European Union as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring bullion, according to Marc Faber, publisher of the Gloom, Boom & Doom Report.
The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said……………………………………….Full Article: Source

‘Going long on fear’: Analysts hike gold price forecasts after Brexit

Posted on 29 June 2016 by VRS  |  Email |Print

Gold prices ran up after Britain’s decision to quit the European Union, climbing sharply last Friday and yesterday as the referendum results rippled through global markets, pummelling stocks and some currencies.
Gold has pulled back from its Friday high, and dipped about 1 per cent amid today’s stock market rally. “We are revising our gold price assumptions as we believe that the fundamental macro backdrop for gold prices provides significant runway for gold price appreciation from current levels despite an appreciation of 25 per cent [year to date],” Clarus Securities said this week………………………………………..Full Article: Source

Gold Veteran Says Brexit May Be Start of ‘Major Bull Market’

Posted on 29 June 2016 by VRS  |  Email |Print

Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.
With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said………………………………………..Full Article: Source

Gold still the star among commodities after Brexit

Posted on 28 June 2016 by VRS  |  Email |Print

As far as commodities go at the moment, there’s gold, and then there’s pretty much everything else. The yellow metal, which enjoys a reputation as a haven in times of volatility and crisis, is up 0.8 per cent this morning at a two-year high of $1,326.80 an ounce.
It has been one of the stars of the show, rallying 4.7 per cent on Friday as the UK voted in favour of leaving the EU and the plunging British pound sent financial markets into a tailspin. Gold should also benefit if central banks, particularly the Federal Reserve, refrain from tightening monetary policy………………………………………..Full Article: Source

Gold: Bears Are Trapped, Next Stop $1,400

Posted on 28 June 2016 by VRS  |  Email |Print

Gold posted a massive weekly gain Friday of over 4%, despite the largest one day advance for the U.S. Dollar in 2 years. Gold is up over 14% this year as we head into its strongest half of the year seasonally.
Brexit was a black swan event for gold bears, and most shorts were caught completely flat footed with commercial short positions in gold near all time highs………………………………………..Full Article: Source

How long Brexit uncertainty reigns is key for commodities, gold: Russell

Posted on 27 June 2016 by VRS  |  Email |Print

Amid the horror for many, the elation for others and the shock for virtually everybody of the British vote to exit the European Union, perhaps the most measured and predictable response was from commodity markets.
As it became clear on Friday that the Leave camp was going to pull off an unexpected victory, commodities did what they normally do in a period of heightened risk, they declined. The outlier of course was gold, which also did exactly what it was expected to do by rallying strongly as investors sought the protection of what is still viewed by many as the ultimate safe-haven in times of crisis and uncertainty………………………………………..Full Article: Source

Brexit ‘not a game changer’ for commodities

Posted on 27 June 2016 by VRS  |  Email |Print

Research house Capital Economics expects other drivers to play a bigger part now that the referendum is behind us, while Randgold Resources stands to benefit from Brexit… The drop in prices for industrial commodities like oil and copper - down 5% and 3% respectively this morning - are not expected to last, not according to Capital Economics.
Julian Jessop, Capital Economics head of commodities research, in a note said: “these moves are already starting to unwind. “Once the dust has settled on the shock result, we suspect that the prospects for all these commodities will be determined by other, more specific factors.”……………………………………….Full Article: Source

Commodity Markets Entering Period of Stability

Posted on 24 June 2016 by VRS  |  Email |Print

Orica Ltd., the largest supplier of explosives to the mining industry, has begun to observe stability in commodity markets that have been marked by volatility, sinking profits and job cuts after a global boom ended.
“We still see a lot of volatility, but I think that I’ve seen more stability than I’ve seen in some time,” in the past month, Chief Executive Officer Alberto Calderon said. “When I talk to our customers I get the sense they are saying ‘Well let’s get on with it’………………………………………..Full Article: Source

Is there really a commodity revival?

Posted on 24 June 2016 by VRS  |  Email |Print

Following multiple years of calamitous returns the tide appears to be showing some signs of turning for commodities, with some even calling the end of the sector’s prolonged bear market. Last year witnessed the MSCI World Energy index nosedive 18 per cent. But since the start of 2016 to June 10, the measure has jumped by 16 per cent, according to data from FE Analytics.
Of course, all eyes have been on the oil price, which after crashing below $28 a barrel earlier this year topped the $50 mark in late May. But gold too, bolstered by its safe-haven status, has enjoyed a strong year-to-date run with the price of bullion up 21 per cent………………………………………..Full Article: Source

Why Substantially Weaker Commodity Prices Are Here to Stay

Posted on 24 June 2016 by VRS  |  Email |Print

The outlook for commodities–steel-making or coking coal as well as copper in particular–remains bleak, and this certainly doesn’t bode well for struggling coal and base metals miner Teck Resources Ltd.
Nonetheless, it–like a number of other miners, including First Quantum Minerals Ltd. has experienced a massive rally in its share price since the start of 2016 on the back of growing optimism surrounding commodities. However, there are signs that this optimism is unfounded. A range of factors highlight that substantially weaker commodity prices are here to stay. ……………………………………….Full Article: Source

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