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Buy Gold No Matter Who Wins the Election, HSBC Says

Posted on 02 November 2016 by VRS  |  Email |Print

There’s one certain winner of next week’s presidential election, according to HSBC Holdings Plc: investors in gold. Although they deem a Donald Trump victory more supportive for the price of the metal than a win by Hillary Clinton, the bank’s Chief Precious Metals Analyst James Steel says it’ll enjoy at least a 8 percent jump whoever wins the race.
Both candidates have espoused trade policies that could stimulate demand, with gold offering a potential “protection against protectionism,” he says……………………………………Full Article: Source

Why the Commodity Boom of the 2000s Is About to Make Comeback (and How to Play it)

Posted on 01 November 2016 by VRS  |  Email |Print

It has been an excellent year for most commodities: WTI oil prices are up 31%, Henry Hub natural gas is up 32%, gold is up 19%, and the RBC Commodity Index (which contains a basket of 24 commodities) was up 23% year-to-date at the end of September.
With 20% being the threshold for a bull market, commodities are in a bull market with certain major commodities (natural gas, oil, zinc, metallurgical coal) up well over 30% in some cases. This is fairly large change in trend, since the last few years saw nearly every commodity stuck in historic bear markets (the RBC Commodity Index dropped in half between mid-2014 and early 2016)…………………………………….Full Article: Source

Gold for marriage, platinum for love

Posted on 01 November 2016 by VRS  |  Email |Print

Anglo boosts platinum margins after relaunching customer ties. Anglo American has boosted its platinum margins by as much as 5% after relaunching its customer relationships and ending an exclusive marketing contract with Johnson Matthey, CEO Mark Cutifani said on Monday.
Big miners are looking for ways to add shareholder value and extend a recovery that has made them the top gainers on London’s blue chip FTSE share index this year. Anglo American’s shares have rebounded more than 270% since January…………………………………….Full Article: Source

The new gold rush

Posted on 31 October 2016 by VRS  |  Email |Print

Why new? Because this time around, it’s not buyers of jewellery but gold investors who are calling the shots. One question that gold investors are asking now is, will 2017 be as spectacular for the yellow metal as 2016? The short answer to this is no.
The short-term outlook for gold is grim, with the Federal Reserve likely to effect the second rate hike in December, with falling consumption demand for gold in Asian markets and the strength in dollar due to weakness in the British pound. Also, recent presidential poll statistics in the US are not in favour of a Donald Trump win; a negative for gold bulls. Policy uncertainty and slowing growth following a Trump win could stoke the yellow metal’s price……………………………………..Full Article: Source

This Is Gold’s Turnaround Year - Aden Sisters (Video)

Posted on 28 October 2016 by VRS  |  Email |Print

Gold prices are up more than 19% so far this year, but there may be more to come, this according to two veteran investors Mary-Anne & Pamela Aden — known in the industry as the Aden Sisters.
Speaking with Kitco News, the Adens said they think 2017 will be the “turnaround year” for the gold sector. “We think this is a great buying time,” they told Daniela Cambone on the sidelines of the New Orleans Investment Conference……………………………………Full Article: Source

Where next for gold?

Posted on 27 October 2016 by VRS  |  Email |Print

Will the move in US interest rates trigger a reversal for gold – not so says Simona Gambarini. The price of gold has increased sharply this year, but speculation about US interest rates has prompted suggestions that this upward trajectory will move into reverse. Not so, says Simona Gambarini, commodities analyst at leading economics research consultancy Capital Economics.
The gold price has risen close to 20% this year in US dollar terms, despite subdued buying from consumers in China and India, as well as emerging market central banks. In part, this reflects changing perspectives on US interest rates earlier this year………………………………….Full Article: Source

Silver Has More Potential Than Gold In 2017

Posted on 27 October 2016 by VRS  |  Email |Print

While expecting gold prices to rally to $1,400 an ounce in 2017 on continued investor demand, ETF Securities looks for silver to outperform as industrial demand drives prices. In a recently published report, analysts at ETF Securities said that they see silver prices trading in a range of between $22 and $24 an ounce in 2017.
With silver prices last trading Wednesday at $17.70 an ounce, that would mean at least a 24% gain for the precious metal. ETF Securities’ gold-price target of between $1,400 an ounce and $1,450 would represent a gain of 10% from the precious metal’s current price of $1,272.60 an ounce………………………………….Full Article: Source

Why the good economy could be a problem for the next president

Posted on 27 October 2016 by VRS  |  Email |Print

The U.S. economy is delivering some of the best employment and income gains of the past 40 years, boosting workers in a way that recalls the boom years of the 1980s and 1990s.
But while the gains may help Hillary Clinton rebuff Donald Trump’s frequent attacks on the state of the nation and the Obama administration’s record, she would face a series of minefields if she wins the White House. As would Trump, if he pulls off a victory………………………………….Full Article: Source

Africa Must Face Reality of Low Commodity Prices, IMF Warns

Posted on 26 October 2016 by VRS  |  Email |Print

African commodity exporters risk a “disorderly” hit to their economies if they don’t adapt to the reality of low prices, said a senior official at the International Monetary Fund. Some governments in sub-Saharan Africa have been slow to “internalize” the fact that prices of oil and other commodities are likely to remain low, said Abebe Aemro Selassie, director of the IMF’s Africa department.
Countries need to let their currencies adjust to lower demand, while shoring up their budget balances, implementing reforms to improve competitiveness and cushioning the impact on the poor, he said…………………………………..Full Article: Source

A Rebound for Industrial Commodities in 2017? (Video)

Posted on 26 October 2016 by VRS  |  Email |Print

Peter Esho, principal at Esho Research, discusses the outlook for commodities, emerging markets stocks and where gold will be by the end of the year. He speaks to Bloomberg’s Yvonne Man and Ramy Inocencio on “Bloomberg Daybreak: Asia.”.…………………………………Full Article: Source

Saudi Arabia Faces Tough OPEC Equation With Mounting ‘Exemptions’

Posted on 26 October 2016 by VRS  |  Email |Print

Saudi Arabia faces the prospect of much deeper — and financially painful — oil production cuts after Iraq joined the queue of group members seeking immunity from the deal hatched in Algiers. In addition to Iraq, the second-biggest exporter in the group, Iran has already sought to exclude itself.
Output is also recovering from fields in Nigeria and Libya, two more countries that were exempted from the Algiers deal because violence has wrought havoc in their oil industries. Taken together, more than a third of OPEC’s production now stands outside the plan…………………………………..Full Article: Source

India and China’s love affair with gold turns financial

Posted on 26 October 2016 by VRS  |  Email |Print

Questions remain as to how quickly demand for gold as an investment in Asia will grow. Gold may have rallied 20 per cent in US dollar terms, putting it on course for its first annual rise in four years. For the Indian market, though, that has contributed to a fall in demand for the physical metal.
Gold’s status in India, from its role in weddings to use in rural savings, has helped make the country the biggest buyer of bullion globally, so any slowdown in appetite is a worry for the industry…………………………………..Full Article: Source

Fundamentals Will Push Gold, Silver To Spectacular Levels

Posted on 26 October 2016 by VRS  |  Email |Print

In the absence of intervention, gold and silver would be trading at a level that is a few multiples higher from where they “trade” now. At some point, some entity will want to take possession of a big “chunk” of gold or silver and will stand for delivery of the physical with the intent to remove that gold or silver from Comex vaults.
For now, the big accumulators of physical gold (China, Russia, India) are content with the current rigged market price of gold as long as the west can continue to make deliveries into these countries. But at some point the west’s “cupboard” will be bare and big buyers will see what the Comex really has in its vaults. It’s at that point when the precious metals market will become interesting…………………………………..Full Article: Source

How Commodities May React To Clinton Or Trump

Posted on 25 October 2016 by VRS  |  Email |Print

The polls continue to favor Clinton. Gold and silver are likely to rally under Hillary. Energy will move higher in a Clinton Presidency. A Trump surprise will cause lots of volatility but long-term effects. Are we in store for a Brexit surprise?
Commodities are global assets, and the U.S. dollar is the reserve currency of the world. The historical inverse relationship between the greenback and raw material prices traditionally tells us that a higher dollar means lower commodity prices…………………………………..Full Article: Source

Africa Tilts as Winners Emerge From the Commodities Slump

Posted on 25 October 2016 by VRS  |  Email |Print

Lower commodities prices have had some far-reaching effects on African economies. For exporters, weaker revenue has damped growth. Consider Nigeria, Africa’s largest economy and biggest oil producer. The country’s gross domestic product contracted 2.1 percent in the second quarter, following a 0.4 percent slump in the first.
Adjusting to this new reality will take time for energy exporters. Most African economies, though, aren’t in the oil business. For them, lower fuel costs support growth and living standards. So fortunes are set to diverge across the continent…………………………………..Full Article: Source

The 5 Biggest Challenges the Global Economy Faces in 2017

Posted on 24 October 2016 by VRS  |  Email |Print

International forecasters fear that 2017 will not be a big improvement on 2016 for a sluggish global economy. With plenty of risks ahead including geopolitical and economic instability, here are the five main challenges facing the world economy in the upcoming Year of the Rooster.
The International Monetary Fund has warned that rising populism and protectionism have correlated with stagnating economic growth. In its latest “World Economic Outlook,” the IMF’s chief economist Maurice Obstfeld warned that “turning back the clock on trade can only deepen and prolong the world economy’s current doldrums.”…………………………………Full Article: Source

Is Gold’s Success Riding On The U.S. Election?

Posted on 21 October 2016 by VRS  |  Email |Print

Is gold’s momentum really dependent on the victor of the U.S. presidential election? According to RBC Capital Markets commodity strategist Chris Louney, a correlation has developed between Republican presidential candidate Donald Trump and gold.
Speaking with CNBC’s Futures Now, Louney said in an interview that “gold reacts when Trump’s chances of winning rise above 40 percent or below 20 percent in the mainstream media.” Over first seven months of the year, gold really “glittered,” he said, with uncertainty surrounding monetary policy and Brexit fears…………………………………….Full Article: Source

Consumers will be hit by bank rules on gold, say refiners

Posted on 21 October 2016 by VRS  |  Email |Print

Regulators are forcing lenders to cover their holdings of the precious metal. Gold refiners are warning that regulators’ plans that forces banks to utilise longer term funding against their holdings of the precious metal will ultimately make it more costly for consumers buying jewellery.
Banks lend gold to refiners, which typically use it to pay suppliers and customers, but under new rules proposed by the Basel Committee on Banking Supervision, the costs to banks could triple, according to the London Bullion Market Association…………………………………….Full Article: Source

BHP says sees early signs of commodity recovery

Posted on 20 October 2016 by VRS  |  Email |Print

BHP Billiton, the world’s biggest diversified miner, said on Wednesday it was finally detecting indications of a commodity market turnaround, giving its most upbeat assessment in about five years.
A recovery would be a particular boon for the global miner which has kept production humming through a multi-year collapse in commodities markets, although it cautioned that raw material supply was still outpacing demand despite stronger steel consumption in China. “We have seen early signs of markets rebalancing,” Chief Executive Andrew Mackenzie said in releasing BHP’s September quarter production report and guidance update……………………………………Full Article: Source

Commodities Market: Seeing Signs of Recovery? (Video)

Posted on 20 October 2016 by VRS  |  Email |Print

BHP Billiton says iron ore and petroleum production both fell in the first quarter but CEO Andrew Mackenzie says he expects that market for oil and gas to improve in the medium term. Bloomberg’s David Stringer reports on “Bloomberg Daybreak: Asia.”.………………………………….Full Article: Source

China Says It Needs 18% More Copper by ‘20 as Economy Shifts

Posted on 20 October 2016 by VRS  |  Email |Print

China has mapped out its non-ferrous metals needs through to the end of the decade, projecting that while annual growth rates for demand may slow as the economy shifts gears, the world’s largest user is still expected to need far greater volumes than at present.
Demand for ten metals, including copper, aluminum and zinc, will rise at an average rate of 4.1 percent a year from 2016 to 2020, compared with 10 percent in the prior five years, the Ministry of Industry and Information Technology said in a five-year development plan posted on its website…………………………………..Full Article: Source

Rise in global trade the tonic the world economy needs

Posted on 19 October 2016 by VRS  |  Email |Print

The world economy needs international trade to pick up, according to Reuters polls of hundreds of economists who see no end yet to the aggressive monetary stimulus through which central banks have tried to prop up inflation.
In recent months central banks from India to Britain to Brazil have become more accommodative with policy, leaving the U.S. Federal Reserve, which is widely expected to raise rates in December, looking like an outlier. Financial markets are already showing a sense of unease, with sovereign bond yields up from record lows, many stock markets looking shaky, and investors warily eying the price of oil, which appears to have awoken from a long slumber…………………………………Full Article: Source

Australia on the up thanks to rising commodities prices

Posted on 19 October 2016 by VRS  |  Email |Print

Australia’s growth prospects may be improving, say leading analysts, after a surprising rise in the prices of its biggest export commodities, coal and iron ore.
As the world’s largest coal exporter, Australia is a key winner from a dramatic rise in the price of internationally traded coal, which has jumped about 140% since the middle of this year, after Chinese mines slashed production. Since January, the price of iron ore, the country’s biggest export, has risen about 40%, also helped by cuts in output by less efficient producers…………………………………Full Article: Source

OPEC Reversal Is Gift to Oil Majors After 2 Years of ‘Hell’

Posted on 19 October 2016 by VRS  |  Email |Print

When the bosses of the world’s biggest oil companies gather in London on Tuesday, they might have the urge to track down the Saudi energy minister and shake him by the hand.
After two years pursuing a Saudi-led strategy to pump without limits, pummeling industry earnings, OPEC has unexpectedly come to the aid of the oil majors. Last month, it surprised the market by deciding to cut production and put a floor under volatile crude prices…………………………………Full Article: Source

What’s Behind the Glut in Agricultural Commodities

Posted on 18 October 2016 by VRS  |  Email |Print

The boom-and-bust production cycle has expanded around the globe. Harvests are under way of what are projected to be the largest corn and soybean crops in U.S. history, which soon will hit a global market already sitting on the largest-ever grain stockpiles.
Indeed, some farmers are hoping for a weather hiccup somewhere in the world to curb yields and breathe life into crop prices that recently hit multiyear lows. They may be waiting a long time…………………………………..Full Article: Source

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

Posted on 18 October 2016 by VRS  |  Email |Print

A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. Rosneft PJSC is part of a group of investors that beat suitors from Saudi Arabia and Iran to buy Essar Oil Ltd.’s Vadinar refinery, India’s second-biggest, in a deal announced over the weekend.
Russia’s largest oil producer is following a strategy by resource-rich firms and nations to secure outlets for their output, and may supply the facility with Venezuela crude and challenge Middle East exporters that provide about two-thirds of the country’s imports…………………………………..Full Article: Source

What OPEC’s Oil U-Turn Missed: Peak Demand Keeps Getting Closer

Posted on 18 October 2016 by VRS  |  Email |Print

OPEC’s decision last month to reverse its policy of unfettered production and cut oil output to boost prices may be at odds with the industry’s most important long-term trend: demand for what they produce could start falling within 15 years.
If rapid improvements continue in renewable energy, electric vehicles and other disruptive technologies, petroleum consumption will peak in 2030 and decline thereafter, according to a report from the World Energy Council…………………………………..Full Article: Source

BRICS drive the global economy

Posted on 17 October 2016 by VRS  |  Email |Print

BRICS nations – Brazil, Russia, India, China and South Africa – account for 43 per cent of the world’s population and 25 per cent of the global economy. Despite a global economic slowdown, BRICS has been a main economic engine for the world economy.
Countries such as Brazil and Russia, which struggled with recession in the past two years, are expected to turn the corner and post GDP growth in 2017. Russia’s GDP contracted 1.2 per cent in Q1 2016 but that slowed to 0.6 per cent in Q2, according to data from the Rosstat federal statistics service……………………………………..Full Article: Source

Resources rally can’t last forever

Posted on 17 October 2016 by VRS  |  Email |Print

Commodity prices cannot keep marching higher indefinitely in the face of weak global trade and a stagnant global economy. The rally in commodity markets has been the biggest surprise in the global economy this year — no one predicted it — and it is bringing welcome relief to resource investors and federal government tax collectors.
It has been based on both the effectiveness of the stimulus delivered by Chinese authorities to their economy and on the US Federal Reserve’s continued inability to deliver on its repeated promises to raise rates……………………………………..Full Article: Source

Kuwait emir dissolves parliament over fuel price dispute

Posted on 17 October 2016 by VRS  |  Email |Print

Disputes over fuel price increases in oil-rich Kuwait have prompted the country’s emir to dissolve its parliament. Every member of Kuwait’s cabinet had already resigned. Emir Sheikh Sabah al-Ahmad al-Sabah issued an emergency government decree Sunday afternoon “given the circumstances in the region,” BBC reported.
The emir’s decision has prompted early elections, but no date has been set. Members of parliament would otherwise have remained in office through July 2017, Al Jazeera reported……………………………………..Full Article: Source

Russia’s OPEC Bear Hug Probably Won’t Last

Posted on 17 October 2016 by VRS  |  Email |Print

Beware the friendly Russian bear. While the world’s biggest oil exporter has offered growls of support for a hard-won OPEC accord to cut output, that will probably amount to no more than mere noise. And without Russian participation, the agreement may lack teeth.
President Vladimir Putin threw his weight behind the cartel’s push for cuts to hasten the rebalance of oil supply and demand, saying in Istanbul last Monday that Russia is willing to consider a freeze or even a cut……………………………………..Full Article: Source

Is It Over For Gold?

Posted on 17 October 2016 by VRS  |  Email |Print

Gold prices have been sliding recently, partially reversing the gains made over the last year. The big question for many investors is whether the move means that the bull run is over? This is not a trivial question. Gold suffered a two-decade bear market from 1980 through 2000 where prices sank from $850 a troy ounce to a low of less than $300.
The decade before that, 1970 to 1980 saw tremendous gains, from a low of $35 up to the then all-time high of $850. So there it is; is the recent pullback a blip, or is it the harbinger of something bigger……………………………………..Full Article: Source

Global economic recovery ’still treacherous’: Xi

Posted on 17 October 2016 by VRS  |  Email |Print

Even though the 2008 credit crisis and the “treacherous recovery” of global economy has impacted growth among the BRICS countries, Chinese President Xi Jinping today said the potential and the inherent strength of the five-nation grouping of emerging economies continues to be unchanged.
The Chinese President said the global economy is yet to fully recover from the 2008 credit crisis and is still struggling with a “treacherous recovery“. Admitting that the crisis of 2008 has not only “slowed down BRICS economies” but they are still “facing challenges” even after eight years of the worst recession since the 1930s, Xi, however, stressed that the “potential and the strength” of the grouping is “unchanged” and they continue to remain positive from a long-term perspective……………………………………..Full Article: Source

UBS: Gold is setting up for a big comeback

Posted on 14 October 2016 by VRS  |  Email |Print

Gold is set for a comeback six to 12 months from now, according to UBS. As long as the Federal Reserve sees no reason to raise interest rates in a hurry, gold should do well, according to strategists at the bank’s Chief Investment Office Wealth Management Research arm.
They see gold prices climbing to $1,350 per ounce over the next year, up 7% from its current level. Because gold does not bear any interest, it loses appeal when rates rise and investors go after better alternatives……………………………………Full Article: Source

How the next president will impact the global economy

Posted on 14 October 2016 by VRS  |  Email |Print

The US economy is still the force that sets the pace for the rest of the world, and Credico UK has researched the possible economic consequences of the presidential election between Donald Trump and Hillary Clinton.
The recent debates have certainly heated things up between the two candidates, and at present Trump is struggling to overcome criticism and scepticism among female voters for previous indiscretions which has led to a decline in poll numbers over the last few days……………………………………Full Article: Source

Are commodities now a source of value?

Posted on 13 October 2016 by VRS  |  Email |Print

On the macro front the central banks have been doing a good job of incentivising investors to increase their weightings in commodities, notably holdings in hard assets, with gold being the first and prime beneficiary.
A massive 500 tonnes of gold have been added to ETF holdings this year, and as interest rates around the world sink further into negative territory, investor commodity demand should continue to escalate. If the monetary experiment doesn’t deliver results, fiscal stimulus could begin on a global scale……………………………………..Full Article: Source

Gold price ‘uptrend is over’, says ABN Amro

Posted on 13 October 2016 by VRS  |  Email |Print

The gold price “uptrend is over”, Dutch bank ABN Amro analyst Georgette Boele has said in a note to clients, reports BullionVault. Mounting speculation that the US Federal Reserve will increase interest rates again before the end of the year is weighing on sentiment towards the metal and Boele says a host of technical indicators suggest its 2016 rally has run out of steam.
Rising interest rates are bad news for non-yielding gold, as this boosts the attraction of alternative, income-paying assets. It also tends to help the dollar, against which gold is held as a hedge……………………………………..Full Article: Source

Is gold in meltdown?

Posted on 13 October 2016 by VRS  |  Email |Print

Gold appears to have its price hanging on a dodgy thread. Our “big picture” report back in August had proposed the possibility of weakness to $1,248 and this movement is proving rather accurate. Accurate, aside from the unpleasant detail our $1,248 was briefly broken during the Friday session.
This opens the trapdoor to incredible levels of doom. The situation now is we must regard gold as heading to a bottom of $1,163 on the current cycle. There’s a chance $1,218 will provoke some sort of bounce but, unless some miracle can get the price above ‘blue’ (Currently $1,339), we’ve little choice but to view $1,163 as very possible……………………………………..Full Article: Source

Here’s What Could Drive Gold to a Record in Next Two Years

Posted on 13 October 2016 by VRS  |  Email |Print

Rising inflation and sagging confidence in the ability of central banks to revive global growth will drive up gold, according to Incrementum AG, which says bullion could climb to a record in the next two years.
Consumer prices are set to rise as oil rebounds, while low or negative interest rates and bond buying by central banks have failed to boost economies, said Ronald Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101 million). Incrementum was the top precious metals forecaster last quarter, Bloomberg-compiled data show……………………………………..Full Article: Source

Here Is One Sign That the Global Economy Is Weakening

Posted on 13 October 2016 by VRS  |  Email |Print

Global foreign direct investment flows are set to fall by 10-15% to $1.5 to $1.6 trillion this year, according to United Nations data. “Business are very reluctant to invest [cross-borders],” said James Zhan, director of investment and enterprise at the United Nations Conference on Trade and Development, based in Geneva, Switzerland.
“This is due to sluggish economic growth and the fragility of the global economy.” He also said upcoming political elections in various countries this year adds extra uncertainty. Global foreign direct investment flows are expected to rebound in 2017 and 2018, as global economic growth is expected to accelerate……………………………………..Full Article: Source

Commodity Exporters are Reshaping Their Economies

Posted on 11 October 2016 by VRS  |  Email |Print

A long slump in commodity prices is forcing commodity exporters around the world to reshape their economies. For some Latin American nations, adjusting to reality means getting back to basics.
Top economic officials from the region are trying to refocus attention on underlying overhauls through infrastructure, education, tax policy and regulatory changes to ease business. “Growth by commodity prices going up, it’s nice, but it’s not permanent,” said Ilan Goldfajn, governor of the central bank of Brazil. “So you need to do reforms that increase productivity.”…………………………………Full Article: Source

Putin Says Russia Ready to Join OPEC Effort to Limit Oil Supply

Posted on 11 October 2016 by VRS  |  Email |Print

Russia, the world’s largest energy exporter, is ready to join OPEC in limiting oil production with either a freeze or a cut, said President Vladimir Putin.
“Russia is ready to join in joint measures to limit output and calls on other oil exporters to do the same,” Putin said on Monday at the World Energy Congress in Istanbul. “In the current situation, we think that a freeze or even a cut in oil production is probably the only proper decision to preserve stability in the global energy market.”…………………………………Full Article: Source

OPEC Deal: Historic Oil Price Breakthrough? Or Kicking the Can Down the Road?

Posted on 10 October 2016 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries’ first agreement to cut oil production since the financial crisis — reached at a meeting in Algiers last week — can be seen as something of both. The market reacted positively to news of an output cut, with both Brent Crude and West Texas Intermediate surging 6% before a little profit taking took over. Not surprisingly, oil company shares also perked up with some smaller oil companies up 7-10%.
The gist of the agreement, such as it is, is to cut production to 32.5-33 million barrels a day with seemingly all OPEC members agreeing, in principal, to the plan and some non-OPEC members like Russia giving cautious support, essentially saying “if they stick to it we may make some modest cuts, too.”………………………………………Full Article: Source

Russia expects OPEC to ask non members to consider joining output curb

Posted on 10 October 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak said he expected the Organization of Petroleum Exporting Countries (OPEC) to propose that non-OPEC nations consider joining the group in limiting output.
“We are waiting for the proposals which OPEC will elaborate internally to meet target (production) levels and with which they will come out and approach non-OPEC nations,” Novak said in an interview with Turkey’s state-run Anadolu Agency, published on the Russian Energy Ministry’s website on Sunday……………………………………….Full Article: Source

Gold Bulls Flee at Fastest Pace Since May on U.S. Rate Outlook

Posted on 10 October 2016 by VRS  |  Email |Print

The Federal Reserve has spooked investors out of gold. Prices posted their biggest weekly slump in three years after hawkish comments from multiple Fed officials ignited concern that the central bank will soon raise U.S. interest rates. Investors are bracing for more declines, cutting their bets on a bullion rally by the most since late May.
Open interest in gold futures is slumping. Prices for silver, platinum and palladium have also declined. Higher rates reduce the appeal of precious metals as a store of value. A resilient U.S. job market and gains for the service economy have signaled that expansion can continue even if rates rise, curbing the need for haven assets……………………………………….Full Article: Source

Industrial Metals Bull Market Extends Into Q4

Posted on 10 October 2016 by VRS  |  Email |Print

Industrial metals rose in the first half. In Q3 they took a break, but momentum is starting to pick up again. The industrial metals exchange-traded fund, which tracks the performance of four base metals, recently hit a 14-month high.
This is important because when money is flowing into the industrial metals complex, every metal gets a tailwind. Recently, we witnessed particularly strong momentum in lead, zinc and tin: Lead prices skyrocketed last week, despite a supply surplus this year. Zinc rose to new ground last week. Despite being up 60% on the year to date, the metal continues to move up……………………………………….Full Article: Source

China heading for ‘financial crisis’ that could have ‘very serious repercussions’ for global economy, IMF warns

Posted on 10 October 2016 by VRS  |  Email |Print

‘There is no doubt that a calamity or a problem in China would have very serious repercussions for the global economy,’ says IMF director. China could be heading for a financial crisis due to the level of financial and corporate debt, the International Monetary Fund (IMF) has warned.
Markus Rodlauer, deputy director of the IMF’s Asia-Pacific department, said the level of debt in the Chinese economy was on an “unsustainable path”, adding that a financial problem in China would have “very serious repercussions” for the global economy……………………………………….Full Article: Source

Rising commodity prices lift SA sales value - Anglo

Posted on 07 October 2016 by VRS  |  Email |Print

The rally in prices of commodities that Anglo American wants to exit has no impact on the century-old producer’s plan to refocus its business and will enable it to sell assets for more money, the executive overseeing the strategy said.
Prices of iron ore, coking and thermal coal have rebounded this year. In February, Anglo announced a plan to shrink its business by putting assets that produce these commodities on the chopping bock. Rising prices have eased the pressure on Anglo as it seeks to cut net debt to less than $10 billion and focus on more profitable diamond, platinum and copper mines……………………………………….Full Article: Source

Commodities to struggle to regain stance in portfolios: JPM

Posted on 06 October 2016 by VRS  |  Email |Print

Commodities will battle to regain a prized place in many portfolios after the “super cycle” fizzled out and in a world of muted global growth, executives at JP Morgan Asset Management said. The sector could, however, claw back a shred of its former glory by providing some diversification benefits, they said during a conference by the fund manager in London this week.
During a commodities boom mainly spurred by China’s hunger for infrastructure in the years leading up to the global financial crisis, many investors boosted allocations to commodities to capture strong emerging market growth while diversifying from equities and bonds………………………………….Full Article: Source

The biggest threats facing the world economy

Posted on 06 October 2016 by VRS  |  Email |Print

The IMF has released its latest outlook for the global economy. Here are eight charts that show the challenges the world faces in the coming years. The global recovery remains subdued. For the UK, the good news is that in the short term, the impact of the Brexit vote is likely to be limited.
Maurice Obstfeld, the IMF’s chief economist, said the UK would see a “soft landing” this year following the referendum result, as he said the market reaction had been “much more favourable than anyone would have anticipated”………………………………….Full Article: Source

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