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Commodities Briefing - Archive | April, 2014

Why gold will be the unexpected winner in the Ukraine catastrophe

Posted on 28 April 2014 by VRS  |  Email |Print

The catastrophe for financial markets now unfolding in the Ukraine will have a very positive upside for gold. If Russia invades eastern Ukraine this week what price will gold be by next weekend? $1,350? $1,400? Or much higher?
Only on Friday did the penny begin to drop on Wall Street in the final hours of trading. If the Russians have been orchestrating this crisis right from the start, what is their end-game? Are the 40,000 troops massing as close as a kilometre to the border just there for window dressing? Why do things keep getting worse on the ground in Ukraine?……………………………………….Full Article: Source

Suppressing the price of gold: JPMorgan chase, Goldman and the Fed complicit in “gold price rigging”

Posted on 28 April 2014 by VRS  |  Email |Print

William S. Kaye, the Senior Managing Director of the Pacific Alliance Group of Companies in Hong Kong says the motive is simple as a free-market price of gold would essentially cast the interventions for what they are and stabilize policy measures taken by Central banks.
However, he explains and predicts that the price suppression scheme can’t go on forever and that in the ‘end game’ the 100 fold paper gold market must eventually be settled with physical gold and that it will require an extremely high price of gold to entice owners of physical gold outside the banking system to be willing to meet that massive anticipated demand……………………………………….Full Article: Source

Whiff of gold price rigging

Posted on 28 April 2014 by VRS  |  Email |Print

A light will be shone on the secretive world of setting gold prices in a review launched by the UK Financial Conduct Authority (FCA), which is studying whether gold market benchmarks are operating properly in the wake of the Libor scandal.
The regulator has started to gather information from market participants about the London gold fix, the benchmark price used worldwide to price the precious metal. The FCA is visiting all five banks that hold seats helping to “fix” the price of gold twice a day, once in the morning and again in the afternoon. It may analyse documents and policies, interview traders and examine IT systems………………………………………..Full Article: Source

A nice rebound for gold, but will it last?

Posted on 28 April 2014 by VRS  |  Email |Print

Precious metals rebounded late in the week after hitting their lowest levels in two-and-a-half months. This change in direction was the result of renewed safe haven demand following another outbreak of violence in the Ukraine.
A slightly weaker U.S. dollar over the course of the week and tumbling equity markets on Friday also provided support to metal prices as investors moved money out of risk assets and into defensive positions. This fresh buying led to key technical support levels being successfully tested for gold and silver, causing many short sellers to close out their positions………………………………………..Full Article: Source

Silver prepares to rally…along with gold

Posted on 28 April 2014 by VRS  |  Email |Print

Longer term investors in both Gold and Silver have no doubt become increasingly frustrated over the last few months, as first the metals gain some bullish momentum, only to see this promptly reversed with a return of bearish sentiment. For speculative traders of course, these short terms trends offer excellent trading opportunities, and the price action for both metals, at the end of last week, suggests yet another ‘mini trend’ now awaits.
And what happens with silver will be reflected in gold, which has followed a similar pattern of both price action and volume………………………………………..Full Article: Source

Are non-traditional ETFs suitable for any investor?

Posted on 28 April 2014 by VRS  |  Email |Print

The number of non-traditional ETFs has grown significantly in popularity in recent years. By 2009, there were over 100 non-traditional ETFs in the market place with total assets of approximately $22 billion. Since 2009, the number of non-traditional ETFs has since increased to more than 250 and continues to grow.
Many investors are familiar with the properties of typical ETFs that usually track and attempt to imitate the return of a benchmark, sector, or type of security. By contrast a leveraged ETF seeks to deliver two or three times the index or benchmark return the ETF tracks by employing leverage………………………………………..Full Article: Source

Questions ETF investors should ask

Posted on 28 April 2014 by VRS  |  Email |Print

When you think about using ETFs, the first thing you think about is, “What are my financial goals?” But you should also ask yourself, “Where do I want to invest?” And if you want exposure to U.S. markets, which benchmark represents that exposure? Do you want a narrow blue chip index or something broader?
Or do you want something tilted and more fundamental, so instead of using market cap, the index will be looking at underlying company sales, price-to-earnings ratio and dividends? You will find different benchmarks will have different biases. So the S&P 500, which most people understand, is a market-cap index………………………………………..Full Article: Source

Misery continues for trend-following hedge funds

Posted on 28 April 2014 by VRS  |  Email |Print

Trend-following hedge funds have suffered further outflows amid weak investment performance, raising questions about their survival.
Commodity trading advisers, hedge funds that tend to follow trends in markets using computers to place bets, suffered their 10th consecutive month of net outflows in March, according to Eurekahedge, the data provider………………………………………..Full Article: Source

Trafigura says commodity traders don’t pose same risk as banks

Posted on 28 April 2014 by VRS  |  Email |Print

Commodity trading firms probably don’t pose systemic risks to the global economy as the companies draw increased scrutiny and banks step back from raw materials, Trafigura Beheer BV said in a report.
Trading houses, such as Amsterdam-based Trafigura, are smaller than banks and have less debt, according to the study, written by Craig Pirrong, a finance professor at the University of Houston. The firms use financial derivatives mostly to hedge their physical activities, rather than to speculate on price swings, Pirrong said in the report……………………………………….Full Article: Source

U.S. prosecutors cross Atlantic to question UK currency trades

Posted on 28 April 2014 by VRS  |  Email |Print

Criminal prosecutors from the U.S. Department of Justice have gone to London to interview individuals in connection with an investigation into traders’ alleged rigging of foreign exchange rates, a person familiar with the matter said.
The DOJ has conducted joint interviews of UK-based currency traders with the United Kingdom’s Financial Conduct Authority in London, the person said………………………………………..Full Article: Source

China to further ease currency controls for multi-nationals in pilot

Posted on 28 April 2014 by VRS  |  Email |Print

China will expand a trial programme to make it simpler for multi-national firms to transfer funds within and outside the country, in a move that will further open its tightly controlled capital account.
The experiment, which began in 2012 in Beijing and Shanghai, came in response to growing demand from international companies operating in China for more freedom to use their growing amounts of yuan to boost the efficiency of their management of capital………………………………………..Full Article: Source

Nuclear industry gains carbon-focused allies in push to save reactors

Posted on 28 April 2014 by VRS  |  Email |Print

Environmentalists and the nuclear industry are beginning a push to preserve old nuclear reactors whose economic viability is threatened by cheap natural gas and rising production of wind energy. They argue that while natural gas and wind are helpful as sources of electricity with little or no production of greenhouse gases, national climate goals will be unreachable if zero-carbon nuclear reactors are phased out.
The Center for Climate and Energy Solutions, an independent nonprofit group based in Washington that was formerly known as the Pew Center on Global Climate Change, plans to release on Monday a research paper that charts the decline of the industry………………………………………..Full Article: Source

Global deal has to be legally binding for all countries: EU climate chief

Posted on 28 April 2014 by VRS  |  Email |Print

During a visit to China to see firsthand how the world’s largest emitter of greenhouse gases plans to reduce emissions, European Union Commissioner for Climate Action Connie Hedegaard said all countries must do their part to fight climate change and that whatever commitments they make should be “legally binding.”
Hedegaard spoke during a news conference in Beijing, responding to a proposal in a recent United Nations report that would make emission-reduction commitments binding for developed nations but voluntary for developing ones………………………………………..Full Article: Source

Investors starting to look at commodities again

Posted on 25 April 2014 by VRS  |  Email |Print

After several tough years, investors are once again starting to warm to commodities. That is the view of one of the sector’s most successful hedge fund managers. According to Pierre Andurand, “smart investors” are growing concerned about their exposure to equities and are looking to place contrarian bets in other asset classes such as commodities.
“We feel sentiment is turning. Pension funds are coming to us and saying they want to invest in commodities while others aren’t looking,” says Mr Andurand, whose eponymous hedge fund returned almost 25 per cent last year………………………………………..Full Article: Source

Banks and commodity trading: Sell signals

Posted on 25 April 2014 by VRS  |  Email |Print

Thin margins, tough regulations and worries about reputation make trading commodities look like a source of worries not profits for nervous bank bosses. Barclays, one of the biggest in the business, is the latest to head for the exit. This week it announced it would give up most of its metal, crop and energy trading.
Barclays is following JPMorgan Chase, which last month sold its physical commodities division to Mercuria, a private trading firm based in Switzerland, and South Africa’s Standard Bank, which sold its commodities unit in London to Industrial and Commercial Bank of China in January………………………………………..Full Article: Source

Commodity investors brace for El Niño

Posted on 25 April 2014 by VRS  |  Email |Print

Commodities investors are bracing themselves for the ever-growing possibility for the occurrence of a weather phenomenon known as El Niño by mid-year which threatens to play havoc with commodities markets ranging from cocoa to zinc.
The El Niño phenomenon, which tends to occur every 3-6 years, is associated with above-average water temperatures in the central and eastern Pacific and can, in its worst form, bring drought to West Africa (the world’s largest cocoa producing region), less rainfall to India during its vital Monsoon season and drier conditions for the cultivation of crops in Australia………………………………………..Full Article: Source

Indecent exposure [to commodities]

Posted on 25 April 2014 by VRS  |  Email |Print

Before there were alternative investments (”alts”) or hedge funds, having some exposure to commodities, served as a good way to diversify a portfolio against stock market volatility. Historical correlations to the stock market are rather low, or at least sporadic, and owning commodities can also be seen as a hedge against inflation (higher costs of raw goods).
However, since the price of crude oil cratered from $150 per barrel all the way down to $40 back in 2008, the commodities asset class as a whole has been more or less shunned. Despite the price of oil having somewhat recovered — it currently trades around $100 — now might be a good time to un-shun………………………………………..Full Article: Source

Commodity markets shift to brighter view of China

Posted on 25 April 2014 by VRS  |  Email |Print

World commodity markets are turning more positive toward China as the country continues to import massive amounts of resources like iron ore, copper and soybeans even as economic growth slows.
Fears of a hard landing for China’s economy, which grew at its slowest pace in 18 months in the first quarter, have driven prices for many commodities sharply lower this year. That has compounded broad price declines since 2011, spurred by China’s decelerating economy and a wave of new supply of many raw materials………………………………………..Full Article: Source

Instability in Libya continues to drag down crude oil prices

Posted on 25 April 2014 by VRS  |  Email |Print

The price for the U.S. crude oil benchmark has moved closer to $102 per barrel in trading in part because of renewed concerns over Libya, once one of North Africa’s top exporters. On concerns Libya has not yet broken rebels’ grip on oil export terminals, West Texas Intermediate was trading at $101.40 per barrel, while the price for Brent moved at $109.10.
Though U.S. crude oil levels may provide some relief to market worries, the protracted stalemate over Libyan crude, coupled with continued unrest in Ukraine, could push oil prices higher through this summer………………………………………..Full Article: Source

4 reasons why gas prices are rising

Posted on 25 April 2014 by VRS  |  Email |Print

Gas prices typically rise in the spring as refineries slow down operations in order to switch from producing winter fuel blends to less polluting summer grades. Gasoline demand is also ramping up as we head into the summer driving season.
This is also the time of year when many refineries schedule their annual maintenance. On Tuesday, Suncor announced a four-week shutdown of its Montreal refinery, taking as much as 137,000 barrels per day offline. During this period the company will be forced to pay higher prices by import supplies from Ontario and the Northeastern United States………………………………………..Full Article: Source

Are gold miners predicting an upswing in gold prices?

Posted on 25 April 2014 by VRS  |  Email |Print

Over the past couple of days, the price of gold has been heading slightly downward. In fact, bears might argue that because the price of gold has been trading below $1,300 per ounce for a couple of days that we can expect additional downward price action in the gold price.
However, I think it might be time to look at the market from a different perspective — that is, we should be looking at gold mining shares………………………………………..Full Article: Source

Gold hoards in ETFs bleed

Posted on 25 April 2014 by VRS  |  Email |Print

The demand for gold remained strong in Asian countries during 2013. The rise in gold demand among Asian countries, especially China and India, played a significant role in determining international gold prices. However, the heavy selling of gold hoards in gold backed Exchange Traded Funds (ETFs) is likely to offset the rising gold demand in the region.
According to World Gold Council (WGC), demand for gold jewelry, coins and bars continued to rise sharply in 2013. The Chinese gold demand surged by 32% over the previous year. India’s gold consumption grew 13% during the year………………………………………..Full Article: Source

Silver fails to impress on anniversary of $50 price tag

Posted on 25 April 2014 by VRS  |  Email |Print

It’s a special day for the silver market. Why? Three years ago today, states BullionVault’s Miguel Perez-Santalla, the white metal traded at $49.80 per ounce on the New York spot market, meaning that somewhere it was changing hands at $50 per ounce.
Silver, however, hasn’t commemorated the occasion with a price rise. In fact, this week was fairly uneventful for the precious metal, which from Monday to Wednesday traded in a short range of $19.23 to $19.49………………………………………..Full Article: Source

Zinc producers eye resuming operations

Posted on 25 April 2014 by VRS  |  Email |Print

Strong demand for zinc coupled with the imminent closure of several large mines is tipping the market towards deficit and enticing producers to restart mothballed operations.
Teck Resources, the Canadian company, said this week it would resume operations at its shelved Pend Oreille underground mine in the US, which has been idle since 2009. Although the zinc price has been flat this year, trading at $2,070 a tonne on Thursday, Teck is banking on a rally in the coming years………………………………………..Full Article: Source

Shanghai bourse plans to launch base metals index contract

Posted on 25 April 2014 by VRS  |  Email |Print

The Shanghai Futures Exchange (ShFE) plans to launch a futures contract on a base metals index as part of steps to internationalise its business, Chairman Maijun Yang said on Thursday.
ShFE is China’s biggest exchange for base metals, already trading copper, zinc, aluminium and lead. It said last year it also has plans to trade nickel and tin. Yang did not provide a timeframe for the new contracts………………………………………..Full Article: Source

Investors exit ETFs as commodities seen fading

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg. The benchmark Standard & Poor’s/TSX Composite Index (SPTSX) is in its 10th month of gains, the longest winning streak since 1983, and has soared 20 percent in the past year. The gauge rose 0.2 percent to 14,557.27 at 10:55 a.m. in Toronto………………………………………..Full Article: Source

Fidelity rolls out new ETF managed account with BlackRock

Posted on 25 April 2014 by VRS  |  Email |Print

Fidelity Investments and BlackRock Inc, already partners in the exchange-traded funds market, are teaming up once again to launch a new ETF-heavy managed account aimed at providing income for investors preparing for retirement.
The new BlackRock Diversified Income Portfolio, which will be roughly 70 percent invested in ETFs, will be available beginning May 1 exclusively to the roughly 14 million retail customers who have Fidelity brokerage accounts, the company said on Thursday………………………………………..Full Article: Source

ETFs increasingly popular for exposure to the UK market

Posted on 25 April 2014 by VRS  |  Email |Print

British investors are using low-cost, exchange-traded funds to gain exposure to UK companies and markets, as the products become more mainstream.
Figures from Barclays Stockbrokers released this month show that 70% of the ETFs bought by its clients in their ISAs in the first quarter of 2014 had a UK focus, with the bulk of customers focussing on the FTSE 100………………………………………..Full Article: Source

Canadians are dumping ETFs on commodity doubts

Posted on 25 April 2014 by VRS  |  Email |Print

Canadian investors are pulling money out of exchange-traded funds for a second year as concern grows that a rally in energy and mining that helped drive equities to the best performance among the world’s largest markets has run its course.
So far in 2014, investors have withdrawn $682.5 million from exchange-traded funds tracking Canadian shares, following an outflow of $820.8 million last year, according to data compiled by Bloomberg………………………………………..Full Article: Source

Three funds to cash in on a rally in commodities

Posted on 25 April 2014 by VRS  |  Email |Print

The outlook for commodities is the best it’s been for a decade, according to Hermes Fund Managers, joining a long line of experts expecting more for the asset class in the coming years.
Old Mutual’s Richard Buxton and FE Alpha Manager Barry Norris are among the fund managers who have been increasing their exposure to commodities-related stocks in recent months. Many believe the pessimism towards Chinese demand has been overdone, and expect a sector-shift out of more expensive areas such as consumer staples and healthcare as a result………………………………………..Full Article: Source

LME to start clearing collateral in yuan as Asia ascends

Posted on 25 April 2014 by VRS  |  Email |Print

The London Metal Exchange will start accepting collateral denominated in Chinese yuan after setting up a clearing house in September as Asia increases its hold over the bourse.
The clearing house will become the “heartbeat” of the LME, the world’s biggest market place for industrial metals, said Chief Executive Officer Garry Jones. Asia’s share of electronic trading at the 137-year-old institution now accounts for 10 percent to 25 percent of the total on any given day, Jones said……………………………………….Full Article: Source

Bank cutting commodities trade severs link with equitiess

Posted on 25 April 2014 by VRS  |  Email |Print

Banks’ pullback from commodities trading is weakening the link between raw materials and equities and helping to re-establish supply and demand as the main factor in setting prices, United Nations researchers say.
As Barclays Plc, JPMorgan Chase & Co. and Morgan Stanley leave parts of the business, prices of commodities are moving more independently of stocks. The correlation between U.S. equities and corn, cattle and wheat fell to less than 0.05 in January, compared with almost 0.3 in 2008, an analysis by David Bicchetti and Nicolas Maystre, economic affairs officers at the UN Conference on Trade and Development in Geneva, shows………………………………………..Full Article: Source

EU should halve meat, dairy consumption to cut nitrogen-report

Posted on 25 April 2014 by VRS  |  Email |Print

People in the European Union, who according to a United Nations body eat way more protein than necessary, could prompt big cuts in nitrogen pollution if they halved their meat and dairy consumption, a U.N.-backed report said.
Nitrogen is used in fertiliser to replace nutrients which are removed by soils during plant growth but excess nitrogen can harm the environment by polluting water, air and soil………………………………………..Full Article: Source

Strong currency a double-edged sword for New Zealand

Posted on 25 April 2014 by VRS  |  Email |Print

The strong New Zealand dollar may be the thing that ends up putting the brakes on the Reserve Bank of New Zealand’s tightening cycle. The RBNZ raised interest rates Thursday for the second straight month, to 3.0%, as the economic expansion gains momentum and inflationary pressures increase.
This time, though, the RBNZ abandoned its usual attempts to talk down the currency – which jumped as a result – and noted that the strong local dollar might limit how much the bank needs to raise rates. The so-called Kiwi dollar was trading at 0.86 to the U.S. dollar Thursday afternoon………………………………………..Full Article: Source

The end of Denmark’s monetary experiment

Posted on 25 April 2014 by VRS  |  Email |Print

With the eurozone facing the threat of a prolonged period of “low-flation”, the European Central Bank has been urged to stretch its monetary policy toolkit further and deploy more unconventional measures.
One widely flagged option would be to cut the interest rate that banks receive for parking their money with the central bank to below its current zero level. Frankfurt would then replicate an experiment first tried by Denmark’s central bank, which in 2012 cut its deposit rate to -0.20 per cent………………………………………..Full Article: Source

Direct action: Coalition will provide an extra $1bln to emissions reduction fund

Posted on 25 April 2014 by VRS  |  Email |Print

Only 130 Australian companies will have any limits set on their greenhouse pollution. The Coalition has confirmed it will provide an additional $1bn to its emissions reduction fund but has also revealed that only 130 Australian companies will have any limitations on their greenhouse pollution after the carbon tax is repealed.
The government will start auctions under its “direct action” climate policy later this year, paying companies or organisations that volunteer to reduce emissions until Australia reaches its emissions reduction target of 5% by 2020………………………………………..Full Article: Source

Lobbying surprisingly strong on ‘pipe dream’ carbon tax bill

Posted on 25 April 2014 by VRS  |  Email |Print

Pronounced dead-on-arrival upon its introduction in 2013, the carbon tax bill authored by Sens. Barbara Boxer (D-Calif.) and Bernie Sanders (I-Vt.) is attracting a healthy bit of lobbying, suggesting both industry and environmental groups are looking down the road to a resurrection of legislation that failed in the Senate in 2010.
A total of 36 companies and organizations reported lobbying Congress in the first quarter of 2014 (Jan. 1 through March 31) on the Boxer-Sanders bill, and 10 lobbied on a yet-to-be introduced climate bill being readied by Rep. Henry Waxman (D-Calif.) and other House and Senate Democrats. Some of those groups lobbied on both bills………………………………………..Full Article: Source

IMF warns South America on risks after commodity boom

Posted on 25 April 2014 by VRS  |  Email |Print

South American countries should consider creating fiscal stabilization funds to buffer their economies against a decline in commodity prices expected to damp growth in the coming years, the International Monetary Fund said.
Setting up stabilization funds and accelerating infrastructure investment would allow the economies to increase productivity to sustain growth as a decade-long commodity boom peters out, the Washington-based fund said in a report posted on its website………………………………………..Full Article: Source

How to protect your portfolio from rising geopolitical risk

Posted on 24 April 2014 by VRS  |  Email |Print

Investors should buy into the energy sector to protect their portfolios from rising levels of geopolitical risk, according to Russ Koesterich, global chief investment strategist at BlackRock. Data from FE Analytics shows that specialist energy funds have done very well so far this year, with an uptick in performance in recent weeks as the Ukraine crisis has escalated.
Koesterich says he expects the outperformance to continue, and suggests overweighting the sector. “We are advocating an allocation to energy stocks, which have outperformed the broader market year-to-date,” he said………………………………………..Full Article: Source

Iraq and Saudi Arabia see rise in crude exports in February 2014

Posted on 24 April 2014 by VRS  |  Email |Print

Iraq and Saudi Arabia crude oil exports rose by 26 per cent and 3.5 per cent respectively in February 2014, according to the Joint Organisations Data Initiative (JODI). Saudi Arabia had reportedly shipped 7.76mn bpd in February compared to 7.5mn in January 2014.
Meanwhile, Iraq increased exports to 2.8mn bpd, up 26 per cent from January 2014, highest since the year 2002………………………………………..Full Article: Source

Shale boom sends U.S. crude supply to highest since 1930s

Posted on 24 April 2014 by VRS  |  Email |Print

The U.S. is stockpiling the most crude since the Great Depression, thanks to the shale boom that has boosted production to the most in 26 years. Inventories rose 3.52 million barrels last week to 397.7 million, the highest level since 1931, according to Energy Information Administration data going back to 1920.
Crude output climbed 59,000 barrels a day to 8.36 million, the most since January 1988, as the combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies from shale formations in the central U.S., including the Bakken in North Dakota and the Eagle Ford in Texas………………………………………..Full Article: Source

Oil and gas industry ‘worth GBP35bln annually’ to UK economy

Posted on 24 April 2014 by VRS  |  Email |Print

The oil and gas industry is worth about £35bn to the UK economy, according to a new study. The research, commissioned by industry body Oil and Gas UK, found more than 3,000 companies were directly involved in the industry.
The number of people employed by UK firms grew by more than 20,000 in the four years to 2012. The report said a key challenge was the availability of skilled and experienced workers. It also suggested the industry needs to increase exports to sustain growth………………………………………..Full Article: Source

Iran’s crude oil, gas condensate exports hit $41.6bln: oil minister

Posted on 24 April 2014 by VRS  |  Email |Print

Iran exported $41.6 billion worth of crude oil and gas condensate in the past Iranian calendar year, which ended on March 20, Oil Minister Bijan Namdar Zanganeh said on Wednesday. Iran’s crude oil was sold at $104 per barrel on the average in the international market, the Mehr News Agency reported.
On March 12, Zanganeh said Iran’s crude oil output is forecast to increase by about 200,000 barrels per day to 4 million barrels per day, and its daily natural gas output is forecast to increase by about 100 million cubic meters per day to 400 million cubic meters per day in the current Iranian calendar year 1393, which began on March 21………………………………………..Full Article: Source

Gold remains defensive but cycles suggest opportunity

Posted on 24 April 2014 by VRS  |  Email |Print

Gold remains defensive amid expectations that the Fed will continue with its taper campaign next week and what seems to be a complete dismissal of the rising geopolitical tensions in Ukraine. Currency markets have been pretty well contained recently, providing little in the way of fresh directional clues for the yellow metal.
Jon Hilsenrath of The Wall Street Journal expects that the FOMC will hold steady on policy after their two-day meeting next week, scaling back asset purchases to $45 bln per month. As for an eventual rate hike, Hilsenrath believes the Fed will remain purposefully vague………………………………………..Full Article: Source

Gold prices rise after hitting 2.5-month low

Posted on 24 April 2014 by VRS  |  Email |Print

Gold edged up on Wednesday from the 2-1/2 month low it hit in the previous session as a softer tone to equities and the dollar helped arrest its slide, though it remained vulnerable to further losses as investor demand remained slack.
The metal hit its lowest since mid-February on Tuesday after U.S. housing data beat expectations, boosting confidence in the U.S. economic recovery and lifting stock markets, which hurt gold’s appeal as an alternative investment. It found support at its 100-day moving average at $1,277 an ounce, however, and turned higher after mixed euro zone data resulted in a retreat in European shares and the dollar………………………………………..Full Article: Source

Gold needs to hold $1,278: Peter Hug (Video)

Posted on 24 April 2014 by VRS  |  Email |Print

Peter Hug is in studio to talk gold prices, Chinese gold imports as well as where he thinks the metals are headed. “I have not liked this gold market for the past few weeks, I find it very heavy,” he says. “Other than the geopolitical issues in Ukraine, which has caused some support in the market, there have been very little fundamental reasons to be long this market in the short term.”
Hug says that although the Ukraine situation caused buoyancy in the gold market, what it is really missing is physical demand. “It’s almost non-existent in North America and the Chinese just haven’t stepped up to the plate like they did in 2013.”……………………………………….Full Article: Source

Gold prices possibly manipulated for a decade (Video)

Posted on 24 April 2014 by VRS  |  Email |Print

Tune in to Kitco News’ exclusive interview with Rosa Abrantes-Metz, the researcher responsible for creating waves in the gold market earlier this year regarding manipulation in the London gold fix. Metz speaks with Daniela Cambone to discuss the research paper and her findings, which are soon due for release.
“We found that, particularly since 2004, the incidents of large spikes in prices for spot gold has very significantly increased for the PM fixing,” she says. She adds that the spikes are very often the largest of the day, even larger than when New York trading opens, which could raise red flags………………………………………..Full Article: Source

Gold, silver prices weak when there is every reason for it to go up

Posted on 24 April 2014 by VRS  |  Email |Print

The mainstream is on an academically-driven mission to politicize conspiracy theories and lump them all into the same category. While gold and silver manipulation is an ancient conspiracy fact, eyes are wide shut to the general awareness in the face of one revelation after another.
The news cycle is filled with a carefully crafted digestion of tightly controlled sound bites that are presented with no lack of drama, glitter, and spotlights. The mainstream media is perfectly positioned to make theater of the issues that remain esoteric and out of reach. The further the issue is from the majority’s perception, the more black and white will be the acceptance. Belief is emotional, politically framed………………………………………..Full Article: Source

Silver $50: Three years after the “shortage”

Posted on 24 April 2014 by VRS  |  Email |Print

Silver prices hit $50 three years ago this week. It was on April 25, 2011 that silver traded $49.80 per ounce in the New York spot market. That means silver traded $50 somewhere. There was a lot of business going on at that time, but after holding above $49 for the rest of that week, silver prices began to retreat. Fast.
One of the factors that many traders were looking at was the Gold/Silver Ratio. Some believed that silver was much undervalued versus gold, and would recover its historical price parity of about 16 ounces of silver per ounce of gold………………………………………..Full Article: Source

Platinum prices vulnerable to further losses

Posted on 24 April 2014 by VRS  |  Email |Print

Platinum prices could be vulnerable to further losses in the near-term, although metals analysts remain bullish on the white metal in the long-term. Since setting a high on April 14 of $1,471.50 an ounce, basis the New York Mercantile Exchange July contract, platinum prices are down 5%. As of 11:05 a.m. EDT, July platinum traded at $1,399.40.
Much of the gains for platinum came on the continuation of the strike by the Association of Mineworkers and Construction Union against the major South African platinum producers, Anglo American Platinum, Impala Platinum and Lonmin. The strike is in its 13th week………………………………………..Full Article: Source

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