Conventional wisdom suggests that a Federal Reserve rate hike next month is bearish for precious metals, particularly gold. This is because gold investors aren’t rewarded with the interest coupon payments as Treasury holders are. Thus, the opportunity cost of owning gold is the potential cash flow of interest payments, or dividends if comparing it to equities.
Accordingly, if bond and note yields are on the rise, there is less incentive to be long gold. Or so says the theory. Nevertheless, there is another school of thought which suggests that higher interest rates generally come with higher inflation. This, of course, is supportive to the precious metals markets………………………………………..Full Article: Source

Even though the markets haven’t behaved logically of late, it would have seemed a slam dunk for gold to rise if Donald Trump won. After all, we faced uncertainty around his policies, rising inflation from infrastructure spending, and higher expected growth rates.
But instead, gold has headed back down more sharply. It had its initial rise in the futures market when Trump looked like he was going to win. But since then, it’s reversed course – the opposite of the stock markets. While I’ve been saying for a long time now that gold still has a lot to lose, a new and interesting dynamic has arisen to add more pressure to the downside………………………………………..Full Article: Source

Gold halted its biggest gain in almost a month as investors extended the longest run of sales from bullion-backed funds in a year. Palladium climbed to the highest in almost 18 months.
Holdings in exchange-traded funds backed by gold have fallen for the past 12 days and are heading for the biggest monthly drop in three years. Bullion prices are near a nine-month low as traders are certain that the Federal Reserve will raise U.S. interest rates in December following Donald Trump’s election win………………………………………..Full Article: Source

Gold was attempting a comeback of sorts in Asian trading on Monday despite relentless selling by physically-backed gold ETF investors since Donald Trump’s victory in US presidential elections.
Gold for delivery in February reached a session high of $1,200.00 an ounce, up nearly $20 or 1.6% an ounce from Friday’s closing price on the Comex market in New York. Gold is still down 10% or $140 an ounce after an initial surge following Trump’s win. On Friday gold fell to its lowest level since February………………………………………..Full Article: Source

It is well-known that India’s government wants to coerce its population into “modernizing” its financial behavior and abandoning its traditions. The recent ban on large-denomination banknotes was not only meant to fight corruption.
In fact, as our friend Jayant Bhandari has pointed out, fresh avenues for corruption immediately opened up upon enactment of the ban. It is a nigh apodictic certainty that governments are lying – whether outright or by omission – when they impose such drastic measures. It should be clear how the State operates once one recognizes its true nature and realizes that “we” are definitely not the State………………………………………..Full Article: Source

The Shanghai Gold Exchange premium soared to multi-year highs overnight, with Commerzbank citing recent news reports that China’s government may restrict the number of import licenses and MKS (Switzerland) S.A. reporting that dollar weakness also boosted the appeal of gold.
“The early-session USD weakness gave gold a boost right from the open, surging through the Friday high leading into the Shanghai session, before taking a further leg higher courtesy of Chinese interest as the SGE premium continued to trade elevated,” MKS says………………………………………..Full Article: Source

Amidst the larger drama of the election, the financial markets staged their own little drama. When the Dow futures plummeted by hundreds of points as it began to look as though Donald Trump would achieve a surprise victory, some people hastily jumped to the conclusion that financial markets feared a Trump presidency. Not so.
While markets were momentarily spooked by an outcome that they had not anticipated, it didn’t take long for market participants to recalibrate their expectations and surmise, at least temporarily, that economic prospects under a President Trump were favorable………………………………………..Full Article: Source

Palladium seems to be the winner among precious metals for 2017 so far. As of November 21, 2017, palladium had a whopping rise of 32.5% year-to-date. That figure is far higher than the rises in gold, silver, and platinum. Platinum has the least year-to-date rise so far among the four precious metals.
There’s a lot of noise in the market about the possibility of a deficit in the palladium market. The demand for palladium looks like it’s clearly outpacing the supply. Palladium prices may be clearly reacting to this fundamental calling………………………………………..Full Article: Source

Donald Trump’s pledge to fire up the American dollar printing machine again is having the same effect on gold as did the previous three programs of quantitative easing since 2008. That added US$4.5 trillion to the global currency inventory and kneecapped what had been a nearly ten-year run in the gold price, which peaked in September 2011 at US$1,923.70.
Despite this glum statistic, financing activity in the gold sector throughout 2016 has charged forward unabated after a four-year lull ended with a sudden jump in the gold price that made the TSX Venture the best performing index in the world in the first six months of the year………………………………….Full Article: Source

James Butterfill, head of research and investment strategy at ETF Securities, has remained bullish on the outlook for gold despite the price of the commodity falling below $1,200 per ounce for the first time since February.
Butterfill said: “We maintain our gold target of $1,440 for mid-June. Aside from the risk from a Trump presidency, 70% of Europe by GDP has elections in 2017 just when populists are rising rapidly in the polls. Political risks remain high………………………………….Full Article: Source

The gold price closed in on its lowest level for ten months yesterday, hitting a nadir of $1,180 before recovering slightly. Having fallen in excess of ten per cent from a brief post-US presidential election high of $1,337, the precious metal remains under pressure ahead of an expected increase in US interest rates next month.
New figures show spending by US companies grew 4.8 per cent last month, its biggest gain in a year. Coupled with recent strong labour reports and positive rhetoric from policymakers, this has convinced traders borrowing costs will rise in December, with market bets putting the likelihood near 100 per cent………………………………….Full Article: Source

Prime Minister Narendra Modi’s move to ban 500 and 1,000 rupee notes caught the country by surprise, with many Indians now looking to liquidate their stockpiles of cash. Internet chatter is now a flurry, with some wondering whether the government’s next step will be to ban gold imports and prevent Indians from cashing in “black” money.
“The Indian financial market is in chaos right now – India, like the U.S. and Germany have a lot of people who produce newsletters on the internet that are not necessarily based on fact but rather contain extreme theories and rumors.” Jeff Christian, Managing Director, CPM Group…………………………………Full Article: Source

Gold has traditionally been considered this country’s most liquid asset — at any time, people were prepared to give cash against it. After the demonetisation, that has changed.
Scrap gold dealers appear to be gradually shifting to cheque payment or net banking fund transfer. And, customers are not ready for this — selling against cheque means it shows in the account book and long-term capital gains tax is applicable. The concept of gold as an asset capable of getting anytime money is evaporating…………………………………Full Article: Source

Gold prices are solidly lower, hit a nine-month low and have fallen below key chart support at $1,200.00 in early U.S. trading Wednesday. The bearish near-term technical postures for gold and silver markets continue to invite chart-based selling interest.
Sell stop orders were triggered in the Comex gold futures market when prices breached the $1,200.00 level. A higher U.S. dollar index today is also a bearish outside market force working against the precious metals market bulls………………………………..Full Article: Source

On a day when the Dow Jones Industrial Average touched 19,000 for the first time in history, investors would be forgiven for asking themselves if the shine has come off gold as a safe-haven investment.
The price of gold has breached the psychologically important $1,200 per ounce level after reaching an all-time high of over $1,800 in 2011, as the chart courtesy of the St. Louis Federal Reserve Bank shows. Over the last 10 years, this price level has been an important area of support and resistance as gold first rallied following the great economic recession in 2008 and 2009 but then sold off from 2011 when inflation failed to materialize in the global economy…………………………………Full Article: Source

The platinum/palladium discount is in focus this week, with palladium creeping closer to platinum in dollar-terms, although parity is unlikely near-term, according to sources. As of 1005 GMT Wednesday morning, palladium was spot bid at $742/oz with platinum at $938/oz.
This is the tightest the two prices have been in over five years. The last time they traded at parity was back in 2000. Palladium traded above platinum in 2000/2001 when it spiked to more than $1,000/oz after Russian exports were suspended…………………………………Full Article: Source

Gold prices extended their rebound from nine-month lows to score back-to-back gains on Tuesday as the rally in the U.S. dollar stalled. Gold has been “hit pretty hard in the last couple of weeks and…is stabilizing and base building just as [the U.S. dollar] has become exhausted and has started to level off,” Colin Cieszynski, chief market analyst at CMC Markets, told MarketWatch.
The dollar “remains vulnerable to a correction should traders decide to take some profits around the Thanksgiving holiday weekend,” he said………………………………………Full Article: Source

TD Securities does not anticipate a complete collapse in gold and suggests any price dips below the $1,200-an-ounce level “should be bought.” Gold tumbled over the last two weeks on a higher U.S. dollar, steepening yield curve and expected rise in so-called carry costs, TDS says.
Higher yields and a strong dollar could drive still more traders away from still-elevated long positions, TDS says, meaning potential for gold to slip below $1,200. “But a rout is not expected, as the U.S. central bank is likely to continue to message a very measured approach,” TDS says………………………………………Full Article: Source

Back in August 1971, President Nixon shocked the world by taking the dollar off the gold standard. The dollar had been on gold standard since Bretton Woods Agreement of 1944. The biggest bombshell for gold investors in 45 years since Nixon announcement may be ahead.
That bombshell is a potential ban on import of gold into India. If this happens, there is a high probability of a one-day drop in gold that could reach $200. A prerequisite to understanding this potential development is to understand what has happened in India recently………………………………………Full Article: Source

Gold will always be the ultimate instrument for hedging investments in dollars. This because the price of gold will rise whenever the price of the dollar falls. Financial market experts are of the opinion that in the coming years and decades, the potential for generating profits is much higher when you invest in gold rather than the traditional blue chip company stocks.
According to them, these stocks are incapable of competing in the world market. You can invest in gold in many ways and position yourself to benefit from a bull run in the gold market. The aim of this article is to explain why online gold trading in any of the ways mentioned in the article makes sense and how you can position your portfolio to generate more profits………………………………………Full Article: Source

Investors wrongfooted by second major surprise that prompted a flight from havens. What’s bugging gold? The election as US president of a political neophyte with questionable temperament was supposed to be a sweet moment for gold, perhaps the best-known haven when markets or politics get a little hairy.
And it was, briefly. The yellow metal shot up 4 per cent in the early hours of November 9, as investors digested the year’s second major political upset after the UK’s vote for Brexit…………………………………….Full Article: Source

Gold threatened to breach the $1,200 level on Friday before rebounding. The sentiment was helped by word that the Russian central bank added 1.3 million ounces to reserves in October and that was before the price drop. The Chinese and Russians have been supporting the market below $1,250 this month, which is helping to offset the large futures and ETF liquidation.
The outflow from gold ETFs last week alone was 19 tons, and the net long futures positions through Tuesday was the lowest since March. As a December rate hike seems to be a done deal and already reflected in the Fed funds and the dollar rally it seems that being short gold at this point has limited downside…………………………………….Full Article: Source

The conventional wisdom had gold prices skyrocketing in the immediate aftermath of the U.S. presidential election, which put Donald Trump into the White House. But that hasn’t been the case, with gold future sliding through November, with two consecutive weekly price declines leading up to November 19. Last week, December gold futures slid by $7.60, to just over $1,200 per ounce - a nine-month low.
Gold prices rebounded moderately in Monday trading, gaining back 0.4%, to $1,213 an ounce. But a stronger dollar (at a 13-year high) and an imminent Federal Reserve rate hike have gold gurus taking a skeptical tone on the precious metal…………………………………….Full Article: Source

While we expected additional weakness in Gold and gold stocks (weeks ago) we did not quite expect the kind of selling the sector experienced in the wake of Donald Trump’s election victory.
The market reacted by sending bond yields dramatically higher which resulted in stronger real interest rates, which is fundamentally negative for precious metals. This has created significant technical damage in the sector and has potentially thrown the 2016 bull off course……………………………………Full Article: Source

All this talk of massive new infrastructure spending financed with a tsunami of freshly-minted currency should be lighting a fire under gold. That it hasn’t is a testament to how out-of-whack the precious metals market had gotten during the first six months of this year.
As gold rose, the futures contract traders whose games tend to dictate near-term price action had set the metal up for a fall. Specifically, the speculators (who are always wrong at the extremes) were ridiculously long. With the suckers all-in, a big correction was needed to restore balance……………………………………Full Article: Source

Gold has fallen by more than 5% since Election Day, to $1,209 an ounce, although it’s poised to end 2016 sharply higher than its year-end 2015 close of $1,060 an ounce. Where will the yellow metal go next?
Dan Oliver, Principal, Myrmikan Capital: “Higher. We’re coming to the end of one of the biggest credit bubbles ever, caused by U.S. government–underwritten fractional reserve banking and artificially low interest rates. There’s little that Donald Trump can do to stop it.”…………………………………..Full Article: Source

Gold prices close at a five-month low; Janet Yellen said that a rate increase ‘could well become appropriate relatively soon’. Gold prices closed at a five-month low on Thursday, weighed down by a stronger U.S. dollar and expectations for an interest-rate increase as early as December.
Gold for December delivery settled down 0.6% at $1,216.90 a troy ounce on the Comex division of the New York Mercantile Exchange, its lowest close since June 2. The precious metal reversed gains after trading as high as $1,229.30 an ounce on Thursday morning……………………………………..Full Article: Source

As Donald Trump proves, gold attracts those drunk on power. But artists have shown it can point the way to the divine. Gold can be erotic, heavenly, kingly – or hellish. If it has those meanings in art, what does it mean for Donald Trump?
Is it just a crass image of wealth – pure bling – or does it also have something more grandiose about it? The world’s future may depend on what he sees in all that gold he likes to have around him. Hopefully it is just profane, because if he craves gold for its divine and monarchical qualities, look out. A man of gold is unlikely to bring about a golden age……………………………………..Full Article: Source

The US election is not as scary as some gold bugs imagined. After a fall, and rebound rally, the gold price resumed its downtrend. Weeks ago we asked who stole the gold? Now we know the answer.
We re-assess the extent of the damage and the now limited potential for recovery. We start with damage assessment. The fall below the historical resistance and support level near $1,290 is critical. The rally was a dead cat bounce, and yes, we were caught on the wrong side of it……………………………………..Full Article: Source

But the precious metal may remain in demand as insurance against potential shocks. Donald Trump was supposed to be good for gold. Not necessarily because his capture of the White House was seen as delivering geopolitical stress.
Nor because gold leaf sales would rise as the president-elect considered stamping his interior design preferences on the Oval office. No. The gold price was mooted to rise because the Republican’s policies would deliver “Trumpflation”……………………………………..Full Article: Source

According to one Swiss national newspaper, the European physical gold market shrank Wednesday as Swiss bank UBS closed its gold-swapping operations at three of its banks — in Zurich, Basel and Geneva. In a statement to the Tagesanzeiger, UBS said that its decision to close its “gold switches” at the three branches was a “business policy decision” to reduce the bank’s costs.
Because of the policy change overnight, customers will not be able to immediately swap their precious metal for cash. The bank also said that it will streamline its bullion coin and bars available for purchase, offering “most common bars and coins.”…………………………………….Full Article: Source

BMI Research has revised its forecast gold price for 2017 downwards to $1 300/oz, from the previously anticipated $1 400/oz. This, after Republican candidate Donald Trump was elected the next President of the US, resulting in a sharp decline in gold prices.
“We see limited room for a rebound over the coming weeks,” the research firm said in its short-term view, noting that global bond yields have broken higher and look set to continue gaining as market expectations for economic growth, inflation and interest rates are repriced for a Trump Presidency………………………………………..Full Article: Source

Amidst the larger drama of the election last Tuesday, the financial markets staged their own little drama. When the Dow futures plummeted by hundreds of points as it began to look as though Donald Trump would achieve a surprise victory, some people hastily jumped to the conclusion that financial markets feared a Trump presidency. Not so.
While markets were momentarily spooked by an outcome that they had not anticipated, it didn’t take long for market participants to recalibrate their expectations and surmise, at least temporarily, that economic prospects under a President Trump were favorable………………………………………..Full Article: Source

U.S. election result has failed to produce an uncertainty boost, while rupee voiding has chilled key India market. Gold is being let down by India and Donald Trump. Ahead of last week’s U.S. presidential election, investors looking to bet on a victory by Trump bought gold assets on the theory that the resulting policy uncertainty would be a boost for such havens.
But a week after his win, gold is hovering close to a six-month low of around $1,230 a troy ounce as investment flows out of gold-focused exchange-traded funds and gold futures………………………………………..Full Article: Source

Metal had been as $1,230 a troy ounce earlier in session; silver also loses ground. Investors have hammered the metal in recent weeks, as better economic data made a December rate increase by the Federal Reserve more likely and political uncertainty faded after U.S. presidential elections.
Gold struggles to compete with yield-bearing investments when rates rise. Some investors also use the metal as a haven during tumultuous times, believing it holds its value better than other assets when markets get rocky………………………………………..Full Article: Source

Some Indian gold traders are placing bulk, short-term import orders on fears that Prime Minister Narendra Modi might soon add curbs on overseas purchases of the metal to his withdrawal of high-denomination banknotes in his fight against ‘black money’, traders and jewellers said.
India is the world’s second biggest gold buyer, and it is estimated that one-third of its annual demand of up to 1,000 tonnes is paid for in black money - untaxed funds held in secret by citizens in cash that don’t appear in any official accounts………………………………………..Full Article: Source

There are several factors that has gold prices stuck in what Marin Katusa describes as a “twilight zone.” Founder of Katusa Research and one of the organizers behind the Silver & Gold Summit, Katusa told Kitco News that gold prices could move either way, even below $1,100 an ounce. The yellow metal has been under pressure since the U.S. election, hovering near the key support level of $1,200.……………………………………….Full Article: Source

Trump’s election victory has tempered demand for the yellow metal. A desire to hold “real assets” in turbulent times has massively boosted the popularity of gold-backed exchange traded funds (ETFs). But following the biggest political upset of the year — Donald Trump’s US presidential victory — gold prices have gone into reverse.
After a brief rally following last week’s election result, gold ended the week down 5.2 per cent at $1,234.50 a troy ounce as the dollar rallied, and investors ditched traditional haven assets. In contrast, gold rose by $100 a troy ounce in the two weeks following the Brexit vote in June………………………………….Full Article: Source

Anyone waiting for gold to spring back and into an unrestrained bull run after a surprisingly poor reaction to Donald Trump’s election to the White House are likely to be disappointed, according to RBC analyst Tyler Broda.
The near-term macro-economic environment created by a Trump government suggests a gold price not far north of current trading levels and there is room for further losses. “Following president-elect Donald Trump’s victory, the markets have seen a sharp increase in volatility, especially as we push through the paradigm shift of a potentially more inflationary and higher nominal rate environment,” Broda said in a note this week………………………………….Full Article: Source

Trade body Indian Bullion & Jewellers Association (IBJA) has created a flutter among some of its 2500 members by informing them through a text message that the government might ban imports of gold into the country until the end of the current fiscal year (FY17) and advance the last date of deposit of old notes for jewellers to November 15 to crackdown on black money.
“We hear from certain circles of this possibility (gold import ban and advancement of deposit date) though nothing official is out yet,” said Surendra Mehta, national secretary, IBJA. “The association is supportive of the government’s fight against black money and has informed its members of the possibility of such action. We have asked our members to support the government wholeheartedly.”…………………………………Full Article: Source

The gold price should rise in the medium and long term on global risks and the Trump Presidency, according to leading research consultancy Capital Economics.
The recent sharp gold price fall is again causing jitters among some investors who forget that gold remains more than 14% higher in dollar terms, 16.5% higher in euro terms and 36% higher in sterling terms year to date. Thus, gold is outperforming most stock market indices so far this year………………………………….Full Article: Source

Gold is “down but not out,” says TD Securities. After an initial spike higher a week ago when it became apparent Donald Trump would be the next U.S. president, the precious metal has since turned lower. Prices fell as the market factored in ideas that U.S. fiscal stimulus will lift inflation expectations, move yields higher and boost the dollar.
“Higher yields along with a sharply higher USD are usually a very poisonous environment for gold,” TDS says, saying the metal could drop below $1,200 an ounce as the Federal Reserve prepares to hike interest rates. However, “while there are big downside risks for now, the future looks better for gold,” TDS says………………………………….Full Article: Source

Copper, coming off its best week since 2011, is leaving haven assets such as gold in the dust. With an improving economic outlook in China and bets on increased U.S. infrastructure spending bolstering the demand outlook, copper and other industrial metals are expected to outperform precious metals in the coming months, said Chuck Self, the chief investment officer of iSectors LLC.
An ounce of bullion buys about 485 pounds of copper, the least since November 2015………………………………….Full Article: Source

When it became increasingly clear that Donald Trump was about to win the US election, the price of gold soared. It reached a high of $1332 per ounce and sustained most of this rise through the day following the election victory. However, since then it has fallen back to $1220 per ounce, as investors have favoured risk-on trades rather than risk-off ones.
In the short run, this trend could continue and the price of gold may come under pressure. Investors seem to have put political risk to one side for the moment and are not all that interested in Trump’s policies on immigration and foreign policy……………………………………..Full Article: Source

If you have been puzzled about the crash in gold prices after Donald Trump’s election, you are in the company of almost every analyst and media outlet in the western world. Gold and silver are a major part of the research at The Arora Report.
A combination of our proven precious metal algorithms, extensive resources and knowledge of the emerging markets led us to alert subscribers to The Arora Report early that gold was about to crash and the reason behind it. Immediately after the election, the net position of The Arora Report in gold, silver and miners has been short as part of a sophisticated strategy……………………………………..Full Article: Source

Last week, the World Gold Council (WGC) published a new edition of its quarterly report on gold demand. What does Gold Demand Trends Q3 2016 say about the demand for gold in the third quarter of 2016? What does the WGC think about the impact of Trump’s victory on the gold market.
The headline news is that the global demand fell 10 percent in the Q3 2016 compared to the third quarter of 2015. The plunge was caused mainly by jewelry demand, which fell 21 percent year-to-year and 18 percent year-to-date……………………………………..Full Article: Source

The gold market is going through some unusual changes right now. Although there is a surging demand from regions such as India, the overall gold price is crashing hard. In fact, its value dropped by 6% on Thursday and Friday, which is quite surprising. It appears that investors deem precious metals too”risky” to invest in right now.
It has not been a good week for gold bugs all over the world. Prices have dropped by as much as 6% this week, settling at a low of nearly US$1,220 per ounce. Experts seem to look at Trump’s election victory as the reason for this drop, although it looks like other factors are at play as well……………………………………..Full Article: Source

The post-U.S. election mayhem in the metals market that saw copper rally 11 percent last week and gold plunge has spread to silver. Prices are down about 10 percent in the past two days, the most in three years. Silver is known as the devil’s metal because of its often wild swings, and a 10-day measure of its price volatility is near the highest since 2014.…………………………………….Full Article: Source

As the price of gold and silver came down sharply, many investors are asking what the future price of gold will be. Although we do not pretend to have a crystal ball, we observe sufficient signals in the charts to make a make a call about the future price of gold into 2017.
In general, the precious metals market has turned very sour. Gold registered it largest loss on a weekly basis since it crashed in 2013. Moreover, gold and silver miners, said to lead the precious metals complex, have truly crashed this past week…………………………………….Full Article: Source

Heading into the week, expectations were high that a surprise Trump win would be bullish for gold prices; that optimism has been dashed with gold prices ending the week at a five-month low. Although volatility and uncertainty remain extremely high in financial markets, some analysts are expecting to see lower gold prices in the near-term as markets continue to digest President-elect Donald Trump’s fiscal policies.
Expectations that a Trump presidency will increase infrastructure spending is helping to boost optimism in the industrial metals complex as well as in U.S. equities, while safe-haven assets like U.S. bond yields and gold continue to suffer…………………………………….Full Article: Source