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DJ Gold 1768.30, Silver 34.64 Hits Six-Month High After Fed News
Sep 13, 2012 By Matt Day
NEW YORK--Gold futures surged Thursday to their highest level since late February as the Federal Reserve announced a new round of bond buying in a bid to boost the U.S. economy.
The U.S. central bank said it would buy $40 billion of mortgage-backed securities each month and that it could extend those purchases if the U.S. labor market doesn't improve. The Fed also said it would extend its program known as Operation Twist, under which the bank sells short-term bonds and buys longer-term bonds in an effort to lower borrowing rates.
Gold can gain from easy-money policies similar to the ones announced Thursday as investors seek a hedge against the inflation that can result down the line. Such policies by the Federal Reserve also can take a bite out of the dollar, drumming up demand for dollar-denominated gold.
The most actively traded gold contract, for December delivery, recently traded up $18, or 1%, at $1,751.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures rose as high as $1,756.30 a troy ounce, the highest intraday price since Feb. 29.
Write to Matt Day at matt.day@dowjones.com
(END) Dow Jones Newswires
09-13-12 1252ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Comex_Gold_Hits_Six_Month_High_After_Fed_News_185472249.html
Definitely worth clicking through the link on this one!
All Hell is Going to Break Loose on the Upside in Gold
July 11, 2012 KingWorldNews
(special thanks to EarlyOne)
With the US dollar hitting fresh two year highs, stock markets struggling around the world, and gold holding firm, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman of Leeb Capital Management, to get his take on what is happening. Leeb told KWN there is a huge scandal because “...the banks don’t have the gold the customers are paying them to have on deposit,” and “all hell is going to break loose on the upside.”
Here is what Leeb had to say about the scandal: “Examples that people like Eric Sprott have given, where an individual depositing gold in 2009, when they asked to get their gold back there were long delays. And the gold bars they got back were certainly not the gold they deposited because they came back dated 2011. What’s that all about?”
“What’s amazing to me right now, Eric, it’s come down to a world where the war is between those who believe in capitalism and those who don’t. What is interesting is that you have people on the right and the left that have banded together. They don’t trust government and they don’t trust the system, and who can blame them?
But the real scandal here is the banks don’t have the gold the customers are paying them to have on deposit. And the more countries like China and India accumulate, the more likely all hell is going to break loose on the upside....
“It’s that simple. And eventually there will be panic because the gold is not there at the banks.
I see massive turmoil. It’s one thing if people want a lot of dollars out of the banks, you just print the dollars. But how are they going to print the gold? I just see massive turmoil when people finally realize the banks don’t have their gold.
You will see governments frantically trying to substitute fiat money for gold because this is going to feed on itself. And you have to keep in mind this is something that has happened all over the world. The banks take in customers gold and charge them fees for storing the gold as allocated, but then they turn right around and lease it out to the market to aid in price suppression.
This is the kind of thing that will end in catastrophe. At some point the government may try to impose some type of controls, but before you get that you could end up with $8,000 or $10,000 gold. I just think this whole situation will end in total chaos. They will be trying to satisfy customers wanting their physical gold by the printing presses and that’s not going to work. It’s not a pretty situation.
So short-term on gold I’m a lot less concerned today. I don’t think gold is going to go much lower than the recent lows because I really see a lot of natural buying in the market. There are a lot of bids not too far below the current price. I think gold looks like a buy right here and now. I would be buying gold and the juniors and preparing for a massive move to the upside.”
Leeb also added: “When you see people like Warren Buffett, it’s just keeps haunting me statements that Buffett has made. He says on one hand not to own gold, but then he admits, in the same statement, that gold is over $1,500 and so it’s up seven times vs the dollar.
It’s a ridiculous contradiction in terms. The only way you can rationalize that kind of thing from Buffett is to say the guy is trying to protect the establishment. He’s trying to protect what is because that’s how he’s done it, and ditto for the bankers and the government.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/11_All_Hell_is_Going_to_Break_Loose_on_the_Upside_in_Gold.html
PRECIOUS METALS: Spot Gold 1578.20, Silver 27.20 Higher; Awaits FOMC Meeting Minutes
Jul 11, 2012 By Francesca Freeman
--Spot gold higher, supported by weaker dollar and bargain hunting
--Attention turns to FOMC minutes later in the global day
--RBS, Credit Suisse cut 2012 outlook on gold prices
Spot gold is higher in Europe Wednesday, benefiting from opportunistic buying at lower price levels and the supportive influence of a weaker dollar, said analysts.
At 1018 GMT, spot gold was 0.6% higher at $1,574.95 a troy ounce. Silver was up 0.8% at $27.010/oz.
After falling heavily the previous session, investors are taking the opportunity to scoop gold up at lower prices Wednesday, said analysts. A weaker dollar, which makes dollar-denominated assets such as gold less expensive in other currencies, is also benefiting prices.
Whether gold can maintain its current strength remains to be seen, however.
The main focus of markets Wednesday is expected to be the release of the latest Federal Open Market Committee meeting minutes, which could indicate whether a further third round of quantitative is in the works. Since gold is often sought as a hedge against inflation and currency weakness at times of loose monetary policy, any clear QE3 hints would likely prop up gold prices. On the flip side, should rhetoric remain vague and noncommittal, the yellow metal could soften.
"While the metals appear comfortable within their recent trading ranges the complex does appear vulnerable to pressure in the short-term given the increasingly mixed economic indicators and absence of clear indicators on Fed monetary policy," said James Moore of FastMarkets.com.
Both RBS and Credit Suisse reduced their 2012 outlook on gold Wednesday, joining a long line banks to trim their metals forecasts in recent weeks.
RBS now expects gold to average $1,690/oz this year, a 2% cut to its previous forecast, while Credit Suisse sees the yellow metal averaging $1,680/oz, down 5% on earlier estimates.
According to RBS analyst Nick Moore, gold and silver should underperform the platinum group metals in 2013 and begin trending downwards.
"Once the path to normality is laid for global markets, we believe investors will look to other assets [than gold and silver] that offer better risk-reward opportunities," said Mr. Moore. "From 2014 onwards, the prospect of rising interest rates will also take some of the two metals' shine, as the opportunity cost of holding non-yielding assets increases," he added.
At 1017 GMT, spot platinum was up 0.5% at $1,425.50/oz and spot palladium was 0.6% higher at $576.20/oz.
Write to Francesca Freeman at francesca.freeman@dowjones.com
(END) Dow Jones Newswires
07-11-12 0636ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Spot_Gold_Higher__Awaits_FOMC_Meeting_Minutes_181697207.html
Spot Gold 1598.10, Silver 27.43, Up a Tad; Seeks Fresh Macro Cues
Jul 10, 2012 By Francesca Freeman
-- Spot gold higher, helped by a weaker dollar
-- Gold expected to drift in range trade as investors await fresh directional cues
-- Wednesday's FOMC minutes likely to be read for stimulus signals
LONDON--Spot gold is slightly higher in Europe Tuesday, helped by a weaker dollar, but trading in a relatively tight range as investors exercise caution amid a lack of fresh market drivers.
At 0955 GMT, spot gold was 0.3% higher at $1,593.53 a troy ounce, having traded in a range of just $11 so far this session. The euro was 0.1% higher versus the dollar at $1.23236, boosting the appeal of dollar-denominated gold to buyers in other currencies.
"We may see the metals drift off today having tried the upside yesterday and failed," said David Govett, head of precious metals at Marex Spectron. "There is a real apathy in the precious metals market at the moment and unless there are any major economic headlines, this will continue."
Markets are generally underwhelmed by the outcome of Monday's Eurogroup meeting, in which euro-zone finance ministers reached an expected agreement on the aid package for Spain's banks and decided to give the country an extra year to meet its deficit targets.
Gold could push back above $1,600/oz if the latest Federal Open Market Committee meeting minutes, due Wednesday, reveal a shift toward further gold-positive monetary easing, said HSBC analyst James Steel.
"With little in the way of U.S. economic releases ahead of the Fed minutes, bullion prices may be subject to even modest changes in investor sentiment regarding the tone and direction of the Fed minutes," he said.
Should the U.S. election season and recent weak economic data bring the U.S. 'fiscal cliff' back into focus, a resulting weaker dollar could also spur a gold rally, Mr. Steel said.
"As the [dollar] becomes the center of financial market attention it may decline, with a commensurate gain for gold," he said.
Elsewhere in the precious metal complex Tuesday, spot silver was 0.2% higher at $27.44/oz, spot platinum was up 0.2% at $1,440.70/oz and spot palladium was 0.5% higher at $582.10/oz.
Write to Francesca Freeman at francesca.freeman@dowjones.com
(END) Dow Jones Newswires
07-10-12 0606ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Spot_Gold_Up_a_Tad__Seeks_Fresh_Macro_Cues_181620825.html
DJ Gold 1588.30, Silver 27.40 Edges Higher with EU in Focus
Jul 09, 2012 By Tatyana Shumsky
-- Comex August gold up 0.5% at $1,586.10 an ounce
-- Euro-zone finance ministers meet to discuss Spain, Cyprus bailouts, Greece
-- Gold struggling to recover role as haven
NEW YORK--Comex gold futures recouped some of last week's losses as traders watched for new developments from the euro zone.
The most actively traded contract, for August delivery, was recently up $7.20, or 0.5%, at $1,586.10 per troy ounce on the Comex division of the New York Mercantile Exchange.
Euro-zone finance ministers met in Brussels to discuss assistance for Spain and Cyprus, as well as the ongoing situation in Greece. The meeting comes amid escalating doubts about the efficacy of recently announced measures to make deploying rescue funds easier and creating a new regional supervisor for banks. Several governments have already threatened to veto these measures.
"They're going over what was talked about last week, basically to see if its reasonable," said Bob Haberkorn, a senior commodities broker with RJO Futures.
Gold prices will likely take aim at the $1,600 level again this week, Mr. Haberkorn said, as the growing uncertainty in Europe could start to benefit gold. Gold is widely considered a store of value asset and a hedge against deterioration in currency value.
However, concerns about Europe's future and the growing unease about the slow response to the region's debt crisis have seen investors worry more about having ample cash on hand in the event of a credit crunch. This has favored the dollar, which is widely considered the most liquid asset.
Gold, meanwhile, has struggled amid pressure from two sides. First, it has lost out to the dollar in attracting investors looking for a haven. Second, a stronger dollar makes gold more expensive for investors who use other currencies, damping their interest in the metal.
-Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
07-09-12 1040ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Gold_Edges_Higher_with_EU_in_Focus_181565843.html
Comex Gold 1590.60, Silver 27.23 Holds Losses After U.S. Jobs Data
Jul 06, 2012 By Matt Day
NEW YORK--Gold futures initially pared their earlier losses, but held in negative territory, after a weaker-than-expected reading on the U.S. labor market raised some investors' expectations that the Federal Reserve would implement more easy money policies.
The most actively traded gold contract, for August delivery, recently traded down 0.9% at $1,595.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
A recent set of weak U.S. economic data has led to speculation that the Fed will act to prop up the economy. That string continued on Friday as the Labor Department reported the U.S. economy added 80,000 jobs in June, short of expectations for a gain of 100,000.
Gold cut its losses after the release of the data, reaching a high of $1,601.60/oz, before retreating. Futures had traded at about $1,596 an ounce ahead of Friday's U.S. jobs report.
Some investors buy precious metals as a hedge against the inflation that can result from loose monetary policies from central banks. Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
One trader said that after the gold market's wild swings on Fed easing expectations earlier this year, investors were skeptical of reading too much into Friday's report.
"I don't anticipate anything that is not well announced from the Fed," the trader said. "They have to do a lot of telegraphing to the market."
Write to Matt Day at matt.day@dowjones.com
(END) Dow Jones Newswires
07-06-12 0855ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Comex_Gold_Holds_Losses_After_U_S__Jobs_Data_181399065.html
Spot Gold 1606.30, Silver 27.76, Swings Between Gains and Losses Before ECB Decision
By Maria Kolesnikova - Jul 5, 2012 5:38 AM PT
Gold fell in New York as the U.S. dollar strengthened the most since March 9 after the European Central Bank cut interest rates to a record low.
Policy makers meeting in Frankfurt today lowered the ECB’s main refinancing rate to 0.75 percent from 1 percent, as predicted by 49 of 64 economists in a Bloomberg News survey. China cut benchmark interest rates for the second time in a month and allowed banks to offer bigger discounts on their lending costs, while Bank of England restarted bond purchases two months after halting its expansion of stimulus as the deteriorating outlook spurred policy makers to ramp up efforts to kick start a recovery.
“On paper this is gold-supportive but the stronger dollar is creating headwinds,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by e-mail today.
August-delivery bullion fell 1.1 percent, the most since June 28, to $1,604.50 an ounce by 8:30 a.m. on the Comex in New York. Gold for immediate delivery was down 0.7 at $1,604.88 an ounce in London.
The U.S. Dollar Index, a gauge against a six-currency basket that includes the euro, climbed as much as 1.1 percent. Gold usually trades counter to the dollar. Bullion denominated in euros rose as much as 0.8 percent to 1,300.72 euros ($1,618) an ounce, the highest since June 6.
“Central banks’ cutting rates and providing stimulus, whether through quantitative easing or rate cuts, is positive for gold on a longer-term basis,” Walter de Wet, the head of commodities research at Standard Bank Plc, said by telephone from Johannesburg. “With lower interest rates comes greater liquidity, which is also positive for gold.”
Silver for September delivery fell 1.5 percent to $27.855 an ounce. Platinum for October delivery lost 1 percent to $1,476.40 an ounce. Palladium for September delivery declined 1.2 percent to $591.45 an ounce.
To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
http://www.bloomberg.com/news/2012-07-05/gold-poised-to-drop-as-ecb-seen-cutting-interest-rates.html
Comex Gold 1622.70, Silver 28.40 Rises on Central Bank Easing View
Jul 03, 2012 By Matt Day
--Comex August gold recently up $18.20, or 1.1%, at $1,615.90 a troy ounce
--Gold gains as disappointing economic data spurs easing expectations
--Comex floor trading closed on Wednesday for U.S. Independence Day holiday
NEW YORK--Gold futures rose on Tuesday as traders bet that more monetary easing from central banks could be in the cards after the latest round of disappointing global economic data.
The most actively traded gold contract, for August delivery, was recently up $18.20, or 1.1%, at $1,615.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
Readings Monday on manufacturing in China, the euro zone, and the U.S. showed global industrial activity continues to struggle.
The surprisingly weak reading on the U.S. in particular "reignited hopes" that the Federal Reserve would further ease monetary policy, Standard Bank analyst Marc Ground said in a note. "Such a move would be a positive for precious metals of course, especially gold."
Some investors turn to precious metals to guard against the inflation that such easy money policies can bring.
Gold surged earlier in the year, nearing $1,800 a troy ounce in February, on expectations that the Federal Reserve would take fresh action to prop up the U.S. economy. Prices retreated since, generally holding below the $1,700 mark as central banks in Europe and the U.S. gave little indication of a policy shift.
That attitude has shifted somewhat in the last week, however. Many economists expect the European Central Bank to announce a cut to its benchmark interest rate after its Thursday meeting. The Bank of England is also set to update markets on its policy on Thursday.
Silver, which some investors also view as an inflation hedge, also gained. The September-delivery contract was recently up 2.3% at $28.12 a troy ounce.
Some traders were locking in positions in precious metals ahead of the U.S. Independence Day holiday. Comex floor trading is closed on Wednesday.
-Write to Matt Day at matt.day@dowjones.com
(END) Dow Jones Newswires
07-03-12 0944ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Comex_Gold_Rises_on_Central_Bank_Easing_View_181192408.html
Comex Gold 1599.50, Silver 27.60 Eases With Euro After Friday Rally
Jul 02, 2012 By Matt Day
--Comex August gold recently down $10.40, or 0.7%, at $1,593.80 a troy ounce
--Gold, silver ease with euro, commodities after Friday's surge
--Gold retreats below $1,600 an ounce as doubts surface on last week's EU summit gains
NEW YORK--Gold futures eased on Monday, under pressure from a stronger dollar as traders reassessed their view of last week's summit of European Union leaders.
Gold futures had surged on Friday along with the euro and other commodities, rising 3.5% after EU leaders announced plans to let the euro zone's rescue fund directly recapitalize troubled banks and make the European Central Bank the region's banking supervisor.
But many commodities pulled back on Monday as investors weighed whether the steps would have an immediate effect on Europe's banking crisis. The euro fell against the U.S. Dollar amid reports that the Netherlands and Finland plan to block pieces of the rescue package agreed to last week and data showed continued weakness in euro-zone manufacturing.
"Deep disagreements remain between euro area countries," analysts with Barclays said Monday in a note.
The most actively traded gold contract, for August delivery, was recently down $10.40, or 0.7%, at $1,593.80 a troy ounce on the Comex division of the New York Mercantile Exchange.
The euro was recently at $1.259, down from $1.266 late Friday in New York.
The strength in the U.S. Dollar and broad weakness in the euro, "reflecting the ongoing sovereign debt crisis in the euro zone, have also added to the headwinds confronting the gold price," analysts with Morgan Stanley said in a note.
Gold tends to suffer from a stronger U.S. dollar, as it makes the dollar-denominated futures appear more expensive for buyers using other currencies. Gold prices have typically retreated this year when traders were worried about a potential freeze in Europe's financial system, choosing the flexibility of cash, and particularly the U.S. currency.
"It remains to be seen how long the euro zone cheer lasts this week," VTB Capital analyst Andrey Kryuchenkov said in a note, adding that trader focus would likely turn to Friday's closely watched reading on U.S. unemployment.
Also weighing on sentiment on Monday were data showing a continued pullback in China's manufacturing sector. Readings on the sector from both official government data and HSBC's index showed activity slowed in June. Traders keep a close watch on China, which during the last year surpassed India as the world's top consumer of gold.
Silver, which surged by 5% on Friday, was lower on Monday. Futures for September delivery were recently down 0.7% at $27.425 a troy ounce.
-Write to Matt Day at matt.day@dowjones.com
(END) Dow Jones Newswires
07-02-12 0936ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Comex_Gold_Eases_With_Euro_After_Friday_Rally_181139199.html
Spot Gold 1596.30, Silver 27.48 rally as dollar sinks after EU bank plan
Gold trades past $1,600 before gains moderate -
By Claudia Assis and Polya Lesova, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures rallied on Friday, as the U.S. dollar sank against other major currencies after European leaders put forward a plan to stabilize the region’s banking sector.
Gold for August delivery GCQ2 +2.97% surged $48.40, or 3.1%, to $1,598.70 an ounce on the Comex division of the New York Mercantile Exchange. Prices traded as high as $1,601.30 an ounce, according to FactSet Research, and weekly gains have reached 1.6% so far.
Metal futures shot higher, along with other commodities and equities, after euro-zone leaders unveiled a series of measures aimed at bringing stability to the region’s financial markets. Read more on Asia stocks
Barclays agreed to pay $453 million in fines after admitting that traders and executives tried to manipulate benchmark interest rates..
A marathon meeting concluded with European Council President Herman Van Rompuy outlining a proposal for a single supervisory mechanism for Europe’s banking system and a plan to directly recapitalize the region’s banks. Read more on the EU plans.
The greenback fell sharply, spurring buying in dollar-denominated commodities, which dollar weakness makes cheaper for holders of other currencies.
The ICE dollar index DXY -1.30% , a measure of the greenback’s performance against a basket of six major global currencies, dropped to 81.485 from 82.849 in North American trade late Thursday.
“Gold and the other precious metals are making a strong recovery from yesterday’s lows this morning, doubtless on the back of a much weaker U.S. dollar in the wake of the EU summit,” Commerzbank said in a note.
In other trading, July silver futures SIN2 +4.51% soared $1.13, or 4.3%, to $27.38 an ounce. Read more on silver's recent weakness.
Copper for July delivery HGN2 +4.31% gained 14 cents, or 4.2%, to $3.47 per pound. Platinum for July delivery PLN2 +3.12% added $36.50, or 2.6%, to $1,422.90 an ounce. September palladium futures PAU2 +3.90% rallied $14.20, or 2.6%, to $578.45 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch. Polya Lesova is MarketWatch's New York deputy bureau chief. Virginia Harrison in Sydney contributed to this report.
http://www.marketwatch.com/story/gold-silver-rally-after-eu-bank-plan-2012-06-29
PRECIOUS METALS: Gold 1553.20, Silver 26.38, Silver Extend Losses on EU Caution
Jun 28, 2012 By Matt Day
--Comex August gold recently down $25.20, or 1.6%, at $1,553.20 a troy ounce
--Silver hits 2012 low, recently down 2.1% at $26.38 a troy ounce
--View that new central bank liquidity measures aren't imminent continues to weigh on metals
NEW YORK--Gold and silver extended their earlier losses Thursday, as traders bet that a closely watched meeting of European leaders this week wouldn't result in new liquidity measures that could increase demand for an inflation hedge.
The most actively traded gold contract, for August delivery, was recently down $25.20, or 1.6%, at $1,553.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Futures fell as low as $1,550.80 a troy ounce, the lowest intraday price since June 1.
Silver also slumped, touching the lowest point since Dec. 29, before paring those losses. August-delivery futures recently traded down 2.1% at $26.38 a troy ounce.
Gold and silver were pressured Thursday by the view that though global economic growth has slowed and Europe's banking crisis remains a threat to the financial system, leaders in Europe and the U.S. are unlikely to imminently implement new crisis-fighting measures. Precious metals can gain when central banks or governments act to increase the flow of cash in the financial system, as investors seek a hedge from the inflation that can result.
"It's been the central bank liquidity measures that have been one of the major legs of support for the gold market," said Dave Meger, director of metals trading with Vision Financial Markets. "As you undermine one of those legs, it gets a bit wobbly."
Much of gold's moves this year have come in response to expectations on monetary policy. Futures have tended to rise when investors were betting that world central banks would take new steps to support growth, and retreated when it seemed bankers would stand pat.
Many market participants aren't expecting dramatic action to result from the two-day summit of European Union leaders scheduled to begin Thursday.
Economists at Barclays "expect the discussions to draw a roadmap for fiscal, financial and political union, but do not anticipate any major decisions on concrete short-term measures to reduce market stress beyond what has already been agreed," Barclays analyst Suki Cooper said in a note.
Gold has struggled at times this year when euro crisis worries escalated. The potential for a financial freeze in the currency union has made some investors more comfortable holding cash instead of precious metals futures, and economic fears have sparked investment into the perceived safe haven of the U.S. dollar.
A rising dollar can dent demand for gold by limiting investor appetite for a hedge against declines in the currency. The dollar rose again against the euro Thursday, hitting its highest point since June 8.
Write to Matt Day at matt.day@dowjones.com
(END) Dow Jones Newswires
06-28-12 1129ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Gold__Silver_Extend_Losses_on_EU_Caution_180974360.html
Infographic: The Gold Series: Mining and Supply (Part II)
http://news.goldseek.com/GoldSeek/1340826583.php
Why Are We Certain that Gold Producers Will Soar?
Posted Wednesday, 27 June 2012 | Source: GoldSeek.com
By Jeff Clark, Casey Research
For the past eighteen months, gold stocks have been pummeled.
They showed some life from mid-May to mid-June – GDX, the gold miner's index, was up 21%, while gold rose 5.5%. That bounce was exciting, but they've still got a lot of lost ground to make up. Since January 1, 2011, GDX is down 28%, while gold is up 10%.
So what's going to move these darn stocks? Will their day ever come? Could our research – gulp – be wrong? Jokes have even started circulating…
What's the difference between a seagull and a gold stock investor? The seagull can still make a deposit on a Mercedes.
Gold equities may be bad, but I slept like a baby last night. I woke up every hour and cried.
Laugh or cry, underneath this heap of stock-certificate debris is the contrarian opportunity of a lifetime.
That's a strong statement, I know, but there are numerous well-researched reasons why I'm convinced gold stocks are one spark away from igniting the portfolios of those with the cash to buy, courage to act, and patience to hold. And it's not just because they're undervalued, something that's been the case for at least eight months.
Let's review the core reasons why gold stocks are the place to invest right now, and why I'm convinced much higher prices will be had before this bull market is over…
Reason #1: Gold stocks have leverage to gold bullion prices. In spite of what's occurred recently, history is on our side here, as the track record of precious metals equities demonstrates they can reward patient investors tremendously. They rose:
950% from January 2001 to January 2008.
700+% from 1970 to January 1980, including 289.5% in the last thirteen months of that period.
211% in less than 24 months in the mid 1990s.
Even during the Great Depression, the two largest producers at the time – Homestake Mining and Dome Mines – rose 474% and 558% respectively.
It's normal for gold stocks to demonstrate this kind of leverage to gold. It would completely contradict the historical pattern – and common sense – for gold stocks remain where they are until this bull market ends.
(And sometimes, even when the price of gold bullion falls, gold stocks can still offer big upside. Case in point: in the 24 months from January 1, 1981 to January 1, 1983, while the price of gold bullion fell by 25% – from $597 to $446 – gold stocks rose 72%. A series of giant gold discoveries in Canada set off a mini-mania in the equities.)
Check out the historical record, which includes some mind-boggling performances by juniors.
Reason #2: Gold stocks are grossly undervalued. Gold stocks aren't just inexpensive, they're stupid cheap. Their current undervaluation is more than just compelling… it's fire-sale attractive. It should have your full attention.
Just look at the data and you'll see what I mean:
Relative to gold, the equities have not been this cheap since the waterfall selloff in 2008. The HUI/gold ratio is roughly 0.27, close to its bottom of 0.24 in October 2008. It hovered between 0.50 and 0.60 for most of a five-year period from 2003 to 2007, and exceeded 0.60 several times.
On average, and in spite of weak gold prices at present, industrywide margins are roughly $1,000 per ounce. The price of gold wasn't even $1,000 30 months ago.
As a group, gold stocks are selling for less than their net asset value… by 20%. They traded 60% above their NAV in 2007, a common level for precious metals equities.
Average P/E ratios of the 10 largest gold producers are less than half what they were just two years ago.
As we mentioned a few weeks ago, for a $1,000 investment right now, you can get about 0.6 ounces of gold. For the same $1,000, however, you'd get four ounces of gold by buying shares of Goldcorp or more than five ounces by buying Eldorado Gold.
This undervaluation cannot and will not last. Even the trader who knows nothing about Newmont or Barrick or Goldcorp will sooner or later want to jump on this – and if he doesn't, his boss will want to know why. Read what one Sprott fund manager thinks about gold stocks.
Reason #3: Gold stocks are universally under-owned. There are plenty of reports about how little gold and silver the average mainstream investor owns – which likely means they own even less of gold equities. But the disconnect is bigger than you realize…
In the institutional world, pension funds sit at the head of the table. However, the typical fund devotes only 3% to commodities, and of that 3%, only 5% is committed to gold and gold stocks. In other words, only 0.15% of assets are in gold and another 0.15% in gold mining stocks, a pathetic total of less than one-third of one percent. Ditto other institutional investors.
Given the gamut of sovereign risks in virtually the entire world, even the developed world, the lack of gold and gold stock ownership is appalling. That will change as the growing fiat currency risks around the world impact investors more deeply.
Reason #4: All that cash has gotta go somewhere. It's one thing to say gold stocks are under-owned, but is the money available to buy them? One could make an argument that any rush into gold equities would be muted if no one has any savings or if demographics dictate that a fifth of the developed world will soon be retired.
At the end of Q1, S&P 500 corporations had $1.7 trillion in cash and another $4 trillion in short-term investments. The M1 money supply is currently $2.2 trillion. Pension assets exceed $31 trillion, more than twice the size of last year's GDP in the US.
Contrast those figures with the market cap of all primary gold producers trading in North America: about $800 billion. Or the market cap of all primary silver producers: a measly $32 billion.
If corporations moved 5% of their "short-term investments" into gold stocks, the market cap of the industry would increase by 20%.
If they chose silver stocks, it'd grow by a factor of six.
Five percent of M1 would increase the market cap of gold producers by 14%; it would be 3.4 times bigger than the entire current value of all primary silver producers.
If pension funds doubled their allocation to gold stocks (making it a puny 0.6% of total assets), it would amount to $93 billion in new purchases. If they went to 5%, $1.5 trillion would flood the industry.
Check out the chart of these data. And by the way, don't forget other corporations in the US and around the world, insurance companies, hedge funds, sovereign wealth funds, mutual funds, private equity funds, private wealth funds, ETFs, and millions of global retail investors. There are, quite literally, tons of cash available for investment in whatever sector the mainstream targets.
What if they all enter the gold market at or near the same time?
Reason #5: Physical gold may become hard to get. The gap between supply and demand isn't letting up. Since 2001, worldwide production is flat, despite a sixfold increase in the gold price – and demand has grown from $3 billion to $80 billion.
I'm in touch with bullion dealers on a regular basis, and they're all saying the same things. Andy Schectman of Miles Franklin insisted that the bullion market "will ultimately be defined by complete lack of available supply." Border Gold's Michael Levy cautioned, "If an overwhelming loss of confidence in the US unfolds, the demand for physical gold and silver will far outweigh all known inventories." And Mike Maloney of GoldSilver.com warned that if shortages develop, "physical bullion coins and bars might become unobtainable regardless of price."
As increasing numbers of people view gold as a must-own asset, and as supply is not keeping up with demand, where is the next logical place for investors to turn to get exposure? Gold stocks.
Imagine the plight of the mainstream investor who calls a bullion dealer and is told they have no inventory and don't know when they'll get any. Picture those with wealth finally becoming convinced they must own precious metals and being informed they'll have to put their name on a waiting list. Imagine a pension fund or other institutional investor scrambling to get more metal for its fund and being advised the amount it wants is "currently unavailable."
Mining equities would be the fastest way to meet that demand. It'll be the next logical step to take – maybe the only sensible step available if the supply of physical metal remains constrained. It will feel like the most natural thing in the world for them to do. It is indeed the overlooked reason gold stocks will soar.
Reason #6: Gold has a lot further to climb. This is why I'm convinced gold stocks will soar again: a rising gold price. Many investors have focused on gold's lackluster movement for the past eight months, forgetting that it rose a total of 2,333% in the 1970s – with much less currency dilution than we have today. For gold to match the same percentage rise from its 2001 low, the price would hit $6,227 per ounce. Nothing says it has to match that price – but neither does it have to stop there. Given the ongoing caustic actions of politicians, we see much more upside risk in gold than downside.
And here's the key for gold stocks: once the gold price resumes its uptrend and begins making new records again, all sorts of investors – from large market-moving institutions to small retail buyers – will return to gold equities. I suggest beating them to it.
Reason #7: "The boat" has a leak. The dilution of our currency is on a nonstop – and scary – trajectory. Just since January 1, 2000, US dollars have lost a whopping 26% in purchasing power. The Canadian dollar has lost 23%. This is a serious and gross devaluation of what we use for money. Meanwhile, gold has gained 325% in purchasing power (after accounting for inflation as measured by the CPI, which understates the amount of inflation by a considerable amount). And this is while the gold price has gone nowhere since last September.
The problem is, the leak in our economy is only going to get bigger. The monetary base now exceeds $2.6 trillion, up 215% since January 2008; the national debt is over $15.7 trillion and will conservatively reach $20 trillion in just three years; the $1.3-trillion US budget deficit, which is more than the entire US budget was just 20 years ago; the approximate $4 trillion in US Treasuries held in foreign central banks, many of which continue making arrangements to bypass the dollar; the vulnerable and propped-up economies around the globe; the still-unresolved European debt crisis; the many negative real interest rates that show no sign of reversing course anytime soon.
These are massive megatrends that won't be reconciled without further, serious dilution of the currency – it's the only politically acceptable way to decrease the debt burden. This is why we're convinced more money-printing in the US and around the world is highly likely – whether they call it "quantitative easing" or try to hide it under some other guise – especially if we get another deflationary scare. With the only logical choice being to print, gold will be forced higher by an order of magnitude.
I say all this about gold because I think that is the key to gold stocks. If gold and silver are destined for higher levels, gold stocks will follow. I know they haven't demonstrated that for a while now, but slumps don't last forever.
The bottom line is this: Gold stocks do respond when gold goes higher – and gold is going higher because of completely unsustainable fiscal and monetary actions of governments all around the world.
So, will gold stocks really soar again someday? The historical record of gold stock manias… the extreme undervaluation of gold equities… the lack of mainstream participation in our market… the abundance of available cash… dwindling supply and rising demand… the massive disconnect between gold and gold stocks… the likely trajectory of the gold price… and last but not least, the political compulsion to dilute the currency further… all these factors point to an incredible opportunity to buy gold stocks at extremely low levels and someday realize potentially life-changing rewards.
Hang in there, my friends. Our time will come. In fact, I predict that someday we'll wonder why anyone doubted it in the first place.
Being a successful investor in this sector requires much more than simply buying some companies – one must sift through company data and filter the hype to uncover those with the best chance of producing outsized gains. That's exactly what Jeff Clark and his team do to bring the best gold majors to light each month in BIG GOLD. Right now, for a limited time, when you subscribe risk-free to BIG GOLD, you'll receive a bonus special report highlighting the most promising and least risky gold stocks to buy. Get the details now.
-- Posted Wednesday, 27 June 2012 | Digg This Article | Source: GoldSeek.com
http://news.goldseek.com/GoldSeek/1340846603.php
DJ PRECIOUS METALS: Gold 1573.90, Silver 27.11 Prices Bounce on ECB Rate Cut Hints
Jun 27, 2012 By Tatyana Shumsky
NEW YORK--Gold prices shot higher Wednesday on comments by a European Central Bank executive board member that hinted at potential interest rate cuts by the bank.
Gold for August delivery, the most actively traded contract, was recently up $1.50, or 0.1%, at $1576.40 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract touched a high of $1584.60 on the ECB news.
Peter Praet, the chief economist and a leading member of the ECB's executive board, said that "there is no doctrine that the main interest rate can't be under 1%" in an excerpt of an interview with Germany's Financial Times Deutschland.
The central bank aims for consumer price inflation of just below 2% over the medium term. Recent inflation data from Germany released Wednesday showed inflation easing, potentially opening the door for the central bank to cut its main rate below the record low of 1%, at the upcoming meeting July 5.
Gold prices shot higher, climbing into positive territory on the remarks. Periods of low interest rates favor gold, which doesn't earn interest, over interest bearing assets like government bonds, whose return is diminished.
The comments caught gold traders by surprise, said Charles Nedoss, a senior market strategist with Olympus Futures.
"I don't think that people were looking for Europe to lower rates," Mr. Nedoss said, adding that moves to cut interest rates would be seen as inflationary and thus beneficial to gold prices.
Gold is widely considered a store of value and a hedge against inflation.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
-Todd Buell contributed to this article.
(END) Dow Jones Newswires
06-27-12 0953ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Gold_Prices_Bounce_on_ECB_Rate_Cut_Hints_180899929.html
PRECIOUS METALS: Gold 1568.50, Silver 26.89 - EU Debt Problems Pressure Gold Prices
Jun 26, 2012 By Tatyana Shumsky
--Comex August gold slips 0.6% to $1,579.50/oz
--Rising borrowing costs in Spain, Italy damp investor sentiment
--Traders continue to watch for Comex options expiration later Tuesday
NEW YORK--Gold futures slipped Tuesday as borrowing costs for Spain and Italy climbed and the euro sank below the psychologically important $1.25 level, underscoring ongoing concerns about the European debt crisis.
The most actively traded contract, for August delivery, was down $8.90, or 0.6%, at $1,579.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
European debt auctions by Italy and Spain again signaled investor concern about the euro-zone debt crisis. Italy sold May 2014-dated notes at a yield of 4.721%, up from 4.037%, while Spain sold EUR3.077 billion ($3.850 billion) in short-term debt, paying the highest interest rates so far in 2012.
The debt sales followed the downgrade by Moody's Investors Service of its long-term ratings on 28 Spanish banks and a bailout request by Cyprus for financial aid to recapitalize its banks.
"Another round of bank downgrades means there's another round of assets coming on to the market," said Frank McGhee, head precious metals dealer with Integrated Brokerage Services. He added that the wave of delevaraging among European banks is causing deflationary pressures, which are bearish for gold.
Gold is widely seen as a haven from inflation, and tends to fall out of favor with investors when such risks subside.
The deepening euro-zone debt crisis has pressured gold futures lower as investors continue to wait for new easing measures from central banks before jumping into the precious metals market.
"The market needs to see central banks doing something before there's a sustained rally," Mr. McGhee said.
Gold options trading on the Comex are due to expire at the end of business Tuesday, with the largest number of contracts concentrated at an exercise price of $1,600 a troy ounce.
"With the expiries looming and the beginning of a two-day European Summit, today we expect markets to remain fairly quiet and rangebound," said traders at TD Securities in a note to clients. They expect to see gold prices trading between $1,566 and $1,590, though robust options-related activity could see prices rise to $1,600.
-Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
06-26-12 0952ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__EU_Debt_Problems_Pressure_Gold_Prices_180842732.html
PRECIOUS METALS: Gold 1573.10 Silver 27.06 Climbs on Slower US Growth, EU Worries
Jun 25, 2012 By Tatyana Shumsky
--Comex August gold up 0.4% to $1,572.60/oz
--Fitch downgrades Cyprus to junk
--Chicago Fed's national activity index declined in May, signalling slowing growth
NEW YORK--Gold prices ticked higher Monday on renewed concerns about Europe and weaker economic data from the U.S.
The most actively traded contract, for August delivery, was recently up $5.70, or 0.4%, at $1,572.60 per troy ounce on the Comex division of the New York Mercantile Exchange.
Europe's government debt troubles were firmly in focus after Fitch Ratings cut Cyprus' government debt rating to BB+ from BBB-, stripping the country of an investment-grade rating. The ratings company said the country's bank sector required substantial capital injections that will force the government to seek a euro zone bailout.
European leaders are due to meet at a summit Thursday, though investors are growing increasingly skeptical of meaningful progress.
Across the Atlantic, the Federal Reserve Bank of Chicago's National Activity Index fell to -0.45 in May from a revised 0.08 in April, indicating that national economic activity had slipped again. A negative reading for the activity index, a compendium of available and forecast economic data, points to below-trend growth.
Gold prices have rallied on weaker U.S. economic data in recent weeks amid hopes that the Federal Reserve will pump more money into the economy. While the central bank disappointed investors last week, opting to restructure rather than expand its balance sheet, downbeat reports continue to stoke these hopes.
"Our economists see this as the Fed buying time and weighing future options, and continue to expect further accommodation before year-end," said Anne-Laure Tremblay, a precious metals analyst with BNP Paribas, in a note.
Analysts at Barclays note that lower gold and silver prices are drawing new buyers to the market. Gold bullion held at exchange-traded funds rose 1.2 metric tons on Friday, with total gold ETF holdings tracked by Barclays up just over 30 metric tons.
Physical silver-backed ETFs are also seeing an uplift, with silver ETFs ticking up 54.3 metric tons Friday and up 293 metric tons for the month of June, according to Barclays. So far, June is set to record the strongest inflows of silver since September, the bank said.
-Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
06-25-12 0953ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures/DJ_PRECIOUS_METALS__Gold_Climbs_on_Slower_US_Growth__EU_Worries_180784320.html
Central banks manipulate Gold Markets
CNBC Video - apologies for the add at the front end.
http://video.cnbc.com/gallery/?video=3000097894&play=1
China and Russia buying gold as protection against currency reset
By: Peter Cooper, Arabian Money
-- Posted Friday, 22 June 2012 | Source: GoldSeek.com
Consumers made the most of the dip in the price of bullion and mainland China’s gold purchases via Hong Kong hit a record 101.7 tonnes in April, up 62 per cent, reported Bloomberg.
Meantime, the Russian central bank has again increased its gold reserves by 500,000 ounces. Former Russian finance minister Alexei Kudrin said that a full-blown economic and financial crisis in the euro zone is inevitable and will develop within a year.
Real money
Russia is clearly buying gold to protect the ruble from devaluations and Russia from an international monetary crisis. China is doing the same both by official gold purchases and by encouraging individuals to buy precious metals.
This is eminently understandable and sensible. It is the antithesis of the argument that central banks have everything under control. They know that is not true and so buy gold themselves.
Their action also marks the transfer of real wealth in a global reset of wealth towards the emerging markets. They are the ones with the growing economies – Russia with its hydrocarbon wealth and China as the workshop of the world.
At first it was the almighty US dollar that everybody in emerging markets wanted. Now they worry that too many dollars are being created by the Fed and the obvious and unavoidable consequence is inflation down the road.
It behooves any investor to follow the smart money, and the nouveau riche nations must have gotten something right. They only want to hold on to wealth that has been hard won for many.
Buying opportunity
So when the gold price dips as it may well do this summer as global financial markets sell-off and some investors are forced to dump their precious metals because they cannot afford to keep them, expect more record months of buying by China and Russia.
It makes sense to pay as little as possible for the asset class of the future and to get out of the US dollar while the dollar is strong, rather than to wait until it becomes weakened by devaluation and inflation.
Those who have US dollars stuffed into shoe boxes in the emerging markets will be switching in favor of shiny metals that they can see preserving their wealth in the global economic reset that is coming.
-- Posted Friday, 22 June 2012 | Digg This Article | Source: GoldSeek.co
http://news.goldseek.com/PeterCooper/1340376922.php
Russia Buys 0.5 Million Ounces and Bank of Korea “Needs To Buy More” Gold
* Thursday, June 21, 2012
(special thanks to gtsourdinis)
The Russian central bank has again increased its gold reserves by 500,000 ounces.
Bank Rossii announced that it had increased gold stocks in its international reserves by 0.5 million troy ounces to 29.3 million troy ounces in May from the end of April.
Russia's gold and foreign exchange reserves declined to $512.2 billion in the week ending June 15 from $512.4 billion a week earlier. Russia’s reserves remain very sizeable and have increased in 2012 as they were at $498.6 billion at year end 2011...
The Bank of Korea has said that its current gold holdings are too small and that the BOK may buy more gold this year in order to diversify its foreign exchange portfolio which is exposed to the dollar.
Eugene Kim, chief investment officer at the central bank's foreign-exchange reserve management group, said its gold holdings are "too small" given the size of its forex reserves, which stood at a record-high of $310.87 billion at the end of May, and that the BOK might buy more bullion this year.
According to the BOK's latest data at end-2011, U.S. dollar-denominated assets accounted for 60.5% of South Korea's total forex reserves, while other currencies such as the euro, yen and pound made up the remaining 39.5%...
http://www.goldcore.com/goldcore_blog/russia-buys-05-million-ounces-and-bank-korea-%E2%80%9Cneeds-buy-more%E2%80%9D-gold
Comex Gold 1665.20, Silver 31.24 Ticks Higher, Awaits Data
May 01, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold up 0.3% at $1,669.50/oz
--Investors look ahead to U.S. ISM, construction data
--Monday's volatile trading still in focus
NEW YORK (Dow Jones)--Gold futures edged higher on a weaker dollar as traders looked ahead to U.S. economic data due later Tuesday, though chatter about Monday's volatile trading persisted in the market.
The most actively traded contract, for June delivery, was recently up $5.30, or 0.3%, at $1,669.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
A weaker dollar gave gold a boost. Dollar-denominated gold attracts buyers who use other currencies when the dollar eases as the yellow metal seems cheaper to these investors. The ICE Dollar Index was recently at 78.661 down from 78.824 earlier.
Market participants were cautiously upbeat ahead of U.S. manufacturing and construction-spending data. Reports released in recent weeks have painted a more obscure picture of the U.S. economy, stoking worries that growth is slowing and raising hopes of a third round of quantitative easing. Gold prices, which have rallied during past instances of monetary stimulus, are likely to benefit from another round of stimulus.
Elsewhere, traders continue to digest Monday's volatile early-morning trading. CME Group Inc. (CME) briefly halted trading in gold futures Monday following a sharp plunge in prices.
Many in the market initially attributed the fall in gold to a "fat finger", or input error. However, some participants later questioned whether the massive flux of activity seen at 8.31 a.m. was an erroneous trade or a flurry of automatic-selling orders triggered by electronic trading programs.
CME Group Inc. said that no transactions were cancelled Tuesday and that a 10-second trading halt occurred at 8:31 a.m., just as New York trading day was getting under way.
The move down could have been triggered by early-morning losses in silver, as the two precious metals often move in tandem, said Frank McGhee, head precious metals dealer with Integrated Brokerage Services.
"I think someone came in and realized that gold was out of line with silver on the day, sold into some stops and you had a cascade," said McGhee.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
05-01-12 0949ET
http://news.tradingcharts.com/futures/2/2/177939922.html
It would be good to know a few more details. My confidence in management took a real dump when I first read about it. The problem is they are still attractive enough at the current levels, even with the payout schedule, that I'm reluctant to write them off all together. I'm gonna sleep on it for a couple days and then decide what to do.
I have sent emails to both companies in the past month NWM did not answer at all, and the answers I got from Bioteq said nothing,,all they said was they still owned the plant and it was finished last SEPT.and was not running that was all they would say
I don't know. It's the first I heard of that kind of liability for NWM.
They haven't had much to say about BioteQ Environmental Technologies Inc. other than they (BioteQ) had defaulted on the guaranteed recovery expectations.
The way this PR reads, it sounds more like NWM effed up, and thus has to pay up.
There should have been a hell of a lot more disclosure about this along the way. I'm kinda pissed off.
http://finance.yahoo.com/news/nwm-bioteq-settle-lawsuit-183800454.html
So, this is good news...paving the way for any future takeover?
DJ PRECIOUS METALS: Gold 1664.60, Silver 31.31 Gains After US GDP
Apr 27, 2012 By Matt Day Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Gold futures ticked higher on Friday as a weaker-than-expected reading on U.S. growth dragged on the dollar, boosting demand for the precious metal as an alternative asset.
The most actively traded contract, for June delivery, rose $2.80, or 0.2%, to $1,663.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Ahead of the U.S. growth data, futures had traded at about $1,656 an ounce.
Gross domestic product grew at an annual rate of 2.2% during the first three months of 2012, the Commerce Department said on Friday, short of expectations for 2.6% growth.
For gold, as in other assets, bad news on the economy can be good news for asset prices, as traders bet that U.S. growth will slow enough to prompt the Federal Reserve to take fresh steps to support the economy. Gold tends to benefit from such policies, as investors worried about potential resulting declines in the U.S. Dollar seek precious metals as a hedge.
The view that the U.S. central bank's current slate of ultra accommodative monetary policies would spur gold demand helped push futures to a two-week high on Thursday.
Gold's gains came, in part, on "the assumption that further bad U.S. data will likely yield a policy response, and that money supply will remain plentiful," Standard Bank analyst Leon Westgate said in a note.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
(END) Dow Jones Newswires
04-27-12 0909ET
http://news.tradingcharts.com/futures/8/4/177747948.html
For sure, and no kidding Teedlum! This is just one more no brainer out of dozens of good deals out there. Wish I had more cash right now dammit!
Thanks for your posts cork. It would sure be nice to actually hear someone say something about this company. Crickets here.
DJ Gold 1658.40, Silver 31.20 Gains As Traders Digest Fed, Europe
Apr 26, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June gold recently rose $12.20, or 0.7%, to $1,654.50 a troy ounce
--Federal Reserve low rates policy still seen supporting gold prices long term
--Investors weigh mixed economic news from Europe, U.S.
NEW YORK (Dow Jones)--Gold futures rose on Thursday as traders weighed the latest policy statement from the Federal Reserve and mixed economic news from Europe and the U.S.
The most actively traded contract, for June delivery, rose $12.20, or 0.7%, to $1,654.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold prices showed a mixed reaction to the Federal Reserve's latest policy statement, released Wednesday. The central bank held to its current, ultra-accommodative monetary policies, but didn't signal imminent new steps to prop up U.S. growth, disappointing some gold bulls.
Gold tends to benefit from an environment of low interest rates and high liquidity, as investors seek the precious metal as a hedge against the weakness in the U.S. Dollar those policies can bring.
Futures initially retreated as investors saw little hint in the Federal Reserve's statement of new accommodative monetary policies, but later erased those losses on the view that the central bank's current slate of policies is still supportive for gold prices.
"A low long-term interest rate environment and supportive global liquidity growth underpins our long-term bullish view on gold," said Marc Ground, an analyst with Standard Bank, in a note.
Gold traders on Thursday were also weighing a set of mixed economic indicators from Europe and the U.S. Weak euro-zone economic confidence data and rising Italian and Spanish bond yields kept the focus on the currency bloc's debt woes, which have, at times in recent months, pushed worried investors to hold cash instead of precious metals futures.
In the U.S., new applications for unemployment benefits were nearly unchanged last week, but the previous week's level was revised higher, according to Labor Department data released on Thursday.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
(END) Dow Jones Newswires
04-26-12 0943ET
http://news.tradingcharts.com/futures/3/0/177680703.html
Spot Gold 1640.00, Silver 30.80 In Narrow Range; All Eyes On Fed
Apr 25, 2012 By Rhiannon Hoyle Of DOW JONES NEWSWIRES
--Spot gold keeps to tight range ahead of Fed statement
--Trading thin; metal seen to take cues from policy hints
--Trading of gold ETFs jumps in India
--Silver flat; platinum group metals rise
LONDON (Dow Jones)--Spot gold is keeping to a tight range in Europe Wednesday as investors wait to take their cues from a U.S. Federal Reserve policy announcement later in the global day.
The metal's price has held largely between $1,639 a troy ounce and $1,645/oz since late Tuesday, although prices have recently dipped to the lower end of that range as some investors take profits.
At 1017 GMT, spot gold traded at $1,639.90/oz--still down just 95 cents on the day.
Market participants say trading is thin, with many participants sidelined ahead of the statement from the Fed's Open Market Committee, which is due around 1630 GMT.
"The Federal Reserve Open Market Committee rate decision...and the subsequent press briefing from Fed Chairman Ben Bernanke, may impact gold in the near term," said HSBC analyst James Steel.
"Highly accommodative monetary policies are gold-friendly and an FOMC meeting that reaffirms accommodative policies should at least support gold prices," he added.
However, given that additional monetary easing appears unlikely, the near-term upside for prices may be capped by the meeting, Steel said.
Other factors, though, may turn investors more positive on gold, say analysts. News of strong central bank demand last month will be a particularly good support for prices, they say.
Elsewhere, the trade value of gold exchange-traded funds on India's National Stock Exchange Tuesday rose 44% from a year earlier to INR6.08 billion on the occasion of Akshaya Trithiya, news figures showed Wednesday.
The total number of units traded on NSE also rose 10% to 2.2 million, the exchange said on its website.
In other markets, at 1017 GMT, spot silver was flat at $30.80/oz. Spot platinum was up 0.4% at $1,546.50/oz, while spot palladium had risen 0.8% to $666.30/oz. Base metals on the London Metal Exchange were also higher.
-By Rhiannon Hoyle, Dow Jones Newswires; +44 (0)20 7842 9405; rhiannon.hoyle@dowjones.com
(Debiprasad Nayak contributed to this article.)
(END) Dow Jones Newswires
04-25-12 0636ET
http://news.tradingcharts.com/futures/9/5/177587159.html
Gold 1644.00, Silver 30.99 Rises On EU Calm; Central Banks Buy In March
Apr 24, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June gold recently rose $11.80, or 0.7%, to $1,644.40 a troy ounce
--Steady outside markets, weaker dollar spur gold buying
--Central banks in Mexico, Russia, Turkey among gold buyers in March, IMF says
--Key gold ETF holdings slip; Indian demand continues to disappoint
NEW YORK (Dow Jones)--Gold futures gained on Tuesday, as a pause in the escalation of concerns about Europe's debt crisis drew buyers to the precious metal.
The most actively traded contract, for June delivery, rose $11.80, or 0.7%, to $1,644.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
European markets were calm on Tuesday after being rattled Monday by a series of warning signs on the euro-zone's political and financial stability. But relatively well received auctions of Dutch, Spanish and Italian debt helped steady investor sentiment on Tuesday, drawing buyers to growth-sensitive assets and weighing on the U.S. dollar.
Gold tends to benefit from dollar weakness, as it makes the precious metal appear cheaper for buyers using other currencies.
"This morning we've seen precious metals remaining relatively stable, with concerns over the euro-zone having eased somewhat," said Standard Bank analyst Marc Ground, in a note.
Other investors were cautious about placing large bets in the gold market ahead of Wednesday's policy statement expected from the U.S. Federal Reserve. Gold tends to benefit from the type of accommodative monetary policies deployed by the central bank to support growth, and hints that more on the horizon could spur a rally in the metal.
Diminished expectations for more Fed action anytime soon were key in pushing gold prices down from this year's highs just below $1,800 a troy ounce.
Mexico, Russia, Turkey, Kazakhstan and Ukraine reported a rise in their gold holdings in March, according to data released on Tuesday by the International Monetary Fund, as emerging-markets central banks continue to boost their holdings of the precious metal.
Mexico's central bank purchased 541,000 ounces during the month. Russia added 532,000 ounces in March, and Turkey bought 369,000 ounces. Kazakhstan's reserves rose by 138,000 ounces.
World central banks through much of the 1990s and 2000s were sellers of the precious metal, but that trend flipped in recent years as some central banks bought gold to keep the metal's share of their ballooning foreign exchange holdings steady. Others bought in an effort to diversify holdings of the world's major reserve currencies.
Central Asian nations in particular are likely to continue buying through 2012, said Steve Scacalossi, a vice president with TD Securities, in a note, "as they continue to diversify their reserve components" away from the U.S. dollar.
Other areas of physical demand have been less robust. The SPDR Gold Trust, the world's largest physically backed gold ETF, saw its holdings decline to 1,281.94 metric tons on Monday, from 1,286.17 tons Friday.
Physical demand in Asia, frequently a key support for gold prices, hasn't provided a firm floor under the market. Demand from India, the world's top importer, disappointed ahead of a key Hindu festival there that typically spurs increased gold buying.
--By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
--Rhiannon Hoyle contributed to this article.
(END) Dow Jones Newswires
04-24-12 1013ET
http://news.tradingcharts.com/futures/9/2/177523829.html
PRECIOUS METALS: Gold 1631.60, Silver 30.72Lower; Caution Ahead Of Fed Meeting
Apr 23, 2012 By Rhiannon Hoyle Of DOW JONES NEWSWIRES
--Spot gold lower; slips amid thin liquidity
--Investors on sidelines ahead of FOMC meeting
--Clues from Fed could finally break gold out of recent range, analysts say
--Shanghai Gold Exchange raises trading margins ahead of holiday
LONDON (Dow Jones)--Spot gold trades in the red in Europe Monday, and while prices could soon be headed even lower, investors are likely to be cautious about betting against the market before a closely watched meeting of the U.S. Federal Reserve's policy-setting committee later this week, industry participants say.
At 1044 GMT, spot gold traded at $1,632.80 a troy ounce, down $9.50. or 0.6%, on the day.
The yellow metal broke suddenly lower in early European trade, with prices knocked down $10 in a matter of seconds as heavy selling overwhelmed the market amid thin liquidity, traders said. The fall takes the market toward the lower end of its recent range after several dull days of trading, say market players, who suggest gold is now looking vulnerable for a pullback toward $1,600/oz.
"Whether or not the market has the appetite to push it that far today is debatable, but I suspect at some point this week, we will look lower," said Marex Spectron head of precious metals David Govett.
Market attention this week is on a meeting of the Federal Reserve's Open Market Committee. Any clues on future monetary policy when the Fed makes its statement Wednesday could be the catalyst that finally pushes gold out of its recent narrow range, UBS said in a note.
Traders say many investors will stay side-lined ahead of the meeting, despite expectations that there won't be any fundamental shift in the central bank's stance.
"Market participants will be pouring over the FOMC statement, the quarterly prognosis on the economy and Chairman Ben Bernanke's comments during the press conference to gauge the prospects for further quantitative easing and assess the current balance of opinion within the Fed," UBS said.
"Investors will be particularly keen to find out if the Fed will signal further monetary policy action in this week's meeting, given it is the penultimate meeting before 'Operation Twist' ends," it added.
Precious metal prices are lower in line with other commodities, as a stronger greenback adds to pressure on the dollar-denominated markets.
The Shanghai Gold Exchange meanwhile said it will raise trading margins for gold futures to 13% from 12%, and set price limits at 10% from 9% for the Labor Day holidays starting this weekend and extending through Tuesday next week. Trading margins for silver futures will be set at 16% from 15%, with price limits raised to 13% from 12%, the exchange said.
The higher limits, which bourses typically set during periods of closure as a precaution against spillover effects from external-market volatility, will take effect Friday.
At 1044 GMT, spot silver traded at $31.270/oz, down 1.2% on the day. Spot platinum was down 0.6% at $1,564/oz, while spot palladium was 1.5% lower at $662.75/oz. Other commodities, including base metals and crude oil futures, were also lower.
-By Rhiannon Hoyle, Dow Jones Newswires; +44 (0)20 7842 9405; rhiannon.hoyle@dowjones.com
(Chuin-Wei Yap in Beijing contributed to this article.)
(END) Dow Jones Newswires
04-23-12 0710ET
http://news.tradingcharts.com/futures/0/5/177443050.html
DJ Gold 1642.60, Silver 31.68 Wavers As Caution Saps Investor Interest
Apr 20, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold up 0.1% to $1,643.20/oz
--Likely boost to International Monetary Fund's firepower fans interest in gold
--Gold traders cautious ahead of next week's Fed meeting
NEW YORK (Dow Jones)--Gold prices wavered around unchanged Friday as a likely boost to the International Monetary Fund's firepower and a weaker dollar were offset by caution ahead of next week's Federal Reserve meeting.
The most actively traded contract, for June delivery, was recently up $1.80, or 0.1%, at $1,643.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
The world's financial leaders plan to commit $400 billion or more to boost the IMF's war chest in preparation for a potential deterioration in Europe's debt crisis. The Group of 20 nations have "penciled in" the commitment, though a final decision has not yet been made, a group official told Dow Jones Newswires.
The comments come on the heels of IMF Managing Director Christine Lagarde's comments Thursday that she expects the fund's resources to be expanding significantly this week.
"More liquidity in the market usually leads to a reduced value in paper assets," and these concerns tend to benefit store-of-value assets like gold, said Adam Klopfenstein, a market strategist with Archer Financial Services.
A weaker dollar also supported gold prices. The dollar slipped against a trade-weighted basket of currencies, with the ICE U.S. Dollar Index falling to 79.326 recently from 79.610 earlier.
Dollar-denominated gold futures appear cheaper to buyers using foreign currencies when the dollar weakens.
However, gold traders were cautious to position themselves ahead of next week's Federal Open Market Committee meeting. The reserve bank's monetary policy-setting arm is due to release a statement Apr. 25.
"Right now people are feeling that we're not going to get [more stimulus] unless we get a major correction in equities," Klopfenstein said.
Gold prices tend to rise in tandem with expectations of monetary stimulus, as concerns about an uptick in inflation lures investors to stock up on gold, which is considered a hedge against inflation and a safe harbor investment.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-20-12 0954ET
http://news.tradingcharts.com/futures/0/7/177309170.html
Comex Gold 1646.50, Silver 31.94 Perks Up As Weak Data Fan Stimulus Hope
Apr 19, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold up 0.5% to $1,647.40/oz
--4-week average of US jobless claims rises, signals economy is losing jobs
--Hopes of further stimulus buoy gold futures
NEW YORK (Dow Jones)--Comex gold futures edged higher Thursday as weaker U.S. economic data fanned hopes of further monetary stimulus and as the dollar eased against the euro.
The most actively traded contract, for June delivery, was recently up $7.80, or 0.5%, at $1,647.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
A closely-watched measure of Americans filing for unemployment benefits ticked higher this week, casting doubt on the strength of the U.S. economic recovery. The four-week moving average of U.S. initial jobless claims, which smoothes out weekly volatility, increased by 5,500 to a seasonally adjusted 374,750, the highest level since Jan. 28. Initial claims filed in the week ended April 14 fell by 2,000 to 386,000.
"Another set of dismal economic numbers," raises the specter of a third round of quantitative easing, said Sterling Smith, analyst with Country Hedging. "Whenever that shows up, gold tends to catch a bit of a bid," he added.
Gold prices are sensitive to expectations of monetary stimulus, as the it is widely considered a store of value and a hedge against weakness in paper currencies. Gold futures had extended their record gains in late 2010, when the Federal Reserve embarked on a second round of stimulus commonly known as QE2.
"Quantitative easing is the number one item that propels gold over the short term," Smith said.
Gold traders are already preparing for next week's Federal Open Market Committee meeting. The reserve bank's policy setting arm is due to make a policy announcement April 25.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-19-12 0931ET
http://news.tradingcharts.com/futures/8/7/177236278.html
Spot Gold 1643.00 Silver 31.51 Stronger Dollar, Spain Fears Weigh On Gold
Apr 18, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold down 0.7% at $1,640.40/oz
--Spain's upcoming bond auction pressures gold
--Comex silver stockpile worries traders
NEW YORK (Dow Jones)--Comex gold futures yielded to pressure from a stronger dollar and concerns about Spain's upcoming bond auction.
The most actively traded contract, for June delivery, was recently down $10.70, or 0.7%, at $1,640.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold futures retreated as the greenback rallied against a basket of international currencies. As the dollar strengthens against other currencies dollar-denominated gold becomes more expensive for investors who use those currencies, sapping their interest in the precious metal. The ICE Dollar Index was recently up 0.4% at 79.822.
Spain faces another test of its credit-worthiness Thursday, when the euro-zone's fourth-largest economy is due to sell its two-year and 10-year government bonds. Ongoing concerns that Spain might struggle with its debt load have been pressuring gold prices lower, as investors choose to protect their wealth by moving into dollar-denominated cash rather than gold.
"This morning, we've seen the whole complex succumb to waning investor enthusiasm, most likely due to Eurozone uncertainty sparked by the approach of tomorrow's Spanish bond auction. A strengthening dollar is adding to the downward bias of precious metals," Marc Ground, analyst with Standard Bank, said in a note to clients.
The U.S. Mint sold 210,500 ounces of gold coins in the first three months of 2012, down 29.7% from 299,500 ounces in the same period of 2011.
"Weak demand in gold coins and bars may be partly due to higher prices... Without robust retail demand, gold may find it difficult to rally," HSBC Securities (USA) Inc.'s analyst James Steel said in a research report.
Elsewhere, market participants continue to watch Comex's silver stockpile, which increased to 140.12 million troy ounces Tuesday from 139.54 million troy ounces a day earlier.
"This points to currently plentiful supply on the global silver market and is likely to block any significant price rises in the near future," analysts at Commerzbank said in a note.
Silver for May delivery, the most actively traded contract, was recently down 21.9 cents, or 0.7%, at $31.455 a troy ounce on the Comex.
--By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-18-12 0913ET
http://news.tradingcharts.com/futures/7/4/177161447.html
PRECIOUS METALS: Gold 1652.50, Silver 31.82 Slips As IMF Comments Boost Dollar
Apr 17, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold down 0.3% at $1,644.90/oz
--IMF warned that the euro zone risks a 'prolonged period of deflation'
--Spain successfully sells short-term debt, but at higher interest rates
--Comex silver hoard at 10-year high amid low demand for the metal - TD Securities
NEW YORK (Dow Jones)--Gold futures moved lower as a result of the International Monetary Fund's warning that the euro zone risks a "prolonged period of deflation," which pushed the euro lower against the dollar.
The most-actively traded contract, for June delivery, was recently down $4.80, or 0.3%, at $1,644.90 a troy ounce on the Comex division of the New York Mercantile Exchange.
The IMF urged the European Central Bank to cut its main policy rate and maintain its range of non-standard measures to support the banking sector, in two special chapters in the new edition of its World Economic Outlook.
"It is...critical to break the adverse feedback loops between sub-par growth, deteriorating fiscal positions, increasing bank recapitalization needs and deleveraging, which raise the risk of a prolonged period of deflation," the IMF wrote.
The IMF also said that Italy faces a tough 2012 as fiscal adjustment will weigh on growth, and that Spain must follow through on its plans with labor and bank policies.
"With all the nasty stuff [the IMF] said about the European countries, you did get a bump up in the dollar and it pressured all the precious metals," said Bob Haberkorn, senior commodities broker with RJO Futures.
Gold, which is priced in dollars, seems more expensive to investors who hold other currencies when the U.S. currency rallies, damping their interest in the precious metal.
Earlier in the day, the dollar was trading flat against the euro after Spain held a successful short-term debt sale. Spain paid nearly double the borrowing costs compared to a similar debt sale last month, but sold more debt than planned at the treasury-bill auction.
Spain's success cooled worries that the euro zone's fourth-largest economy will be unable to manage its debt load and may require rescue financing to avoid a messy default.
"Jitters over the debt crisis in the monetary union are far from over and this could be potentially gold supportive in [the second quarter of 2012]," Andrey Kryuchenkov, commodities analyst with VTB Capital, said in a note to clients. "Many still doubt that Madrid can implement the necessary budget cuts without the situation spiraling out of proportion in an economy that is already suffering from high unemployment and negative growth rates," Kryuchenkov said.
On Friday, Comex warehouse stocks of silver touched a high of 141.59 million ounces, their highest level in at least 10 years, according to traders at TD Securities. At close of business Monday, silver stored at the five depositories approved by Comex had receded to 139.54 million ounces.
The massive hoard of silver "signifies that both silver demand and premiums are very low," TD Securities said in a note.
Comex silver for May delivery was recently up 37.7 cents, or 1.2%, at $31.750 a troy ounce.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-17-12 1044ET
http://news.tradingcharts.com/futures/3/0/177103103.html
DJ PRECIOUS Gold 1649.00, Silver 31.41 Looks To Dollar, Stocks For Direction
Apr 16, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold down 0.2% at $1,656.40/oz
--ICE Dollar index near flat as greenback under pressure from other currencies
--Stocks climbs, boosting gold
NEW YORK (Dow Jones)--Gold futures pared losses Monday as the dollar struggled against other currencies and as equity markets moved higher.
The most actively traded contract, for June delivery, was recently down $3.80, or 0.2%, at $1,656.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold had touched a low of $1,642.00 a troy ounce overnight, but prices shook off these losses as the U.S. trading day drew near.
"We anticipate gold physical buying to come to the fore should gold dip below $1,640," said analysts at Standard Bank.
Currency markets are playing an active role in setting the direction of gold prices. Gold strengthened as the dollar lost ground against a basket of international currencies. The ICE US dollar index was recently near flat at 79.923.
Earlier in the morning, the euro had slumped close to the $1.30 mark against the dollar.
"That development certainly did not help gold," said Jon Nadler, senior metals analyst with Kitco Metals Inc. North America in a note to clients.
Gold futures are priced in dollars and seem less expensive to investors using other currencies when the greenback weakens.
The Standard & Poor's 500 stock index stepped higher, recently up 0.5% at 1376.77. Gold and stocks have been moving in the same direction for much of the past six months, raising questions about gold's role as a safe harbor from economic uncertainty and as a hedge against risky assets like stocks.
The 20-day average correlation between gold futures and the S&P500 was recently at +0.28, on a scale where +1 means a perfect direct relationship.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-16-12 1006ET
http://news.tradingcharts.com/futures/8/8/177039188.html
this is good news, but we need to hear about the copper side of things
DJ Gold 1667.70, Silver 32.04 Falls As Dollar Gains On EU, China Worry
Apr 13, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June falls $9.10, or 0.5%, to $1,671.50 a troy ounce
--Slower-than-expected China economic growth hits sentiment
--Spain worries send investors into U.S. dollar, weighing on gold
NEW YORK (Dow Jones)--Gold futures fell on Friday, as more worries about Spain's financial system and slowing growth in China sent nervous investors into the U.S. dollar, limiting demand for the precious metal as an alternative asset.
The most actively traded contract, for June delivery, fell $9.10, or 0.5%, to $1,671.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
The dollar climbed against currencies of some major U.S. trading partners on economic worries about Europe and China, dragging on dollar-denominated gold by making the futures appear more expensive for buyers using other currencies.
"Gold is struggling with the stronger dollar," said Frank Lesh, a broker with FuturePath Trading.
European equities markets were rattled on Friday by the news that Spanish banks' borrowing from the European Central Bank nearly doubled in March from February, raising concerns about the supply of cash in the country's financial system.
And in China, a reading on growth came in slower than economists were expecting, a potentially worrying sign from the world's second-largest economy, and a key gold buyer. Gross domestic product grew 8.1% during the first quarter from a year earlier, slower than the 8.9% recorded in the fourth quarter and expectations for a reading of 8.3%.
"The worse-than-expected Chinese GDP numbers are weighing on sentiment," said Marc Ground, an analyst with Standard Bank, in a note. "A weaker Chinese economy could see jewellery demand fall," but it could also prompt Beijing to increase its support for the economy, "which would be to the benefit of precious metals."
Gold futures settled at their highest price in more than two weeks on Thursday, buoyed by expectations that the Federal Reserve would hold to its accommodative monetary policies after comments in recent days from a pair of key leaders at the central bank.
Such easy-money policies can send investors into gold and other precious metals as a hedge against the potential weakness they can bring to paper currencies.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
(END) Dow Jones Newswires
04-13-12 0951ET
http://news.tradingcharts.com/futures/4/5/176915754.html
Spot Gold 1575.70, Silver 32.45, Gains After US Stocks Open Higher
Apr 12, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June contract rises $12.80, or 0.8%, to $1,673.10 a troy ounce
--Gold takes cues from rising US equities after markets open
--Jobs data, NY Fed president's comments underline expectations for easy-money policies
--Indian physical buying slows following initial increase after end of jewelers' strike
NEW YORK (Dow Jones)--Gold futures reversed their modest early losses on Thursday, rising along with U.S. equities markets as disappointing economic data underlined expectations that the Federal Reserve would hold to its accommodative monetary policy.
The most-actively traded contract, for June delivery, rose $12.80, or 0.8%, to $1,673.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
Claims for U.S. unemployment benefits last week rose by more than economists were expecting. A stumbling U.S. economic recovery can boost gold by increasing the odds that the Federal Reserve will hold to its policies designed to boost the economy, potentially weakening the U.S. Dollar and increasing demand for alternative assets.
Also Thursday, Federal Reserve Bank of New York President William Dudley said it was too soon to say the U.S. economy was out of the woods.
Gold was "following stocks up" after U.S. equities markets opened, said George Gero, a vice president and precious-metals strategist with RBC Capital Markets, in a note, on the weaker jobs figures and expectations for a lackluster reading on growth.
Silver, which also tends to benefit from expectations for easy monetary policy, was up 2.7% at $32.365 a troy ounce.
Physical demand for gold, analysts said, picked up after prices fell to 12-week lows last week, but remains inconsistent. Suki Cooper, an analyst with Barclays, said in a note that buying in India has slowed after its initial rise following the suspension of a jewelers' strike there.
"In order for the gold bull market to remain healthy, strong emerging markets buying--particularly from China and India--is necessary," said James Steel, an analyst with HSBC, in a note.
China and India are the top two consumers of the precious metal.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
(END) Dow Jones Newswires
04-12-12 1047ET
http://news.tradingcharts.com/futures/1/7/176860671.html
NWM produces 4,761 oz. in Q1, 2012
See the latest press release providing an update. The Lluvia-Jojoba gold mine is now commissioned and cash-flow positive. We sold 4100 ounces of gold at a weighted average price of $1640 for total proceeds of $6,725, 735 with another 1137 additional ounces of gold poured and ready for refining.
Our cash costs for Jan and Feb were $1235 per ounce with costs projected to come down as production rates go up. This is a great start and a wonderful buying opportunity for a stock that is going to go up. Good luck to all longs.
http://finance.yahoo.com/news/nwm-produces-4-761-oz-130000876.html
Gold 1659.60, Silver 31.59 Pauses As Traders Weigh Europe
Apr 11, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June falls $1.50, or 0.1%, to $1,659.20 a troy ounce
--Global equities gain on pause in escalation of worries about European debt
--Gold has gained for three sessions on end to Indian jewelers strike, bargain buying
NEW YORK (Dow Jones)--Gold futures held near steady on Wednesday, falling slightly as investors weighed the demand outlook for the precious metal amid the latest set of worries about Europe's financial stability.
The most actively traded contract, for June delivery, fell $1.50, or 0.1%, to $1,659.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
European and U.S. equities markets gained on Wednesday after a drop in Spanish and Italian borrowing costs eased worries that the euro zone could be heading toward a credit crunch.
Spain's borrowing costs have climbed this month, renewing concerns that the euro zone's crisis-fighting measures may not be enough to prop up the economies of some of its more debt-laden members. Gold can benefit as investors seek alternative assets because of economic turmoil, and the recent weakness in U.S. and European stock markets has drawn some investors to gold, analysts say.
"Supportive of gold is that fear is returning to Europe with Spanish banks back in the headlines," Steve Scacalossi, a vice president with TD Securities, said in a note.
Other analysts cautioned that it was too soon to expect investor nerves to fuel a gold rally.
"The impact on gold prices of a resurgence in euro-zone risk concerns is not straightforward," HSBC precious metals analyst James Steel said in a note. "Under typical circumstances, a rise in investor risk aversion is positive for gold, which is traditionally viewed as a safe-haven asset."
But since Europe's debt crisis began, Steel said, concerns about the continent have tended to send investors seeking safety into U.S. government debt, lifting the dollar and dragging on dollar-denominated gold by making the futures appear more expensive for buyers using other currencies.
Gold futures have gained for three consecutive sessions, as investors bet that last week's slump to two-month lows had pushed prices too low. Hopes for physical demand from top importer India also drew buyers after jewelers there ended a strike in protest of taxes on gold.
-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com
(END) Dow Jones Newswires
04-11-12 0945ET
http://news.tradingcharts.com/futures/9/7/176796379.html
DJ PRECIOUS METALS: Gold 1653.80, Silver 31.63, Steady As Traders Mull Bernanke, India
Apr 10, 2012 By Tatyana Shumsky Of DOW JONES NEWSWIRES
--Comex June gold near steady at $1,644.20/oz
--Bernanke avoids commenting on monetary policy in Atlanta speech Monday evening
--Indian jewelers stream back into the global bullion market, boosting gold
NEW YORK (Dow Jones)--Gold futures held near steady as investors weighed Federal Reserve Chairman Ben Bernanke's silence on monetary policy against continued support from India's jewelry sector as gold buyers there return from a 20-day strike.
The most-actively traded contract, for June delivery, was recently up 30 cents at $1,644.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
Bernanke avoided making any comments on monetary policy in his prepared remarks to the annual Financial Markets Conference in Atlanta on Monday evening. The remarks came just days after a disappointing U.S. employment report cast doubt on the strength of the U.S. economic recovery. Gold traders were looking for Bernanke to hint at potential ways to boost the economy, such as another round of monetary stimulus.
"The most-important thing that stuck out in my mind was that he said nothing about the current economic situation," said Jason Schenker, president of Prestige Economics. Schenker said he expects to see high market volatility around the next Fed meeting, scheduled for April 25.
Prior rounds of quantitative easing have been a boost for gold prices, as worries about future inflation and the potential for monetary stimulus to weaken the dollar boosted the allure of hard assets such as gold.
Gold also continues to benefit from physical demand for bullion as jewelers in India reopen their stores. Indian jewelers ended a 20-day strike last week, after industry leaders met with the country's Finance minister to discuss rolling back a recent increase on gold import taxes and a new tax on gold-jewelry sales.
However, jewelers have said the strike could resume if the tax rollback doesn't materialize by May 11.
"With the country in the peak of its gold-purchasing wedding season, we suspect that neither side wants a return to a strike, as Indian gold imports are already down by a third so far this year, undoubtedly not helping either side," Edward Meir, senior commodities analyst with INTL FCStone, said in a note to clients.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
04-10-12 1007ET
http://news.tradingcharts.com/futures/3/7/176735973.html
Spot Gold 1638.00 Silver 31.55, Rises On US Jobs Data, End Of India Strike
Apr 09, 2012 By Matt Day Of DOW JONES NEWSWIRES
--Comex June gold recently up $16.40, or 1%, at $1,646.50 a troy ounce
--Weaker-than-expected U.S. unemployment report seen increasing Fed stimulus odds
--End to gold jeweler strike in India likely to prop up imports
--Comex gold trading was closed Friday for Good Friday holiday
NEW YORK (Dow Jones)--Gold futures climbed on Monday, as an end to a jewelers strike in the world's top importer and the view that further Federal Reserve stimulus was more likely after a weak reading on the U.S. labor market drew buyers to the precious metal.
The most actively traded contract, for June delivery, was recently up $16.40, or 1%, at $1,646.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Comex gold trading was closed on Friday for Good Friday holiday.
Jewelers in India on Friday ended their strike after assurances that the government would consider their request for a rollback of new taxes on gold imports and sales.
"All shops have reopened," said Prithviraj Kothari, president of the Bombay Bullion Association, a trade group. "Gold demand should pick up," Kothari said, adding that imports are expected to rise in April and May.
India is the world's top gold importer, and the 20-day strike in protest of the new taxes weighed on global prices.
Gold's gains on Monday also came on the view that the Federal Reserve was more likely to hold to its accommodative monetary policies after a weaker-than-expected reading on U.S. unemployment. The U.S. economy added 120,000 jobs in March, well short of economists' forecasts for a gain of 203,000.
Some investors buy gold as a hedge against the declines in the dollar that easy-money policies can bring. The view that the U.S. central bank may be more likely to take new measures to support growth after the sluggish gains in employment in March propped up gold prices on Monday.
"The door to further quantitative easing remains ajar," analysts with Barclays said in a note, referring to central bank asset purchases.
Gold prices had climbed to just short of $1,800 a troy ounce in late February, fuelled by the view that quantitative easing was near. But futures retreated as surprising strength in the U.S. economy and comments from Fed chief Ben Bernanke were seen limiting the chance of further central bank stimulus soon.
"We're seeing calmer minds prevailing," said Matt Zeman, head of trading with brokerage Kingsview Financial. "The selloff was probably overdone, and the outlook for gold in terms of interest rates remains kind of bullish for the foreseeable future."
-By Matt Day, Dow Jones Newswires; 212-416-4986;
matt.day@dowjones.com
--Tatyana Shumsky, Biman Mukherji and Debipasad Nayak contributed to this article.
(END) Dow Jones Newswires
04-09-12 0924ET
http://news.tradingcharts.com/futures/4/7/176674874.html
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Construction of the new leach pads SW-1 and SW-2 is nearing completion. The collection pipes (tubes that facilitate flow of solutions to the recovery plant) are almost finished.
A north view of SW-1 and SW-2 leach pads showing the ADR and SART plants in the background. Trucks in foreground are hauling ore and waste to their respective stockpiles. The new laboratory facilities have been constructed and the lab is now operational. Current lab throughput is 80 samples per day. With new equipment on order, the lab will be able to complete several hundred samples on a daily basis.
Westerly view of the newly completed laboratory (with an inset of the lab crew). The field office is in the background on right side, and the solution ponds to the left.
Last week, the mine shipped to the smelter its first gold button for 2010. The doré button is believed to contain approximately 200 oz. gold and 200 oz. silver. It is appropriate that the last few days of this year should open a new era for the Lluvia de Oro gold mine. NWM Mining Corp. and MCM, its Mexico subsidiary, are very excited about the coming New Year and the things we expect to accomplish here.
A photo of the December gold pour, with an inset photo of the doré button shipped to the smelter.
Christmas to New Year is a time of great celebration throughout Mexico. The staff and crews, and their families, joined in the Company's first company-wide, year-end celebration this past weekend. A great time enjoyed by all, with an attendance of about 200 persons. This week - it is work as normal, but the Company will slow down for a few days to allow its workers to spend precious time with their families.
From all of us - to all of you - we wish you Happy Holidays and a very prosperous New Year!
A composite photo of part of our Lluvia-Jojoba field personnel. Upper left: the day shift drill crew; Upper right: part of the SW-1 and SW-2 construction crew; and, Lower Photo: the field office staff, managers and associated workers that compose but a part of a larger family of dedicated persons that will be here to continue the work in the New Year.
Prepared by Rodney A. Blakestad, C.P.G., Qualified Person.
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