Category: Gold news

(Kitco News) – Large speculators again cut their net-long gold and silver futures and options holdings on the Comex division of the New York Mercantile Exchange in the latest Commodity Futures Trading Commission data for the week ended Sept. 2, following the same action seen in the previous week’s report.

These traders’ activity in platinum group metals and copper was mixed between the legacy and the disaggregated reports, with non-commercial traders returning to a net-short position in copper’s legacy data.

Metals prices fell during the time period covered by the latest CFTC report. Comex December gold fell $20.20 to $1,265 an ounce. December silver slid 30.7 cents to $19.152. October platinum dropped $10.70 to $1,408.90 an ounce. December palladium fell $6.90 to $883.25. Comex December copper slid 5.75 cents to $3.1550 a pound.

Managed-money traders narrowed their gold net-long position for the third straight week in this report, with their holdings now standing at 74,031, which remains the smallest since June 17. These traders cut 2,533 longs and added 16,171 gross shorts. Producers’ and swap dealers’ net-short positions fell as they both added gross longs and cut gross short positions.

The non-commercial traders in the gold legacy report took the same strategy as seen in the disaggregated report. They cut 2,908 gross long contracts and added 16,900 gross shorts. They are now net-long 105,824 contracts, also the smallest since June 17. Commercials are net-short and trimmed that position by cutting gross shorts and adding gross longs.

The move to cut gross longs and add gross shorts is considered bearish, analysts said.

Alexander Thorndike, senior precious metals and foreign exchange dealer at MKS (Switzerland) SA, said open interest in the Comex futures and options is close its lowest in five years, which reflects how “gains in the U.S. economy, dollar and equities curb investor demand.” In this week’s CFTC data, he noted the net-long position in gold declined 20%, and short holdings betting on a drop increased 44% during the same period.

Bart Melek, head of commodity strategy at TD Securities, said gold speculative traders aggressively cut net-long positions based on favorable U.S. economic data and reduced exchange-traded fun participation. “Investors also positioned towards the short side as they feared a technical breakdown amid a weak precious metals sentiment,” he said.

UBS analysts said looking at the legacy report, the build in gross shorts was the second-biggest weekly increase for 2014. The biggest was in late May, and they noted “this laid the foundation for gold’s rally in late June/early July. Gross shorts, as of the Sept. 2 count, now amount to a weighty 11.2 moz (million ounces), just 2 moz shy of the YTD (year-to-date) high. Gold’s opportunity up ahead is the strong potential for a short-covering rally. Gold’s two sizeable rallies this year, in March and July, originated from short covering – this is gold’s strongest lifeline right now,” they said.

Managed-money accounts in silver trimmed their net-long positions and the current report is now the seventh consecutive week they have cut their net-long position. They are net long 6,264 contracts, having added 189 gross longs and 7,643 gross shorts; the net-long remains the smallest since June 17. Producers decreased their net-short positions by cutting more gross shorts than gross longs. Swap dealers also reduced their net-short position by cutting gross shorts and adding gross longs.

In the legacy report, non-commercials added 3,020 gross longs and 7,394 gross shorts, dropping their net-long position to 19,035 contracts. This is also the smallest since June 17. Commercials are net-short and decreased that position by cutting more gross shorts than gross longs.

UBS said speculators’ short silver position is up by 50.5% in the past three weeks, and at 270.5 million ounces, it is at 81.8% of the all-time high from early June. “Like gold, the potential for a short-covering rally is quite high,” they said.

Managed-money accounts in platinum decreased their net-long position to 27,793 contracts by cutting 1,806 gross longs and adding 3,291 gross shorts. Non-commercials in platinum lowered their net-long position to 39,467 contracts in the legacy report, and did so by cutting 733 gross longs and added 3,946 gross shorts.

Large speculators’ net-long palladium holdings rose in the disaggregated report to 23,226 contracts, the highest since Nov. 19, as they added 1,138 gross longs and cut 251 gross shorts. The palladium legacy report saw non-commercials add 801 gross longs and cut 278 gross shorts, raising their net-long to 26,924 contracts, the highest since mid-November 2013.

Koun-Ken Lee, analyst at Standard Chartered, said the speculators’ split between the two platinum group metals highlights “platinum’s exposure to Europe and palladium’s exposure to Russia.”

Managed-money accounts boosted their net-long copper position to 17,411 contracts, arresting five weeks of position trims. They added 3,561 gross longs and cut 5,193 gross shorts. Large speculators returned to being slightly net-long copper, following two weeks of being net-short. They are now net-long 34 contracts in copper’s legacy report. These traders added 2,359 gross longs and cut 3,914 gross shorts.

Lee said copper found support from above-consensus U.S. housing data.

Investors hoping the Indian wedding season will deliver a boost to the languishing gold price are likely to be disappointed, analysts say.

Traditionally gold has rallied in September as the world’s second-largest gold buyer India stocked up on the yellow metal ahead of the Indian wedding season around Diwali.

In the last quarter alone India bought 204 tonnes of gold, coming in at a close second to the combined purchase from China, Hong Kong and Taiwan at 208 tonnes, according to the latest report from the World Gold Council. The report found more than a quarter of the Indian demand for gold came in the form of jewellery.

Despite the physical demand out of India, the gold market was likely to remain on the bearish side due to the slow demand from China, ANZ analysts Victor Thianpiriya and Mark Pervan said.

Spot gold has declined more than 5 per cent since July, and was fetching $1268.92 this morning.

“As demand from China remains lacklustre, a further move lower in prices will be required to stoke interest from the key consumer,” ANZ analysts said in a note.

ANZ forecast the gold price to plunge further to $US1180 by the 2014 year end and rebound slowly to $US1250 in 2015.

UBS commodity analyst Daniel Morgan said the gold price was likely to remain on the downside given the strength of the US economy, which has a bearish impact on the commodity price.

But some investors remained hopeful for the future of the commodity.

A combination of factors including rising inflation in the US, increased geopolitical risks and the beginning of the festive season in India were likely to drive the gold price up, Investec Asset Management said.

Gold trader ABC Bullion chief economist Jordan Eliseo was also more bullish for the precious metal, forecasting the price to rebound to $US1300 by December 2014.

“You look at a picture of any Indian bride and you will tend to find them adorned with gold and other precious metals. It’s important to point out Indian citizens are used to saving in gold regularly around the wedding season, so there is traditionally a pick up in gold demand around religious and cultural festivals,” Mr Eliseo said.

To date the physical demand has not translated to a rise in the gold price due to the strengthening US dollar, he said.

Gold fell to its lowest level in two and a half months on Tuesday, down from a key support level at the low in August, with the rise of stock markets and the rise of the dollar to its highest level in a year against the euro ahead of a meeting of the European Central Bank this week.

The metal support is derived from concerns about the confrontation between Russia and the West over Ukraine and Middle East unrest, but the strength of the dollar and stocks and weak demand in the market present in China and India rescinded impact.

Gold fell in the spot market 1.4 percent to 1268.83 dollars an ounce at 1311 GMT, having fallen earlier to its lowest level since mid-June to $ 1265.10.

The futures fell for gold in the United States for December delivery December to $ 17.60 to $ 1269.70 an ounce.

And accelerated after the sale of gold fell below support at 1273.06 dollars an ounce struck on 21 August.

And silver declined in the immediate contracts 1.3 percent to 19.2 dollars per ounce as platinum fell 0.6 percent to 1408.74 dollars an ounce.

And palladium fell two percent to 885 dollars an ounce, after rising in the previous session to its highest level in 13 years and a half year due to concerns that affect the turmoil in Ukraine on supplies coming from Russia’s largest producer of the metal in the world

Gold slipped Friday, sapping earnings slightly this month with European stocks recovered from landing at the previous meeting and weak demand for the precious metal.

Investors worried about the continued tensions between Russia and Ukraine after Kiev said Thursday that Russia had troops to its territory. But the impact of the escalation of the conflict was not enough for continued high gold prices.

By 0951 GMT gold price hostel at 0.3 percent to $ 1286.10 an ounce, while the decline in u.s. futures contracts December 3.40 dollars to 1287 dollars per ounce.

Prices of the yellow metal has risen 0.4 percent since the beginning of the week after I went down to the lowest level in two months, 1273.06 dollars an ounce last week.

European stocks increased 0.2 percent to recover some of the losses incurred in the previous meeting, although they squandered the gains achieved in early dealings with the data of inflation in the euro zone, which reduced expectations almetaamiln taking the European Central Bank’s new measures of monetary loosening.

Silver fell at 0.4 percent to 19.51 dollars an ounce.

Platinum climbed 0.1 percent to 1421.49 dollars while Palladium down 0.3 percent to 890.60 dollars an ounce

International Monetary Fund Data showed that Russia boosted its holdings of gold for the fourth consecutive month in July as it added 10.6 tons to its reserves, while Moscow is facing Western sanctions affected its financial institutions.

The data indicated issued, on Monday, that Russia’s holdings of gold amounted to 1105 tons at the end of July.

The owner of Russia’s fifth-largest gold reserves in the world, after the United States, Germany, Italy and France.

The United States imposed the American and European Union economic sanctions on Russia, since Moscow’s annexation of the Crimea, which was separated from Ukraine in March / March, to escalate the sanctions since then, to include the Russian banks and ban the export of goods, to respond similarly Moscow.

The data Oofaqa Turkey trimmed its holdings of gold rose 4.3 tonnes to a record 508.67 tonnes, while Turkey is a gold bullion deposited by commercial banks as part of the holdings of the central bank.

And trimmed Belarus reserves 5.45 tons in June and July, bringing its total holdings to 38.9 tons.

Gold rose on Tuesday after a stop that led to the rise of the dollar wave of purchases in the precious metal due to technical factors, but eased some gains with investors turning to buy stocks amid hopes that the European Central Bank to take more stimulus measures and following a strong American economic data.

After surging 1 percent, to 1290.80 dollars per ounce in early trading with the activation of purchase orders automatically when you penetrate the moving average of the two hundred day above 1280 dollars decline in the price of gold for immediate sale to 1283.55 dollars in late trading on the American market, a high level of 0.6 percent from the previous close .

And increased futures American Gold for December delivery in December $ 6.30, or the equivalent of 0.5 percent to a record settlement at 1285.20 dollars an ounce.

The yellow metal prices rebounded from the lowest level in two months of 1273.06 dollars which was recorded last Thursday amid speculation the lifting of American interest rates.

Among other precious metals, silver rose in online transactions 0.5 percent to 19.43 dollars an ounce, boosted by gains gold and recovering from its lowest level in two months of $ 19.25, which landed him on Thursday.

And ascended platinum – which touched its lowest level since the fifth of May, when 1407.30 dollars last week – 0.4 percent, to 1413.25 dollars an ounce, while declining palladium 0.6 percent to 882.20 dollars an ounce after hitting earlier in the level of at least $ 0.75 only from the highest rate in 13 years and a half from the previous week and $ 900

Gold prices rose for a third day in a row with the support of poor economic data and continuing global geopolitical tension.

Gold prices recorded in early trading levels of $ 1315.62 an ounce buckling that achieved the highest at $ 1316.52 and the price compared to open today at $ 1311.93 per ounce.

US data came in a manner worse than expected, with retail sales index was unchanged after five months of continuous growth, which brought investors to think about the movements of the Fed with diminished speculation that tends to raise interest rates in early.

In any case, global central banks resumed again to adopt expansionary policies and in light of the mixed economic activities, the Bank of England announced yesterday that he is not in a hurry to raise interest rates, while the European Central Bank to adopt expansionary policies to support the growth of deep zone.

Geopolitical tensions still support higher gold prices hovering around levels of $ 1,300 an ounce, in light of the weakness of the actual demand for the precious yellow metal from China and India, especially as the latter continues to impose high customs tax on imports of gold.

For the situation in the Middle East, where the two sides agreed on the Palestinian and Israeli D new truce for five days, as announced at the Kiev acceptance of humanitarian aid, but a Russian trap that the Red Cross distributed within conflict zones.

The dollar index rose to the highest level since September 2013, recording 81.75 in light of the weakness of the euro after it fell as a result of the continued negative data, which was most recently a contraction of the German economy worse than expected in the second quarter.

Today await the announcement of the weekly jobless claims from the United States at 12:30 GMT.

Gold prices have become subject to fading geopolitical tensions, which undermines the safe-haven demand for the precious metal.

Precious metals continue to search for the direction of the center is used by traders assess the possibility of renewed regional tensions. Ambiguity surrounding the status quo in Eastern Europe would strengthen some safe-haven demand for gold in the near term. However, that any potential expiration of the storm will make the precious metals are prone to test correct in light of the merchants out of the sites that have been entered as a result of fear.

It is possible to provide in-depth reading of the US retail sales is some evidence of directional went through their effects on the dollar. Despite the recent improvement of the American data, did not become the policy of the Federal Reserve forecasts are more optimistic. It is possible to leave this matter to the Green lacks the catalyst necessary to maintain the progress and push gold to breathe a sigh of relief.

Technical Analysis for gold-price movements continue unclear tighten its control over the gold after a failed attempt to breach the ceiling 1319. The decline of Fib 61.8% based upon 1319 led to constitute a pattern Shehab. However, she could not signal reflection cohesion in order to warn of the possibility of the emergence of a marked correction at this stage. This will pave the penetration level in 1300 down the road for the emergence of an extended decline towards 1280.

Gold prices traded within a narrow range in early trading and traded below the highest level in three weeks, in light of concerns about the decline in geopolitical tensions in the Middle East and Ukraine, while the weakness of the actual demand does not support the gold markets yet

American investors awaited data later in the day. Gold prices recorded levels of $ 1308.02 an ounce after an hour of writing transactions that began today at $ 1308.15 per ounce.

Gold prices rose on Friday to the highest level in three weeks at $ 1,322.53 per ounce after the United States agreed to military strikes on areas under the control of an Islamic state in Iraq. Declining concerns about geopolitical tensions after negotiations resumed between the Palestinian resistance and the Israeli occupation army and extending the truce period after Gaza was subjected to brutal bombing of the Israeli army killed hundreds. As for Ukraine announced that it is approaching the end of its military operation around the city of Donetsk in eastern Ukraine after they surrounded the separatists in that city, while impeding the entry of Russian humanitarian aid to areas under the control of insurgents.

Demand is still weak in the gold markets so still swings around levels of $ 1,300 with the support of international political tension. Gold has risen since the beginning of this year by about 8% since the beginning of this year, and even now with the support of the global political tension and trimming of the drop experienced in 2013 after losing a third of its value in the light of speculation withdraw stimulus from the Fed. Markets are looking forward to today’s announcement of retail sales in the United States during the month of July amid expectations that achieved growth for the sixth month in a row has been recorded level of 0.2%.

US data still reflect the strong pace of growth of the American economy in exchange for negative data from the euro zone, which is located in the favor of the dollar yet. The dollar index record levels near the highest level in five months at 81.63 from the opening level of the day at 81.54.

Gold prices have tended to fall with support from the easing of tension in Ukraine, Russia and Iqbal to end the military exercises in the Astrakhan region bordering Ukraine.

The price of gold has risen by 9% during the current year with the support of the escalation of violence in Ukraine, the Middle East, which contributed to enhance the attractiveness of the metal.

The agency reported that the Bloomberg Gold futures for December delivery fell 0.2 percent to 1,308.80 dollars an ounce in mid-session at the Comex in New York Stock Exchange.