Category: Gold Prices

Gold slips to near one-week low

Gold held near its weakest level in almost a week on Thursday, after declines in holdings of exchange-traded funds, equities and other commodities overshadowed the US Federal Reserve’s decision to maintain its loose monetary policy.

Although the Fed’s money-printing to buy assets could stoke inflation, gold has been overwhelmed by fears of sales by central banks and daily outflows on global bullion ETFs, sending holdings to their lowest since their lowest since September 2009.

Gold fell $2.93 an ounce to $1,453.81 by 0348 GMT, having shed more than 1 per cent in the previous session — its biggest daily drop since bullion’s historic decline in mid-April. It hit a low of $1,439.74 on Wednesday, the weakest since April 25.

Prices dropped $225 an ounce between April 12 and 16 on fears of a withdrawal of the Fed’s monetary stimulus and after the European Central Bank and the International Monetary Fund asked Cyprus to sell reserves as part of a bailout deal.

Gold slips to near one-week low

ETFs holdings lowest since September 2009

Reuters
Published: 14:42 May 2, 2013
Gulf News

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Singapore: Gold held near its weakest level in almost a week on Thursday, after declines in holdings of exchange-traded funds, equities and other commodities overshadowed the US Federal Reserve’s decision to maintain its loose monetary policy.

Although the Fed’s money-printing to buy assets could stoke inflation, gold has been overwhelmed by fears of sales by central banks and daily outflows on global bullion ETFs, sending holdings to their lowest since their lowest since September 2009.

Gold fell $2.93 an ounce to $1,453.81 by 0348 GMT, having shed more than 1 per cent in the previous session — its biggest daily drop since bullion’s historic decline in mid-April. It hit a low of $1,439.74 on Wednesday, the weakest since April 25.

Prices dropped $225 an ounce between April 12 and 16 on fears of a withdrawal of the Fed’s monetary stimulus and after the European Central Bank and the International Monetary Fund asked Cyprus to sell reserves as part of a bailout deal.

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“People are more wary as gold has been trading within the same trading band. Moreover, Europe has agreed on a loan deal for Cyprus, and one of the terms state that assets in gold might be sold,” said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore.

“But this is unlikely to be sold on the open market. I believe another central bank will be buying it. China’s physical demand is still strong. This morning they are most probably keeping a lookout to see where the market is going before purchasing.”

U.S. gold for June delivery stood at $1,453.40 an ounce, up $7.20.

In its statement following a two-day meeting, the Fed reiterated it would continue to buy $85 billion worth of bonds each month to support a moderately expanding economy that still has too high an unemployment rate.

But instead of rallying on the news, gold tracked other markets lower on renewed worries over the Chinese and U.S. economies after the latest economic data from both countries raised doubts about the strength of the global economy.

China’s factory-sector growth eased in April as new export orders fell for the first time this year, a private survey showed on Thursday, suggesting the euro zone recession and sluggish U.S. demand may be risks to China’s economic recovery.

Investors turn their attention to the closely watched non-farm payrolls report on Friday, which will signal the longer-term prospects for the Fed’s monetary stimulus.

The U.S. economy is likely to have added 145,000 jobs. March’s number fell far short of expectations at 88,000, triggering a sell-off in riskier assets.

Physical market

Physical market activity slowed after a recent surge in the purchase of gold bars, coins and nuggets across Asia sent premiums for gold bars to multi-year highs.

Dealers expected second-largest consumer China to look for bargains as markets resumed trading after a three-day holiday, but the physical market in Hong Kong was easier than a week ago, as new supplies arrived.

“Supply is a bit better, because demand has also slowed down a little bit. Premiums for gold bars are still steady at $3 an ounce,” said a dealer in Hong Kong, which is China’s main source for gold imports.

Gold’s historic sell-off last month has widened a disconnect between funds that sold on dissatisfaction over bullion’s underperformance and individual investors who could not get enough physical gold coins and bars at bargain prices.

In other markets, growing doubts over the health of global economies pushed Asian shares lower on Thursday, adding to investor caution before a European Central Bank meeting that could see interest rates cut to support growth.

May 2, 2013
Are Gold Prices Reaching the Bottom?
It is hard to tell whether a commodity has reached its bottom price or not. Considering this July’s trend, the cost of gold has seen such decline that it’s impossible not to wonder whether this is the lowest it gets to or not. Mining investment strategists are being constantly asked this question.

Why One Shouldn’t Worry about the Market Bottom

Timing a market is not something that can be done, though, which renders the questions useless.

There is the well-known story of Doug Casey and about the bottom ticking of the market in the ’70s. Doug Casey worked as a broker and had to deal with a client’s order who later denied the purchase. The broker committed to his own advice and purchased the shares then in his name. Right at that moment the market hit the bottom. Doug Casey, however, had no idea of what was happening with the market that day. He knew about the good prices and the fine stocks, but that was all about it. In any case, it was enough to make a clever speculation.

In 2001, a similar event happened. It was another bottom for the market; Sprott Global’s Rick Rule was very early with his investment, considering the bottom. However, the return was a stunning 20:1. Rick Rule did not try to time the market; his only interest was to buy for a low price. Therefore, one can make a great amount of money without even trying. No speculation is the guarantee to getting rich.

The Winning Scheme Today

Sometimes we have to choose between preserving money and making money. When choosing the first, we make no speculation and no move on the market. Casey Research has been recommending a special model designed for the crisis, which would consist of:
- 33% equities,
- 33% liquidity,
- 33% gold.
Some who are aware of the gold price in Dubai today are investing much more in gold, because trends, experience and past events have shown that such moments are ideal for an investment in precious metals.

Soaring Demand in Asia

This is a time for intense speculations. Many prefer to keep an eye on the gold price in Dubai today because the Asian market is where a lot of moves are happening at the moment. The gold demand in Asia is about to hit a record. The World Gold Council has confirmed the trend and Western investors became confused by this situation. The physical gold demand grew a lot stronger. In the second quarter of the year, more records are expected. In April, net gold imports into China were up to 170 tonnes and could go beyond 800 tonnes. In India, the demand is expected to be between 860 and 960 tonnes, as it was forecast for this year.

Letting the Asian Market Inspire the Next Move

Here is another tip from seasoned investors and financial observers: you can analyze an Asian market – for example you may check the gold price in Dubai today to see the trends and the current situation. It will inspire you greatly in your next move. You will compare the costs and also see the demand. The physical demand is not going anywhere lower, on the contrary. The next trend report will be published by the Council in mid-August. Starting with the historical moment if this April, the Western gold community is no longer that relevant when it comes to gold costs. It is the Asian era now. The paper markets in the east will also be going stronger than those in the west. The Easterners are buying gold regularly. Take a look at a daily gold chart and you will see the truth in this analysis.

Price Guidance Is Essential

There is much to learn from the Eastern charts, as Asia knows a real exposure to gold. If you take a look at the gold price in Dubai today, you will see the low values. Yet, the investors believe this won’t stay like this and the costs will begin to increase again. The US investments had a great involvement in the spring sudden drop, but now the wheel is turning and the East is making its influence known.

There is still plenty of time to take advantage of the good deals. It doesn’t really matter where the bottom is at this point; it is the cost and the opportunities. It is time to assess the situation. Keep in mind that buying low is not risky. You can start doing your own research and firstly you need good price guidance for this. Begin by reading the available news and watch the gold price in Dubai today.
April 27, 2013
Gold near two-year low; heads for fourth week of decline

Gold was little changed in cautious trade on Friday, heading for a fourth week of losses after this week’s historic sell-off shattered investors’ confidence in the typically safe-haven asset.

Gold investors are waiting for the release of U.S. CFTC commitment of traders data at 1930 GMT for more trading cues after funds dumped their holdings on global exchange-traded funds.

FUNDAMENTALS

* Spot gold added $1.60 an ounce to $1,392.35 by 0022 GMT, still within sight of a 2-year trough touched earlier this week. The metal recorded its biggest ever daily fall in dollar terms on Monday, catching gold bulls, speculators and veteran investors by surprise.

* U.S. gold futures were also little changed at $1,392.70 an ounce.

* Premiums for gold bars in Hong Kong, Singapore and Tokyo were at multi-months highs after the drop in prices ignited a spate of buying in gold coins, nuggets and bars.

* Investors in U.S.-based funds pulled $2.7 billion out of commodities and precious metals funds in the latest week as gold suffered a sharp selloff, data from the Thomson Reuters Lipper service showed.

* The largest exchange-traded fund (ETF) for bullion saw less money outflows than during the 2009 selloff, according to funds tracker Lipper.

* The euro zone will slow its budgetary belt-tightening to help reinvigorate economic growth, a top EU official said on Thursday, highlighting a policy shift the United States has long been pressing for.

MARKET NEWS

* Worries over global growth capped Asian share prices on Friday as more soft U.S. economic data and mixed U.S. earnings results further undermined investor sentiment already hit by a broad sell-off that started earlier in the week.

* The euro and yen started Asian trade on Friday in familiar territory having steadied from wild swings in a week that took a heavy toll on commodity currencies such as the Australian dollar.

* U.S. crude futures extended declines towards $86 a barrel on Thursday, hurt by a stronger dollar and lingering concerns over global demand for oil.

April 19, 2013
Gold rises with the appearance of buyers at low levels

Gold rose more than 1% during trading yesterday, as falling prices encouraged earlier to the lowest level in two years on more acquisitions in Asia, but the sentiment is still strongly influenced by the greatest losses of the precious metal in two days 30 years ago.

Investors continued to get out of index funds, fearing that the yellow metal has lost its luster as a safe investment tool and a means to hedge against inflation.

The price of gold for sale present 1.5% to $ 1394.60 an ounce at its highest level in the session, before retreating slightly to $ 1390.46 by 1530 GMT, after falling Tuesday to its lowest level since January 2011, when $ 1321.35.

The price of gold lost about $ 225 on Friday and Monday as a whole. Among other precious metals platinum price fell for sale present 1% to $ 1428.24 an ounce after scoring in the previous session, its lowest level since last August. The palladium price decline about 1 percent to $ 660.25 an ounce. The price of silver rose 0.4 percent to 23.50 dollars an ounce, after falling 12.6 percent on Monday.

April 18, 2013
Wave sharp decline impair the glitter of gold as a safe haven

should feel even more speculators on the rise of gold cheese after the precious metal fell through just two days to its lowest level in two years, which raises questions about the percentage that should be posed in gold purses.

After 12 years of successive annual gains, a Reuters poll showed in January to the views of 37 analysts that at the time expecting the arrival of a gold rally to the extent of the precious metal could hit record highs on average during the year and next.

Even though the banks had begun to retreat from gold forecast to exceed its record of $ 1920.30 per ounce and recorded in 2011 were the majority still prefer the possession of gold as an alternative currency and a hedge against inflation.

Then came the issue of Cyprus.

The assessment showed Cyprus financing needs prepared by the European Commission on the tenth of April troubled that the island will need to sell gold reserves to raise about 400 million euros to help finance part of the rescue package.

On the same day showed the minutes of the meeting of the Federal Reserve (central bank), the U.S. on 19 and 20 March that officials tend to end bond-buying program catalytic end of the year, which in turn will ease inflationary pressures.

Gold fell 1.6 percent, but appeared to be settled in the next day before falling by 5.2 percent and 8.4 percent on Friday and Monday, respectively, in a move that over two days was most striking in 30 years.

The price of around $ 1380 per ounce by 1650 GMT on Tuesday after he began Friday’s trading above $ 1560 an ounce.

Said Pedro de Noronha, co-director at Nustr Capital in London, “We were lucky to get rid of all of our long-fully at between $ 1560 and 1570 (an ounce) … we continue to watch but do not do anything at the moment.”

Investors rushed in ETFs for the disposal of investments.

Said Sean Corrigan, chief investment strategist at Diabason Commodities Management in Switzerland “I do not think that anyone thought that we will see this massive move and this quantum of sale. Has inflicted serious damage to investor confidence.”

They said Corrigan that the image of gold as a safe haven has been declining since some time because the factors that were usually drive the market to rise failed to do so and the Cyprus problem as an example.

The major investment banks lowered its forecast for gold prices in recent times. On April tenth, Goldman Sachs cut its forecast for the price of gold for the second time in six weeks and refer to the expectations of accelerating economic growth in the United States and weak prices in the last period.

Following the sell-be gold prices have fallen about 20 percent so far this year and about 28 percent since the boarding record in 2011.

And approved the Bank of America Merrill Lynch that the main drivers of the decline were fears of further sales from central banks in the euro zone after the proposal for Cyprus also exacerbate the decline due to selling by funds.

But he added, “is difficult to explain the collapse of the price of gold given to the traditional variables such as the trading price of the dollar or interest rates, which raises fears that the reputation of gold as an alternative to paper currency may have been damaged.”

However, it is still adopting a positive outlook on the future of the precious metal says that the formal sector – represented by central banks – are still keen to purchase if the benefit gold as a store of value easy trading in difficult times proved evident in the Cypriot proposal.

And said Daniel Pripnr, an analyst at Deutsche Bank, “the actions of central banks generally do not indicate that it will sell.

“I doubt that strongly influenced by the role of gold in this extreme volatility over those three days

April 17, 2013
Gold is recovering from its lowest level in a week because of Korea

Gold recovered on Thursday from its lowest level in nearly a week since boosted the escalation of tension on the Korean Peninsula, some of the demand for gold in Asia, but is likely to limit the gains of uncertainty on the program of the Federal Reserve (Fed) stimulus.

As you press the large flows of index funds that deal in gold bullion for the precious metal as well as the rise in stock markets and Cyprus plan to sell the surplus of its gold reserves to help finance part of a plan to save its ailing economy.

By 0606 GMT, gold record the lowest level since the fifth of April at $ 1553.10 an ounce before climbing to $ 1560.41 an ounce, up $ 2.27.

Gold fell more than one percent on Wednesday in the biggest loss suffered in a single day since Feb. 20.

Gold rose U.S. June delivery $ 1.50 registered $ 1560.30 an ounce.

Among other precious metals fell spot price of silver 0.14 percent to a record $ 27.57 an ounce.

Platinum fell 0.15 percent to $ 1520.74 an ounce, while palladium hostel 0.35 percent to $ 716 an ounce

April 12, 2013
PRECIOUS-Gold drops 1.5 pct on Fed stimulus fears, Cyprus

Gold fell 1.5 percent on Wednesday, its biggest one-day drop in 1-1/2 months, hit by signs that the U.S. Federal Reserve is inching closer to ending
its monetary stimulus program and by Cyprus’s plan to sell its gold reserves to raise cash.

Panic selling sent gold down to near $1,550 an ounce earlier in the session after European Commission documents showed Cyprus plans to sell 400 million euros worth of gold reserves to finance part of its bailout.

The metal later rebounded off its low as fears of more official-sector sales subsided. Central banks as a group had turned net buyers since 2010 as more emerging economies have added gold to their reserves as a hedge against credit risk.

Gold was also under pressure after minutes from the U.S.

Federal Reserve policy meeting in March suggested it was on course to end its extraordinary bond buying stimulus by year-end.
“The loose monetary policy around the world is clearly favoring more on equity investments instead of gold,” said Michael Cuggino, portfolio manager of the $15 billion Permanent Portfolio Funds.

Spot gold was down 1.6 percent at $1,559.80 an ounce by 3:29 p.m. (1929 GMT), its biggest one-day decline since Feb.

U.S. Comex gold futures for June delivery settled down $27.90 an ounce at $1,558.80 an ounce.

Trading volume was about 20 percent below its 30-day average, preliminary Reuters data showed.

The March payrolls report, which was released after the FOMC meeting was held, showed weakness in the U.S. labor market, prompting some analysts to express doubts about the probability of the Fed reducing, or ending, its bond-buying program early.

While the S&P 500 rose to a record high on Wednesday and was up 11.4 percent year to date, gold was down 7 percent in the same period.

CYPRUS SELLS GOLD RESERVES

Gold’s losses snowballed after news of the Cypriot plan to sell its gold, which marked the biggest euro zone bullion sale in four years.

Although the third Central Bank Gold Agreement (CBGA3) limits how much gold euro zone central banks can sell to meet financing needs, investors are now worried other heavily indebted euro zone members may also start selling.

“The amount mentioned, 10 tonnes, is not large – we’ve seen that on average come out of exchange-traded funds this year every week,” Macquarie metals analyst Matthew Turner said.

“But it’s the first euro zone country to have said it will do this for a while,” Turner said.Softer investor confidence in the metal after a fresh
outflow from the world’s largest gold exchange-traded fund and a second cut in Goldman Sachs’ gold-price forecast in less than
two months also weighed on prices.

“Funds are starting to think about their gold positions,” said David Lee, metal trader at Heraeus Precious Metals Management.
Among other precious metals, silver dropped 1 percent to $27.65 an ounce, after it rallied 2.5 percent on Tuesday for its biggest one-day rise since mid-February.

Palladium was down 0.8 percent at $718, sharply off an earlier three-month low, and platinum dropped 1.4 percent to $1,525.74 an ounce.

April 11, 2013
Gold stable thanks to shares and euro support

Gold settled above $ 1,570 an ounce on Tuesday, supported by rising stocks and a weak dollar is that the yellow metal found it difficult to recover from its lowest level in ten weeks, which struck last week.

And helped a positive start to the season results in the United States and the best Chinese inflation data received on the market European shares rise for the second day in a row and has supported the euro. This, in turn, contributed to enhance the appetite to invest in other assets, including gold.

Rose spot price of gold to $ 1573.86 an ounce by the time of 1220 GMT. The price of gold rose U.S. June delivery 0.2 percent to $ 1575.90 an ounce.

And prices received support from a weaker dollar have lost a quarter of a percentage point in front of a basket of currencies, though investors were cautious about the metal after scoring dropped sharply last week after U.S. jobs data are weak.

And increased Spot silver was up 0.6 percent to $ 27.43 an ounce.

Platinum rose 0.4 percent to $ 1537.99 while palladium Inn 0.2 percent to $ 728.22 an ounce

Gold restore losses on Tuesday to discuss the jewelery makers and speculators for bargains, but the metal is exposed to downward pressure after U.S. stocks rise ahead of the results of the work season, which is expected to show modest growth.

Speculators reduced net long positions with gold ignoring the tensions between the two Koreas, as investors transfer funds into equities in search of better returns despite concerns about the safety of the U.S. economy.

The inn spot price of gold to $ 1569.94 an ounce and then rose to $ 1574.39, up $ 1.30 from the previous close. The metal slipped to the lowest price in ten months last week after continued heavy selling of the metal part of the funds, despite unprecedented monetary stimulus from the Bank of Japan and hopes for further interest rate cuts from the European Central Bank

April 10, 2013
Gold price tumbles by Rs 190 in Delhi on stockists selling

Gold prices fell sharply in the national capital on Tuesday, falling Rs 190 to Rs 29,800 per 10 grams, extending Monday’s losses on continued selling by stockists.

Traders said increased selling by stockists triggered by a weak global trend as a stronger dollar reduced the appeal of the precious metal as an alternative investment, mainly influenced the sentiment.

In the global market, which normally set a price trend on the domestic front, gold fell by $9.60 to $1,572.70 an ounce, while silver by 0.18 per cent to $27.30 an ounce in New York in Monday’s trade.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 190 each to Rs 29,800 and Rs 29,600 per ten grams, respectively. It had shed Rs 40 in the previous session. Sovereign remained flat at Rs 25,100 per piece of eight gram.

On the other hand, silver ready after moving in a tight range on some support, held steady at Rs 52,200 per kg while weekly-based delivery inched up by Rs 20 to Rs 51,345 per kg.

Silver coins continued to be traded at last level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.

April 9, 2013
Gold snaps two-day gains on sluggish demand, global cues

NEW DELHI: Snapping a two-day rising streak, gold prices fell by Rs 40 to Rs 29,990 per ten grams in the national capital today owing to slackened demand at prevailing higher levels amid a weak global trend.

Silver followed suit and lost Rs 200 at Rs 52,200 per kg owing to reduced offtake by industrial units and coin makers.

Sentiment turned bearish after gold dropped in global markets as holdings in exchange-traded products declined and the dollar climbed, curbing demand for the metal as an alternative asset.

Gold in global markets, which normally set price trend on the domestic front, fell by 0.2 per cent to USD 1,577.51 an ounce and silver by 0.2 per cent to USD 27.27 an ounce in London.

In addition, sluggish spot demand at prevailing levels further fuelled the downtrend in precious metals.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 40 each to Rs 29,990 and Rs 29,790 per ten grams, respectively. The yellow metal had gained Rs 530 in the previous two sessions.

Sovereign held steady at Rs 25,100 per piece of eight gram in scattered deals.

Similarly, silver ready fell by Rs 200 to Rs 52,200 per kg and weekly-based delivery by Rs 215 to Rs 51,325 per kg. The white metal had climbed Rs 800 on Saturday’s trade.

However, silver coins continued to be enquired at last level of Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces.

April 9, 2013