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Tag: gold futures

  • Gold, copper, silver and weekly outlook from 23-27 September

    Gold, copper, silver and weekly outlook from 23-27 September

    Gold futures fell by about 3% on Friday, amid ongoing uncertainty about the future of monetary stimulus program from the Fed.

    On Comex Gold futures for December delivery tumbled 2.7% on Friday to close the week at $ 1, 332.50 /OZ .

    Gold futures prices fell by 3.2% earlier in the session to reach the lowest price for at USD1,325.10 a troy ounce. December contract settled up 4.7% higher at USD1,369.30/Oz on Thursday.

    Gold futures were likely to find support at USD1,291.70 a troy ounce, the low from September 18 and resistance at USD1,375.10, the high from September 19.

    Despite the sharp decline on Friday, gold prices rose by 0.5%, due to a sharp rise on Thursday.

    Gold prices rose by up to 4.5% on Thursday after the Fed decided to leave the stimulus program of $ 85 billion in the month, unchanged.

    Decision surprised the markets, which had expected the Fed to cut stimulus program of $ 85 billion from $ 10 billion to 15 billion. Billion.

    In a news conference after the Fed’s statement, Chairman Ben Bernanke said the Council that bond shrink evil plan has not been prepared in advance “,” and added that the bank’s decision was based on the extent of the continuing economic recovery in progress.

    The central bank also reiterated the constant objective of keeping interest rates low at a certain rate until the unemployment rate to about 6.5%, as long as the inflation rate did not exceed 2.5% per year.

    But the precious metal came under pressure amid a broad sell-off on Friday, and the governor said the Federal Reserve in St. Louis James Bullard said the decision not to reduce the bond purchases in September was “closed”, did not rule out a slight decline in the purchase of bonds of the Central Bank in October. The comments came during an interview with Bloomberg Television.

    Fed held its next meeting of the monetary policy on 29-30 October

    Tracks the movements in the price of gold this year, largely on expectations of whether the U.S. central bank will end its quantitative easing program sooner than expected.

    The dollar strengthened against the euro and yen after Bullard remarks, which cast further pressure on gold prices.

    Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers who use other currencies.

    In the week ahead, uncertainty over the direction of the Fed’s monetary policy and the decision over Chairman Ben Bernanke’s eventual successor look likely to influence gold prices.

    This precious metal on track fell by 22% for the year as traders bet that the U.S. economy will improve, led by the Federal Reserve to reduce stimulus program before the end of the year.

    Elsewhere on the Comex, silver for December delivery fell in December by 5.85% on Friday to close the week at $ 21.92 an ounce. Silver prices stabilized by 8% to a record 23.29 dollars per ounce on Thursday.

    Over the week, silver prices fell by 1.45%.

    At the same time, copper for December delivery fell 0.8% on Friday to close the week at $ 3.320 a pound. On Thursday, copper rose by 2.1% to close at $ 3.347 a pound.

    Red metal prices rose by 3% during the week.

    Copper traders awaited the preliminary reading of the Procurement Managers Index Manufacturing HSBC China on Monday, to measure the economic strength of the largest consumer of copper in the world.

  • Gold rises after weak U.S. data

    Gold rises after weak U.S. data

    Gold rises after weak U.S. data

    Gold futures rose on Monday, after weak data on U.S. jobs, which reduced expectations that the Federal Reserve Board in will reduce the stimulus program in the coming months.

    Tracks the movements in the price of gold this year, largely transform expectations about whether the U.S. central bank will end its quantitative easing program sooner than expected.

    On  Comex division of the New York Mercantile Exchange, traded gold futures for December delivery is trading at $ 1 313.55 a troy ounce during European morning hours, up 0.25%.

    Gold prices traded in a narrow range between 1, 310.75 dollars an ounce, the lowest price for the day and the session high at 1, 319.85 dollars per ounce.

    Was likely to find support at 1 gold, $ 282.65 per ounce, the lowest price on Friday, the lowest price since July 19 and resistance at 1, 330.55 dollars per ounce, the highest price on Thursday.

    In December contract ended on Friday unchanged at 1, 310.05 dollars an ounce after the Labor Department said that the U.S. economy added 162,000 jobs in July, less than the increase of 184,000 expected by economists.

    The figure was revised in June, down to 188,000 from the previously reported gain of 195,000.

    Decline in the unemployment rate down to 7.4% from 7.6% in June, due in part to leave a greater number of people workforce.

    The data came amid growing doubts about the future of the stimulus program the U.S. central bank, after the Federal Reserve said last week that he would remain bond-buying program of 85 billion euros a month without giving any hint about plans to reduce its bond-buying program.

    Market participants awaited the Ifo indicator is on for Supply Management’s manufacturing later on Monday in search of more gauge the strength of the U.S. economy.

    Investors awaited U.S. data reports to measure if it will lead to the strengthening or weakening the case for the Fed to reduce bond purchases.

    Was likely to reinforce the view that the Fed will begin to reduce the bond-buying program in the coming months if the improvement in the U.S. economy.

    Gold fell in its path by 21% from a year amid concerns about the possibility of starting a program to reduce bonds later in the year ..

    The stimulus out of the deal a heavy blow to gold, which flourished on demand from investors who buy gold as a hedge against inflationary risks of loose monetary policies.

    Elsewhere in the Comex rose, silver for September delivery rose 0.1% to trade at $ 19.93 an ounce, while copper for September delivery rose 0.1% to trade at $ 3.175 a pound.

    The PMI official government non-industrial in July of 54.1 compared with 53.9 in June. Where real estate developers are issued and the names of today’s consumer goods in China Monday.

    Copper traders seemed data due later in the week on China’s trade balance, as well as a report on inflation and industrial production, amid ongoing concerns about the economic outlook in the Asian country.

    China is the largest consumer of copper in the world, which represents almost 40% of world consumption last year.

  • Gold and silver higher for second day

    Gold and silver higher for second day

    Gold and silver higher for second day

    Gold futures rose for the second consecutive day on Monday, continue to rebound from last week’s low for 34 months as investors returned to the market for cheap valuations.

    On the Comex division of the New York Mercantile Exchange was trading Gold futures for August delivery at $ 1 244.35 a troy ounce during European morning hours, up 1.7% on the day.

    Gold prices rose at the Comex by up to 1.9% earlier in the session to reach its highest price for the day at 1, 247.25 dollars per ounce.

    Was likely to find support at 1 gold, $ 180.35 an ounce, the lowest price on Friday, and in the 34-month low and resistance at 1, 276.05 dollars per ounce, the highest price since June 26.

    Precious metal extended gains from the previous session as traders closed bets on lower prices after futures moved in the region to reach oversold territory, a move known as covering a short position.

    Gold prices fell for 1, $ 180.35 per ounce of Friday, the lowest price since August 3, 2010.

    Precious metal fell nearly 23% in the second quarter, the largest quarterly loss ever, amid speculation the Federal Reserve will begin bond-buying program will end in the coming months.

    Gold prices are on track and fell by 27% on an annual basis, the worst annual decline since 1981, after rising in each year of the past 12 years.

    I was feeling on precious metals pessimistic in recent months amid growing expectations the Fed will end the bond-buying program by the end of this year.

    Tracks the movements in the price of gold this year, largely transform expectations about whether the U.S. central bank سيتهي bond-buying program sooner than expected.

    Market participants awaited data on non-farm payrolls from the United States later this week for clues about the recovery in the labor market in the United States.

    Was likely to reinforce the view that the Fed will reduce to buy bonds in the coming months when you see any signs of improvement in the U.S. economy.

    Elsewhere on the Comex rose, silver for September delivery rose 1.6% to trade at 19.78. Day dollars per ounce, the lowest price on Friday, and silver prices fell to the lowest price at 18.18 dollars per ounce, less price Mnsz 24 August 2010.

    At the same time, copper for September delivery rose by 1.9% to trade at 3.116 Dolarlertal.

    And copper’s strong performance came despite growing fears of a slowdown in China’s industrial activity.
    Purchasing managers’ index for the Chinese manufacturing 50.1 in June, surpassing expectations 50.0, following a reading of 50.8 in May.

    Separately, purchasing managers index fell HSBC in China to its lowest price in nine months, from 48.2 in June, down from a preliminary reading of 48.3 and well below the 50 level that separates contraction from expansion.

    China is the largest consumer of copper in the world, which represents almost 40% of world consumption last year.

  • 10 reasons why gold prices may hit Rs. 21000

    10 reasons why gold prices may hit Rs. 21000

    10 reasons why gold prices may hit Rs. 21000

    Gold prices (in dollars) are down 20 per cent in 2013. Spot gold is currently trading at $1,391.30 an ounce. In India, gold futures for May delivery dipped below Rs. 26,000 per 10 gram mark earlier this week. Global investment bank Credit Suisse says “the sell-off could have further to run.” If we were to pick an “ideal” ultimate target for the sell-off though, it would be $1085 (or Rs. 21,000 per 10 gram), Credit Suisse says.

    Here are 10 reasons why gold prices may fall further:

    1- Gold expensive over the long term: In real terms (dollars adjusted for inflation), the average price of gold over the very long run (150 years) is around $520 an ounce against $1,391 an ounce currently, Credit Suisse says. Clearly, gold continues to be expensive over the long term average despite the sharp correction this year.

    2- Gold expensive against other commodities: Gold remains expensive when valued against hard assets, such as base metals and U.S. real estate, as well as against other investment classes such as US equities, Credit Suisse says.

    3- Global stock markets are at record highs. Besides, equities offer some dividend yield as well, which means the opportunity cost of holding gold has become too much to bear for many investors, Credit Suisse argues.

    4- Inflation no more a risk: Investors buy gold to hedge against inflation. However, policymakers in the developed world have failed to generate even moderate 2-2.5 per cent inflation, Credit Suisse says. So, gold as an inflation hedge is losing its charm as the prospects of a sharp move in prices remains remote. (Also read: Why 2013 may not be the year of gold)

    5- No imminent collapse of financial markets: The European Central Bank’s commitment to preserve the euro and the determination of other leading central banks to underwrite risk and the recapitalization of financial institutions means reduced risk and thus reduced demand for insurance in the form of gold, Credit Suisse says.

    6- No threat to dollar: There have been numerous stories about the potential outbreak of “currency wars” amongst the major industrialized economies leading to forex instability. However, if everyone eases together, it will in theory not impact cross rates, Credit Suisse argues.

    7- QE coming to an end: The U.S. Federal Reserve has been printing money to shore up the U.S. economy. This liquidity has been driving up asset prices including gold. Credit Suisse says at least 435 tonnes of gold could be liquidated once the Fed withdraws quantitative easing, thereby putting further pressure on gold prices.

    8- Central banks are not buying gold despite falling prices and any intervention by them to support prices looks unlikely, Credit Suisse says.

    9- No support to gold prices from high production costs: While cost inflation across the gold mining sector has been high, the marginal cost (the change in total cost that comes from producing one additional item) is unlikely to provide support to gold price in the short to medium term, Credit Suisse says.

    10- Gold in bear territory: Going by the past trends, a 60 per cent retracement of the 2005 to September 2011 rally over the two and a half years would take gold back to around $1,000 an ounce (nominal) by the end of March 2014, Credit Suisse says.