- How Strong is Gold Demand?
February 19 2013 2:49 PM
Since hitting all-time nominal highs above $1,900 an ounce, the price of gold has declined and essentially traded sideways for over a year. The price action has discouraged some investors, but others are still purchasing the precious metal in record amounts.
- Gold Prices Hover at $1,600
February 19 2013 10:09 AM
GOLD PRICE NEWS – The gold price traded near unchanged Tuesday morning at $1,609 per ounce. Gold prices have moved lower in recent weeks, punctuated by last week’s 3.7% decline. The sell-off has been driven by heavy selling in the futures markets on the back of the perception that the U.S. economy is healing. Investors are beginning to price in the end of the Federal Reserve’s quantitative easing program despite the fact that growth remains subdued. Also helping to fuel selling and drive the price of gold lower is the news that high-profile institutional investors George Soros and Julian Robertson reduced their stake in SPDR Gold Trust (GLD) in the fourth quarter of 2012.
- Spot Gold Forecast for 02/19 by Daytradeideas.com
February 19 2013 8:50 AM
Spot Gold has collapsed breaking 1617/16 to hit 1598.23. The bounce may test resistance at 1619/1621. This should be tough to beat so a top for the day here again is possible but a push higher targets 1626 with any further strength then likely to target 1633/35 for an excellent selling opportunity. If we cannot get through 1619/21 look for a test of support at 1611/10. A move below 1609 then risks a test of last week’s low at 1598. W are getting very oversold so we may find a floor here again but on a break look for 1595 & then 1590 below but there is scope for a test of 1585 this week in this 4 month down trend.
- Are Hedge Funds Still Interested In Gold?
February 15 2013 1:26 PM
The price of gold suffered a decline in the fourth quarter of 2012 from $1,800 to $1,650 an ounce. However, several well-known hedge funds are still maintaining exposure to the safe-haven asset. Late Thursday, many institutional investment managers filed their mandatory 13-F with the Securities and Exchange Commission. The 13-F is a quarterly report of equity holdings required by managers that oversee more than $100 million in qualifying assets. The form must be filed within 45 days of the end of each quarter. The 13-F provides a peek at what hedge funds did in the previous quarter, but investors should keep in mind that hedging and trading strategies of each fund are still unknown.
- Hedge Funds Move From GLD To Other ETFs and Safety Of Allocated Gold?
February 15 2013 10:19 AM
Gold dropped $7.40 or 0.45% yesterday and closed at $1,635.60/oz. Silver finished with a loss of 1.04% at $30.45/oz. Gold’s decline was again a function of dollar strength as gold eked out gains in some currencies. The euro fell sharply yesterday as investors digested weaker Eurozone growth data which created a shadow of gloom ahead of the G20 meetings taking place in Moscow.
- Is Gold Becoming a Risk-off Asset?
February 15 2013 4:47 AM
Lately we’ve been writing about the negative correlation between the equity market and the precious metals market. This phenomenon has been in place since summer 2011 and has re emerged in the past few months. Since November 23, the S&P 500 is up 8% while the gold shares are down 14%, Silver has lost 11% and Gold 7%. For those who have studied history this should not come as a total surprise. From 1972 to 1977 and November 2000 to July 2002, precious metals and the equity market trended in opposite directions. We’ve postulated that precious metals and the mining shares won’t begin a new bull phase until the cyclical bull market in US equities ends. We don’t expect that to happen immediately but there are some important signals beneath the surface (with the safe-havens) that we should direct our attention to.
- Spot Gold Forecast for 02/15 by Daytradeideas.com
February 15 2013 4:34 AM
Spot Gold hit our first target of 1649/50 & topped out here. We then broke good support at 1641/39 & continued lower through 1635 as we close in on December lows at 1628/26. This is firm support & with the market starting to look over sold there is a strong chance we bottom out here again today. However if we break lower again look for the next support at 1617/16 to be tested. Any move higher today runs in to resistance at 1635.75 & then 1639 above. If we continue higher we should top out at 1641/43 but go with a move through 1645 looking for 1648/50.
- Are Central Banks Still In Love With Gold?
February 14 2013 1:49 PM
The recent price action of gold may lead some to believe the precious metal has fallen out of favor with the market, but central banks across the globe continue to love the safe-haven metal. While some central banks print money in historic amounts, others are buying gold. According to the World Gold Council’s latest report, central banks purchased 145 tonnes of gold in the fourth quarter of 2012, the highest quarterly haul since the sector became net buyers in 2009. For the entire year, central bank buying surged 17 percent to 534.6 tonnes, the highest annual total since 1964. In comparison, central banks bought 456.8 tonnes in 2011.
- Currency ‘War’ or ‘Revolution’? – And Gold?
February 14 2013 9:40 AM
Talk of a Currency War is becoming much more frequent these days. What’s meant by this is that the competitive devaluations of currencies, which has gone on for such a long time –many years in fact—is going to become destructive to real currency values! This brings into question the entire system of exchange rates.
- Record Dollar Value Gold Demand In 2012 - India, China and Central Banks Buy
February 14 2013 9:23 AM
The euro area recession deepened and data showed that the euro area economy shrank the most since 2009 and its three biggest economies, Germany, France and Italy, suffered slumping output.
- Central Bank Gold Demand Hits 48-Year-High In 2012: World Gold Council
February 14 2013 8:31 AM
Central banks are now buying more gold than ETF investors -- a very startling result. Will the trend continue?
- Spot Gold Forecast for 02/14 by Daytradeideas.com
February 14 2013 4:40 AM
Spot Gold fell just short of 1656/57 resistance where we expected a top. We have now retested the 1641/39 support & bounced as hoped, so we have a small bottoming pattern which should push us higher in to the end of the week. First target is 1649/50 then yesterday’s high at 1653. Above here today we look for a test of 1656/57 resistance & a high for the day. However a break higher tomorrow is possible for 1661. A push above here then targets 1666 resistance & a selling opportunity.
- Spot Gold Forecast for 02/13 by Daytradeideas.com
February 13 2013 8:58 AM
Spot Gold dipped below 1643/42 but only to 1639 before recovering. If we can now hold above 1649 we should push on to 1656/57 resistance. We could top out here so worth taking profit on longs & if trying shorts we need a stop above 1659 as this could open the door to a test of 1666 resistance. Failure to hold above 1649 should see us retest 1641/39 lows. This is good support & we may bounce from here again today but a break signals a move to 1635, possibly a test of December lows at 1627/26.
- Gold and the US Dollar
February 13 2013 4:17 AM
The printing of more paper money usually has the effect of debasing or diluting the strength of that particular currency. The lowering of interest rates also renders a currency less attractive to investors as better returns might be available elsewhere. The demise of the US Dollar can be attributed, in part, to both of the above reasons. However, when this debasement is plotted against other currencies as per the US Dollar Index we can see that it is having some difficulty when it comes to heading lower as the chart below depicts.
- Who Holds the Most Gold?
February 12 2013 1:39 PM
The price of gold has been in consolidation mode for over a year. On Monday, the precious metal logged its third consecutive daily loss and reached its lowest level in five weeks. Gold produces very trying price swings for investors of the safe haven, but central banks are still keeping a tight grip on their holdings.
- End Currency Wars With Gold Standard? –Bloomberg Interview and FT Op-ed
February 12 2013 9:26 AM
Gold has dropped to its lowest level in over a month on low volumes due to Asia’s Lunar New Year holiday which has markets closed in Hong Kong, China, Malaysia and Taiwan today. Prices remained low despite the announcement that North Korea had detonated an atomic warhead in its 3rd underground nuclear test. Geopolitical risk remains and should the situation on the Korean peninsula deteriorate then gold should receive a safe haven bid.
- Spot Gold Forecast for 02/12 by Daytradeideas.com
February 12 2013 4:36 AM
Spot Gold broke 200 day moving average support at 1665 & the 100 week moving average at 1652 to reach 1643/42. A bounce today should find 1649 but above here we meet resistance at 1652.50/1653.00. Watch for a top here but if do push higher we should test 1656, may be 1658.50/1659.50. This is expected to offer a good selling opportunity. Failure to get through 1649 should see us retest 1643/42 lows. This is good support & we may bounce from here again today but a break signals a move to 1635, possibly December lows at 1627/26.
- Ron Paul: “6,000 Years of History, Gold Is Always Money, Paper Money Fails”
February 11 2013 10:15 AM
Ron Paul spoke with Bloomberg television (see video in Commentary) and said that we are in a currency war and we have been for decades. He noted that governments have always competed against each other’s currencies even under Bretton Woods. It has always been a form or protectionism and will make people want to export more.
- Gold In Euros Surges 1.8% After Draghi Warns; Soros Says EU May Collapse Like USSR
February 08 2013 1:12 PM
The price gains came as Draghi warned about slowing economic growth and complacency regarding declaring an end to the financial crisis. He also warned that the euro dollar exchange rates rise could derail the recovery in Europe and signalled that an interest rate cut may even be necessary.
- The Truth on Gold Stocks vs. Gold
February 08 2013 11:26 AM
The gold and silver stocks as a group have certainly been a disaster over the past two years. Both GDX and GDXJ are down with GDXJ leading the spiral. Yet, the metals are actually higher. Gold is up quite a bit while Silver is up marginally. Because of the volatility in this sector we can certainly choose any period to emphasize a point. However, it is becoming clear that the mining equities are struggling to outperform the metals. In studying the history of this sector (both the stocks and the metals) I’ve learned two things that I will share with you today. First, the large-cap miners have no track record of consistently outperforming Gold and second, it is possible to routinely find companies which can outperform the metals.