Chinese holiday spurs Gold drop

October 7, 2016 at 13:40


Gold continues to drift lower following Tuesday's crash through the $1,300 an ounce level to its lowest since June, before the Brexit vote lit a fire under the metal. December futures trading on the Comex market in New York touched a low of $1,255.10 an ounce, the sixth down day in a row. Gold's leg down is being blamed on looming interest rate hikes in the US which boosted the dollar (the gold price usually moves into the opposite direction of the currency) and speculation of a scaling back of the European Central Bank's $10 billion a month bond purchase program. Expectations of a normalization of the interest rate environment and higher returns on government bo...

Goldman: Physical Demand Will Support

October 7, 2016 at 13:37


Gold prices have fallen for eight sessions, marking the yellow metal's worst losing streak in a year, but investment bank Goldman Sachs said further downside was likely limited this year. The spot gold price was flat around $1,254 an ounce around midday Friday in Asia, not far from the four-month low of $1,249.68 hit in the previous session on increased expectations for a U.S. interest rate hike by year end after U.S. filings for unemployment benefits fell to a 43-year-low last week. Goldman analysts said they continued to expect U.S. real rates rise into the year-end, weighing on gold prices, but they added that demand for the precious metal will still give some su...

Top forecaster says gold may snap back on global political risks

October 5, 2016 at 09:03


Looming risks from the US presidential election in November to Britain starting talks to leave the European Union next year may boost its role as a haven, said Barnabas Gan, an economist at Oversea-Chinese Banking Corp in Singapore. Increasing shale oil output in the US is also likely to cool the surge in crude prices, curbing inflation, he said. "As quickly as gold fell, as quickly gold could rally back," Mr Gan said in a report received Wednesday. "Weak inflationary pressures may once again lift gold prices back to their previous shine." He was the most accurate forecaster of the metal in the third quarter, according to data compiled by Bloomberg. Bullion...

Gold rebounds from tumble

October 5, 2016 at 09:00


Gold rebounded after the biggest drop in more than a year as investors reminded themselves of a world that’s beset by risk, from the prospect of further currency weakness to the final stretch of the U.S. presidential election. Spot gold climbed as much as 0.5 percent to $1,275.28 an ounce and traded at $1,272.40 at 2:53 p.m. in Singapore. Prices tumbled 3.3 percent on Tuesday, the most since July 2015, as prospects for higher U.S. rates and less stimulus in Europe spurred a selloff. “It’s a buying opportunity,” Bob Takai, chief executive officer and president of Sumitomo Corp. Global Research Co., said from Tokyo. Uncertainty about “the European currency, uncertai...

New trend of gold & silver smuggling into China

September 5, 2016 at 12:40


There has been a sharp rise in seizures of gold and silver bars smuggled from mainland China. Customs officers detected more than two tonnes in the first eight months of the year in a move thought to be connected to the rising value of the precious metals. Officers seized about 2.2 tonnes of smuggled gold and silver worth more than HK$33 million this year, prompting Hong Kong and mainland authorities to strengthen inspections on both sides of the border, the Post was told. There were no seizures last year and in 2014. It is understood the new trend surfaced in the second quarter of this year. Nearly 10 cases involving the import of precious metals from the mainla...

Hedge funds slash bullish gold price

September 5, 2016 at 12:33


On Monday gold continued to build on its gains on Friday in response to a worse than expected US jobs report and a weaker dollar. In thin holiday trade, gold futures trading on the Comex market in New York for delivery in December, the most active contract, were exchanging hands at $1,330.60 an ounce, up more than $20 since the release of the payroll data. Gold has been on a downward path for more than a month, coming off a two-year high, but year to date the metal is still up 25% or $270 an ounce, one of its best annual performances since 1980. Large scale gold futures and options speculators or "managed money" investors such as hedge funds were wrong-footed by ...

Soros calls temp top in Gold?

August 17, 2016 at 10:08


The billionaire investor jumped back into trading this year with a big bet on the precious metal, buying up a 19-million share stake in the world’s largest gold producer, Barrick Gold But in the second quarter, Soros Fund Management sold the majority of his shares in the gold miner and his full stake in mining company Silver Wheaton, according to regulatory filings. The first-quarter bet on gold looked particularly prescient, as the precious metal has rallied 26% this year. The rise in gold’s price has given an even bigger boost to gold miners, with Barrick shares surging more than 190% this year. Now, Mr. Soros’ change of heart may cause concern for those still bullis...