Gold trying to find its feet before bull market resumes

September 19, 2014 at 08:40


In its latest update to its 2014 Gold Survey, Thomson Reuters GFMS sees gold as entering a period of recuperation, but holds out little hope for any short term price appreciation, with physical demand falling sharply in the first half of the year compared with a year ago. It sees last year’s substantial price falls as highly anomalous and talks of the market regaining its composure. However the report will have been written ahead of the recent gold price collapse, down to a nine-month low yesterday following some heavy sales on COMEX after the release of the latest statement from the FOMC. (Although, given that it kept its ‘not for a considerable time’ wording for the ...

China gold demand slips

September 19, 2014 at 08:31


Demand for gold in China slumped in the first half of the year as retail consumers continued to digest opportunistic purchases made last year when the price of bullion fell sharply, according to a new report. Soaring retail demand saw China overtake India as the world’s largest gold consumer for the first time last year. The buying frenzy, which led to a temporary shortage of physical bullion, was triggered by a 28 per cent fall in the price of gold – the worst performance in more than three decades. This year, however, consumers across Asia have stayed on the sidelines, put off by a lack of price volatility and slowing economic growth. A crackdown by Chinese author...

Analysts: Charts show gold could drop to $1,000

September 18, 2014 at 10:22


Gold's slide to eight-month lows over the last week has brought it within sight of a cluster of chart support lines near its 2013 lows, a breach of which could set up a slide back to $1,000 an ounce.Analysts who study past price patterns for clues on the next direction of trade say a breach of support around the metal's June 2013 low of $1,180 an ounce could see it fall back towards triple figures as soon as early next year. Around the June low, lines of support run all the way down to $1,150, the 61.8 per cent Fibonacci retracement of gold's rally from its 2008 lows to its 2011 record high at $1,920.30."The pressure has been to the downside for over two years now," sa...

Silver ETP's keep growing

September 18, 2014 at 09:52


Buyers of exchange-traded products backed by silver are betting $11.86 billion that big speculators are wrong about the outlook for prices, which slumped last week to a 14-month low. ETP holdings are up 1.5 percent since mid-July to 19,898.8 metric tons, nearing a record reached in October, data compiled by Bloomberg show. At the same time, money managers shrank bullish wagers by 95 percent, government data show. To protect against the risk of lower prices, producer Coeur Mining Inc. (CDE) has hedged about a third of its output. Retail investors who account for 80 percent of U.S. ETP purchases expect long-term growth to spur industrial demand for silver in everythin...

Silver sentiment cycle

September 17, 2014 at 09:49


Silver Prices: 1972 - 1979   Silver Prices: 1972 – 1979  Silver moved upward from about $1.40 in 1971, rallied to about $6.40 in March 1974, and fell to about $4.30 in August 1977. The March 1974 peak took about 3 years and ended about 4.55 times its starting point. The August 1977 low took another 3.5 years and fell about 33% from the peak price. Now look at the following chart of silver prices from 2008 – 2014.   Silver Prices: 2008 - 2014   Silver moved upward from about $8.53 in October 2008, rallied to over $48 in April 2011, and fell slightly below $19 in September 2014. The April 2011 peak took about 2.5 years and en...

Paulson takes hit on AngloGold

September 17, 2014 at 09:45


John Paulson might have won a battle but he’s losing the war with his big bets on gold. The billionaire fund manager was a key player in forcing one of the world’s biggest gold mining companies, AngloGold Ashanti, to pull the plug on a $2.1 billion rights issue but as the dust settles the value of his 6.6% stake in the stock is sharply lower, and the price of gold keeps falling. The problem for Paulson is that he’s in the wrong company at the wrong time. Being on the losing side is not a totally new experience for a man who played the sub-prime crash of 2007 to perfection, making billions of dollars for himself and clients of his fund-management business, Paulson &...

China brings forward gold launch

September 16, 2014 at 08:59


China will launch its international gold exchange 11 days ahead of schedule, sources said on Tuesday, racing ahead in the scramble to set up an Asian bullion benchmark as rival Singapore is forced to delay its gold contract due to technical issues. Asia, home to the world's top two gold buyers - China and India, has been clamouring to gain pricing power over the metal and challenge the dominance of London and New York in trading. The state-run Shanghai Gold Exchange (SGE) will launch the global gold bourse in the Shanghai free-trade zone on Thursday, two sources familiar with the matter told Reuters. The SGE had initially planned the launch for Sept. 29. The change was...