Glencore boosts zinc price by taking 500,000 tonnes off the market, gold, silver next?

October 9, 2015 at 13:57


Commodities giant Glencore saw its shares spike 7 per cent higher today, continuing its recent volatile perfomance, after it unveiled plans to chop its zinc production as part of cost cutting moves. The company is to cut 500,000 tonnes of zinc production, representing 4 per cent of the world's total supply. Zinc prices have plummeted by 30 per cent over the past few months to five-year lows, but the move by Glencore sent the metal's price up 6 per cent today. Zinc's decline has been due to the economic slowdown in China, which accounts for 40 per cent of the global consumption of the metal. Glencore said most of the cutbacks will be in Australia where more than 500 job...

PBOC continues to add to gold reserves in September

October 9, 2015 at 13:50


Recent data released by the People's Bank of China suggests the central bank added a further 15 mt of gold to its official reserves in September following 16.2 mt added in August. China revealed earlier this year that it had increased gold reserves by more than 600 mt since 2009, the PBoC now regularly updates changes to its gold holdings. Still, the amounts -- over the six-year period -- fell well below market expectations. "The low levels of China's official gold holdings as a percentage of foreign exchange reserves strongly suggest there is likely to be further official sector gold purchases," added HSBC senior analyst James Steel.The premium for physical gold...

Gold miners head toward biggest 3-day gain since 2008

October 8, 2015 at 10:48


Gold held near its highest in more than a week, helping push a gauge of mining shares toward the biggest three-day advance since the financial crisis in 2008. The metal climbed as much as 0.5 percent to $1,153.12 an ounce, the highest since Sept. 25, as investors scale back on speculation the Federal Reserve will raise interest rates this year. A Bloomberg measure of gold miners including AngloGold Ashanti Ltd. and Randgold Resources Ltd. is up more than 17 percent this week, headed for its biggest three-day gain since 2008. Gold has rebounded from a five-year low in July as turmoil in emerging markets, slower growth in China and patchy U.S. economic data reduced the ...

Two things holding back gold price gone and soon

October 8, 2015 at 10:46


Gold drifted lower again after bouncing off the $1,150 an ounce resistance level it has been unable to breach convincingly since mid-July. In a new research note Capital Economics builds a case for gold to move higher when two factors that have been holding it back begin to fade. The independent research house says that apart from rising bond yields and the strong dollar gold has been prevented from moving higher by the negative sentiment towards the metals sector in general given its close relationship with copper, and subdued inflation expectations. Both of these headwinds are likely to begin to die down towards the end of the year pushing gold to $1,200 an o...

China adds tonnage to official 'unofficial' holdings

October 7, 2015 at 11:05


China may have further increased central bank gold holdings in September, raising them by about 15 metric tons to 1,709 tons, as it seeks to diversify its foreign exchange reserves, although this declared number is believed to be a fraction of what is actually owned by the PBOC. The declared value of gold assets was $61.2 billion at the end of last month from $61.8 billion at end-August, data from the People’s Bank of China website released Wednesday show. That works out to about 54.94 million troy ounces or 1,709 tons, based on the London Bullion Market Association afternoon price auction on Sept. 30, calculations show. The hoard was 54.45 million troy ounces a month ...

Gold sentiment improves, annual price up in many currencies

October 7, 2015 at 11:01


Over the past few trading days something positive has been seen in the gold investment sector. The gold price has seen signs of just a little strength - even in the absence of Chinese physical demand with the markets closed there for the 7-day Autumn Golden Week holiday. While Chinese gold trade will not quite have been zero (there is ongoing retail demand over the period), there will have been no Shanghai Gold Exchange deliveries and imports will also have been negligible and gold price premiums have been falling as a result. But despite this reduction in physical gold movement into the country, the gold price has been strong (relatively in relation to recent months) ...

UK Royal Mint sells 1KG gold bullion bars

October 7, 2015 at 10:57


The Royal Mint is offering “serious investors” with around £25,000 to spare the chance to buy a fine gold bar weighing one kilogram. The new gold bars have been produced to mark the first anniversary of a bullion trading website launched by the Mint last year, which aims to make it easier for people to invest in gold. The website has attracted more than 12,000 customers from across the world since it launched in September 2014, from countries including the United States, India, China and Canada. Up until now, the weight of the bullion bars on offer has ranged from one to 100 grams. Investors looking to just dip a toe in the water can also buy silver from the webs...