Glencore confirms $500m gold & silver hedge

February 11, 2016 at 10:09


Glencore has agreed a $500m gold and silver streaming deal from its Antapaccay mine in Peru to help ease its balance sheet woe, as well as impressing with fourth-quarter production numbers. The debt-burdened FTSE 100 group, which also posted its 2105 production report, expects to receive the $500m advance payment via its wholly owned Narila subsidiary before the end of the month in return for delivering 630,000 oz of gold, 10m oz of silver. Analysts said this further insulated Glencore from the potential of a downgrade to its credit rating. After those amounts are delivered, Narila will supply 30% of gold production and 30% of silver production thereafter in exch...

Yellen sends Gold up

February 11, 2016 at 10:05


Gold prices rose above $1,200 a troy ounce in trading Thursday to their highest level in over eight months, as investors sought out safe haven assets amid tumbling stock markets. The price of the metal hit $1,220 a troy ounce, the highest level since late May. The metal has risen 14 per cent this year, as the US dollar has weakened against a basket of major currencies amid volatile stock markets. A weaker dollar is normally good for gold, as it makes it cheaper for buyers in other currencies. Investor sentiment “seems to be thawing at the start of 2016, with a focus on gold’s wealth preservation and risk diversification properties”, the World Gold Council said in...

India hikes Gold tariff

February 10, 2016 at 11:18


The government on Wednesday hiked the import tariff value on gold to USD 388 per 10 grams and that on silver to USD 487 per kg taking cues from global market. For the first fortnight of this month, the import tariff value on gold was fixed at USD 363 per 10 gram and on silver was USD 443 per kg. The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis. The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs. The import tariff value of gold and silver has been changed taking into account the price trend in t...

Should gold be doing better?

February 10, 2016 at 11:08


Uncertainty in financial markets has continued to fuel safe-haven demand for gold, giving rise to an unlikely question: should gold be doing better? The yellow metal has cemented its status as the best-performing commodity of the year, rising more than seven per cent year-to-date in dollar terms. Having hit fresh three-month highs buoyed, by a sell-off in equities and most recently dollar weakness, it is currently trading above the US$1 140 an ounce level. The current price marks a significant improvement from the US$1 050 an ounce mark, the six-year low at which it traded less than two months ago. But it is still lower than its October 2015 peak, just above US$...

Goldman still sees $1000 Gold in 2016

February 9, 2016 at 14:15


Goldman Sachs Group Inc. is no believer in gold’s rally, predicting losses over the coming year as the Federal Reserve increases U.S. interest rates no fewer than three times. Futures dropped. “Our economics team forecasts that the Fed will raise rates by 25 basis points three times this calendar year, to 1.3 percent,” analysts including Jeffrey Currie and Max Layton wrote in a report received on Tuesday, forecasting that bullion will trade at $1,000 an ounce by the end of 2016. Gold has surged in the opening weeks of 2016, gaining to the highest level since June and topping $1,200 on Monday, as sinking equity markets and rising concern about the global economy fann...

China Continues To Buy More Gold As it Sells Other Foreign Reserves

February 9, 2016 at 14:13


China’s central bank continues to see the value of diversifying into gold as it continues to purchase the precious metal on a monthly basis in the midst of falling total reserves. According to media reports, the People’s Bank of China (PBOC) added 580,000 ounces of gold to its official reserves last month; the bank now hold a total of 57.18 million ounces of gold, an increase of 0.9% from December. The news of China’s latest gold purchases follows more data from the PBOC, showing total foreign reserves fell $99.5 billion to $3.23 trillion in January, the lowest level since May 2012. It was also the second biggest decline in reserves, just behind December’s consider...

Fan pattern in Gold shows big breakout is coming

February 9, 2016 at 14:10


The gold price has been wallowing around $1,050 to $1,180 since June 2013, sending plenty of confusing signals as it built a very broad consolidation base. Now, the rally in gold has the potential to develop into a breakout from the consolidation base and become a new uptrend. But the strength and sustainability of the gold rally is still not unclear. The first step in analysis is to put the rally activity into context by using a weekly chart. The downtrend is well defined by the Guppy Multiple Moving Average (GMMA) indicator. The long-term group of averages are well separated and have not developed any compression in response to the recent rally. Gold has a very...