Gold

Gold prices will hit record high in next 18 months

July 4, 2016 at 15:56

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Gold prices may hit all-time highs in the next 18 months amid low to negative global bond yields, said a fund manager on Monday, joining a chorus of bullish calls on the safe haven commodity. Despite being a non-interest bearing asset with holding costs, gold was attractive in the current climate where there was little trust in the establishment and its policies as demonstrated by the June 23 referendum in the U.K. when voters chose to leave the European Union, said Swiss Asia Capital's Singapore managing director and chief investment officer, Juerg Kiener. The continued cratering of bond yields has also blunted the advantage fixed income instruments held over their...

Gold does a moonshot, Goldman buying

June 27, 2016 at 16:39

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As the UK voted to leave the EU, the only people celebrating more than Brexit politicians were a clutch of small brokerages that benefit when the world get’s a little more volatile: bullion dealers that offer gold coins and bars to retail investors. From London’s Harrods department store in Knightsbridge, to online precious metals dealers, many reported record volumes and demand on Friday. Sharps Pixley, which has a store in Mayfair, said online sales had drained its stocks of larger bullion bars, leading it to call on emergency reserves in Germany. Thea retail demand is an indication of the desire for a safe haven investment in the wake of a Brexit vote, which sent...

10 reasons why gold price will continue to rise

June 27, 2016 at 16:29

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The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011. Globally, too, following the UK votes favouring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon. After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce. There are several factors that suggest gold will be a preferred asset for all kind of investors — retail, institutional or even central banks. 1. In terms of sterling, the price of gold soared nearly 20% to GBP 1,000/oz on Friday, which fell later. However...

Silver steps out from gold's shadow

June 13, 2016 at 12:00

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A friend of mine collects silver coins. I emailed him on December 29th, "Hey John, I think silver is starting to look a bit interesting. I added to a position yesterday when prices fell near 5-1/2 year lows." It turned out to be a good call. So far gold has had a good run this year and so has silver. As the first week of May closes, both metals are up over 20 percent while copper and equity markets struggle to make single digits for 2016. About time. After coming within pennies of its 1980 high in 2011, silver steadily plumbed lower levels – Comex futures fell from a $49.52 per ounce peak to a lowly $13.73 by mid-December. Would the white metal descend further to...

Rickards: This is just the start

June 13, 2016 at 11:55

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As gold continues to rally in 2016, one of Wall Street's most closely followed commodities watchers says we could be in the early days of a historic rally for the precious metal. However, the catalyst for gold's gains could stem from a nerve-wracking sequence of events. "We should expect the next global financial panic soon," said Jim Rickards last week. "We have imploded twice in the last 16 years so get ready for the third one." Rickards has penned numerous New York Times best sellers on the relationship between commodities and currencies. His latest book, "The New Case for Gold," defends the rationale that gold always has been, and always will be, a true saf...

Gold miners surge down under, but they’re not all equal

June 6, 2016 at 11:11

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Gold and the gold miners have had a pretty good time of it since Friday’s woeful US labour-market numbers appeared to take the prospect of higher US rates off the table. Of course, gold is arguably most vulnerable to a rate rise, because higher interest rates tend to hit gold hard, twice. First, they make other yield-bearing assets more attractive by comparison. Holding gold pays not a cent in yield. Second, gold tends to be priced in dollars so those who want to buy it with something else have to pay more to do so. No wonder May was a tough month for the metal. That was the month when some banks, notably Citi and UBS, thought it was in for some serious weakness if ...

US economy's job pain is 'gold's gain'

June 6, 2016 at 11:09

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After falling more than 7 percent from its May high, gold is suddenly surging. The precious metal rallied nearly 3 percent back above $1,245 after a soft jobs number had traders fleeing equities and running toward safe haven assets. The jump has Evercore ISI technical analyst Rich Ross betting that the yellow metal will head even higher for a number of reasons. First, May's lagging job numbers have given way to "collapsing odds of a Fed rate hike this summer," Ross explained Friday. Gold has been under increasing pressure as a strong dollar and potential for a June hike has rattled investors. But with an interest rate hike later this month looking less and less like...