• Precious Metals Up, With Platinum Highest

    Precious metals have benefited from a strong trading day today, thanks to a good numbers in oil and base metals, as well as a weakened U.S. dollar. Gold is currently up 0.5 percent to $1,328.95 per ounce.

    Continuing the recent trend of strong trading by precious metals, palladium gained 0.7 percent today to $1,090.40 per ounce. Silver gained slightly more, to $17.12/ounce - an increase of 0.8 percent. However, platinum led by far with a solid 1 percent increase today, up to $992.10 an ounce. Base metals are also posting gains for the most part (up 0.5-0.6 percent), with only tin posting losses at -0.1 percent to $20,159 a ton.

    Pricing on spot Brent crude oil is looking good at $69.06 per barrel. U.S. ten-year treasuries is solid at 2.55 percent, and the German ten-year bund has leaped from yesterday's 0.46 percent to today's 0.53 percent. The U.S. dollar has slipped again on its index, down to 91.71. The euro is stronger at 1.2074.

  • Precious Metals End Week on High Note

    All precious metals are posting strong gains today, boosted in part by a good show in oil and a slightly weaker dollar. Gold is currently up 0.5 percent to $1,328.95 per ounce.

    In other metals, palladium is up 0.7 percent to $1,090.40/ounce. Silver gained slightly more, up to $17.12 an ounce, an increase of 0.8 percent. Platinum posted the biggest rise of all today, up a solid 1 percent today to $992.10 per ounce. This follows yesterday's trading which saw all precious metals but palladium posting solid gains.

    Prices on spot Brent crude oil is looking strong at $69.06 per barrel. The yield on U.S. 10-year treasuries is solid at 2.55 percent. The German 10-year bund is up significantly at 0.53 percent (yesterday was 0.46 percent). The U.S. dollar has slipped on its index, currently quoted at 91.71.

  • Gold Rides Higher Thanks to Weaker Dollar

    Last week's unfortunate U.S. jobs report has had a predictably negative impact on the U.S. dollar, giving gold a significant boost. The precious metal gained $1.25 from last session, rising to $1,320.25 per ounce.

    The U.S. jobs report, released on Friday, showed that non-farm payrolls fell significantly short of market expectations of 190,000 at only 148,000. Unemployment remains at 4.1 percent, though average hourly wages are up 0.3 percent from last month. The U.S. dollar made slight recovery in today's session, however, inching up 0.03 percent higher to 92.05.

    Spot silver rose by $0.030 today to $17.23 an ounce. Platinum is up to $973, an increase of $4 per ounce. Palladium jumped by $9 an ounce to $1100. Prices on Brent spot crude oil is up $0.03 to $67.73 per barrel.

  • Following Strong Session, Precious Metals Consolidate

    While yesterday saw the precious metals complex closing at an average of +0.9 percent, with palladium leading at +1.6 percent, today is proving to be a much quieter day in trading, with gold down 0.2 percent to $1,318.09 per ounce.

    Silver is also consolidating somewhat today, slipping by 0.1 percent to $17.16 an ounce. Platinum and palladium are both posting gains today, however, up 0.3 percent and 0.1 percent, respectively. With the last few weeks showing considerable rallies for the precious metals complex, some consolidation is to be expected. Base metals are generally seeing good trading today, with all metals but nickel posting gains in the 0.1 percent to 0.4 percent range.

    In other markets, the German ten-year bund is at 0.44 percent while the yield for U.S. ten-year treasuries posted at 2.45 percent. Spot Brent crude oil prices slipped by 0.12 percent to $67.85 per barrel. The U.S. dollar is consolidating on its index at 91.94.

  • Rare Penny Sells for $282K at Denver Auction

    DENVER – Talk about a lucky penny.

    A one-cent coin minted in 1943 sold for $282,000 at an auction in Denver this week.

    The coin in question is one of only 10 or 15 Lincoln pennies known to exist that were mistakenly made with bronze instead of zinc-coated steel in 1943. The U.S. Mint had switched to steel that year because of copper shortages during World War II.

    A handful of leftover bronze blank coins got stuck in the trap door of a tote bin used to feed the coin press machinery and the bronze pennies wound up in the coin press with the steel coins.

    Wednesday’s auction was the first time this particular penny went to auction.

    The auction took place as part of the World’s Fair of Money, which runs through Saturday at the Colorado Convention Center.

  • 7 reasons why investors should go for gold in 2018

    The big story for investors in 2017 was the broad-based rally in stocks. Simply by owning equities of any shape or size, you likely made out very nicely.

    Domestic large-cap stocks were up about 20% as measured by the S&P 500 SPX, +0.48% Other markets did even better, with broad global funds like the Vanguard Total International ETF VXUS, +0.64% up about 25% and the popular iShares FTSE/Xinhua China 25 Index ETF FXI, +0.75% up about 37%.

    And if you didn’t like stocks there was always bitcoin BTCUSD, +0.95% The cryptocurrency soared a staggering 15-fold over 2017.

    Amid this risk-on rally, many investors likely overlooked gold GCG8, +0.17%

    However, 2018 is increasingly shaping up to look like a breakout year for the precious metal. Here’s why:

    A new floor: From a technical perspective, gold hasn’t looked this good in a long time. The precious metal has touched $1,350 an ounce a few times over the past few years and has been pretty stable between $1,200 and $1,250 since the last test of those highs back in September. We’ve yet to break out to the upside, but a clear pattern of higher lows is an incredibly encouraging sign that we’ve found a new floor for prices. And with recent moves up through the important round number of $1,300, there’s a good chance we keep powering higher.

    Short-term momentum: Beyond this base, there’s encouraging momentum. Gold prices GLD, -0.19% are up roughly 6% in the last six months, which underperforms a gain of 11% for the S&P 500 but is still noteworthy. And since rolling back in early December, gold has surged more than 5% in just a few weeks while the S&P has barely budged.

    Asset rotation: Many stock-market investors are still optimistic after a great run in 2017, but it’s undeniable that many traders are ready for what’s next now that tax reform is priced in and the big run for equities looks long in the tooth. It’s natural for the fast money to look for greener pastures when we’ve had a good run, and the turn of the year is a great excuse to move out of stocks and into something else.

    Strong global demand: Aside from the charts and asset rotation, there is structural demand that will provide a lift for gold. For starters, look at India, where gold imports surged an amazing 67% in 2017. The nation is the No. 2 consumer gold market in the world behind China, so that’s an encouraging sign of retail demand. As for China, demand for gold bars through November was up 40% from a year earlier, according to gold portal Kitco. That speaks to strong momentum.

    Weak production: Across 2017, gold mining GDX, -0.94% was incredibly anemic, prompting a report from ANZ that noted gold output was “at its lowest point since the financial crisis, with risks only getting greater.” There are a host of factors at play, from cash-strapped companies like Freeport McMoRan FCX, -1.54% closing underperforming sites to new regulatory policies for miners in Indonesia and South Africa. But the collective result is less gold coming out of the ground, which should benefit gold investors in 2018.

    Soft dollar: There’s an inverse relationship between the strength of commodity prices and U.S. currency, since these raw materials are priced in dollars. However, the trend lately is not for a strong dollar but a weak one. In fact, the U.S. Dollar Index DXY, +0.25% just hit a three-month low. And this after the benchmark measure for the dollar declined almost 10% during 2017. This currency dynamic creates yet an additional tailwind for gold prices.

    Cryptocurrencies can’t compete: Lest you think the crypto craze sapped demand for gold, it’s important to remember that the nice appreciation for the precious metal in 2017 came even amid bitcoin’s big run. This shows resilience even as other alternative assets gain investor attention. Furthermore, even after the Cboe launched bitcoin futures in late 2017, Goldman Sachs reported “no discernible outflow of gold” as traders and institutional investors were given another fashionable way to play the crypto market. Gold is a haven for a reason, and no fashionable asset craze can change that.

    Source: MarketWatch

  • David Stockman Warns "Gold Is The Only Safe Asset Left"

    Record high stock and bond prices are flashing danger signs to former Reagan White House Budget Director David Stockman. Stockman contends, “I don’t think we are going to have a liquidity crisis. I think it’s going to be a value reset. I think there is going to be a jarring downward price adjustment both in the stock market and in the bond market. This phantom or phony wealth that has been created since the last crisis is going to basically evaporate.”

    So, what asset is safe? Stockman says gold and goes onto explain, “I think the time to buy (gold and silver) is ideal. Gold is the ultimate and only real money. Gold is the only safe asset when push comes to shove. They tell you to buy the government bond, that’s a safe asset. It’s not a safe asset at its current price. I am not saying the federal government is going to default in the next two or three years. I am saying the yield on a 10-year bond of 2.4% is way below of where it’s going to end up. So, the only safe asset left is gold. This crazy Bitcoin mania has drained off what would otherwise be a demand for gold. . . . When Bitcoin collapses, spectacularly, which it will because it’s sheer mania in the markets right now. When it collapses, I think a lot of that demand will come back into gold, as well as people fleeing the standard stock and bond markets for the first time in 9 or 10 years.”

    What about the so-called Trump tax cuts? Stockman predicts, “I think it’s going to be a fiscal calamity of Biblical proportions. I want to be clear. I am always for tax cuts and shrinking the size of government, but you have to earn it. You have to cut spending and entitlements and this massive defense budget. Obviously, they didn’t do that. If you look at honest accounting . . . this bill will add $2.5 trillion to the public debt which, and this is a key point, is already going to rise by $10 trillion over the next decade based on the current law and taxes that is still in.”

    “More importantly,” Stockman says, “The central banks realize they cannot keep printing money at these crazy rates, and by that I mean the bond buying. Now, they are going to begin to normalize and shrink their balance sheet. . . . By the fall (of 2018), they (the Federal Reserve) will be shrinking their balance sheet by $600 billion a year. What that means in plain simple English is that they (the Fed) are dumping $600 billion a year of existing bonds into the market just as Uncle Sam will be attempting to borrow $1.25 trillion more. Now, if you don’t think that is a financial collision waiting to happen, then I am not sure what would be. We are heading for a thundering collision in the bond market that will drive yields upward far more than the market is expecting. The stock market operates on the illusion of permanently low interest rates. When interest rates start to rise, everything is going to come apart because cheap debt has been priced in forever, and we are heading for far more expensive debt. . . . Bond prices are going to collapse when yields begin to rise. . . . Stock prices are going to collapse big-time when the underlying predicate of cheap debt, massive stock buy backs and M&A deals and everything else supporting the market today finally reverses. So, we are going to have deflation in the canyons of Wall Street, and that will not be a happy day.”

    Source: USAWatchdog

  • Precious Meta;s Recover Somewhat

    Following some minor losses over concerns of the upcoming U.S. tax overhaul, precious metals are up marginally today. Gold is currently up 0.2 percent to $1,263.88 per ounce.

    The rest of the precious metals are up an average of 0.2 percent in today's session. While most metals saw some small dips yesterday, the PGMs closed yesterday's session up 0.3 percent. In base metals, aluminum lost 0.3 percent today. However, the rest of the base metals are up anywhere from 0.3 percent to 0.6 percent. Three-month copper prices rose by 0.3 percent today to $6,955 per ton.

    In currencies, the U.S. dollar is at 93.50 on its index, still consolidating above the currency's 20 DMA. Analysts wait to see if the dollar will maintain above 92.50 as an indicator of whether this is a downward or upward trend. The euro is also consolidating at 1.1835. The yen is down at 113.12.

  • House Passes Tax Bill, Gold Little Changed

    Gold is essentially unchanged today following the U.S. House of Representatives passing the current proposed tax reform legislation. The precious metal is down 0.12 percent today, to $1,264 per ounce.

    While the U.S. Senate has not yet voted on the tax bill, the legislation is largely expected to pass by analysts. Analysts also expect that this should push the U.S. dollar up higher.

    While this is good for a currency that has been largely failing to gain strength on its index, this would continue to put pressure on gold.

  • Gold Jumps Following FOMC Meeting

    Precious metals got a much-needed boost today as the Federal Open Market Committee (FOMC) released its much-anticipated end-of-2017 meeting notes. Gold is currently up over $15.20 an ounce to $1,256.90. Silver also posted gains today, rising by $0.412 to $16.08 an ounce.

    While most everyone was expecting an interest rate increase today from the Federal Reserve, the new of an increase nevertheless had a surprisingly positive impact on trading today. Similarly, the FOMC notes concluded that we can expect a total of 3 interest rate increases in the coming calendar year.

    The news of the day also had an effect on the U.S. dollar, which saw a significant sell off on its index, further boosting precious metals and other safe haven markets. In other market news, Nymex crude oil is down today.