Monthly Archives: November 2017

  • Precious Metals Feeling Pressure

    Despite the recent North Korean ballistic missile test and strong PMI data out of China, gold and silver are still being held back by yesterday's losses. Gold is holding at $1,283.70 per ounce following its 0.8 percent loss yesterday.

    In other metals, silver's significant loss of 1.8 percent yesterday is holding the precious metal at $16.55 an ounce in today's session. Yesterday saw the platinum group of metals returning 0.8 percent, though they have recovered somewhat today at approximately a 0.5 percent growth.

    Base metals are relatively split, with zinc down by 0.1 percent and copper losing 2.2 percent. Nickel is up 0.4 percent and lead rose by 0.3 percent. The dollar is up somewhat on its index at 93.17. The euro is consolidating at 1.1870.

  • North Korean Missiles Boost Gold

    Prices for gold are are up from yesterday's close as increased geopolitical tension have boosted safe haven markets. Spot gold is currently up $1.25 an ounce from last trading session, at $1,295.40.

    Despite growing concerns over a tax cut in the United States and fears over North Korean nuclear capabilities, the U.S. dollar is stronger today - the currency rose 0.01 percent to 93.23 in its index. This stronger dollar seems to have had no impact on the trading of gold and most of the precious metals.

    Pricing on Brent crude oil is down 0.13 percent to $63.23 per barrel. Spot silver is up $0.013 to $16,905 an ounce. Platinum also is seeing gains today, rising by a mighty $3 to $952/ounce. Only palladium lost ground today, slipping to $1,028, a loss of $1 per ounce.

  • Gold Volatility 'Breakout' Coming Soon

    Gold's trading activity has been unusually calm this year, but that may be about to change.

    Metals expert Michael Dudas of Vertical Research sees volatility slithering back into the "eerily quiet" gold market — with a "breakout" potentially in the cards as the December Federal Reserve meeting approaches and as lawmakers battle over the tax reform package.

    "It's tough with the events coming up — whether it's the Fed or tax reform which is very, very important. I think that could lead to volatility," Dudas said Tuesday on CNBC's "Futures Now."

    Gold, which is on pace for its largest yearly gain since 2010, has been mimicking the atypical low volatility environment of the stock market. Gold prices are up more than 12 percent this year.

    The big question: Could a volatility surge have a positive effect on the precious metal?

    Dudas says yes.

    His 2018 year-end target calls for gold to hit $1400, an 8 percent gain from current levels. According to Dudas, higher inflation expectations in 2018 should be strong enough to push gold prices even higher.

    But he cites a scenario that could lead to a temporary breakout to the downside.

    "Tax reform is likely to sneak through, and I think that could give a nice pop to the markets. So, gold would trade down," said Dudas. "Longer term, that extra investment, extra demand and capital spending could lead to rising wages [and] rising inflation expectations. So, actually, it could be a backdoor positive."

    Source: CNBC

  • Gold Little Changed Despite Geopolitical Concerns

    Gold is largely unchanged on the market this Tuesday, November 28th, trading rather tepidly in this session. The precious metals is down about 10 cents today, to $1,293.90 per ounce on the day.

    In global news, concerns are rising that a round of possible tax cuts in the United States could be passing soon. These would have very real financial implications for both individuals and corporations.

    However, the real news of the day is the newest provocation out of North Korea. The country led another round of ballistic missiles to be shot at Japan. The strike flew higher than any previous missile test and lasted over 50 minutes. Current reports claim that the intercontinental ballistic missiles landed in the Sea of Japan. In response, South Korea sent up one of their own test missiles.

  • Money ‘Tsunami’ May Spur Quadrupling of Gold Prices

    Gold has bottomed out and may be set to soar, according to one of the industry’s biggest bulls.

    Prices could surpass $5,000 an ounce in five years, from about $1,280 now, as investors seek returns amid a prolonged period of cheap money and use the metal as a haven from geopolitical and financial risk, McEwen Mining Inc. Chief Executive Officer Rob McEwen said.

    If that happens, “there is going to be a tsunami of money looking for a place to go,” he said in an interview from an industry conference in San Francisco.

    Lower-for-longer interest rates have fueled bubbles in the stock, real-estate and even art markets as investors seek out higher returns, McEwen said. While conventional wisdom is that a return to higher rates would make interest-bearing assets more attractive, he said gold should become more appealing as markets re-calibrate.

    To be sure, McEwen said in September 2016 that gold could trade in a range of $1,700 to $1,900 by the end of that year. The metal ended 2016 below $1,150 as the dollar surged.

    Source: Bloomberg

  • Amidst Yellen Announcement, Gold Sinks

    Gold prices fell to their worst level in two months this Monday, November 20th, on the same day that Federal Reserve Chair Janet Yellen announced her intention to resign. Spot gold is currently at $1,275.30 per ounce - a staggering loss of more than 1.5 percent in a single trading session.

    Many market analysts blame an overall rejection of the $1,300 mark and generally poor buying as of late for the precious metal's losses today. Unfortunately for bullish investors, many are expecting this trend to continue for the near-term.

    While Federal Reserve Chair Janet Yellen's announcement today that she will be resigning as a member of the board of governor is not seen as the factor for gold loss, it may nevertheless effect the market long-term. While most markets are already anticipating two interest rate increases before November 2018, Trump will need to fill a fourth seat on the central bank's board of members.

  • Gold Down on Republican Tax Bill

    Gold has returned its highs today as U.S. Republicans passed sweeping tax reform in the House. While the precious metal closed at $1,278.40 per ounce, market participants are uncertain of the security of the metal with political strife in Washington.

    President of Blue Line Futures, Bill Baruch, believes that a house bill that benefits Republicans will likely continue to boost safe haven markets as the U.S. dollar continues its downwards trajectory. He says we should expect a bullish trend come early 2018.

    "I don't think anyone believes that Congress won't pass something by the end of the year," Baruch states. "But when the dust settles, I think markets will be disappointed with the legislation and that will weigh on the U.S. dollar."

  • Gold Returns Gains On Stronger Dollar

    This Wednesday, November 15th trading session saw the U.S. dollar boosted on recent data, pushing precious metals down. Gold is currently at a $5.20 loss (0.4 percent) to $1,277.70 per ounce.

    Data released today shows that the U.S. has seen an overall increase in retail sales and underlying inflation. Investors and market analysts are now anticipating a December U.S. interest rate increase as a very real possibility, boosting the U.S. dollar on its index after recent losses.

    As for other precious metals, palladium lost 0.4 percent to $981.75 an ounce. Silver is also down, returning 0.4 percent as well, down to $16.95/ounce. Only platinum posted gains today, rising by 0.2 percent to $927.74 per ounce.

  • Gold Boosts on Falling Dollar

    Today's fall for the U.S. dollar has been instrumental in boosting the price of spot gold. The precious metal is currently trading at $1,281.80 - up $2.80 per ounce.

    The U.S. dollar lost nearly 7/10 of a percent today. This has led the currency to fall on its index by 64 points to 93.745. The loss in this currency is boosting the gold index by about $9.10 per ounce.

    As for the U.S. Federal Reserve rate hike for December, market speculators are now considering that the possibility of a rate hike is up again despite recent disappointing U.S. economic data.

  • Q3 Gold Demand Disappoints

    According to data from the World Gold Council's most recently released Gold Demand Trends, while physical buying is up for investment coins and bars, overall demand for gold globally is down in quarter 3 of 2017.

    Thanks in large part to a significant drop in jewelry volume from India, demand for gold is down 9 percent from Q3 2016, with just 915 tons moved. Also hurting the figures was an overall stall in the inflow of the precious metal for ETFs (exchange-traded funds).

    However, on a positive note, gold coins and bars are up in demand by 17 percent from 2016. Further, demand from China in the retail investment market is up for the 4th quarter in a row. Similarly, the Russian and Turkish central banks are also investing into their reserves.