Monthly Archives: January 2018

  • 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