Browsing all articles tagged with Mercantile
May
4

Precious Metal Ends Lower, Copper jumps 7% on US Jobs Data

Yellow metal futures finished with a modest loss on Friday as greater than expected US employment numbers dulled the gold’s safe-haven appeal.

For the week, bullion found support from the European Central Bank’s decision to cut interest rates and from strength in physical demand to end the week 0.7% advanced.

Precious metal for June delivery chop down $3.40 or 0.2%, to settle at $1,464.20 per ounce on the Comex division of the New York Mercantile Exchange.

Labor Department said on Friday that the US economy created a net 165,000 jobs in April. The figure surpassed the 135,000 prediction of economists. The rushing in hiring nudged the unemployment rate down to 7.5%, the lowest level since December 2008.

Right before the data’s release yellow metal prices were trading about $13 per ounce higher than Thursday’s close, then following the figures they fell to trade around $10 lower.

Copper futures rallied almost 7% for their biggest one day percent advance in over two and a half years, as the jobs statistics brightened demand prospects for the industrial metal.

The July silver contract added 18 cents, or 0.8%, to end at $24.01 per ounce, climbed 1% from a week ago.

Chintan Karnani, an independent bullion analyst based in New Delhi said that if hiring continues to increase at the current pace for the coming two to three months that would be bearish for safe havens like silver and gold.

He further said only the interest rate cut by the European Central Bank and firm physical gold demand in Asia are supporting gold prices.

Gold dealers reported impressive jumps in April precious metal sales.

Will Rhind, managing director of ETF Securities, a provider of physically backed gold ETFs including the ETFS Gold Trust stated request is mainly being seen by coin/bar merchants and gold dealers (bullion banks) that act on behalf of central banks and other great institutional physical players.

Copper for delivery in July jumped 21 cents or 6.8% to a three-week high of $3.315 a pound. It rose approximately 4% for the week.

 

Apr
18

Precious Metal Slump Tipped to Fuel China’s Acquisition Follow

The fall down in gold prices is set to rekindle bullion mining takeovers as Chinese companies, private equity funds and sovereign wealth and hedge funds step in to rescue cash strapped small and mid sized miners.

A seven-fold climbed in yellow metal prices between 2001 and 2011 spurred a run of yellow metal mergers and acquisitions. Activity knock down last year as major miners digested some big buys and smaller players held out for better offers, with global gold M&A dipping to $14.6 billion from $43.3 billion in 2011.

Precious metal miners in China, the world’s largest producer, have been chasing mines and listed companies in a bid to develop and match the biggest global producers, like Barrick Gold Corp .

John McGloin, executive chairman of Africa-focused miner Amara Mining that this might be the final shoe to fall that makes some people think there’s no way they are able to finance myself going forward, so they got to consider more seriously regarding my investors and give their investors a return by putting things together with people that have got the cash.

However that is expected to pick up again this year as a 15 percent plunge in precious metal prices this month forces smaller miners, particularly those with high-cost production or single assets, to seek partners to stave off a cash crunch.

With major yellow metal miners like Newcrest Mining and Barrick Gold under pressure to rein in capital spending, slash costs and fix mine problems they are more probable to be spinning off assets rather than chasing acquisitions.

An adviser familiar with the sector, with things so badly beaten up, it is an opportunity for Chinese companies who will only have one or two other bidders for any asset.

That leaves the door open to the Chinese as well as cashed up sovereign wealth funds and hedge funds and private equity, to fill the gap.

Mike Elliott, global metals and mining leader at Ernst & Young said if $1,300 gold stays in place into the second half of this year, then you’ll found to see sellers resetting their price prospect.

Gold future for June delivery knock down $6.4 or 0.5%, to $1,375.80 per ounce during the Asian trading hours. They finished Wednesday down $4.70 or 0.3%, at $1,382.70 per ounce on the Comex division of the New York Mercantile Exchange.

Apr
17

Precious Metal Added Because Buyers Chase Gold

Gold shrugged off weakening US gold futures to jump as much as 1 percent on Wednesday as buyers snapped up precious metal, coins and nuggets following prices touched their lowest in more than two years the session before.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said people are essentially buying everything, gold bars and gold coins. People are hurrying to get a hand on it, we have a problem meeting the demand as we are unable to get new supply.

Yellow metal strike a session high of $1,381.80 per ounce and was standing at $1,370.84 by 0611 GMT, up $3.05. Gold fall to $1,321.35 on Tuesday, has dropped almost 18 percent so far this year following an unbroken 12-year string of gains.

However gold is not out of the woods yet because investors continued to shift holdings from exchange traded funds, even as the growth in physical buying led to a shortage of precious metal in Hong Kong and Singapore.

There’s a vast backlog, it’s the same for silver. So far sentiment seems to be improving even the price has more or less stabilized.

PDR Gold Trust, the world’s biggest gold backed ETF stated its holdings knock down 0.73 percent to 1,145.92 tonnes on Tuesday from 1,154.34 tonnes on Monday. Holdings of global gold ETFs are currently at their weakest since late 2011.

The purchases pushed up premiums for precious metal in Singapore to their highest in 18 months at $1.70 per ounce to spot London prices, however demand from top consumer India was surprisingly low despite the wedding season.

Gold future for June delivery gave up $14.80 or 1%, to trade at $1,372 per ounce during Asian trading hours.

On Tuesday, gold climbed $26.30 or 1.9%, on the Comex division of the New York Mercantile Exchange. The advance followed two consecutive sessions of turn down which stripped prices of more than $200 per ounce.

Mar
29

Gold Knock Down, On Track For 5 Percnet Quarterly Slump

Yellow metal marked lower on Friday, on way to end the quarter with a loss of almost 5 percent, because the euro continued to weak and a rally in equities increased appetite for riskier assets. Shares climbed up in Asia and the gold’s safe haven appeal waned following banks in debt ridden Cyprus reopened on Thursday without rooting a huge run on deposits despite a contentious bailout that taxed huge depositors. Doubts regarding the fiscal stability of the euro zone had sent precious metal prices to a 1 month high previous week.

Kaname Gokon, general manager at Okato Shoji Co’s research section said that looking ahead, bullion is expected to stay in the current range of $1,590 and $1,605 per ounce, referring to coming week’s trading range.

However there is probability that those who have bought TOCOM futures on a weaker yen may start closing their long positions if a market focus is altering to a stronger dollar, which is negative to yellow metal.

Precious gold knock down $1.18 per ounce to $1,594.99 by 0332 GMT in particularly thin trade as many markets in Asia were closed for Good Friday. Prices were losing 4.7 percent for the first quarter its second consecutive quarterly loss.

US gold futures were not-traded. However the most active contract on Tokyo Commodity Exchange, In February strike a low of 4,842 yen a gram its lowest in three weeks, on position squaring on the previous business day of the fiscal year.

Gold future for June delivery knock down $11.50 per ounce or 0.7%, to settle at $1,595.70 per ounce on the Comex division of the New York Mercantile Exchange.