Browsing all articles tagged with money
Apr
30

Precious metal Down 1 percent; ETF holdings hit lowest Since Sept 2009

Precious metal fell 1 percent on Tuesday, falling into negative territory following some early bargain hunting, however daily outflows from exchange traded funds highlighted investor’s lack of confidence in the gold.

Tim Riddell, head of ANZ Global Markets Research, Asia said that from a technical point of view, while the rebound has been relatively solid it appears to be a more sustained correction of the drop that we saw from late March rather than a turn in trend.

Although yellow metal’s appeal as a hedge against inflation may be burnished by hopes the US Federal Reserve will continue its bond buying programme, flowing stock markets could tempt investors to ditch gold and shift to equities.

Actually what we need to see is a series of closes above $1,505 to take the pressure off, he added that a fall below $1,435 could trigger a favored technical pullback to $1,300 and potentially even as deep as $1,245.

US gold for June delivery gave up early increases and stood at $1,461.10, down $6.30.

US gold futures and Cash dropped to almost $1,321 on April 16, their lowest in more than two years, after a fall below $1,500 led to a sell-off which stunned investors, and encouraged them to slash holdings of exchange-traded funds.

Precious metal fell $14.18 per ounce to $1,461.61 by 0617 GMT.  It had increased slightly on Monday on expectations the Fed would keep the pace of its bond buying unchanged at $85 billion a month following less than expected US growth.

The SPDR Gold Trust, the world’s biggest gold backed exchange-traded fund, said its holdings dropped 0.22 percent to 1,080.64 tonnes on Monday from 1,083.05 tonnes on Friday to their lowest since September 2009.

A weak March employment report in the US and other softer signals from the economy seemed to kill off expectations the Fed could taper the pace of bond buying in next months.

Asian shares edged higher on Tuesday, a day after the S&P 500 index ended at an all-time high and as investor risk appetite was bolstered by expectations the European Central Bank and US Federal Reserve the will continue with growth supportive monetary stimulus measures.

The Fed is currently buying longer dated US Treasuries and mortgage backed bonds every month and is expected to vote to keep doing so at the conclusion of a two day policy setting meeting on Wednesday.

Fears that central banks money printing to buy assets will stoke inflation have been a key driver in enhancing gold, which rallied to an 11-month high in October last year subsequently the Fed announced its third round of aggressive economic stimulus.

Apr
22

Precious Gold Ralled More Than 2 Percent on Technical Buying

Precious metal jumped more than 2 percent on Monday following a rebound over $1,400 ignited technical buying, however sentiment was wobbly as steady outflows from exchange traded funds trimmed their gold holdings to the lowest in three years.

Edward Meir, metals analyst at futures brokerage INTL FCStone said that it remains to be seen which of these offsetting forces ultimately wins out and exerts its influence over yellow metal prices.

The technical stance for gold, which has sink more than 15 percent so far this year, is yet to recover although the safe haven asset could find support from a rush in physical buying in Asia and other parts of the world.

Our guess is that the sharp bounce in retail buying will probably dominate and succeed in sending prices higher over the course of the coming week or two.

It posted its largest ever daily loss in US dollar terms previous Monday, shocking veteran investors who see bullion as portfolio protection against inflation and other market risks. Prices sank to almost $1,321 on April 16, its weakest in more than 2 years.

Spot gold added $16.21 per ounce to $1,420.06 by 0631 GMT following increasing as high as $1,427.20 per ounce.

Tim Riddell, head of ANZ Global Markets Research, Asia  said that the aggressiveness of the drop suggests that we are still in a consolidation rather in a reversal role. For me the $1,435 level is likely to provide resistance.

We actually need to get back into the $1,500s to say that there’s something more substantial taking place. The close over $1,400 may have taken the negative pressure out of percious metal in the near term. A close below that level will heighten the risks of new lows

Outflows on exchange traded funds could also point out that investors were parking their money somewhere else, although previous week’s trading statistics from the Unites States demonstrate that funds had injected new money into gold futures.

Gold had rallied to an 11-month high in October previous year following the Fed announced its third round of aggressive economic stimulus, lifting fears the central bank’s money printing to buy assets would stoke inflation.

Hedge funds and money managers elevated their net longs in gold futures and options in the week to April 16, a report by Commodity Futures Trading Commission known as CFTC showed on Friday, because new money entered the market at lower prices.

 

US gold futures, which frequently dictate the spot market, strike a high of 1,427.3 per ounce climbed 2.3 percent from the previous close of 1,395.60 per ounce. The June delivery later stood at $1,419.80 added $24.20.

Apr
20

G20 Urges EU to Complete Banking Union Fast, Germany Digs in Heels

World financial leaders support the European Union on Friday to rapidly complete its banking union to help growth, however Germany stood firm that the next step toward such a union be through a risky and lengthy process a change of EU law.

The banking union is one of the key projects to improve the economy of the 17 countries sharing the euro, it would assist eliminate many of the problems that now hold back the flow of credit needed to finance a euro zone economic recovery.

Finance ministers and central bankers from the G20 leading economies said in a statement that the euro area the foundations of monetary and economic union should be enhanced, including through an urgent movement towards banking union.

The EU has previously made the first step it agreed that the European Central Bank would take over the administration of all banks in the euro zone from July 2014 in what is called the Single Supervisory Mechanism.

The next step is to agree how the euro zone will deal with closing down failed banks and how it will pay for that in the provisional period before enough fees from the financial industry accrue to cover the potential expense.

The idea is to use the euro zone bailout fund, the European constancy Mechanism to provide the necessary money for resolving failed banks in that era, however that means the use of euro zone taxpayers money.

The German government, which faces elections in September, consider that without a treaty change the potential use of German taxpayer money for winding down a bank in another euro zone state could give grounds to query it in the German constitutional court.

Wolfgang Schaeuble, German Finance Minister told reporters earlier on Friday that the German government is willing to change the treaties, the sooner, the better.

He said we should do what is necessary appropriately, one must have the strength to do so. The German government is strongly determined to go this way, there was a prospect the changes could be introduced through a simplified procedure to speed the process.

Apr
10

Gold Added on Japan Policy, Firm Equities May Weigh

Gold climbed up on Wednesday because Japan’s aggressive monetary easing policy enhanced bullion’s appeal as a hedge against inflation, while gains may be capped as stronger equities lure buyers seeking superior returns.

Brian Lan, managing director of GoldSilver Central Pte Ltd said that what the Fed really releases in the minutes tonight will influence the direction of gold. Yellow metal needs to test $1,600 before we see it trading in a higher band. If it does not there might still be a downside risk.

Investors are shifting their focus to minutes from the previous US Federal Reserve monetary policy conference for insight on the Fed’s bullion friendly bond buying programme, which sent prices to an 11 month high in October previous year.

It has fall about 5 percent so far this year, following posting annual additions in the past 12 years.

Investors will be looking out for any reveal of quantitative easing. The decision on whether the Fed will continue to print money, limit the print or slowly ease it out will definitely drive gold’s prices.

Precious metal had gained $2.14 per ounce to $1,586.84 by 0610 GMT, following hitting $1,590 on Tuesday, its highest since April 2.

Gold futures on Tokyo Commodity Exchange moved towards a ever high at 5,081 per ounce yen a gram strike in February as of a weak yen, however the climb in TOCOM failed to spur more additions in cash gold.

The addition in Tokyo gold futures weighed on yellow metal bars offered to investors. Precious metal were at discounts of 75 cents to spot London prices in Tokyo, against premiums of 50 cents previous week.

South Korea said it has invite China, North Korea’s only major supporter, to restraint the hermit state and has raised its surveillance following the North moved at least one long-range missile in readiness for a possible launch.

Gold future for June delivery were losing 90 cents, or 0.1%, in Asian trading hours to $1,585.80 per ounce. US gold for June delivery were stable at $1,587.00 per ounce.

Mar
30

New York Assembly Approved Budget On Time Third Year In A Row

New York’s Assembly approved the state’s $135 billion budget for fiscal year 2013-2014 on Thursday just earlier than midnight, the third budget in a row to be delivered on time in a state recognized for regularly being late.

Officials hurried to sign off on the legislation during a week that was interrupt with religious holidays and have succeeded in attaining the job done ahead of the start of the state’s fiscal year on April 1.

Getting the budget completed on time may not sound like much to be proud, however it is being touted as a achievement in a state where seasoned budget watchers remind over a decade of tardiness when budgets would sometimes run into late summer.

Andrew Cuomo, State Governor stated that although three on time budgets in a row should not sound like much and in New York state this is the very first time it has happened in approximately 30 years. Year following year the budgets became a flash point for the chaos and dysfunction of state government.

The Assembly’s 13 hour session broke up just earlier than midnight on Thursday and trait extended debate over a stack of failed adjustments. They included one that attempt to torpedo a tax incentive broadly seen as a way to attract.

A Republican adjustment’s to restore $90 million in funding for the developmentally disabled failed however there were impassioned pleas to revisit the concern on both sides.

The money was cut as Washington Congressional committee stated that New York state was over billing the federal government for Medicaid funds for centers that treat public with developmental disabilities. That led to the state cutting $1.1 billion from the budget proposal in February.

While a package the budget holds spending growth under 2 percent, lift the least wage incrementally to $9 an hour by the end of 2015, extend superior tax rates for millionaires and tax breaks for the middle class that were to expire during coming year.

It also boost state funding for schools by $1 billion and creates a tax rebate program that will deliver $350 checks to a million middle income peoples with children right prior to state elections in 2014.

Feb
21

Gold Climbed Following Fed knocks prices to 7 month lows

Precious gold prices healthier slightly on Thursday following dipping 2.6 percent during the previous trading session, edging back above $1,565 per ounce as lower prices attract some buyers back to the market.

They remain susceptible to additional losses, however following descending through key chart support levels the last day, with selling accelerating following minutes of the Federal Reserve’s previous policy meeting cast uncertainty over the scope of its stimulus plan.

The biggest gold backed exchange traded fund, New York’s SPDR precious metal trust reported its principal outflow in 18 months during Wednesday’s session, corresponding with the price drop.

Spot gold was climbed up 0.3 percent at $1,566.90 per ounce at 1100 GMT, although US gold futures for December delivery were incereased 0.7 percent at $1,566.40 per ounce. Spot prices reached a low of $1,554.49 per ounce in earlier trade, their lowest since July.

The Fed minutes recommended the bank may stop printing the money that has assisting to drive the current rally in equities a process known as quantitative easing earlier than expected. QE tends to support gold, as it keeps interest rates low as stoking fears of inflation.

Standard Chartered analyst Dan Smith stated investor selling has been seen on the futures exchanges and in the physical ETFs and partly that has been driven by what the Fed’s going to do, and whether it’s departing to back away from QE earlier than anticipated.

HSBC metal analysts, discussing Wednesday’s losses in New York said yellow metal slide sustained amidst heavy macro hedge fund liquidation in early trading in front of the release of Federal Open Market Committee meeting minutes.

The Labor Department stated on Thursday that the initial jobless claims climbed 20,000 to a seasonally adjusted 362,000 in the week ended Feb.16. which causes bounce back of precious metal to $1570.