Browsing all articles tagged with ounce
Jun
1

Gold falls 1.6 Percent Notches Second Sharp Monthly Loss

Precious metal knock down almost 2 percent on Friday following US data showing low inflation and improving consumer confidence dampened investor interest, with gold notching sharp losses for a second consecutive month.

A combination of declining fund interest, option expiration and squaring of books following investors covered short positions also sent open interest in US gold futures to its lowest in approximately four years traders said.

Data showing a six-year high in consumer sentiment weighed on yellow metal a traditional safe haven.

Carlos Perez-Santalla at brokerage Marex Spectron said that the metals were previously under pressure going into the end of the month as many people have a lot of short positions outstanding and the consumer confidence statistics just added fuel to selling.

Spot gold knock down 1.6 percent to $1,390.80 per ounce by 3:17 p.m. EDT (1917 GMT), its largest one-day loss in two weeks.

US Comex gold futures for August delivery settled down $19 at $1,393 per ounce, with trading volume almost 30 percent below its 30-day average.

Yellow metal had gained more than 3 percent in the previous three sessions as discouraging US growth data and jobless claims figures boosted expectations for continued Federal Reserve stimulus.

However for the month of May, precious metal fall 5.8 percent following April’s decline of more than 7 percent. On Thursday, CME data showed Comex gold futures open interest inched up less than 1 percent to 385,901 contracts, hovering near its weakest level since September 2009. The market gauge was 13 percent lower versus 445,517 lots previous Thursday.

Economic optimism and increasing investor interest in better-performing assets such as equities explained decreasing interest in the safe-haven metal.

Holdings in the SPDR Gold Trust, the world’s biggest gold backed exchange traded fund, remained unchanged at 1,013.15 tonnes on Thursday, following increasing for the first time in three weeks on Wednesday. However these are still near four-year lows, having lost almost 337 tonnes in 2013 so far.

May
18

Gold Drop Further in Longest Losing Streak in Four Years

Precious metal knock down on Friday for a seventh straight session, in its greatest losing streak since March 2009 because the dollar strengthened and investors cut exposure to the gold fearing further drops and choosing equities instead.

Yellow metal has lost almost 6 percent of its value in the six sessions through Thursday as stocks added on the back of strong US economic statistics and on fears the Federal Reserve could end its bullion friendly bond buying program.

Spot gold was losing 0.34 percent at $1,380.91 per ounce by 0538 GMT, having plunge to a four-week low of $1,369.29 on Thursday as renewed liquidation in precious metal’s ETFs and a recent drop below the $1,400 per ounce level spooked investors.

The gold is down 17 percent for the year and is on track for its worst weekly turn down in a month. Holdings in SPDR Gold Trust, the world’s major gold-backed exchange-traded fund, knock down to their lowest in four years.

Traders and dealers said Physical demand was also quiet on Friday as consumers in the largest gold buyers, China and India, wait for prices to stabilize or fall further.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said many people are waiting on the sidelines as they are expecting another fall.

Demand in India is being hurt by central bank curbs on gold imports. Limits on bank batch have hit supply and triggered a sharp jump in premiums.

Indian gold futures chop down 1.5 percent on Thursday, extending losses for a second straight session to their lowest level in almost a month in line with global markets.  Lan said buying in India had plunge considerably from Monday, which saw the celebration of Akshaya Tritiya, considered an auspicious day to buy metal.

Premiums for gold bars in Hong Kong the main supply of gold for China, strike record highs this week on supply constraints.

Yellow metal demand knock down 13 percent to a three year low of 963 tonnes in the first quarter because rising jewelery demand and strong appetite for coins and bars failed to offset a sharp fall in investment, the World Gold Council says.

SPDR said holdings knock down 0.55 percent to 1041.42 tonnes on Thursday, the weakest in four years.

US gold future for June delivery was down 0.52 percent at $1,379.70 per ounce.

May
11

Precious Metal Fall 1.5 percent on US Dollar Gain, Posts Weekly Plunge

Yellow metal knock down almost 1.5 percent on Friday as a sharp increased in the US dollar against the Japanese yen triggered technical selling, sending the metal to a two-week low.

Bullion slip for a second consecutive day as the yen plummeted to its weakest against the US dollar in more than four years on Friday, a day following the US currency climbed above the 100-yen level. The US dollar rally also weighed on industrial commodities led by crude.

Gold posted a weekly fall of almost 2.5 percent as continued outflows in gold-backed exchange-traded funds more than offset strong physical retail demand following yellow metal’s historic selloff in mid-April.

Precious metal’s sharp losses previous month has intensified a disconnect among funds that sold on dissatisfaction over gold’s under performance and individual investors who could not get sufficient physical gold coins and bars at bargain prices.

Miguel Perez-Santalla, vice president of BullionVault, an online physical gold and silver market it’s all about the greenback strength, that’s where all the fast money is going. He said, I believe this is another opportunity for physical buyers.

Spot gold knocks down as much as 2.5 percent to a low of $1,420.60 per ounce earlier in the session. It was down 1.3 percent at $1,438.51 per ounce by 2:28 p.m. (1828 GMT)

US Comex division gold futures for June delivery settled down $32 at $1,436.60 per ounce, with trading volume almost 10 percent over its 30-day average.

Carlos Sanchez, director of commodities and asset management at CPM Group said yellow metal accelerated losses following sell-stops were triggered below technical support at $1,450 per ounce.

Gold’s failure to break above a $40 trading range in the precedent two weeks suggested sentiment remains weak following the metal plunged to $1,321.35 an ounce on April 16, its lowest in more than two years.

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.

 

May
2

Precious Metal Holds Near 1 week Low, ETFs Outflows Persist

Precious metal held near its weakest level in practically a week on Thursday, following declines in holdings of exchange traded funds, equities and other commodities overshadowed the US Federal Reserve’s decision to uphold its loose monetary policy.

Prices fall $225 per ounce between April 12 and 16 on fears of a withdrawal of the Fed’s monetary stimulus and after the International Monetary Fund and the European Central Bank asked Cyprus to sell reserves as part of a bailout deal.

While the Fed’s money-printing to buy assets could stoke inflation, yellow metal has been overwhelmed by fears of sales by central banks and a fall in global bullion ETF holdings to their lowest since September 2009.

However this is unlikely to be sold on the open market. I consider another central bank will be buying it. China’s physical demand is still strong. This morning they are perhaps keeping a lookout to see where the market is going before purchasing.

Precious metal fell $3.05 per ounce to $1,453.69, having shed more than 1 percent in the previous session its largest daily drop since gold’s historic decline in mid-April. It smash a low of $1,439.74 on Wednesday, the weakest since April 25.

Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore said that people are more wary as yellow metal has been trading within the same trading band. Moreover, Europe has agreed on a loan deal for Cyprus, and one of the terms state that assets in bullion might be sold.

US gold for June delivery stood at $1,453.70 per ounce, climbed up $7.50.

In its statement subsequent a two-day meeting, the Fed reiterated it would carry on to buy $85 billion worth of bonds each month to support a moderately expanding economy that still has too high an unemployment rate.

Investors are now waiting for US non-farm payrolls report for April scheduled for release on Friday, which will signal the longer term predictions for the Fed’s monetary stimulus.

However instead of rallying on the news, yellow metal tracked other markets lower on renewed doubts over the Chinese and US economies following the latest economic data from both countries elevated doubts about the strength of the global economy.

The US economy is likely to have added 145,000 jobs.

March’s number chop down far short of expectations at 88,000, triggering a sell-off in riskier assets. Precious metal for June delivery added $9.70, or 0.7%, to $1,456 per ounce.

China’s factory sector growth eased in April as new export orders chop down for the first time this year, a private survey showed on Thursday, suggesting the euro zone slump and sluggish US demand may be risks to China’s economic recovery.

May
1

Yellow Metal Edges Down, Investors Cautious Ahead of Fed

Yellow metal ticked lower on Wednesday on a shortage of physical buying and as investors waited to see if the US Federal Reserve sticks to its stimulus programme to spur the economy, which may lift the metal’s appeal as a hedge against inflation.

Doubts that central banks money printing to buy assets will stoke inflation have been a key driver in boosting precious metal, which rallied to an 11-month high previous October following the Fed announced its third round of aggressive economic stimulus.

The Fed’s policy making committee ends its conference later in the day with a statement that could reflect recent weak economic statistics. Investors also await Friday’s non-farm payrolls data which will signal the longer term predictions for the Fed’s monetary stimulus.

Edward Meir, a metals analyst at futures brokerage INTL FCStone said that accommodative policies are generally seen as supportive for bullion, however as the events of the last few weeks have demonstrated, gold does not always move in lockstep with simple expansion in money supply.

In its place, it seems to pick up steam either as a result of disorder in the financial markets or on the back of higher inflation readings, neither of which seem to be dominant at this particular time.

Gold dropped $1.89 per ounce to $1,474.71 by 0602 GMT, with the market torn between expectations that the Fed will keep its current policy and daily outflows from exchange traded funds, as investors cut their exposure.

US gold futures for June delivery stood at $1,474.20 per ounce added $2.10.

SPDR Gold Trust, the world’s biggest gold backed exchange traded fund, said its holdings dropped 0.19 percent to 1078.54 tonnes on Tuesday, their lowest since September 2009.

However gold has recovered more than half of its $225 loss incurred among April 12 and 16, boosted by strong physical demand, especially in top gold consumers China and India.

The longer term trend has been broken to the downside. This fact is important as in a downtrend the default move of a price is lower in the absence of convincing fundamentals. With fundamentals only neutral, we think certain risk still persists.

Credit Suisse in a report said that with investment flows negative however monetary policy supportive, we consider a neutral fundamental rating is the most appropriate one. In contrast to neutral fundamentals, technical indicators are clearly negative.

Singapore and Hong Kong were closed for a holiday. A rush in buying of gold bars following the recent plunge in prices has led to tight physical supply in Asia.

In other markets, the US dollar eased on Wednesday as investors warily awaited the result of the US Federal Reserve’s policy meeting, although expectations the European Central Bank will cut interest rates on Thursday capped the euro.

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
29

Precious Gold Rises 1 percent, Holds near One Week High

Yellow metal rose more than 1 percent on Monday and held near its highest level in more than a week as a bounce back in prices from multi-year lows failed to control investor appetite for the gold’s, leading to a shortage in physical supply.

Current bleak US growth statistics that raised expectations the Federal Reserve will keep its current pace of bond buying at $85 billion a month also supported precious metal that is typically seen as a hedge against inflation.

However investors are still roiled by the very recent event of the tumble. The question is how supportable is this physical buying as at the same time, we are still seeing funds flowing out of yellow metal. Retail investors won’t be buying bullion in hundreds of millions of dollars like the funds.

Both cash gold and futures dropped to around $1,321 on April 16, their weakest in over two years, subsequently drop below $1,500 sparked a sell-off that encouraged investors to slash their holdings on exchange traded funds. They touched an 11 day high above $1,484 on Friday.

I don’t consider gold is out of the woods yet, however there’s room for upward correction. One of the reasons why precious metal has plunged so much was the strong signs of US economic recovery.

US gold futures which often give trading cues to cash metal, hit a high of $1,472.20 per ounce. By 0226 GMT, prices stood at $1,469.60 climbed $16.00. Spot gold gain $7.51 per ounce to $1,470.01.

Premiums for gold bars have jumped to multi-year highs in Asia as of strong demand from the physical market, which has led to a shortage in gold coins, bars, nuggets and other products.

In other markets, shares in Asia crept ahead on Monday however the US dollar lost ground to the yen as markets braced for a busy week for economic statistics and central bank policy meetings in the United States and euro zone.

Holdings on the biggest gold-backed exchange-traded-fund ETF, New York’s SPDR Gold Trust continue to drop, which was a sign investors have yet to reinstate their confidence in gold. The holdings are currently at their lowest since September 2009.

The current string of underwhelming statistics will strengthen the hand of the doves at the Fed and temper any talk of tapering back the bond buying programme. The policy setting Federal Open Market Committee will announce its decision at 1815 GMT on Wednesday.

Report by the Commodity Futures Trading Commission showed on Friday that yellow metal rallied to an 11-month high in October previous year after the Fed announced its third round of aggressive economic stimulus, raising fears the central bank’s money printing to buy assets would stoke inflation, money managers and Hedge funds trimmed their net longs in gold futures and options in the week to April 23 as investors reduced optimistic bets.

 

Apr
27

Gold down Still Posts Greatest Weekly Addition in 3 Months

Bullion knock down in choppy trade on Friday on as investors took profits, however the market still posted its greatest weekly gain in three months on strong physical demand following bullion hit a two year low previous week.

In untimely trade gold climbed more than 1 percent following the US Commerce Department reported that economic growth regained speed in the first quarter, however not as much as expected. Gold gave back those early additions and slipped into negative territory as options related selling kicked in, and losses in industrial commodities including copper and crude oil also weighed.

Gold has recovered more than half of the loss of $225 an ounce incurred among April 12 and 16.

Investors in exchange traded funds headed for the exits concerned regarding potential central bank sales of gold and uncertainty over the outlook for US monetary stimulus.

Erica Rannestad, precious metals analyst at the CPM Group said that there is still some long liquidation in the market, signifying that some investors are still repositioning themselves and that leaves the price susceptible to some sideways actions.

Spot gold was down 0.6 percent at $1,457.76 per ounce by 3:28 p.m. EDT (1928 GMT), off the session high of $1,484.80.

US gold futures for June delivery settled down $8.40 at $1,484.80 per ounce. Trading volume was almost 10 percent above its 30-day average.

Robin Bhar, Societe General Analyst said that GDP is encouraging for precious metal as the whole sell off in the yellow metal was linked to perceptions that the US economy was getting stronger and stronger.

US first quarter growth expanded at a 2.5 percent annual rate, less then economists expectations for 3 percent. In the meantime, a separate report on consumer sentiment demonstrates a drop from the previous month.

Silver also climbed early, striking a 10 day high of $24.82. Then it slipped down 1.7 percent in late trade to $23.91 per ounce.

Holdings of the biggest gold backed exchange traded fund, the SPDR Gold Trust dropped 0.25 percent to 1,090.27 tonnes on Thursday from 1,092.98 on Wednesday. Holdings are at their weakest level since September 2009.

Among platinum group metals, platinum added 0.4 percent to $1,472.49 per ounce, as palladium was down 0.4 percent at $677.25 per ounce.

Apr
26

Precious Gold Increased More Than 1 pct, Heads for Best Week in 1-1/2 years

Yellow metal was headed for its greatest weekly addition in one and a half years following increasing more than 1 percent on Friday as a mid-month plunge in prices prompt bargain hunting and a surge in physical buying across Asia.

Gold still attracted buying even though the price had bounce back more than $100 since declining to a two year trough of about $1,321 previous week, with dealers reporting a shortage in gold coins, bars, nuggets and other products.

Ronald Leung, chief dealer at Lee Cheong gold Dealers in Hong Kong said that there’s panic buying. Everybody is buying gold. It still has a chance to go up to $1,500 and maybe a bit more. $1,525 is then the big barrier.

It was floating to be up more than 5 percent for the week. Gold posted its biggest daily climb since June last year on Thursday, however was still down 12 percent this year.

Precious metal was up $7.30 per ounce at $1,474.29 by 0408 GMT, off an initial high of $1,484.81 its strongest since April 15.

It’s not simple to go back down to $1,400 as long as the physical market is still firmed. The thing is that there are no immediate stocks.

US gold futures for June delivery climbed as high as $1,484.80 per ounce.

International Monetary Fund said on Wednesday, bullion was also supported by prediction of more central bank buying following Russia and Turkey raised their gold reserves in March, increasing their holdings ahead of a spectacular plunge in prices this month.

Premiums in Singapore stayed at their highest since October 2008 at $3 per ounce to the spot London prices on demand from Indonesia, India and Thailand.

Premiums for gold bars in Hong Kong climbed to at their highest level since October 2011 this week, at rise to $3 an ounce to spot London prices, partly as of an increase in buying interest from China, the world’s second largest consumer following India.

The Indonesians have told me they should begin selling at above $1,450, however they are actually buying some this morning, while the amount is not great. Local demand in Thailand is still good, he also see a pickup in demand for silver.