Browsing all articles tagged with QE

Gold Fall, however 2.15 percent Weekly Rise Biggest in a Month

Precious metal turned modestly lower on Friday as some players exited positions ahead of a long US weekend however registered its largest weekly percentage gain in a month, supported by a fall in stock markets and a softer US dollar.

Comments from a Federal Reserve official that dampened talk the US central bank is set to restrain monetary stimulus also underpinned yellow metal prices, which stuck to a fairly tight range.

Spot gold was down 0.23 percent at $1,387.51 per ounce by 2:37 EDT (1837 GMT), slightly lower than $1,390.40 late on Thursday. It remained up 2.15 percent on the week, its largest weekly rise since late April.

COMEX June gold futures closed at $1,386.6 per ounce, drop $5.2 or 0.37 percent and held about those levels in after-hours business.

Bullion got a boost this week from declining equity markets, which in Europe on Thursday posted their largest one day drop in nearly a year. On Friday, US stocks knock down for a third day, putting indexes on track for their first negative week since mid-April.

Robin Bhar, metals analyst at Societe Generale Group in London, a weaker greenback combined with continued QE, some physical buying at the lower levels out to China in particular all of those factors have helped precious metal in the last few days.

QE refers to quantitative easing, or the Federal Reserve’s program of buying almost $85 billion per month in debt to keep US interest rates low and stimulate the economy.

The US dollar extended its decline against the yen and was on track for its largest weekly loss in three years against the Japanese currency. The euro climbed 0.7 percent this week against the dollar its first weekly addition in three periods.

During the US session, precious metal ventured into negative regions with some players reluctant to hang onto a long gold position over the extended Memorial Day weekend in the US, given the newest uncertainty about Federal Reserve policy.

Speculation the Fed would scale back its monetary easing program evaluate on yellow metal this week after Fed Chairman Ben Bernanke stated the central bank could start scaling back its $85 billion in monthly bond purchases in the next few meetings.

But, St. Louis Fed President James Bullard stated on Friday that US inflation would have to pick up before he voted to scale back stimulus.

Bhar said there’s a lot of uncertainty, there’s still no better than 50/50 chance that the Fed will unwind its stimulus or that the economy performs as they expect it will.


Gold Price Fall as US Statistics Reinforces Growth Expections

Yellow metal pushed lower during the Thursday’s trading session, because statistics presenting signs of development in the US job market strengthen exceptions for growth and evaluated safe haven demand, as investors waiting for policy meetings of major central banks.

The US Labor Department’s February employment report coming on Friday, is expected to demonstrate reasonable job growth as higher taxes and worries of deep government spending cuts made employers. Arguing for the constant monetary support from the Federal Reserve.

Holdings of SPDR Gold Trust, the world’s greatest gold backed exchange traded fund was unaffected on March 6 at 1,244.855 tonnes, following dipping for an unprecedented eleven continuous sessions. The end of rapid outflow could assist steady precious metal prices.

Spot gold knock down 0.2 percent to $1,580.54 per ounce by 0045 GMT.  US gold climbed up 0.3 percent to $1,580.20 per ounce.

The FOMC (Federal Open Market Committee)  earlier in the year stated that considerable progress in the labor market would be required to either slow or stop the quantitative easing (QE) program.

Gold ended it’s session with a little changed in New York Wednesday, further on the policy conference at the Bank of England and the European Central Bank.

The precious metal’s market may interpret the Beige Book’s description of the economy emerging at a slow to slower pace because insufficient evidence for the Fed to stop QE. This is positive for gold prices because gold had turn down recently on worrier that the Fed may rein in QE.

Gold future for April delivery climbed $8.30 to $1,583.20 per ounce in electronic

trading session on Thursday.


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.


Precious Gold Prices flattened, Ahead of Bernanke Speech

Precious gold prices flattened on Friday ahead of a key speech from Federal Reserve chairman Ben Bernanke in Jackson Hole at Wyoming, on which he is expected to provide hints as to the probability of an additional round of US monetary stimulus.

Bernanke’s speech at 1400 GMT will be strongly watched for symbols that the Fed is considering an additional looming round of bullion friendly moves to increase growth such as money printing to buy bonds, or quantitative easing.

Gold prices climbed to 4-1/2 month highs earlier this week on talk of further QE. They have since settled back as investors await Bernanke’s speech and may be susceptible to an alteration if it disappoints.

Tobias Merath, an analyst at Credit Suisse said that there is definitely something previously priced in for Jackson Hole, and there is a fragment of dissatisfaction potential here.

He further added that the prospect for further monetary easing would have to be satisfied to break higher here, for the time being, we have a bit of a cautious advance to the precious metal’s market.

We still believe the base case is for additional sideways trading, and that would only change if investment interest increased to the level that we are able to break that is technical resistance at $1,700.

Spot gold was added 0.1 percent at $1,657.76 per ounce at 0955 GMT, as US gold futures for December delivery were climbed $3.60 per ounce at $1,660.70.

Precious gold future for December delivery jumped up $1.10, or 0.1%, to $1,658.20 per ounce on the Comex division of the New York Mercantile Exchange during Asian trading hours.

Silver for December delivery increased 3 cents, or 0.1%, to $30.40 per ounce, while palladium for the December delivery climbed 40 cents, or 0.1%, to $616.80 per ounce.


Precious Gold Holds Near Four Month High In Advance of Central Bank Meeting

Precious gold stable about four month highs during the Tuesday’s trading session, ahead of a key conference of central bankers at the weekend that could summarize the possible course of US monetary policy, as a strike at a major mine kept the platinum price about 3 month highs.

So far during August, precious metal has added 3.1 percent, placing it on course for its third successive monthly boost and the biggest percentage increase in one month since January, stimulate in huge part by a probability for the European Central Bank and the US Federal Reserve to take further steps to keep borrowing costs low.

Finance ministers from around the world and central bankers are planned to meet at Jackson Hole, Wyoming on August 31 and September 1 and investors expect speeches by Fed Chairman Ben Bernanke to indicate what actions the central bank might take and particularly whether it will buy bonds to lubricate the wheels of the financial system by suppressing interest rates. He further said that there is strong opposition from the Republican Party against further easing measures.

Spot gold was flat today at $1,663.11 per ounce by 0955 GMT, after hitting a 20 week’s high at $1,676.45 during the Monday’s trading session.

He further said if we get dovish remarks from Bernanke regarding the outlook for the leftovers of this year and on quantitative easing, $1,700 per ounce could be surpassed.

Peter Fung, head of dealing at Wing Fung bullion in Hong Kong said that if we get QE3, yellow metal could climb to $1,680 or $1,700, however for now, it is still uncertain what is going to occur, while hopes for QE are keeping bullion supported at the level of $1,650 per ounce.

Precious gold future for December delivery drop $13.70, or 0.8%, to trade at $1,661.90 per ounce on the Comex division of the New York Mercantile Exchange during Asian hours.

Silver for September delivery fall 1.5%, or 0.5%, to at $30.59 per ounce.

Platinum for October delivery plunged $19.70, or 1.3%, to $1,533.50 per ounce, though copper for September were retreated 3 cents, or 0.8%, to $3.45 a pound.