Browsing all articles tagged with SPDR
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.

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
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
25

Gold Rise to 1 Week High, Central Bank Purchases Hold up

Bullion climbed to its highest in more than a week on Thursday, enhanced by prospects of more central bank buying following a recent steep sell off in the gold, as a firmer euro also underpinned prices.

Turkey and Russia raised their gold reserves in March, the International Monetary Fund stated on Wednesday raising their holdings ahead of the spectacular plunge in prices this month that shocked ardent yellow metal investors and bulls.

Central bank purchases and surging physical demand helped precious metal bounce from a two year trough about $1,321 per ounce hit previous week. However daily outflows from exchange-traded funds, reflecting sagging investor confidence capped gains.

Gold reversed early losses and stood at $1,445.56 per ounce by 0621 GMT, climbed $14.76. It strike a high of $1,447.66 per ounce earlier in the session its loftiest since April 15 the day it posted its largest ever daily slump in dollar terms.

Bullion is torn between an increase in demand for jewellery and coins, and investors in ETFs cutting exposure because they became gradually more convinced the US Federal Reserve will look to end its bullion friendly bond buying programme by the end of 2013 or beginning of 2014.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said if the price breaks above $1,447-$1,450 levels, there will be more upward momentum. If it does not we may see a further dip in precious metal prices.

Premiums for gold bars soared to multi year highs in Asia following a spate of physical buying ran down supplies, with dealers in top consumer India expecting a surge in imports this month.

Holdings of the greatest gold backed ETF, New York’s SPDR Gold Trust slump 0.38 percent on Wednesday from Tuesday, their lowest since late 2009.

Dealer in Singapore said strong physical buying in China is overflowing into Hong Kong. I heard if you have gold bars now people will buy them at $2.50 to $3.00 premiums.

US gold for June delivery climbed more than 1 percent to as high as $1,447.50, its largest since April 15, however some dealers cautioned the current rebound in cash and gold futures was far from sustainable.

Gold futures rise on Thursday in electronic trade, on track for a second consecutive proceed supported by strengthening physical demand for the gold and downbeat US economic figures.

Apr
20

Paulson’s Advantage Fund Hurt by Fall in Gold

Hedge fund billionaire John Paulson’s best-known fund losing 2.4 percent in April, mostly due to the sharp sell-off in precious metal. The Paulson & Co Advantage fund is making money for the year however just barely with a 1.3 percent addition.

Gold is one of the worst performing assets this year following rising mightily following the financial crisis. The precious metal has dropped 17 percent this year including a 13 percent fall in April alone.

The fund’s significant holdings in numerous gold mining stocks, including a bet on AngloGold Ashanti Ltd, which is losing 40 percent this year, have considerably cut into the Advantage fund’s returns.

The sharp fall appears to have caught a number of hedge fund managers like Paulson by surprise. Coming week he intends to update his clients regarding all of his funds, including a fund dedicated specially to investing in gold.

Shares of companies tied to the performance of yellow metal, including the SPDR Gold Trust the largest gold exchange traded fund also have plunged sharply. Financial information firm Markit said this year investors have pulled $10 billion out of the precious metal ETF as of Wednesday.

The fund manager, lionized following a big bet against the overheated housing market in 2007 that made golds for his investors, has floundered trying to replicate the success in recent years.

Paulson, who has made money on bullion up until this year, has long held firm to the view that inflation will ultimately rebound, making yellow metal a prudent hedge. However in the wake of the selloff the firm has sustained losses in the hundreds of millions of US dollars in several funds that invest in yellow metal.

Assets at his firm have slumped to $18 billion down from $38 billion in early 2011 due to redemptions and poor performance. Over the past two years the Advantage fund and a leveraged version of the fund have posted some of the most horrible numbers in the $2.2 trillion hedge fund industry.

At the end of the first quarter, the Advantage policy, which includes the two funds and managed accounts had almost $4.6 billion in assets.

Apr
19

Gold jumps More Than 2 Percent, Still down for the Week

Yellow metal rallied more than 2 percent on Friday as its bounce back to  $1,400 per ounce spurred technical buying, however bullion was still heading for a fourth week of losses following a brutal sell-off shattered investors confidence.

Precious metal has been caught in a tug of war among physical buyers seeking bargains and wary investors cutting exposure to the gold on nagging worries about central bank sales and forecast of easing inflation.

Gold strike a session low about $1,385 before gaining strength to $1,414.30 by 0715 GMT, up $23.55. Dealers also noted physical buying, even though prices had added more than $100 since striking a 2-year trough earlier this week.

Physical dealer in Singapore, Prices have suddenly jumped however I guess it’s as gold has broken the $1,400-level again. Technically, people are just buying up again.

Physical buying from Thailand is not that strong. We are considering demand from Indonesia and local buyers and also modest from India.

Bullion investors are waiting for the 1930 GMT release of US CFTC statistics showing the newest trading by hedge fund and money managers for more cues.

The plunge in prices ignited a spate of buying in gold coins, bars and nuggets, sending premiums for precious metal bars to multi month highs in Asia. Buying also enhanced in top consumer India following a lackluster start.

This gives us some confidence that as panic selling passes, prices can rebound by $100 to $150 an ounce and trade in the $1,400 to $1,550 range over the next 3 to 6 months.

US gold futures for June delivery also staged a humble rally, standing at $1,414.30 per ounce climbed $21.80.

Selling on COMEX, blamed on the outflows on gold backed ETFs was accountable for a rout in the cash market. Spot gold recorded its largest ever daily drop in dollar terms on Monday, catching gold bulls, veteran and speculators investors by surprise.

Holdings of the SPDR Gold Trust, the world’s biggest gold backed ETF, are at their weakest in three years and there was also assumption hedge fund manager John Paulson a prominent gold bull might have liquidated his enormous gold stake.

Mar
27

Gold Hold Additions As Upbeat US Data Offsets Europe Uncertainties

Yellow metal float about $1,600 per ounce on Wednesday, because optimistic US data curbed safe haven demand as uncertainties regarding the euro zone’s fiscal health continued to support prices following Cyprus’s unprecedented rescue scheme.

Orders for lengthy US made commodities surged previous month and home prices posted their greatest year on year added in six and a half years in January, the current signs the US economy resume momentum early in the first quarter.

Merrill Lynch, Bank of America decreased its 2013 prediction for precious metal to $1,670 from $1,680 per ounce, a second cut in estimate this month. The bank was long on palladium and platinum in the medium term, expecting shortage for both metals this year.

Cyprus is expected to complete capital control process on Wednesday to prevent a run on the banks by depositors anxious regarding their savings following the country agreed a painful rescue package with international lenders.

Holdings of SPDR Gold Trust, the world’s greatest precious metal’s backed exchange traded fund, were unchanged at 1,221.260 tonnes for the third session on March 26.

Spot gold had climbed $1.23 to $1,599.82 per ounce by 0010 GMT, following diminishing for three sessions.

US gold increased 0.2 percent to $1,599.10 per ounce.

Strategist Xiao Fu at Deutsche Bank said that although the continued impact regarding the Cyprus bailout and its participation of bank deposits, yellow metal struggled to maintain the positive energy created in the first two weeks of March, now looks very probable to move lower, towards $1,580 per ounce.

Gold futures for April delivery climbed $2.50 to $1598.20 per ounce during the Asian trading hours.

The precious metal had plunged $8.80 or 0.6%, on the Comex division of the New York Mercantile Exchange on Tuesday. Greater than expected statistics on US durable goods orders facilitate grounds to dent the yellow metal’s safe haven appeal and contributing to a third straight session turn down.

Mar
25

Gold Dropped As Cyprus Nears Bailout Arrangement

Gold dropped during the Monday’s trading session, because Cyprus reached a bailout plan with international lenders awaiting approval from euro zone finance ministers, consider on outlook for the safe haven of yellow metal.

The US dollar dropped 0.6 percent verses a basket of currencies on weakening safe haven demand, which gave some support to dollar denominated commodities including precious metal.

EU sources said that the European Union and Cyprus’s president the have decided the outlines of a rescue deal that would observe the formation of a bad bank and good bank and include the closing down of Cyprus’s second greatest lender.

Investors lift their net long positions in US gold by 63 percent to 70,193 contracts in the week to March 19, climbed up from a more than five year low of 39,631 contracts strike in early March.

Spot gold knock down 0.2 percent to $1,605.16 per ounce by 0005 GMT.

US gold was down $1.40 to $1,604.70.

Holdings of SPDR Gold Trust, the world’s largest gold backed exchange traded fund were remains same on the day at 1,221.26 tonnes on March 22, down 11.736 tonnes in the twelfth week of consecutive turn down.

Gold future for April delivery chop down $7.70, or 0.5%, to settle at $1,606.10 per ounce on the Comex division of the New York Mercantile Exchange.

Mar
22

Gold Headed For Greatest Weekly Climb In 4 Months On Cyprus

Yellow metal traded near a 4 week high on Friday, underpinned by safe haven demand on the fear of a possible financial meltdown in Cyprus. The crisis has placed gold on track to phase its largest weekly climb in four months.

Holdings of SPDR Gold Trust, the world’s greatest  precious metal’s backed exchange traded fund, knock down 0.902 tonnes from the last session to 1,221.26 tonnes on March 21, the weakest since July 2011, the fund is started for a twelfth week of outflows.

Concerns regarding Cyprus’s finances resurged, as the European Union gave the country till Monday to lift the billions of euros it wants to settle an international bailout or face the collapse of its financial system and possible exit from the euro zone.

Officials in Cyprus delayed until Friday a discuss on emergency legislation listed by the government to meet the island’s financial crisis, saying they required further time for consultations.

In US a series of data on Thursday on the labor market, home sales and factory activity pointed to a rising energy in the US economy in the first quarter.

The US House of Representatives reduced the threat of a government shutdown coming week, approving on Thursday a stop gap funding bill that eases follower tensions following months of bitter fights over budgets.

Spot gold was traded on little changed rate at $1,614.74 per ounce by 0008 GMT, following increasing to a 4 week high of $1,616.36 during the previous trading session. Gold was headed for a weekly addition of about 1.5 percent in its third weekly climb, its greatest weekly climb in four months.

US gold were traded nearly flat rate at $1,614.20 per ounce.

The new governor of the Bank of Japan stated the central bank is ready to use all resources accessible including buying longer term assets, to attain its 2 percent inflation target.

Gold future for April delivery knock down $1.10 to $1,612.80 per ounce during the Asia trading session.

Mar
21

Gold Continue Additions As Fed Sticks With Stimulus

Precious metal traded little changed rate on Thursday, following shattering four days of addition in the previous session as the Federal Reserve’s vowed to stick with its bond buying programme offset doubts regarding a debt crisis in Cyprus.

Taking the steam out of yellow metal’s current rally, investors are showing some hopefulness the problems in Cyprus might not extended further in the euro zone.

The Federal Reserve on Wednesday pressed forward with its aggressive policy incentive despite developments in the US economy, pointing to still lofty unemployment, fiscal headwinds out of Washington and risks from overseas.

Cyprus extended a bank lockdown to coming week and measured nationalizing pension funds on Wednesday, rushed turn away a financial meltdown following rejecting the terms of a bailout from the European Union and rotating to Russia for a lifeline.

The right-wing Swiss People’s Party known as SVP has collected sufficient signatures to force a referendum on a suggestion to ban the country’s central bank from selling any of its bullion reserves.

Holdings of SPDR Gold Trust, the world’s largest gold backed exchange traded fund remain same from a day earlier at 1,222.162 tonnes.

Spot gold was traded on little changed rate at $1,605 per ounce by 0042 GMT, off a three week high of $1,615.16 per ounce hit earlier this week. US gold slumped down 0.2 percent to $1,604.40 per ounce.

Gold futures for April delivery dropped more on Wednesday in electronic trading. April gold was at $1,606.40 per ounce in electronic on Globex, compared with its $1,607.50 per ounce settlement on the Comex division of the New York Mercantile Exchange.