Browsing all articles tagged with US gold
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
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.

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
13

Gold Drop into bear market on institutional Migration

Yellow metal sank more than 5 percent on Friday, entering bear market territory as institutional investors fled gold in favor of other safe-haven assets amid concerns regarding central bank sales and souring sentiment.

The span of the sell off will underscore some expectations that gold’s meteoric rally may end following 12 years of gains.

Robin Bhar, Societe General analyst stated the scale of the turn down has been absolutely breathtaking, they tried to rally and that just did not get anywhere, there has not been any downside support it’s like a knife through butter.

Selling became heavy following an unexpected contraction in US retail sales statistics, which hurt stocks and supported the US dollar. It increased to pressures that were building this week from numerous factors, including a draft plan for Cyprus to sell gold and outflows from exchange traded yellow metal funds.

The precious metal slide below $1,500 per ounce for the first time since July, 2011. Yellow metal posted its largest weekly decline since December, 2011.

The speed of the sell-off appeared tied to instability in the price of Japanese government bonds, which has forced certain holders to sell other assets to meet the risk modeling of their investment portfolios.

The spot price of gold strike a low of $1,476 per ounce, down 5.3 percent on the day. For the week, it showed a turn down of more than 6 percent, in its largest weekly drop since December 2011, bonds rallied on Friday.

Geoffrey Fila, associate portfolio manager at Galtere Ltd, commodities focused hedge fund in New York with almost $600 million under management. Could it retest $1,300 or $1,200 on a short term technical basis? Absolutely yes.

Losses in precious metal accelerated and trading volumes ballooned following prices fell through key support at $1,521 per ounce. The market is down some 23 percent below a record peak of $1,920.30 strike in September 2011. Investors define a bear market as a turn down of 20 percent or more from a market high.

US gold futures also strike their lowest since July 2011, with metal for June delivery declining to as low as $1,476 per ounce by 5:20 p.m. EDT (2150 GMT). It settled at $1,501.40, losing 4.1 percent.

Apr
12

Gold Heads for Third Weekly Fall, Firm Shares Reflect

Precious metal prices were stable on Friday however remained on track for their worst week since late February as strong equities lured investors seeking better returns, as outflows from exchange traded funds underlined the shaky attitude for gold.

CIMB regional economist Song Seng Wun said US equities have continued to defy gravity accumulation that the market had also shrugged off the threat of conflict with North Korea.

Usually, given growing tensions there will be flight to safety and bullion will benefit, however he suppose at this point, as they are mindful of the increased risk, nobody really think that the North Koreans will actually carry through on their threats.

Growing tensions on the Korean peninsula have done little to blend safe haven buying, while yellow metal could regain some of its luster if the newest US earnings season disappoints.

Yellow metal was stable at $1,560.84 per ounce by 0628 GMT, heading for a more than 1 percent turn down this week, its third such fall in a row.

Gold has fall about 7 percent so far this year, following increasing for the previous 12 years, lagging added of more than 11 percent in the S&P 500 index.

US government agency has stated North Korea has a nuclear weapon it can mount on a missile, accumulating an ominous dimension to threats of war by Pyongyang, however the assessment was quickly dismissed by several US officials and South Korea.

Dealer in Singapore, it’s a slim market and a two way business. Mean’s we are seeing both buying and selling today, buying is not extremely high from India. I would say there is not anything strange yet.

Gold future for June delivery fall almost $20 or 1.3%, to 3,561.50 per ounce, on track for a weekly drop of nearly 1%. US gold for June delivery was $1,560.90 per ounce, drop $4.00.

Apr
9

Precious Metal Pares losses, However Equities Attract Investors

Precious metal pared early losses on Tuesday as speculators and jewellers looked for good deal, however the yellow metal was under downward pressure following US stocks gained ahead of an earnings season that is expected to illustrate modest growth.

Ronald Leung, chief dealer at Lee Cheong precious metal Dealers in Hong Kong said that he can observe the chart point does not look good. The stock markets and bond are more interesting than gold.

He think $1,585 is the crucial point. If it can break above this level, another bull run or small covering will push up the market to $1,600 per ounce.

Speculators have also slashed their bullion net longs as the yellow metal typically seen as a safe haven asset ignored worries on the Korean peninsula and investors moved their money to equities, looking for better returns, despite concerns regarding the health of the US economy.

Precious gold knock down to as low as $1,569.94 per ounce and stood at $1,576.00 by 0628 GMT, increased $ 2.91. It sink to a 10-month low previous week following an unprecedented monetary stimulus from the Bank of Japan and expect for another European Central Bank rate cut failed to stem heavy selling of bullion by funds.

Yellow metal rallied to an 11 month high in October last year following the US Federal Reserve announced its third round of aggressive economic stimulus, lifting fears the central bank’s money printing to buy assets will stoke inflation. Gold has slumped around 6 percent so far this year following having posted annual gains in the past 12 consecutive years.

George Soros, Institutional investor stated that gold had been destroyed as a safe haven asset, however added that he expects continued central bank buying to support prices.

US gold for June delivery was at $1,576.10 per ounce, climbed $3.60.

Gold future for June delivery added $3, or 0.2%, to $1,575.50 per ounce during Asian trade. The move erased Monday’s loss that left June precious metal at $1,572.50 on the Comex division of the New York Mercantile Exchange.

Apr
5

Gold Float Near 10 month low, US payroll Statistics in focus

Yellow metal stable on Friday however held near its lowest since May previous year as investors waited for key US jobs data for more clues on the health of the world’s biggest economy, as a plunge in ETF holdings dragged on prices.

Investors will scrutinise on Friday’s US employment statistics for more signals on the strength of that economy. A strong report could damage precious metal safe haven appeal, making it easier for the US Federal Reserve to end stimulus measures that have made some investors worry regarding inflation in the world’s greatest economy.

Strong employment statistics could prompt the US Federal Reserve to end its gold friendly bond buying programme earlier than predictable and dent bullion’s safe haven appeal as worries concerning inflation.

Yellow metal was little changed at $1,553.56 per ounce by 0033 GMT, still heading for a second week of turn down. It knock down to 1,539.74 on Thursday, its weakest in 10 months, because unprecedented monetary stimulus from the Bank of Japan and expectation’s for another European Central Bank rate cut failed to stem heavy selling.

US gold future for June delivery was at $1,553.70 per ounce, up $1.30.

Brian Lan, managing director of GoldSilver Central Pte Ltd said if the statistics turns out to be strong tonight from the US,investors will look to the stock markets because it appears more attractive, Gold’s course will really depend on the data released tonight.

China being absent from the physical market this week for a Thursday and Friday holiday has added to the overall weakness in metals.

Metals consultancy GFMS said bullion is gearing up for the start of a bear market cycle in 2014 following more than a decade of gains as consumer demand for jewellery, bars and coins turn down and central bank buying plateaus.

Gold future for June delivery knock down $2 or 0.1%, to $1,550.40 per ounce during Asian morning trading hours.

Apr
4

Gold About 9 Month Weakest, Investors Leave Risky Assets

Precious gold slumped for a third straight session on Thursday, holding near a nine month low strike during the last session, following a steep decline in equities and disappointing US private sector job description prompted investors to cash in gold to cover losses.

Markets are now eyeing the key monthly US nonfarm payrolls statement on Friday that will possibly confirm outlook that the Federal Reserve will keep its extremely accommodative monetary policy.

US companies hired at the lowest pace in five months in March as recent strong demand for construction jobs fade, as growth in the huge services sector slowed, signs that the economic upturn could be hitting a soft patch.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said that the environment for bullion is pretty bearish now. He think if yellow metal tests the lower trend channel it has the potential to fall to $1,530 level.

As for North Korea he think investors are considering the threats more like a joke. They are not reacting because if North Korea is really going to launch a nuclear loaded missile. Funds are moving out of precious metal as there’s less need for safe haven.

The US state on Wednesday it would soon send a missile defense system to Guam to defend it from North Korea, because the US military adjusts to what Defense Secretary Chuck Hagel has called a real and clear threat from Pyongyang.

Yellow metal lost $3.66 per ounce to $1,553.69 by 0041 GMT following declining to $1,549.69 on Wednesday its lowest level since June. Gold a traditional safe haven that climbed more than a percent previous month, also failed to respond to growing geopolitical tensions in the Korean peninsula. US gold future for June delivery was stable at $1,554.00 per ounce.

Doubts that central banks’ money printing to buy assets will stoke inflation have been a key driver in enhanceing yellow metal, which rallied to an 11 month high in october previous year following the Fed announced its third round of aggressive economic stimulus. Bullion price is in our observation, in bubble territory.

Gold future for June delivery knock down $22.40 per ounce or 1.4%, to settle at $1,553.50 per ounce on the Comex division of the New York Mercantile Exchange.

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.

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.