Gold Price at 3-Month High

Gold Climbs to 3-Month High, Euro Leaders “Getting Benefit of Doubt”, Republicans Call for Fed Audit

SPOT MARKET gold prices hit their highest level since early May Wednesday, rising to $1645 an ounce during this morning’s London trading.

Silver prices also gained, rising to $29.70 per ounce – their highest level since early June.

By contrast, European stock markets ticked lower, while commodities were broadly flat and US Treasuries gained, ahead of the publication of Federal Reserve policy meeting minutes later today.

A day earlier, gold prices jumped 1% in less than three hours Tuesday, hitting the top of the trading range that stretches back to May.

“The break above resistance from $1624 to $1629 is bullish,” say technical analysts at bullion bank Scotia Mocatta.

“This area should now provide some support.”

“There is a stimulus premium built into gold of $30-$40, we believe,” adds a note from ANZ.

“If the Fed minutes prove more hawkish than market expectations, some of that premium could evaporate.”

In India, which reclaimed its traditional position as the world’s biggest gold buyer in the second quarter, Rupee gold prices rose to near record highs Wednesday, with increased buying reported from retailers and investors.

On the currency markets this morning, the Euro rose to its highest level against the Dollar since July 5, following reports earlier in the week that suggested the European Central Bank will discuss a policy of intervention in bond markets when it meets next month.

“For the time being, it looks like investors are giving the Europeans the benefit of the doubt that they will indeed pull the proverbial rabbit out of the hat,” says INTL FCStone analyst Ed Meir.

Greece will need to find an extra €2 billion in austerity savings over the next two years, taking the total needed to €13.5 billion, if it is to meet its current bailout conditions, a senior Greek finance ministry official told newswire Reuters Tuesday.

Jean-Claude Juncker, head of the Eurogroup of single currency finance ministers, is visiting Athens today to hold talks with Greek prime minister Antonis Samaras. Samaras will then visit Berlin and Paris to meet German and French leaders later in the week.

“We are not asking for extra money,” Samaras says in an interview published in Wednesday’s addition of German tabloid Bild.

“All we want is a little ‘air to breathe’ to get the economy going and increase state income…more time does not automatically mean more money.”

In the US meantime, the Republican Party has said it will include language calling for an annual audit of the Federal Reserve as part of its Mitt Romney’s presidential campaign.

“Add this to Romney’s claim that he would not reappoint [Fed chairman] Bernanke after his current term expires in January 2014 and we can see that a Republican victory could give the market some reasons for concern,” says Steve Barrow, head of G10 research at Standard Bank.

Europe’s major clearing house LCH.Clearnet has said it will start accepting unallocated gold bullion as collateral to cover traders’ margins from next Tuesday. An initial haircut of 14% will be applied. The move follows a similar announcement by CME Clearing Europe last week.

The difference between gold prices and platinum prices continued to narrow this morning, after hitting an all-time high last week. Platinum rallied above $1520 per ounce Wednesday, following news that the world’s biggest producer, Anglo American Platinum, has received higher wage demands from its South African workers.

Source:http://www.livetradingnews.com/gold-price-at-3-month-high-83149.htm#.UDTbDqAkrbU

Gold prices gain Rs 60, silver prices Rs 650

Both gold and silver rose for the second day in a row in the bullion market here today on sustained buying supported by a firming global trend.

While gold added Rs 60 to Rs 30,510 per 10 grams, silver surged by Rs 650 to Rs 55,050 per kg.

Silver coins followed suit and surged by Rs 3,000 to Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces.

Marketmen said sustained buying by stockists and investors helped the precious metals to rise.

They said a firming trend in the global markets, where gold gained as a weaker dollar increased the metal's appeal as an alternative investment, also influenced the sentiment.

In London, gold rose 0.3 per cent to USD 1,624.95 an ounce and silver by 0.4 per cent to USD 28.90 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 60 each to Rs 30,510 and Rs 30,310 per 10 grams, respectively. It had gained Rs 10 yesterday.

Sovereign held steady at Rs 24,500 per piece of eight grams.

Silver ready rose by Rs 650 to Rs 55,050 per kg and weekly-based delivery by Rs 780 to Rs 54,400 per kg.

Source:http://www.indianexpress.com/news/gold-prices-gain-rs-60-silver-prices-rs-650/991091/

Today’s Gold price per ounce Spot gold price per gram, Silver price per ounce, Market Price review August 20, 2012

Closing floor prices for precious metals gold and silver finished the last full trading session on opposite sides of break-even. Silver contract for September delivery closed lower by .74 percent at 28.00 per troy ounce. Gold contract for December delivery closed at about break-even up by just .01 percent at 1,619.40 per troy ounce. Gold price trend-line tracked lower over the course of the last five trading sessions by approximately .2 percent. Silver price trend-line tracked negatively by approximately .7 percent during the last whole week. Better than expected economic reports helped boost market confidence and diminished safe haven appeal. When viewed from a broader perspective though, gold and silver prices have tracked higher month to month. Respectively, gold and silver price trend-lines are positive during this time frame by approximately .5 and .3 percent.
Spot gold price and spot silver price trend review today August 20, 2012:
After last session close and prior to today’s opening bell, price trends for spot gold and spot silver were tracking higher. Spot gold price was higher at 52.03 per gram. Spot silver was up at 28.14 per ounce.

Source:http://www.learningandfinance.com/2012/08/20/todays-gold-price-per-ounce-spot-gold-price-per-gram-silver-price-per-ounce-market-price-review-august-20-2012/

Gold, silver down on poor demand

Both the precious metals, gold and silver, declined today on reduced offtake at prevailing higher levels. While gold fell by Rs 10 to Rs 30,440 per 10 grams, silver shed Rs 200 to Rs 54,100 per kg. Traders said fall in demand at prevailing higher levels mainly led to decline in gold and silver prices.

Gold of 99.9 and 99.5 per cent purity declined by Rs 10 each to Rs 30,440 and Rs 30,240 per 10 grams, respectively, while sovereigns held steady at Rs 24,500 per piece of eight grams. In line with a general weakening trend, silver ready fell by Rs 200 to Rs 54,100 per kg and weekly-based delivery by Rs 160 to Rs 53,640 per kg. Silver coins also moved down by Rs 1,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.

Source:http://www.dayandnightnews.com/2012/08/gold-silver-down-on-poor-demand/

Gold prices gain Rs 80, silver prices Rs 300

Both gold and silver rose in the bullion market here today on fresh buying by stockists and investors amid a firming global trend.

While gold gained Rs 80 to Rs 30,450 per 10 grams, silver added Rs 300 to Rs 54,300 per kg.

Silver coins also spurted by Rs 2,000 to Rs 66,000 for buying and Rs 67,000 for selling of 100 pieces.

Traders said besides fresh buying, strong cues from overseas markets on speculation that governments from China to the US may take steps to spur growth, also influenced the trading sentiment.

In Singapore, gold rose 0.2 per cent to USD 1,618.52 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity rose by 80 each to Rs 30,450 and Rs 30,250 per 10 grams, respectively.

Sovereign moved up by Rs 50 to Rs 24,500 per piece of eight grams.

Silver ready moved up by Rs 300 to Rs 54,300 per kg and weekly-based delivery by Rs 275 to Rs 53,800 per kg.

Source:http://www.indianexpress.com/news/gold-prices-gain-rs-80-silver-prices-rs-300/989571/

Gold sheds Rs 30, silver gains Rs 100 on sluggish demand

Gold prices declined by Rs 30 to Rs 30,370 per 10 grams in the bullion market here today due to sluggish demand, while silver rose by Rs 100 to Rs 54,000 on increased offtake.

Traders said subdued demand at prevailing higher levels amid a weak global trend where strengthening dollar curbed demand for the precious metal as an alternate investment.

In London, gold fell by 0.1 per cent to $1,601.75 an ounce.

Silver prices increased on rise in offtake by industrial units, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 30 each to Rs 30,370 and Rs 30,170 per 10 grams, respectively.

Sovereign remained steady at Rs 24,450 per piece of eight grams.

Silver ready rose by Rs 100 to Rs 54,000 per kg and weekly-based delivery traded marginally higher by Rs 10 to Rs 53,525 per kg.

Silver coins continued to be asked around previous level of Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.

Source:http://economictimes.indiatimes.com/markets/commodities/gold-sheds-rs-30-silver-gains-rs-100-on-sluggish-demand/articleshow/15516496.cms

Gold sheds Rs 30, silver gains Rs 100

Gold prices declined by Rs 30 to Rs 30,370 per 10 grams in the bullion market here today due to sluggish demand, while silver rose by Rs 100 to Rs 54,000 on increased offtake.

Traders said subdued demand at prevailing higher levels amid a weak global trend where strengthening dollar curbed demand for the precious metal as an alternate investment.

In London, gold fell by 0.1 per cent to USD 1,601.75 an ounce.

Silver prices increased on rise in offtake by industrial units, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 30 each to Rs 30,370 and Rs 30,170 per 10 grams, respectively.

Sovereign remained steady at Rs 24,450 per piece of eight grams.

Silver ready rose by Rs 100 to Rs 54,000 per kg and weekly-based delivery traded marginally higher by Rs 10 to Rs 53,525 per kg.

Silver coins continued to be asked around previous level of Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.

Source:http://www.indianexpress.com/news/gold-sheds-rs-30-silver-gains-rs-100/989069/

Silver hoard nears record but speculative bulls recoil

At a time when hedge funds are the least bullish on silver in almost four years, investors' holdings are near a record, siding with the analysts predicting a rally as central banks move to bolster growth.

Speculators cut bets on higher prices by 72 percent since the end of February, mirroring changes in their copper wagers, which turned bearish in May, U.S. Commodity Futures Trading Commission data show. Silver held in exchange-traded products climbed for three months and is now valued at $16.2 billion, according to data compiled by Bloomberg. Prices will average $33.02 an ounce in the fourth quarter, 18 percent more than now, the median of 13 analyst estimates compiled by Bloomberg show.

Hedge funds anticipate slowing growth will curb demand for silver, 53 percent of which is used in products from televisions to batteries. Investors and analysts are bullish on expectations central banks will do more to stimulate economies, expanding consumption and increasing the allure of precious metals as a store of value. Prices tripled as the Federal Reserve bought $2.3 trillion of debt in two rounds of so-called quantitative easing from December 2008 to June 2011.

"Since the beginning of the year it has reacted more like a base metal than a precious one," said Frederique Dubrion, the Geneva-based president and chief investment officer of Blue Star Advisors SA, which manages metals and energy assets. "The main negatives are still in industry. We're waiting for more quantitative easing, and that would be really positive."

Comex Bourse

After tumbling 29 percent in the four months to the end of June, silver is now little changed for the year at $27.90 on the Comex bourse in New York. The LMEX index of six industrial metals from aluminum to zinc fell 5.5 percent as gold advanced 3.2 percent. The Standard & Poor's GSCI gauge of 24 commodities rose 1.9 percent since the start of January and the MSCI (MXWD) All- Country World Index of equities gained 7.9 percent. Treasuries returned 2.1 percent, a Bank of America Corp. index shows.

Silver is the most volatile metal tracked by Bloomberg and the price swings are masking what are already historically high prices. While the metal is trading 44 percent below the 31-year high of $49.845 set in April 2011, it averaged $30.37 since the start of January, on track for the second-highest annual level after last year's $35.27. The two-decade average is $9.97.

For Coeur d'Alene Mines Corp., which gets about 65 percent of its revenue from extracting the metal, that will mean a 35 percent jump in profit to a record in 2012, according to the mean of six analyst estimates compiled by Bloomberg.

Interest Rates

Industrial demand for silver may strengthen as economic growth accelerates. The International Monetary Fund said July 16 it expects the global economy to expand 3.9 percent next year, from 3.5 percent in 2012. The European Central Bank and the Federal Reserve are already holding interest rates at record lows and the People's Bank of China cut rates in June and July, the first reductions since 2008.

They may need to do more to bolster growth because U.S. factory output contracted in July for a second month, the Institute for Supply Management said Aug. 1. Manufacturing in the euro area shrank for a 12th consecutive month, a Markit Economics report showed the same day. China's industrial-output growth was the slowest in three years in July, according to government data released Aug. 9.

Silver imports by China, the second-biggest user after the U.S., declined for three consecutive months through June, customs data show. Global fabrication demand, a measure that includes coins, jewelry and photographic film, will be little changed in 2013, Barclays Plc estimates. The bank expects supply to beat consumption for a fifth year, leaving a glut of 4,148 tons as mine production expands to a record 25,835 tons.

‘The Gap'

"Industrial demand may remain weak at least for another six months," said Jochen Hitzfeld from UniCredit SpA in Munich, the fourth most-accurate precious metals forecaster tracked by Bloomberg in the past two years. "This makes the gap that investors have to absorb even higher," said the analyst, who anticipates a fourth-quarter average of $28.

Investors bought 797 tons through silver-backed ETPs this year and now hold 18,093 tons, equal to more than eight months of global mine output, data compiled by Bloomberg show. They sold a net 812 tons from ETPs last year. Total assets are now 2.9 percent below the record 18,639 tons reached in April 2011. Investors probably will buy another 500 tons in 2013, Barclays and Morgan Stanley predict.

There are also signs that industrial demand is improving. Stockpiles in warehouses monitored by Comex fell 6.5 percent since July 3, reaching a four-month low on Aug. 8, bourse data show. Inventories had expanded every month since November to 147.1 million ounces (4,575 tons), the most since 1997.

More Bullish

Hedge funds may be getting more bullish, more than doubling their net-long position, or bet on higher prices, to 9,323 futures and options in the two weeks to Aug. 7, CFTC data show. That's still 58 percent below the five-year average. Wagers fell to 2,888 contracts on June 26, the lowest since October 2008.

Options traders are divided. The most widely held contract confers the right to buy silver at $50 by November 2013 and the next two biggest allow holders to sell metal at $20 by the same time and November 2012, Comex data show. The five biggest gold options are all for purchases at prices higher than today.

Some investors may be deterred by silver's price swings. The 100-day historical volatility for futures is at 30.8 percent, more than in gold, platinum, palladium and the main industrial metals traded on the London Metal Exchange, data compiled by Bloomberg show.

Analyst Forecasts

Coeur d'Alene will report net income of $126.6 million this year, from $93.5 million in 2011, the analyst estimates show. Shares of the Coeur d'Alene, Idaho-based company slid 18 percent to $19.80 this year. They will rally 35 percent to $26.74 in 12 months, according to the average of seven analyst forecasts.

Source:http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=156959&sn=Detail

Silver moves up in futures trade on global cues

Silver prices moved up by Rs 145 to Rs 53,645 per kg in futures trade today as speculators created fresh positions in line with a firming trend overseas.

At the Multi Commodity Exchange, silver for delivery in September moved up by Rs 145, or 0.29 per cent, to Rs 53,645 per kg, with a business turnover of 3,429 lots.

Likewise, the white metal for delivery in December traded higher by Rs 143, or 0.26 per cent, to Rs 55,399 per kg in 169 lots.

Marketmen said fresh buying by speculators on the back of a firm global trend mainly led to a rise in silver prices at futures market.

Meanwhile, silver rose 0.3 per cent to USD 28.21 an ounce in Singapore.

Source:http://www.indianexpress.com/news/silver-moves-up-in-futures-trade-on-global-cues/987714/

Gold, silver vault on buoyant demand, global cues

Gold prices strengthened further at the domestic bullion market today on consistent buying by stockists and jewellery retailers on the back of ongoing festival season demand.

Silver also maintained its strong momentum owing to steady speculative off-take amid firm industrial demand.

Standard gold (99.5 purity) surged by Rs 115 to end at Rs 29,880 per 10 grams from Thursday's closing level of Rs 29,765.

Pure gold (99.9 purity) spurted by Rs 120 to finish at Rs 30,020 per 10 grams from Rs 29,900.

Silver ready (.999 fineness) rose by Rs 105 per kg to close at Rs 54,140 from Rs 54,035 previously.

On the global side, gold moved higher on weak dollar valuation supported by optimism over stimulus.

Gold for December delivery advanced by USD 2.60 to settle at USD 1,622.80 an ounce on the Comex division of the NYMEX late yesterday.

Silver for September contract eased to USD 28.06 an ounce.

Source:http://www.indianexpress.com/news/gold-silver-vault-on-buoyant-demand-global-cues/987033/

Silver futures fall 0.10 pc on profit-bookings, global cues

Silver prices fell by Rs 52 to Rs 53,460 per kg in futures trade today as speculators booked-profits at prevailing higher levels, driven by subdued demand in the spot market.

Weak trend in global markets also influenced the trading sentiment.

At the Multi Commodity Exchange, silver for delivery in September fell by Rs 52, or 0.10 per cent, to Rs 53,460 per kg, with a business turnover of 2,388 lots.

Similarly, the white metal for delivery in December shed Rs 38, or 0.07 per cent, to Rs 55,235 per kg in 85 lots.

Marketmen said speculators booked profits at prevailing higher levels and weak trend in overseas market mainly kept pressure on silver futures.

Meanwhile, silver fell 0.7 per cent to USD 27.95 an ounce in Singapore.

Source:http://economictimes.indiatimes.com/markets/commodities/silver-futures-fall-0-10-pc-on-profit-bookings-global-cues/articleshow/15434136.cms

Gold price rebounds on good retail buying, silver surges

Gold prices rose at the domestic bullion market today due to renewed interest from retailers and jewellery traders amid firm overseas trend.

Silver continued to surge on heavy speculative off-take coupled with strong industrial demand.

Standard gold (99.5 purity) spurted by Rs 105 to finish at Rs 29,765 per 10 grams from overnight closing level of Rs 29,660.

Pure gold (99.9 purity) went up by Rs 110 to end at Rs 29,900 per 10 grams from Rs 29,790 yesterday.

Silver ready (.999 fineness) strengthened by Rs 285 per kg to settle at Rs 54,035 over its Wednesday's close of Rs 53,750.

On the global front, gold advanced on positive US economic data amid stimulus hopes.

Gold for December delivery gained USD 3.20 to settle at USD 1,616 an ounce on the Comex division of the NYMEX late yesterday, while silver for September contract eased to USD 28.08 an ounce.

Source:http://www.indianexpress.com/news/gold-price-rebounds-on-good-retail-buying-silver-surges/986126/

Gold price loses 120 on fall in demand, weak global cues, silver flat

Gold declined by Rs 120 to Rs 30,080 per 10 grams in the bullion market here today on fall in demand at existing higher levels amid a weak global trend, while silver held steady at Rs 53,500 per kg.

Traders said sentiment in gold turned bearish as investors diverted funds to rising equity markets.

A weak global trend where the precious metal fell as stronger dollar curbed demand for the metal as an alternative investment also influenced the prices, they added.

In London, gold fell 0.3 per cent to USD 1,607.95 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs 120 each to Rs 30,080 and Rs 29,880 per 10 grams, respectively.

Sovereign remained steady at Rs 24,450 per piece of eight grams.

Silver ready also closed flat at Rs 53,500 per kg, while weekly-based delivery lost Rs 125 at Rs 53,245 per kg on lack of buying support from speculators.

Silver coins continued to be asked around previous level of Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

Source:http://www.indianexpress.com/news/gold-price-loses-120-on-fall-in-demand-weak-global-cues-silver-flat/985521/

Gold prices flat, silver slips

Gold stayed flat as a weaker rupee outweighed leads from overseas markets, with traders seeking direction in prices before booking deals to stock for festival season.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was at Rs. 29,802 per 10 grams, up 0.12% at 2:16pm, still near the previous session’s low of Rs. 29,756, a level last seen on 24 July.

Global gold was little changed on Wednesday after climbing for three days, supported by hopes that Europe and the United States would launch more stimulus measures to help shore up their faltering economies.

The rupee, which weakened on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Physical buying still remained low as prices stayed near the keenly watched Rs. 30,000 mark, with traders bracing for a bad season after expectations of deficient monsoon rains.

“Festival demand is not materialising yet. Prices are consolidating and not giving clear direction,” said an official from a private bullion importing bank.

Rural areas, which depend on monsoons for yields and income, contribute to about 60% of the country’s demand.

Silver traded lower following global leads.

Source:http://www.livemint.com/2012/08/08154300/Gold-prices-flat-silver-slips.html?h=B

Gold steady at Rs 30,200; silver gains Rs 200

Gold prices remained unchanged at Rs 30,200 per 10 grams on reduced offtake in the bullion market today, while silver rose by Rs 200 to Rs 53,500 per kg on fresh buying.

Traders said fresh buying by stockists and jewellers for the coming festival and a firm global trend led to a rise in silver prices, while sluggish demand at prevailing higher levels kept gold prices flat.

In London, silver rose by 0.5 per cent to USD 28.02 an ounce.On the domestic front, silver ready rose by Rs 200 to Rs 53,500 per kg and weekly-based delivery by Rs 100 to Rs 53,370 per kg.

Silver coins held steady at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.Gold of 99.9 and 99.5 per cent purity ruled steady at Rs 30,200 and Rs 30,000 per 10 grams, respectively.Sovereigns traded at last level of Rs 24,450 per piece of eight grams.

Source:http://www.dayandnightnews.com/2012/08/gold-steady-at-rs-30200-silver-gains-rs-200/

Gold price gains Rs 100 on seasonal demand; silver steady

Gold prices recovered by Rs 100 to Rs 30,200 per 10 grams, after three days of losses, in the bullion market here today on festive season buying amid firm global trend, while silver held steady at Rs 53,300 per kg on reduced offtake.

Traders said sentiment in gold turned better after the metal gained in global markets on speculation the Federal Reserve will do more to support growth.

In London, gold rose by 0.1 per cent to USD 1,605.70 an ounce.

Local buying for the upcoming festive season further supported the recovery move in gold, they added.

Back home, gold of 99.9 and 99.5 per cent purity rose by Rs 100 each to Rs 30,200 and Rs 30,000 per 10 grams, respectively. The metal had lost Rs 420 in last three sessions.

Sovereign gained Rs 50 to Rs 24,450 per piece of eight grams.

On the other hand, silver ready remained steady at Rs 53,300 per kg, while weekly-based trader marginally lower by Rs 10 to Rs 53,270 per kg for want of support.

Silver coins also met with resistance at prevailing higher levels and plunged by Rs 1,000 to Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.

Source:http://www.indianexpress.com/news/gold-price-gains-rs-100-on-seasonal-demand;-silver-steady/984576/

Today’s Spot gold price per gram, gold price per ounce; Silver price per ounce; Market Trend Review August 5, 2012

Precious metal prices for gold and silver pushed higher during the last full trading session of the week. The potential for additional stimulus measures remains on the table in the U.S. after the national unemployment rate ticked higher to 8.3 percent. Precious metals remain on the radar for those looking to diversify with perceived safe havens. Gold and silver tracked higher last session as a result.
Gold price per ounce and silver price per ounce close review today:
December contract gold tracked higher last session by 1.17 percent at 1,609.30 per troy ounce. September contract silver finished the last session higher by 1.28 percent at 27.80 per troy ounce.
Although both gold and silver both finished with close prices above break-even last session, price trend-lines are mixed according to one month change review. One month price change for gold is currently negative by approximately .22 percent. Silver price change is currently positive by about .36 percent according to one month price change analysis.
Price review for spot gold per gram and spot silver per ounce:
Recent price trends for spot gold per gram and spot silver per ounce were positive. Spot gold per gram was higher at 51.47 and spot silver per ounce was higher at 27.73.

Source:http://www.learningandfinance.com/2012/08/05/todays-spot-gold-price-per-gram-gold-price-per-ounce-silver-price-per-ounce-market-trend-review-august-5-2012/

Gold and Silver Prices Regaining Footing As Treasuries Make Bearish Reversal (GLD, SLV, UUP, GDX, EUO)

We have always regarded the markets as a grand casino subject to the manipulations of the Croupier and the House. This being said it is only rational to react in the face of the irrational. I remember speaking to a floor specialist who informed me that he reads the same price charts that most technicians do. This means we should be careful of any traps or head-feints at this critical juncture.

No doubt the patterns tell us that we are testing support levels and that technical damage has been inflicted on most stocks including the precious metals. The weak hands inform that the golden bubble may have been broken and the warning inscription written on the entrance to hell “abandon all hope, yea who enter here” may be applicable. We do not agree and may be considering this recent downward move in response to Bernanke and Draghi a fake out and that we may witness a reversal sooner rather than later.

Observe that in the midst of the carnage some positive notes are beginning to appear. We feel that this is a classical panic with all of the textbook characteristics of a selling capitulation. Bullish reversals may soon occur at oversold conditions and is providing long term gold and silver investors additional secondary buypoints.

Be not dismayed! The long range upward trajectory of the precious metals particularly gold is continuing higher and has considerably more to go. Factoring in inflation, gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) have yet to challenge inflation adjusted all time highs. Most industrial countries are trying to stimulate growth through accommodative easing and through record negative interest rates. Investors in five countries in Europe now face negative real rates. This means they are losing money with their savings in the bank. Many investors are holding the U.S. dollar (NYSEARCA:UUP) which has one of the worst real interest rates. Do not forget behind the scenes M2 money supply has reached record levels. This historically leads to hyperinflation.

Be not dismayed! The long range upward trajectory of the precious metals particularly gold is continuing higher and has considerably more to go. Factoring in inflation, gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) have yet to challenge inflation adjusted all time highs. Most industrial countries are trying to stimulate growth through accommodative easing and through record negative interest rates. Investors in five countries in Europe now face negative real rates. This means they are losing money with their savings in the bank. Many investors are holding the U.S. dollar (NYSEARCA:UUP) which has one of the worst real interest rates. Do not forget behind the scenes M2 money supply has reached record levels. This historically leads to hyperinflation.

While the amount of money in the economy has grown, the velocity is still weak as institutions are hoarding cash. One method to discourage this is through a devaluation or quantitative easing. Where will the cash go on the sidelines as investors try to exit? Just like in 2009 and 2010, cash went into precious metals and mining stocks. Gold Stock Trades believes that this may occur again in the second half of 2012.

That is why we are not encouraging investors to panic into the U.S. dollar at this time and sell their mining stocks (NYSEARCA:GDX) and precious metals for pennies on the dollar. The media is trumpeting any bad news on precious metals that is fit to print. Let us take a deep breath and consider the long term picture before making any irrational moves.

The picture of gold and miners versus global currencies especially the Euro show that the long multi-year trends are still higher.

We have been told by some eminent pundits that there has been a meltdown below the 200 day moving average for the first time since early 2009 and that they are selling everything and are going short. We do not adhere to such actions. We believe the long term trend is being tested but we may find support for a reversal move higher.

Instead, we note that investors are rattled and are raising cash, fleeing to U.S. dollars and treasuries, despite knowing that their investments will receive negative returns. Moreover, at times such as these, many nightmarish scenarios begin to haunt the markets. One is that European sovereign nations may sell their surprisingly substantial official gold holdings.

See the list published by the World Gold Council/International Monetary Fund above. Astonishingly, Spain has approximately four times the gold holdings as a share of GDP as the United States. Spain has 11.2% vs. The U.S. with 3.1%. The U.S. government debt is 94%, while Spain’s government debt is 60%. Germany and France clock in at 5.8% and 5.3%. Are the dollar and U.S. treasuries such safe havens when looking at this table above?

This data may infer that gold may not be dumped by these countries helter-skelter, although investors may be led to believe that the sovereigns are selling. However, the troubled Eurozone nations may have been steadfast in not selling their gold holdings at this juncture.

We may doubt that the European’s would resist pulling down the pillars of the temple and that Armageddon has not quite arrived. The Eurozone nations realize they are in need of cash, but still have not touched their precious metals. They realize just like we do that it is their only protection from the printing press. It is inevitable that the European nations and the U.S. will be forced to print to stimulate economic growth.

Source:http://etfdailynews.com/2012/08/03/gold-and-silver-prices-regaining-footing-as-treasuries-make-bearish-reversal-gld-slv-uup-gdx-euo/

Gold, silver prices extend losses on poor demand, weak global cues

Both the precious metals, gold and silver, extended losses for the second straight day in the national capital today, following poor demand at prevailing higher levels coupled with a weak global trend.

While gold fell further by Rs 100 to Rs 30,200 per 10 grams, silver plunged by Rs 800 to Rs 53,000 per kg on lack of buying support from jewellers and industrial units.

Sentiment remained bearish on poor domestic demand at existing higher levels, trader said.

Weakening global trend where gold fell the most in two weeks amid investor disappointment with European Central Bank President Mario Draghi's comments on efforts to fight the debt crisis, they said.

In New York last night, gold fell by USD 11.80 to USD 1,588.30 an ounce and silver by 1.13 per cent to USD 27.13 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity fell further by Rs 100 each to Rs 30,200 and Rs 30,000 per 10 grams, respectively. The metal had lost Rs 220 in the previous session. Sovereigns followed suit and shed Rs 50 to Rs 24,450 per piece of eight grams.

Similarly, silver ready dropped by Rs 800 to Rs 53,000 and weekly-based delivery lost Rs 785 at Rs 53,000 per kg. It had lost Rs 200 in last trading session.

Silver coins also plunged by Rs 1,000 to Rs 61,000 for buying and Rs 62,000 for selling of 100 pieces.

Source:http://www.indianexpress.com/news/gold-silver-prices-extend-losses-on-poor-demand-weak-global-cues/983335/

Expect precious metal to trade sideways today: Angel

Angel Commodities has come out with its report on metals and energy. According to the research firm, precious metals are expected to trade sideways on account bearish global market sentiments due to disappointment that Federal Reserve policy makers did not adopted monetary easing yesterday along with strength in the DX.


Gold: Spot gold prices declined around 1 percent yesterday taking cues from rise in risk aversion in the global markets. Additionally a stronger US Dollar index (DX) also exerted downside pressure on the prices. The yellow metal touched an intra-day low of $1591.74/oz and closed at $1,598.60/oz on Wednesday. On the MCX, Gold October contract declined by 0.5 percent and closed at Rs.29,607/10 gms in yesterday’s trading session. India raises gold import prices by $20/10 gms from $506/10 gms to $526/10 gms. The increase in gold import prices is in tandem with rise in global yellow metal prices.

Silver: Taking cues from the fall in the gold along with downside in base metals pack, Spot Silver prices declined around 1.8 percent in yesterday’s session. Additionally, a stronger DX also acted as a negative factor for the commodity. The white metal touched an intra-day low of $27.11/oz and closed at $27.40/oz in yesterday’s trading session. In the domestic markets prices fell by 1.5 percent after touching low of Rs. 52,662/kg and closed at Rs. 53,172/kg on Wednesday. India’s silver import prices have also rose by $32/kg to $898/kg from $866/kg as per the statement from Central Board of Excise and Customs.

Outlook: In today’s session we expect precious metal to trade sideways on account bearish global market sentiments due to disappointment that Federal Reserve policy makers did not adopted monetary easing yesterday along with strength in the DX. On the other hand positive expectation that European Central Bank might decide on stimulus measures today might support an upside. However, depreciation in Indian Rupee might cushion sharp fall.


Source:http://www.moneycontrol.com/news/brokerage-recos-commodities/expect-precious-metal-to-trade-sideways-today-angel_739185.html

Hecla Reminds U.S. Silver Shareholders To Take Action Before 5:00 P.M. ET Today To Stop The Proposed Transaction With RX Gold & Sil

Hecla Mining Company ( NYSE:HL) (“Hecla”) today reminded common shareholders of U.S. Silver Corporation (TSX:USA) (“U.S. Silver”) that, in order to take advantage of Hecla’s offers to acquire all of the outstanding common shares of U.S. Silver for CDN$1.80 per common share in cash and to acquire each outstanding common share purchase warrant for CDN$0.205 (its “in the money” amount based on such price per common share) (together, the “Hecla Offer”), they must act TODAY before 5:00 p.m. ET to stop U.S. Silver’s proposed transaction with RX Gold & Silver (the “RX Proposal”)

The Hecla Offer is conditional upon the RX Proposal not proceeding or such transaction otherwise terminating; U.S. Silver shareholders need to REVOKE proxies voted for the RX Proposal (if your shares have been previously voted for it) and vote AGAINST it immediately, before the August 2, 2012 proxy submission deadline.

“We are encouraged by the support we have received so far from U.S. Silver shareholders,” said Hecla’s President and Chief Executive Officer, Phillips S. Baker, Jr. “That being said, it is important that as many U.S. Silver shareholders as possible take action before today’s deadline to stop the RX proposal and put themselves in a position to take advantage of Hecla’s superior offer. Every vote counts.”

Instructions for Beneficial U.S. Silver Shareholders

If you are a beneficial U.S. Silver Shareholder, call your investment advisor, stockbroker, bank, trust company, other nominee or intermediary through which you hold your U.S. Silver shares immediately and instruct them to vote AGAINST the proposed RX transaction. Brokers and other intermediaries each have their own voting instructions, which need to be carefully followed to ensure that your instructions are counted. It is also important to note that your broker or other intermediary may have a deadline that falls before August 2, 2012. Therefore, it is imperative that you act immediately.

Instructions for Registered U.S. Silver Shareholders

If you are voting your Shares by proxy, U.S. Silver’s Transfer Agent, Valiant Trust Company, must receive your signed proxy by mail at 310-606 4 Street SW, Calgary, Alberta, T2P 9Z9, or by facsimile at 1-855-375-6916, not later than 5:00 p.m. (Toronto time) on August 2, 2012.

Source:http://www.thestreet.com/story/11649455/1/hecla-reminds-us-silver-shareholders-to-take-action-before-500-pm-et-today-to-stop-the-proposed-transaction-with-rx-gold-amp-silver.html

Gold “Tied to Central Bank Moves” as Federal Reserve “Inching” Towards More Quantitative Easing

U.S. DOLLAR gold prices traded around $1615 an ounce during Wednesday morning’s London session – 0.8% off this week’s high – while European stock markets were also broadly flat and US Treasuries dipped, ahead of the Federal Reserve’s latest monetary policy announcement later today.

Silver prices dropped below $28 an ounce – though they remained up on the week so far – while other commodities were broadly flat, with the exception of copper which fell following disappointing global manufacturing data.

“Investors [are] continuing to favor the US Dollar over bullion as the key safe-haven trade,” says a note from ANZ Bank.

“However we see this changing in the next six months as heightened negative sentiment surrounding Europe eases and the US Dollar loses some ground to a cheap Euro.”

“Gold’s near-term fortunes are tied to central banks’ actions,” adds Sun Yonggang, macroeconomic strategist at Everbright Futures, a division of China’s largest state-owned investment firm.

“As long as investors hold on to the possibility of further monetary easing, whether in the US or Europe or China, any decline in [gold prices] will be limited.”

Following two days of meetings, the Federal Open Market Committee is due to make its latest monetary policy announcement later today.

“I think they are inching towards another round of quantitative easing, but I am not convinced they will get there at this meeting,” says Paul Edelstein, director of financial economics at consultants IHS Global Insight.

“We do not expect any new initiative from the Fed,” agrees Eric Green, economist at TD Securities in New York.

In addition to action from the Fed, “there’s a lot of things Congress can do…to make growth stronger,” said US Treasury secretary Timothy Geithner on Tuesday.

“We pay about 1 1/2 percent for a 10-year Treasury now…because fundamentally people have faith in the ability of the US to solve its problems…It’s sensible for us to take advantage of this moment to do things that will make the economy stronger.”

Geithner also said that leaders in Europe “have to do some more things to help support growth in the near term”.

European Central Bank president Mario Draghi last week said the ECB is “ready to do whatever it takes to preserve the Euro”, a statement which led to speculation that the ECB could intervene in government bonds markets.

“We are skeptical that such intervention will come as soon as this week,” says Slavena Nazarova, economist at Credit Agricole.

“So there is quite a big risk of disappointment for the markets.”

The ECB is due to announce its latest monetary policy decisions on Thursday.

“The ECB has become more pragmatic under Draghi,” notes Berenberg Bank economist Christian Schultz, who used to work at the ECB.

“Many taboos have been shed and precedents set…the crisis has escalated to the level that the tools devised under Trichet are just not sufficient anymore, and a less dogmatic board also helps.”

“Some light is appearing at the end of the tunnel,” said Italian prime minister Mario Monti Tuesday, following a meeting with French president Francois Hollande.

“We are now seeing the results both in the willingness of European institutions as well as from the governments of individual countries, including Germany.”

Monti, who issued a joint statement with Hollande saying they will “do everything” to save the Euro, was due to fly to Helsinki today for talks with Finnish prime minister Jyrki Katainen.

“The question is whether the Germans and the Finns have the stomach for a much looser ECB policy that is more suited to the south [of Europe],” says Jonthan Tepper, partner at economic research firm Variant Perception in London.

“So far we haven’t seen much appetite for that.”

German manufacturing activity continued to contract last month, according to purchasing managers index data published Wednesday. Germany’s manufacturing PMI fell from 43.3 in June to 43.0, with a figure below 50 indicating sector contraction.

The overall Eurozone manufacturing sector also shrank at an accelerated rate, as did that of the UK, PMI figures show.

Over in China, official PMI data show manufacturing growth continued to slow, with the PMI falling from 50.2 in June to 50.1.

“The data flies in the face of assumptions that Beijing can simply place a floor under short term demand by pushing through approvals of scores of domestic projects,” says today’s currency note from Standard Bank researchers.

“Asia is finally getting caught up in the European mess with trade finally starting to buckle,” adds HSBC economist Frederic Neumann.

Sales of American Eagle gold coins by the US Mint meantime fell by nearly 50% in July compared to the previous month. Sales of American Eagles, which are specifically minted for gold investment purposes, totaled 30,500 ounces last month, the lowest July total since 2007.

Sales of silver American Eagles were down 20% month-on-month, falling to just under 2.3 million ounces, the lowest July total since 2008.

Gold ETFs meantime saw a third straight monthly decline in July, losing 3 tonnes overall, according to figures from newswire Reuters. The world’s biggest gold ETF, the SPDR Gold Shares (GLD), saw outflows of 27.6 tonnes in July, a drop of 2.2%.

Silver bullion held by the world’s largest silver ETF, the iShares Silver Trust (SLV), fell 1.4% to 9687.7 tonnes.

Source:http://countingpips.com/forex-news/2012/08/gold-tied-to-central-bank-moves-as-federal-reserve-inching-towards-more-quantitative-easing/