Gold price | <b>Gold price</b> drifts lower ahead of jobs data | MINING.com |
- <b>Gold price</b> drifts lower ahead of jobs data | MINING.com
- <b>Gold price</b> snaps losing streak as Chinese buyers return | MINING.com
- Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Added $10.90 Closing at <b>...</b>
| <b>Gold price</b> drifts lower ahead of jobs data | MINING.com Posted: 03 Apr 2014 04:12 PM PDT The price of gold returned to a declining trend on Thursday ahead of crucial US jobs data which would dictate the direction of US monetary policy. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in late trade exchanged hands for $1,286.80 an ounce, down $4.00 from Wednesday's close. As an indication of the uncertainty, volume was particularly thin with less than 100,000 contracts traded, compared average daily volumes on the exchange of around 160,000. Three disappointing jobs reports in a row – the Fed's key measure in deciding interest rates – have strengthened the hands of supporters of the Fed's economic stimulus program. But Friday's report for the month of March could show that the weakness was only a temporary setback caused by the weather. Economists polled by MarketWatch expect the Labor Department on Friday to report a 200,000 gain in new jobs last month, although some put the number much higher. Any big surprise to the upside would be bad for gold and may prompt a rethink from US Federal Reserve chair Janet Yellen who on Monday again made very dovish comments at a Chicago about the bank's quantitative easing program: "This extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policy makers." Monetary expansion, particularly since the financial crisis, has been a massive boon for the gold price. Gold was trading around $830 an ounce when previous chairman Ben Bernanke announced QE1 in November 2008. The QE program together with other stimulus measures saw the balance sheet of the Fed cross the $4 trillion mark in January, up 400% in seven years. Gold and the US dollar usually moves in the opposite directions and gold's perceived status as a hedge against inflation is also burnished when central banks flood markets with money. The price of gold slid close to 28% in 2013 – the worst annual performance since 1980 – in anticipation of an end to the ultra-loose monetary policy, but has enjoyed 7% gains in 2014. Gold is off more than $90 an ounce from its 2014 high struck in mid-March, but Chinese buyers appear to have returned to the market and hopes for an easing of imports of bullion into number two consumer India are rising.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| <b>Gold price</b> snaps losing streak as Chinese buyers return | MINING.com Posted: 02 Apr 2014 04:02 PM PDT The price of gold snapped a five-day losing streak on Wednesday as bargain hunters re-entered the market. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery settled at $1,290.80 an ounce, up $10.80 or 0.8% from Tuesday's close at a 7-week low. While gold is off more than $90 an ounce from its 2014 high struck in mid-March, Asian buyers appear to have returned to the market. Chinese bullion buyers, who overtook India for the first time as top global consumers of the metal, are nothing if not price sensitive. From premiums that topped out at $37 when gold was trading around $1,200 last year, traders on the Shanghai Gold Exchange are now offering gold at a discount to the quoted London spot price. Driven in part by a weakening renminbi discounts on gold in China widened to as much as $9 an ounce below when the price were headed towards $1,400 in March. That gap has now shrunk to $2–$3 an ounce as the lower gold prices drives fresh demand and could strengthen further if the yuan begins to appreciate again as expected. Australia's ANZ Research reports its barometer of China's physical demand has increased sharply towards the end of March and the only reason for the discount is the weak yuan: "A return to the CNY's appreciation trend would be a crucial factor in improving the price differential. On current gold prices, had USD/CNY continued to trade at 6.05 (it's level before the spike to the 6.20 area), the Shanghai premium would calculate to +USD32.0/oz." Not everyone sees physical demand from Asia returning in a big way. Bullion Vault quotes Deutsche Bank's commodities team as saying physical "tightness" in the market is receding with Shanghai premiums staying low and gold offered forward rates – the interest offered by bullion banks to gold borrowers – turning positive: "We view it as only a matter of time before gold re-tests the [US Dollar] lows hit in December last year," says Deutsche, a market-maker for wholesale gold and silver in London. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Added $10.90 Closing at <b>...</b> Posted: 02 Apr 2014 09:27 PM PDT
The GOLD PRICE added $10.90 (0.85%) & Silver jumped up 36.2 cents (1.8%) to 2003.1c. Ratio dropped from 65.057 yesterday to 64.425. Look more closely. Silver stayed under 1990c until 9:00, when somebody big said, "Buy!" Vaulted to 2015c, then stayed flat most of the rest of the day, but trailed off at the end. The SILVER PRICE is leading this move up, and that's a good sign. Still, silver & gold prices need to confirm higher goals by other indicators. A close above $1,305 tomorrow wouldn't hurt. If I wanted to watch a wholly bogus stock, I would watch Facebook (FB), maker of nothing, producer of nothing, founded on nothing, light as air, hitchhiker on the ephemeral & unreal. Like Apple (AAPL) before it Facebook seems to have fallen from grace lately. After reaching 72.59 in early March, it tanked to 57.98 (down 20%) and fell below its 20 DMA, 50 DMA, and uptrend line. It is trying now to climb back through that line. A stock this bogus in a market this bogus is bound to wind up a dead canary on the bird cage floor before the mine fills with poison gas. Mercy, it may have already done that. But then, how much does a nacheral born durned fool from Tennessee know next to them Wall Street smarties who've been picking y'all's pockets so efficiently for so many years? 'Twas a lackluster day for stocks with a zootz toward the end that took the S&P500 to a new high. Dow rose 40.39 (0.24%) to 16,573 while the S&P500 climbed/clumb 5.38 (0.29%) to 1,890.90. Mmmmm. Today might have marked the end of the upward correction in the Dow in Metals. Dow in gold dropped 0.59% to 12.84 oz (G$265.43 gold dollars), just shy of a 61.8% correction. Full stochastics are rolling over earthward. Dow in Silver has made (as of yesterday) an 86.8% correction of the December - February drop. Closed today LOWER BY 1.31% at 826.58 oz (S$1,068.70 silver dollars). BE WARNED: I am anticipating here. No full evidence of a downturn, yet it seizeth my eye that the day stocks hit new highs, the indicators turn down. Well, well, the US dollar, destroyer of nations & middle class capital, turned around today, rose 15 basis points (0.19%) and closed at 80.39. It really needs to climb above 80.50 to turn up, but this at least lodged it above the 50 DMA (80.32). Might rise after all. Euro passed out again, down 0.2% to $1.3764, dashing whatever fragile hopes it had yesterday raised from the dead. Yen has fled in a full scale rout, down another 0.2% today to 96.28 cents per 100 yen. That closes below the last low at 96.38 cents. US Ten Year Treasury note yield also jumped a meaty 1.6% today to 2.803%. T-note yield has been congested and skrunched up in a narrow range, but after proving in February that it was indeed headed higher (it bounced off a lower range boundary line), it gapped up today. Must close above 3.036 to attract attention, but it will. Copper has fought its way back up to $3.05, but requires a close higher than $3.25 to prove it does not intend to visit the earth's core. On 2 April 1792 the US Congress passed the Coinage Act which made the dollar of silver (371.25 grains fine silver or 0.7734 troy ounce fine silver) the standard coin, with smaller halves, quarters, dismes [sic] & half-dismes. The act also provided for gold coins or "eagles" not denominated in but valued in dollars. The eagle was "valued at" $10 and contained 247-1/2 or 0.5156 troy ounce fine gold. There were also half and quarter eagles. Dr. Edwin Vieira describes this system as "symmetalism" because the system allowed for using both metals and adjusting only one coin for changes in the world gold/silver ratio. Those changes were made in the 1830s, but without cheating anyone. That was a right different government in those days. When the coin lost its integrity, so did the nation. On 2 April 1914 the US Federal Reserve Board announced plans to divide the country into 12 districts, symbolic, no doubt, of its conquest. When the coin lost its integrity and independence, so did the nation. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. |
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