<b>Gold price</b> drops as safe haven buying dries up again | MINING.com |
- <b>Gold price</b> drops as safe haven buying dries up again | MINING.com
- Silver and <b>Gold Prices</b>: <b>Gold Price</b> has Traded Out into the Nose of <b>...</b>
- Russia's Polyus Gold Roars Back to Profit Despite Falling <b>Gold Price</b> <b>...</b>
| <b>Gold price</b> drops as safe haven buying dries up again | MINING.com Posted: 21 Aug 2014 12:55 AM PDT On the Comex division of the New York Mercantile Exchange, gold futures for December delivery – the most active contract – came under heavy selling pressure losing more than $20 to $1,274.90 an ounce in pre-open trade Thursday, a two month low. The slide in the price of gold came after minutes of the last US Federal Reserve meeting released yesterday showed the US central bank opting for a more hawkish tone as the country's job picture continues to improve. Short term bond yields – negatively correlated with the gold price as the metal is not income producing – jumped the most since March on expectations that the bank might raise rates a bit sooner than expected. The dollar strengthened further following a 11-month high against a basket of currencies reached yesterday thank to a subdued US inflation outlook as the central bank continues to withdraw stimulus for the US economy. Gold and the US dollar usually move in opposite directions. Chairman Janet Yellen may shed more light on the future of US monetary policy on Friday during a speech at the Fed's annual gathering in Jackson Hole. The oil price has not benefitted much from the turmoil in the Middle-East and Eastern Europe sliding to fresh lows below $95, down from more than $106 a barrel at the end of June. Looking at the ratio between the gold price and the oil price which usually rise in tandem (rising oil prices pushes up inflation increasing demand for gold as a hedge), gold still looks undervalued by comparison. Since 1970 the average ratio – how many barrels of oil can be bought with one ounce of gold – is 15 compared with under 14 now, which suggests that despite the fall in crude and gold's over 6% rise in 2014, the metal remains relatively cheap compared to oil.  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver and <b>Gold Prices</b>: <b>Gold Price</b> has Traded Out into the Nose of <b>...</b> Posted: 22 Aug 2014 03:34 PM PDT
Sorry week for silver and GOLD PRICES, strong week for stocks and the US dollar. White metals suffered this week, too. The GOLD PRICE found buyers and rose $4.90 (0.38%) to $1,278.60. The SILVER PRICE went sideways, losing 2.9 cents (0.15% to 1936.10, a low perch it has become accustomed to this week. I can say little from Gold's performance today. Yes, it rose, but so what? Yesterday it fell $19.70 and traders who were profitably short would have closed out trades today, putting a little buying pressure on the market. Ended beneath the 200 DMA. More important is that gold turned around at the uptrend from the December low. That offers a little comfort. The gold price has traded out into the nose of an even sided triangle since July. The height of the triangle promises a $90 move, but doesn't hint which way it will break. Only reason to expect higher silver and gold prices next week -- lo, our eyes are sore with watching! -- is that cyclical lows were due today. Next week, however, options expire on Tuesday and that is often the opportunity for the black shirts on the trading floor to run prices down for the day to make sure the call options they've written expire worthless. Mother Yellum at Jackson Hole practiced talking evenly out of both sides of her mouth, but most are convinced the Fed is firmly on a track to raise interest rates by mid-2015, so are climbing on the train before it leaves the station. On the Atlantic's other shore, Ridiculous Chief Criminal of the European Central Bank Mario Draghi hinted more broadly that the bank might do something like Quantitative Easing, and he whine3d that euro governments need to engage in more deficit spending. For this he gets paid the big bucks. I was looking today at pictures of Yellum and Draghi, and something struck me. Have y'all ever noticed that when the media shows pictures of people they like, they never show them digging in their noses for a big booger or dozing off at the banquet table? Rather, they always publish pictures that make them look sober and reflective and intelligent and self-assured. By the rumor, sell the news. Stocks which had been breathlessly anticipating the Epic Prononciamento from the Great Bankeress simply exhaled and sagged. Dow lost 38.27 (0.22%) to 17,001.22, hanging on above the morale-busting 17,000 level. S&P500 dipped 3.97 (0.2%) to 1,988.40. A trend in force remains in force until proven otherwise. That says expect stocks to rise more. To avoid that Double Top Aura, however, stocks must build on these advances next week. Otherwise the entire rise begins to look like no more than a garlic-strong corrective B-wave in an A-B-C correction. Let me de-jargon that for y'all. when upward trending markets correct downwards, they follow a threefold pattern, A-down, B-up, C-down. The B-wave is a trickster that can appear so strong it fools everyone into believing the correction has ended, just in time to reverse and entrap them all for the C-down leg. Dow in Gold and Dow in Silver hooked down today, but nothing you could notice without a microscope. Dow in Silver ended down 0.08% (2/3 of an ounce) at 876.98 oz. (S$1,133.87 silver dollars). Uptrend in force makes me expect at least a double top with 1 June at 892.99 oz (S$1,154.57). Dow in Gold inched down 0.45% to 13.28 oz (G$274.52 gold dollars). Double top for Dow in Gold comes at 13.53 oz (G$279.69). Euro took a 0.28% dive after the chief central banking criminals had their say today. Ended at $1.3245, on its way to $1.3100 or maybe $1.2750. Yen dropped a tiny 0.5% but touched at its 95.98 low below the last low at 96.05 (April). If the yen doesn't turn up soon, it jumps over a cliff with no ledge to land on higher than 94.83. US dollar index's heart was warmed by Mother Yellum so it jumped up 18 basis points (0.23%) to 82.39. Still on track to the targeted 82.75. This sings no love song to gold, but does console us with the thought that it should shortly hit that target and then decline for a while. Interest rates (looking at the 10 year note yield) look as if they want to move higher, but have not yet the strength for it. Y'all go home and hug your spouse and relax. Next week is a new week. On 22 August 1851 gold fields were discovered in Australia. Y'all enjoy your weekend! Aurum et argentum 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Russia's Polyus Gold Roars Back to Profit Despite Falling <b>Gold Price</b> <b>...</b> Posted: 22 Aug 2014 08:17 AM PDT Russia's Polyus Gold swung to a profit in the first half of 2014 from a year-ago loss thanks to higher sales volumes, cost-cutting and a fall in the ruble, which outweighed a fall in gold prices. Russia's biggest gold miner, which is part-owned by businessman Suleiman Kerimov, on Friday reported a net profit of $253 million for the first six months, compared with a net loss of $167 million for January-June 2013, when the company had to record big impairment charges because of a sharp fall in gold prices. Gold sales volumes increased 15 percent year-on-year to 751,000 troy ounces. Revenue declined 2 percent to $1 billion, however, due to lower prices, Polyus said, citing an average price of $1,296 per troy ounce in the first half, down 14 percent from the first half of 2013. Polyus was able to reduce production costs during the first half by 13 percent to $662 per ounce from $757 a year earlier thanks in part to a weaker ruble, the company said. "The company is satisfied with results to date of the cost-cutting initiatives implemented across its assets in 1H 2014, enabling all of the operations to maintain solid profitability despite depressed gold prices", Polyus said in the statement. Earnings before interest, taxation, depreciation and amortization, EBITDA, were down 6 percent to $393 million due to lower gold prices. The net also benefited by comparison with last year, when the company recorded large impairment charges. Polyus added that it remained on track to produce 1.58 million to 1.65 million troy ounces in 2014 and confirmed plans to launch its vast Natalka project next summer. Benchmark gold prices in London reached a two-month low of $1.273.06 this week, hurt by data showing a recovering U.S. economy and by speculation that the Federal Reserve could hike interest rates sooner than expected. See also: |
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