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Gold turned away from early gains Wednesday, cementing a second straight annual loss and closing 2014 at below $1,200 an ounce.
Gold for February delivery shed $16.30, or 1.4%, to settle at $1,184.10 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal would have gained on the year if it had ended near its daily high of $1,203.90. Instead, gold prices fell $18.20, or 1.5%, from the Dec. 31, 2013 settlement price of $1,202.30 an ounce. A stronger U.S. dollar pressured commodities for much of 2014.
“Gold has had several problems,” George Gero, a precious metals strategist at RBC Capital Markets in New York, said in a telephone interview according to Bloomberg News. “The improving U.S. economy, the continued better labor picture, the lack of inflation, very strong stocks and the very strong dollar weighed on gold this year.” (more…)
Prices have flat-lined after hitting a five-year high, with negative RSI divergence warning a downturn may be ahead. Near-term resistance is at 11577, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis exposing the 50% level at 11648. Alternatively, a turn below the 11489-522 area marked by the December 8 top and the 23.6% Fib clears the way for a test of the 14.6% expansion at 11434.
Prices have produced a bearish Evening Star candlestick pattern, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. A daily close below the 2067.90-79.60 area marked by the December 5 high and the 38.2% Fibonacci expansion exposes the 23.6% level at 2029.80. Alternatively, a push above the 50% Fibat 2098.60 targets the 61.8% expansion at 2129.40. (more…)
Loyal readers of our Investor Alert and my blog Frank Talk are no doubt aware that the U.S. dollar’s rising strength has put pressure on commodities such as oil and gold. I wrote about this as recently as my roundup of the top commodities stories of 2014, which you can read here.
Gold took a blow in the second half of 2014 as a result of the dollar’s ascent, and sentiment toward the yellow metal right now is less than ideal. But to keep things in perspective, its performance this year has far outpaced that of 2013, when it fell 28 percent—its worst showing since early into President Reagan’s first term.
Even though gold has lost 0.8 percent year-to-date as of this writing, it still leads all major world currencies except for the U.S. dollar.
The Case for Gold as Currency
In his most recent book, former Federal Reserve Chairman Alan Greenspan convincingly makes the case that gold is indeed money:
Yet gold has special properties that no other currency, with the possible exception of silver, can claim. For more than two millennia, gold has had virtually unquestioned acceptance as payment. It has never required the credit guarantee of a third party. No questions are raised when gold or direct claims to gold are offered in payment of an obligation; it was the only form of payment, for example, that exporters to Germany would accept as World War II was drawing to a close. (more…)
SINGAPORE, Dec 30 (Reuters) – Gold on Tuesday traded firmly below $1,200 an ounce as the dollar was perched at a near nine-year high versus a basket of major currencies, undermining the metal’s appeal as a hedge.
Spot gold was little changed at $1,182.40 an ounce by 0019 GMT, after losing 1 percent on Monday. The U.S. dollar hit fresh highs against the euro on Monday, while the dollar index, which measures the greenback against a basket of six major currencies, hit its highest since April 2006.
Also hurting gold was stronger equities. Shares edged higher in major markets on Monday, while crude oil prices tumbled after a short-lived bounce. The U.S. benchmark S&P 500 closed at a record high. (more…)
Barrick Gold Corp., up 27 cents to $10.58
The rise in the price of gold lifted shares of the gold and copper miner.
Freeport-McMoRan Inc., up 60 cents to $23.51
The miner and oil and gas company said a test of a Louisiana well was successful.
Ocwen Financial Corp., down 56 cents to $14.32
A $150 million settlement, announced Monday, continued to weigh on shares of the subprime mortgage company. (more…)
Two days after the 2012 election, gold seller Doug Eberhardt told readers that his site was experiencing a traffic surge. “I noticed quite a few hits on my site for the search term ‘Glenn Beck and gold’ this morning,” he wrote, “which means Glenn Beck is using the fear of what an Obama election can bring to America in getting investors to buy gold.” Eberhart didn’t disagree—he only wanted investors to buy gold safely, not to be scammed.
Yet anyone who bought gold, silver, or oil after Obama’s re-election must feel, today, like the victim of a mugging. Talk radio and clicky web ads have been flogging those commodities for years, upping their efforts since the 2008 financial crisis and the president’s first term. The theory was simple: An artificially inflated American currency was going to fail some day, while gold would retain its value. (more…)
Gold prices ended the U.S. day session modestly lower and closed at a fresh three-week low close in quieter trading Wednesday. The yellow metal was pressured by more chart-based selling amid the overall bearish technical posture of the market. Lower crude oil prices were also a bearish “outside market” factor working against the precious metals markets Wednesday. Markets were also generally quiet overnight on this Christmas Eve day. Most U.S. markets closed early today and many traders and investors have already checked out for the week, if not for the rest of the year. February Comex gold was last down $2.80 at $1,175.20 an ounce. Spot gold was last down $2.00 at $1,175.40. March Comex silver last traded down $0.002 at $15.765 an ounce. (more…)
According to give impetus to London Gold or London Silver of The Chinese Gold & Silver Exchange Society, The Chinese Gold & Silver Exchange Society is going to publish a list of the most active Gold or Silver Trading Company in Apple daily or Oriental Daily News every month. There will list ten companies out every month.
We were in the list from February to September. We are in the list of November as well. We will put even more effort to improve our company and provide the best service to our clients.
The Credit Suisse Global Metals & Mining Team has updated its commodity price forecasts.
We revised our ratings and target prices to reflect our base-case gold price outlook of $1,225 per ounce in 2015 and $1,250 per ounce long term.
Our top picks remain Agnico Eagle Mines (ticker: AEM ) and Eldorado Gold ( EGO ). Both companies provide strong balance sheets, lower-cost assets and flexible organic-growth opportunities, which provide a high internal rate of return (IRR). In the seniors our preferred stock is Goldcorp ( GG ), while Franco-Nevada ( FNV ) is our preferred defensive gold stock. (more…)
Despite several reports that gold prices have recently witnessed a minimal improvement, Wasfy Amin, head of gold division Federation of Egypt Chambers of Commerce (FEDCOC), said prices remain low. He added that the price of gold is approximately $1,193 per ounce.
Amin said prices inched up after Switzerland’s announcement to convert some of its international foreign reserves to gold. After voter disapproval in the referendum, the prices of gold plummeted once again, Amin noted. He added that the latest crisis in petroleum prices has not affected gold prices because “they were already low”.
“Gold prices didn’t witness a notable drop such as the one experienced in the oil prices,” Amin said.
At its lowest levels last week, the price of an oil barrel reached $59.3, the lowest since 2009. (more…)
When restrictions on gold import were imposed in August 2013 by introducing the 80:20 rule, the decision was jointly taken by the previous United Progressive Alliance (UPA-II) government and the Reserve Bank of India. The rule essentially mandates traders to export 20% of their all gold imports.
“Taking into account all these representations and in consultation with the Government of India, it has been decided to issue the following clarifications/modifications in supersession of all the earlier instructions,” the RBI circular issued on August 14, 2013, had said. The decision was aimed to tackle the widening current account deficit amid a worst ever currency crisis since the balance of payment crisis of 1991.
In the last week of November, while announcing that the 80:20 principle was scrapped, the central bank distanced it from the decision and acted just as a messenger. (more…)