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Monthly Archives: January 2014

Analysts: Gold Premiums Diverging In China, India

Indian and Chinese gold premiums have deviated somewhat in recent days, analysts said. The premium in China slided since much of the purchasing in the country already occurred ahead of New Year celebrations that start Thursday, they said. Meanwhile, the Indian premium fringed higher again as market participants understood when there is some pressure within the nation to measure back import restrictions on gold, such a change won’t happen right away. “Each country is a special circumstances unto itself,” said Jeffrey Nichols, managing chairman of American Precious Metals Advisers and publisher of the blog NicholsOnGold.com. (more…)

Gold, Stocks See Change Of Fortune In 2014 – Will It Last?

2014 purchased a role reversal of sorts for gold and equities, with the metal increase and stocks drop, in contrast to last year’s performance. With January drawing to a close, can gold remain its increases and will equities keep falling? Technical charts may offer some clues, analysts said.

As of 1:20 p.m. EST, gold for April delivery was $18.60 lower to $1,243.60 per ounce on the Comex division of the New York Mercantile Exchange “Gold is backtracking to its historic role as a safe haven as we’re seen issues globally,” said Darin Newsom, senior analyst at Telvent DTN. “Equities really needed a rectification, they’ve been way overvalued. A lot of technical charts display they’re way overbought.” (more…)

Gold Settles 1.6% Lower

Gold slid as stability in stock markets and a stronger dollar left less investor appetite for the safe-haven asset. Gold for April delivery, the most actively traded contract, decreased $19.70, or 1.6%, to establish at $1,242.50 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold had boosted to a near-nine-week high on Wednesday as renewed turmoil in emerging markets sent global stock markets into retreat. Some investors purchase gold as an alternative to assets like stocks and bonds amid economic uncertainty. But Thursday data showing U.S. growth accelerated late last year, along with the Federal Reserve’s decision to hold to its stimulus rollback, sapped investor interest in gold and other perceived safe havens on Thursday. “You saw that safe-haven demand walking back into gold recently, but the markets have a bit of a reprieve from those concerns,” said Dave Meger, director of metals with Vision Financial Markets. (more…)

Gold Bugs Jump Into Safe End of Pool

Gold prices climbed as turmoil in emerging markets and a swoon in global stocks renewed investor interest in haven assets. Values for the precious metal are up 5.6% from the three-year nadir reached on Dec. 19. Recent economic data recommend an uneven U.S. housing and labor-market recovery, when political and economic troubles have gripped developing economies from Turkey to India.

The increase according to the months of punishment for gold bulls. Prices dropped 28% in 2013, snapping a 12-year winning streak and making the precious metal one of the worst-performing assets of the year. (more…)

Investors Seek Shelter From Emerging Markets Tumult—Worries About Emerging Markets Rattle Global Investors

The tumult in emerging markets has stock investors reaching for insurance, though not yet heading to exits. Worries about emerging markets rattled global investors Wednesday, causing fresh decreases in the currencies of Turkey and South Africa. Those jitters have in turn transmit U.S. stocks lower. “Most of the trading is now about the currency problems,” said Alec Levine, equities joint director at brokerage firm Newedge. “People are now reaching for conservation.” That has led to stepped up activity in coming and options markets, as investors look to hedge stockholdings with bearish bets on the broad market, or with bullish bets on gold or that stock market volatility will increase. (more…)

Gold Bugs Have Reasons to Cheer

Gold has a new lease on life. Gold, one of the largest losers of 2013 with its whopping 28% decline, is on the upswing as tremors in emerging markets rekindle the investor appetite for safe havens that was shortage for much of the past year.

As central banks in emerging markets try to slow an investor retreat and global equities markets swoon, some investors think gold is a presentable scene to wait out the chaos. Futures are increase 1.3% at $1,266.40 an ounce, on track for a two-month high. “Gold becomes the ultimate currency” in environments like this, increasing along with safe-haven stalwarts like the Japanese yen and Treasurys, says Bill O’Neill, a major with merchandises trading firm Logic Advisors. (more…)

Gold futures end lower as U.S. equities rise

28 Jan 2014

SAN FRANCISCO (MarketWatch)—Gold futures dropped for a second straight session on Tuesday, with strength in U.S. equities following a increase in consumer confidence drawing investors’ attention far from the precious metal. February gold  GCG4 +0.20%   shed $12.60, or 1%, to solve at $1,250.80 an ounce on the Comex division of the New York Mercantile Exchange. Prices viewed a bout of profit taking by nervous traders ahead of the Federal Reserve’s policy announcement on Wednesday, said Mark O’Byrne, executive director at GoldCore, adding that the “return of risk appetite as seen in the bounce in stock markets” was also likely pressuring gold costs Tuesday.

Gold makes strides ahead of Fed statement

LOS ANGELES (MarketWatch) — Gold futures gained ground Wednesday, aiming to end a two-day losing stretch as the focus turned to what the Federal Reserve has to say about the U.S. economy.

Gold for February delivery  GCG4 +0.20%    in electronic trade was increase $2.80, or 0.2%, to $1,252.80 an ounce. March silver  SIH4 +0.29%    added 6 cents, or 0.3%, to $19.56 an ounce. A day earlier, gold futures made it two sessions in a row in the red, as ameliorating consumer confidence helped stimulate equities. (more…)

India Plans to Keep Gold Import Curbs at Least Until March

NEW DELHI—India will continue the restraints on gold imports at least until the end of this financial year to keep a lid on the country’s current-account financial loss, Finance Minister P. Chidambaram said Monday.

India increased the import tax on gold to 10% in 2013 from 2% in 2012 to rein in its ballooning current-account deficit. Gold supplies have also dried up because the central bank has mandated that importers certify that they will hold aside 20% of any imported gold for re-export as jewelry. (more…)

Gold futures log first fall in three sessions—Prices find support from some losses in U.S. equities; silver clings to gain

SAN FRANCISCO (MarketWatch) — Gold futures on Monday logged their first loss in three sessions, but finished above the day’s lows as a familiarly weaker U.S. stock market helped support requirement for the precious metal.

Traders awaited an upcoming two-day meeting of the Federal Open Market Committee that starts on Tuesday and are looking forward to the week’s U.S. economic data calendar, which includes reports on durable-goods orders and consumer confidence on Tuesday and manufacturing and consumer-sentiment figures on Friday. (more…)

Why the biggest, cheapest ETF isn’t always the best

When picking among exchange-traded funds, don’t presume that it’s always best to go with the biggest or cheapest fund, said ETF.com chief investment officer Dave Nadig on Sunday.

The largest ETF for a particular area — meaning the one that’s attracted the most assets from investors — may have achieved that status simply by being the first ETF for that area, Nadig said. But that ETF doesn’t necessarily offer the best capability or best way. (more…)