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Monthly Archives: February 2014

London gold-fix study shows signs of a decade of manipulation: Bloomberg

The London gold fix, a benchmark used by the gold market to value the metal, may have been manipulated for a decade by the banks fixing it, according to a Bloomberg article by Liam Vaughan. The article quotes an unreleased draft research paper from New York University’s Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody’s Investors Service.

BullionVault said the gold fix mechanism involves gold dealers from five of London’s larggest bullion banks, which set up a transaction price for a huge pool of purchase and sale orders. The fix is set twice each business day, at 10:30 a.m. and 3 p.m. local time — the morning and afternoon fixes. You can find the last London gold fix prices here. On Friday, the afternoon fix was at $1,326.50 an ounce. (more…)

Gold sidekick silver breaks some ground of its own

Silver isn’t just tracking gold, its breaking some ground of its own — at least when it comes to holdings in exchange-traded funds and requirement for silver coins.

At first glance, silver appears to be changing in step with gold. Gold’s  GCJ4 +1.71%  up 11% year to date and increase over 7% month to date, when silver’s  SIK4 +1.17%  up 10% for the year and increasing 11% for the month. “No matter what silver investors or silver fundamentals say, the silver price abides by the gold price,” said Julian Phillips, a South Africa-based contributor to SilverForecaster.com and GoldForecaster.com. “When gold drops sharply or increases sharply, it goes way further than gold, but always changes with it,” he said, adding that he believes silver will keep following gold. (more…)

Gold Futures Slip as Stocks Rally—Despite Friday’s Losses, Gold Rose 6.6% in February

Gold futures fell on Friday as a record-breaking unite in U.S. stocks sapped investor requirement for haven stocks. Gold for April delivery, the most active contract, closed down $10.20, or 0.8%, at $1,321.60 a troy ounce on the Comex division of the New York Mercantile Exchange. Still, gold prices increased 6.6% in February and are up 9.9% since the start of 2014 as the market recovers from its worst year since 1981.

Investors have been tiptoeing back into gold in recent weeks amid doubts about the health of the U.S. economy as well as concerns about financial stability in emerging markets such as Argentina, Turkey and Ukraine. Gold is familiarly viewed as a haven stock. On Friday, some traders who had profited from gold’s rejuvenate chose to lock in gains by decreasing their holdings. “The rally was played out, so we’re just seeing people take profits,” said Frank Lesh, a broker and futures analyst with FuturePath Trading. (more…)

Gold futures close higher, hold around $1,330

Gold futures closed with a modest increase on Thursday to hold ground around $1,330 an ounce, finding some support from turmoil in Ukraine as traders weighed the Federal Reserve’s plans for monetary policy. In congressional testimony, Fed Chairwoman Janet Yellen said the central bank will be “attentive to signals” that indicate whether the recovery is progressing as expected. April gold  GCJ4 +1.88%  rose $3.80, or 0.3%, to settle at $1,331.80 an ounce on the Comex division of the New York Mercantile Exchange after dropping 1.1% in the previous session. (more…)

Gold Bugs Return After Last Year’s Rout—Bets on Rising Prices Jump as the Metal Regains Its Appeal

Investors are purchasing gold again.  Gold is up 11% this year, and wagers on increasing prices are at a four-month high in the futures market. This month, investors were net purchasers of SPDR Gold Shares, the biggest exchange-traded fund that purchases gold, for the first time since December 2012.

Gold has a long path to go to recover from last year’s rout, the metal’s worst year performance in more than three decades. Gold futures ended Thursday at $1,331.60 a troy ounce on the Comex division of the New York Mercantile Exchange, increase slightly for the day but decreased 16% from a year ago. (more…)

Gold Rises on Yellen Testimony, Ukraine Worries—Yellen: Difficult to Say How Much Weather Softened Data

Gold prices climbed Thursday, after testimony by Federal Reserve Chairwoman Janet Yellen raised concerns that a recent spate of soft U.S. economic data may have been caused by more than bad weather alone.

Gold for April delivery, the most active contract, rose $3.80, or 0.3%, to $1331.80, a troy ounce on the Comex division of the New York Mercantile Exchange. (more…)

Gold closes lower after three-session rise

Gold futures closed lower on Wednesday, pulling back from the four-month high they finished at in the previous session. Better-than-expected new home sales in January were “the first positive sign on housing in a while, which bolstered the dollar and stock market shares somewhat, adding further intraday weight to gold,” said Peter Grant, analyst at precious-metals dealer USAGOLD. April gold  GCJ4 -0.89%  decreased $14.70, or 1.1%, to settle at $1,328 an ounce on the Comex division of the New York Mercantile Exchange. Prices had tallied a increase of 2% over the past three trading sessions.

Gold ends with a loss, its first in four sessions—Silver futures drop over 3%, now down 4 out of 6 sessions

Gold futures decreased on Wednesday to close back under $1,330 an ounce as better-than-expected monthly new home sales figures helped lure investors to the stock market and U.S. dollar — and away from precious metal.

Gold for April delivery  GCJ4 -0.87%  shed $14.70, or 1.1%, to fixed at $1,328 an ounce on the Comex division of the New York Mercantile Exchange. Prices rose 0.4% on Tuesday and fixed at $1,342.70, the top settlement for a most-active contract since October. 30. They’ve increased a total of 2% over the last three trading sessions. (more…)

Gold Drops, Snapping 3-Day Winning Streak—Better-Than-Expected U.S. Housing Data Weigh on Gold

Gold futures dropped on Wednesday, finishing a three-day winning streak after stronger-than-expected housing data prompted some investors to lock in recent increases.

Gold for April delivery, the most active contract, decreased $14.70, or 1.1%, to fixed at $1,328 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold prices had climbed on Tuesday to fixed at $1,342.70 an ounce, their top level since Oct. 30. Gold’s increases came amid disappointing U.S. economic data and instability in emerging markets such as Turkey and Ukraine, which reanimated investor interest in haven assets. (more…)

Gold prices end higher, hold at four-month high

Gold futures closed higher on Tuesday, holding ground at their highest level since late October as disappointing data on U.S. consumer confidence helped lure investors the perceived safety of the metal. The consumer confidence data suggest that the recovery is becoming fragile, said Naeem Aslam, chief market analyst at AvaTrade. “But we need to look beyond February data to claim anything along this line because the bad weather has its stamp all over it for the time being.” April gold  GCJ4 -0.01%  rose $4.70, or 0.4%, to settle at $1,342.70 an ounce on the Comex division of the New York Mercantile Exchange. Prices gained 1.1% on Monday.

Gold Futures Rise to 16-Week High—Investors Uneasy Over U.S. Economy, Ukraine Situation

Gold prices rose to a 16-week high on Tuesday, as weak U.S. consumer confidence data raised doubts about the sustainability of the recovery.

The Conference Board’s consumer confidence index declined to 78.1 in February, from 79.4 in the previous month. Signs of a slowdown in the U.S. economic recovery have multiplied in recent weeks, with manufacturing and employment numbers coming in below expectations.

Gold for April delivery, the most active contract, rose 0.4% to close at $1,342.70 per troy ounce on the Comex division of the New York Mercantile Exchange, marking its highest level since Oct 30. The rise adds to a 11% increase in gold prices this year, as investors buy the precious metal on U.S. economic concerns and, more recently, fears that Ukraine could suffer a sovereign debt default after the ouster of its president. Some investors buy gold as a hedge against economic and political uncertainty, believing it will hold its value while other assets fall. (more…)