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Monthly Archives: March 2014

Gold demand at ‘interesting crossroad,’ prices could hit $1,450 this year: Lear Capital

Gold demand stands at an “interesting crossroad” so far this year, with “numerous conditions triggering market demand,” Lear Capital’s Chief Executive Officer Scott Carter told MarketWatch on Monday.

Lear Capital expects an average of around $1,400 an ounce for the year. It even sees gold reaching $1,450 this year. Many analysts, however, forecast average 2014 gold prices below $1,300 an ounce. Barclays last week raised its average 2014 gold price forecast to $1,250 from $1,205. Read about Mark Hulbert’s downbeat outlook for gold prices short term. (more…)

Gold Gives Back 50% Of 2014 Gains

Gold has given back 50% of its year-to-date gains as it’s fallen swiftly within the past two weeks from its recent high of 1392 in mid-March. The precious metal’s advance during the first quarter of the year has been impressive, rising aggressively from a double-bottom, multi-year low around 1180 that was hit at the very end of 2013.

From that low, gold had been steadily targeting major upside resistance around the 1425 level, the double-bottom peak that was last hit in August of 2013, but fell short by turning back down at the noted 1392 mid-March high. (more…)

Shanghai Gold Cheapest to London Since ’12 on Weak Demand

A bride wears gold, pearl and diamond necklaces during the tea ceremony of her wedding in Hong Kong.

The spot price of gold in China is on its way to being the cheapest in 18 months relative to the international benchmark in London, indicating waning demand from the world’s largest consumer.

Bullion for immediate delivery on the Shanghai Gold Exchange was $1.40 an ounce below the price in London on a monthly average basis, the first time the Shanghai rate is cheaper than the London price since Sept. 2012, data tracked by Bloomberg News show. (more…)

Gold Miners: The Cheapest ETF

The phrase “cheapest ETF” usually refers to expense ratios — getting that management fee down to 0.05% or 0.10% a year. Morningstar’s Samuel Lee and Ben Johnson have their eye on a different measure.

The firm produces a “fair value” estimate for exchange-traded funds. The estimate is based on fundamental analysis by Morningstar’s research analysts, who devise a blended estimate for ETF portfolios based on analysis of individual company fundamentals.

Who comes out on top at the moment? Market Vectors Gold Miners ETF (GDX), with a price-to-fair value ratio of 0.83. Earlier in the week, when Johnson explained the measure in detail, it was Market Vectors Steel ETF (SLX). SPDR S&P 500 ETF (SPY) comes out near 1.0, meaning fairly valued. (more…)

PRECIOUS-Gold down about 1 percent on strong U.S. growth outlook

Gold dropped about 1 percent on Thursday, breaking below $1,300 an ounce for the first time since mid-February, as encouraging U.S. economic growth in the fourth quarter diminished the metal’s appeal as a hedge.

A stronger dollar and technical weakness after bullion broke through psychological support at $1,300 an ounce and its 200-day moving average at $1,296 an ounce also triggered selling, traders said. (more…)

Gold logs minor loss on day, down 3.1% on week

Gold futures held below $1,300 an ounce on Friday, edging lower for the session and losing 3.1% for the week as some recent strength in the U.S. dollar lured some investors away from the metal. June gold  GCM4 +0.29%   fell 50 cents to settle at $1,294.30 an ounce on the Comex division of the New York Mercantile Exchange.

Gold logs first close below $1,300 in six weeks

Gold futures lost their hold on the $1,300-an-ounce mark on Thursday to settle at their lowest level in more than six weeks as the dollar edged higher in the wake of better-than-expected economic data, prompting the metal to lose some of its investment appeal.

Gold for April delivery  GCJ4 +0.34%    fell $8.70, or 0.7%, to settle at $1,294.70 an ounce on the Comex division of the New York Mercantile Exchange, the lowest settlement for a most-active contract since Feb. 11. It fell 0.6% on Wednesday. May silver  SIK4 +0.75%    also declined by 7 cents, or 0.4%, to $19.71 an ounce. (more…)

Gold ends below $1,300, first time since mid-February

Gold futures fell on Thursday, extending losses to a second-straight session to close below $1,300 an ounce for the first time in more than six weeks. A bound in the U.S. dollar on the back of upbeat U.S. economic data helped dull gold’s investment appeal. April gold  GCJ4 +0.34%   fell $8.70, or 0.7%, to settle at $1,294.70 an ounce on the Comex division of the New York Mercantile Exchange. That was the lowest settlement for a most-active contract since Feb. 11, according to FactSet data.

“Risk on” quickly shifting to “risk off”—COMMENTARY: The latest issue of Hulbert On Markets

I don’t know about you, but it certainly feels to me as though some extraordinarily strong cross currents have started to blow through Wall Street. Beware finding yourself on the wrong side of them.

Over the last week, for example, the biotech sector continued to hemorrhage. As of Tuesday night’s close, for example, the SPDR S&P Biotech ETF  XBI +0.15%     was 18% below its high from just one month previously. That’s almost enough to qualify as an official bear market. Gold also has had a bad week: As this is written, the June contract is nearly $100 lower than where it stood as recently as eight trading sessions ago.

Gold ends near 6-week low, but stays above $1,300—Metals futures suffer broad decline with copper leading percentage drop

Gold futures fell on Wednesday to their lowest settlement in nearly six weeks, pressured in part by a strength in the U.S. dollar, but the metal found support at $1,300 an ounce on signs of strong demand from China and indications the European Central Bank may support more economic stimulus measures.

Gold for April delivery  GCJ4 +0.34%    fell $8, or 0.6%, to settle at $1,303.40 an ounce on the Comex division of the New York Mercantile Exchange after a session low of $1,300.90. Prices, which edged up by 20 cents on Tuesday, haven’t fallen under the $1,300 level since Feb. 13. “As gold nears the $1,300 mark for the first time in more than a month, an uneventful news cycle gives traders little to speculate on through their emotional buying and selling of the precious metal,” said Jonathan Citrin, founder and executive chairman at CitrinGroup. “During this reprieve, focus in the market shifted to longer-term forecasts with many doubting the ability for a price rise in 2014.” (more…)

Gold futures to six weeks low

Gold futures fell on Wednesday to finish at their lowest level in almost six weeks on the back of gains in the dollar, but prices held their ground above the key $1,300 mark. April gold GCJ4 +0.34% fell $8, or 0.6%, to settle at $1,303.40 an ounce on the Comex division of the New York Mercantile Exchange. Prices “came under pressure as news flow slowed and speculators seemed to take the opportunity to reduce their seemingly elevated long positions,” said Robert Haworth, senior investment strategist at the Private Client Reserve at U.S. Bank Wealth Management.