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Monthly Archives: November 2014

GOLD PRICES slipped back from new 3-week highs above $1200 Tuesday lunchtime in London.

Gold retreated 1% to $1193 per ounce as Western stock markets followed Japan higher on news of a “snap” election in Tokyo, called after yesterday’s data showed the world’s third largest economy falling back into recession.

New US data today showed producer prices – excluding energy and food – rising 1.8% year-on-year in October, the fastest pace since this spring’s near 18-month high.

US Treasury bonds ticked higher in price Tuesday, nudging interest rates down, other major government bonds rose faster, widening the extra return offered by Washington’s debt.

The Dollar meantime failed to rise near this month’s two-year highs against the Euro, or top today’s earlier 7-year high vs. the Yen. (more…)

Short-Term Technical Picture Improving As Gold Continues Recent Rebound

Gold’s action in the past two weeks bodes well for the metal in the short term, at least, analysts said.

The metal was able to reclaim a key failed technical-chart support level, post two significant Friday reversals higher and move above the 10- and 20-day moving averages. Based on that, one analyst said the charts hint that “the worst of the sell-off is behind us,” while another said gold seems to be trying to “carve out some type of meaningful bottom.”

So far Tuesday, gold for December delivery traded as high as $1,204.10 an ounce on the Comex division of the New York Mercantile Exchange, before paring its gains. At the session high, the contract was up $73.70, or 6.5%, since the Nov. 7 bottom of $1,130.40. (more…)

A Technical look at Gold in Major FX

Here we have gold priced in dollars exhibiting a bullish broadening wedge. Resistance is currently $1220 and declining.

Gold in Euros shows horizontal resistance just below 1000 euros and trend line resistance at roughly 960 Euros. Gold priced in Yen shows resistance at 140,000 Yen. Gold in Swisse shows resistance at 1200.

And a final look at the gold miners via GDX. GDX is leading the breakout of the bullish broadening wedge that is gold priced in dollars. This is not surprising and is not a guarantee that gold breaks out. GDX is massively oversold in the midst of the biggest equity bubble seen since the last one in 1999. (more…)

Gold Flat to Begin Trading Week

Gold prices did not do much of anything on Monday to begin the new trading week. This likely comes as a bit of a disappointment to the gold bulls who were probably looking for some meaningful follow through after Friday’s gains.

Gold prices moved higher on Friday and are currently trading just above the previous breakdown level of $1183. A mix of short covering and fresh buying saw the price of gold move to the upside from a consolidation pattern. Although this move above $1183 is of technical importance, the gold bulls still have a great deal of work ahead to attract more fresh buyers into the market. (more…)

Gold Price Golden Bottom?

If commodities and gold are ready to reverse then the first thing that has to happen is the dollar needs to form a top. I think that may have occurred on November 7th when the last employment report was released. Notice how the dollar formed a key reversal on that day, that was retested Friday and failed, forming a bearish engulfing candlestick.

Considering that the daily cycle is now on day 22 and late in the cycle timing band, the odds are good that the reversal Friday marked at least a daily cycle top in the dollar index. If that’s the case then the euro’s daily cycle should have bottomed. Looking at the euro chart it does appear that the euro bottomed on November 7. (more…)

Karma gold mine construction on time, within budget

TSX-V-listed True Gold Mining has, to date, spent, as well as committed, about $51.5-million, or more than 39% of its $131.5-million initial capital expenditure (capex), on the company’s Karma gold project, in Burkina Faso.

Prestripping of the Rambo deposit, Karma’s highest-grade deposit and the first to be mined, will begin in December. To date, all aspects of the project are on time and within budget, True Gold noted in a statement on Monday.

“We continue to make excellent progress at Karma and remain on track to pour gold by the end of next year,” stated True Gold president and CEO Dwayne Melrose. The company expected Karma to produce about 150 000 oz of gold in 2016.

“Construction progress continues at a strong pace and you can see the mine taking shape. We have an exceptional mine-building team in Burkina Faso, which includes more than 200 people from local communities. The capacity of this team to work efficiently and cost-effectively has increasingly become a competitive advantage for the company,” he pointed out. (more…)

Yamana Gold Mulls Spinning Off Some Brazilian Assets

Yamana Gold Inc. is considering placing some of its Brazilian mines into a separate company that could be spun off to current shareholders, Chief Executive Peter Marrone said, as the Canadian company looks at ways to counter the steep drop in the price of gold.

Gold prices have fallen about 35% from their 2011 highs as a rise in the U.S. dollar makes the metal more expensive, inflation stays low and investors move into securities that offer yields. Yamana’s share price has fallen by around 55% so far this year, with write-downs of Brazilian assets also weighing on the stock, analysts say.

The Toronto-based company had said previously it might sell assets in Brazil, where it owns three producing mines and three development projects. In the third quarter, it recorded charges of about $635 million related to its three Brazilian development projects.

“At this junction, I would say that it is always the wrong time to sell them … at the bottom of the cycle,” Mr. Marrone told The Wall Street Journal. “We are not in sale mode at this juncture.” (more…)

Gold prices climb B50 at opening

Gold prices rose by 50 baht at its opening at 9.20am on Friday.  The Gold Traders Association announced the buying price at 18,000 baht and the selling price at 18,100 baht per baht-weight for gold bars.

The buying price for gold ornaments was 17,737.20 while their selling price was 18,500 baht per baht-weight.

The prices were adjusted six times on Thursday, ending with a total loss of 100 baht per baht weight from Wednesday’s close.

In world markets, gold headed for a weekly decline as investors assessed the timing of higher US borrowing costs amid slumping energy prices, with assets in the SPDR Gold Trust posting the longest period of decline since May 2013, Bloomberg reported from New York. (more…)

Paulson hangs on to gold in third quarter; Soros cuts back

Hedge fund Paulson & Co maintained its stake in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust, in the third quarter, bolstering the confidence of bullion investors at a time when an improving U.S. economic outlook pummeled gold prices.

Legendary investor George Soros, however, has sharply cut his stake in Barrick Gold Corp and several gold mining company ETFs after boosting his investments in the metal during the second quarter.

Investors pay close attention to the quarterly filings by Paulson and other notable hedge fund managers because they provide the best insight into whether so-called smart money sentiment has changed toward gold as a hedge against inflation and economic uncertainty.

New York-based Paulson & Co, led by longtime gold bull John Paulson, owned around 10.2 million shares of the ETF worth $1.19 billion on Sept. 30, a filing with the U.S. Securities and Exchange Commission showed on Friday. That represents a loss of around $121 million as the price of gold fell around 9 percent in the third quarter. (more…)

Wall Street sees gold falling further

Gold’s rout may be far from over, with many analysts and traders surveyed by Reuters predicting prices could fall to $1,000 per ounce by the end of the year, the first time at that level since 2009, even after Friday’s 3-percent short-covering rally.

A rush of physical buying in the past week – from jewelry in Shanghai to coins in Germany – may prove to be a dead-cat bounce that is too feeble to offset a broader trend of selling by investors betting on further gains in the dollar, U.S. equities and an improving U.S. economy, according to the survey of more than two dozen analysts and traders.

The gold mining meltdown is so bad even activist investors won’t touch it

As gold prices stumble and mining stocks sink to woeful lows, a lot of investors are asking the same question: where are the activists?

The sad answer, experts say, is that activists don’t see any more hope for this sector than anyone else does right now.

It was a given over the past several years that proxy battles would break out across the mining space whenever commodity prices dropped. Frustrated investors would scrutinize the strategy and compensation of boards and management teams, and quickly act when they saw a problem.