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Monthly Archives: February 2015

PRECIOUS-Gold holds up on Chinese demand, set to snap 4-week losing run

Gold advanced for any third straight session on Friday and it was on the right track to finish a four-week losing streak, based on firm Chinese demand along with a much softer dollar.

However, increases were limited, with hopes that the pending U.S. rate rise could be postponed until later this season after dovish signals from Fed Chair Jesse Yellen fizzling out after upbeat U.S. data and comments using their company Given authorities.

Gold has fallen greater than 7 % from the five-month high above $1,300 hit in The month of january as anticipation of the U.S. rate increase lowered bullion’s safe-haven appeal. However it finds support around $1,200, because of demand from No. 2 consumer China.

“The down-side risk for gold is very limited because purchasing interest from emerging marketplaces like China will offer the cost at lower levels,Inch stated Chen Min, an analyst at Jinrui Futures in Shenzhen. (more…)

China plans yuan-denominated gold fix this year -sources

China intends to launch a yuan-denominated gold fix this season to become set through buying and selling with an exchange, sources acquainted with the problem stated, because the world’s second-greatest gold consumer seeks to achieve more say within the prices from the rare metal.

China benchmark could be produced from a brand new 1 kg contract to become released around the condition-run Shanghai Gold Exchange, a senior source directly active in the process told Reuters.

China, even the top producer of gold, feels its market weight should entitle that it is a cost-setter for gold which is saying itself at any given time once the established benchmark, a lifetime-old London fix, is under scrutiny due to alleged cost-manipulation. (more…)

Gold gains for 2nd day on view US rate hike may be delayed

Gold rose for any second session on Thursday as recent comments from Fed Chair Jesse Yellen pressed back anticipation for that first U.S. rate hike in nearly ten years to later around.

Firm Chinese physical demand also supported gold as purchasers in the world’s No. 2 consumer trickled into the market following the lengthy Lunar Year break.

Place gold was up .6 % at $1,211.11 an oz at 0654 GMT after striking a session a lot of $1,213.20.

Yellen told the Senate Banking Committee on Tuesday that although the Fed was planning to think about rate hikes on the “meeting-by-meeting basis”, a rise wasn’t likely not less than the following handful of conferences. (more…)

Gold climbs as Fed signals no rush to raise rates

Gold rose on Wednesday, recuperating in the previous day’s seven-week low, after U.S. Fed Chair Jesse Yellen recommended the Given was at no hurry to boost rates of interest.

Her comments considered around the dollar, supporting gold. Place gold what food was in $1,201.74 at 1446 GMT, up .2 percent, after striking an optimum of $1,211.80 an oz. U.S. gold futures for April delivery settled up $4.20 an oz at $1,201.50.

Yellen held back on Tuesday from giving a obvious take on once the Given will start raising rates. The ensuing rally in gold and silver on Wednesday pressed silver up greater than 3 % and palladium to some six-week high.

Yellen stated that although the Given is planning to think about rate hikes on the “meeting-by-meeting basis”, a rise isn’t likely not less than the following handful of conferences. (more…)

Russia’s Polyus Gold cuts reserves estimate of flagship project

Polyus Gold, Russia’s greatest gold producer, is adhering using its flagship Natalka project despite a stop by its believed gold reserves, and wishes to prepare a practical plan by mid-2015, it stated on Tuesday.

Polyus place the challenging and pricey project to build up among the world’s biggest untrained deposits within the Russian china on hold in November to examine its reserves, jeopardising the nation’s ambitions to improve gold output.

Review demonstrated the deposit located in the Magadan region had demonstrated and probable gold reserves of 16.two million troy oz . and measured, indicated and deduced assets of 36.8 million oz ., lower 49 percent and 38 percent, correspondingly, from estimations produced in 2011.  (more…)

PRECIOUS-Gold hits 7-week low, then pares losses after Yellen testimony

Gold fell to some seven-week have less Tuesday then pared deficits after Fed Chair Jesse Yellen stated the central bank is planning to think about rate of interest hikes on the “meeting-by-meeting basis.”

Yellen stated the Fed’s rate-setting policy committee will probably first take away the word “patient” in explaining its method of rate hikes, then enter a phase by which rate hikes are possible at any meeting.

Place gold initially fell about .8 percent to some seven-week low of $1,190.91 per ounce because the U.S. dollar rose, then reduced, lower .2 percent at $1,199.35 an oz by 2:10 p.m. EST (1910 GMT). U.S. gold futures for April delivery been feeling relaxed $3.50 an oz at $1,197.30.

“The first negative was the change in emphasis. Whereas the Fed’s last statement demonstrated a good sized bloc concerned about raising rates prematurely, Yellen appeared to become lounging the footwork to have an increase, a minimum of in part one from the testimony,” stated Peter Buchanan, senior economist for CIBC World Marketplaces in Toronto.

Gold bulls apparently loved the assurances from Yellen that rate hikes could be greater than two conferences away, Buchanan stated. (more…)

PRECIOUS-Gold rebounds from 7-week low after U.S. data

Gold steadied in choppy dealings on Monday, bouncing up from a seven-week low as the dollar pared gains after weaker-than-expected U.S. data raised doubts about whether the Federal Reserve might raise interest rates this summer.

Data showed that U.S. home resales dropped to their lowest level in nine months last month at an annualized rate of 4.82 million units.

Spot gold had dropped to its lowest level since Jan. 9 at $1,191.01 an ounce but was flat at $1,201.96 by 2:50 p.m. EST (1950 GMT). The metal has posted four straight weeks of declines, dented by a strong dollar, U.S. rate hike expectations and hopes of a deal between Greece and its lenders. (more…)

CANADA STOCKS-TSX set to open lower as oil prices slide

Stock futures pointed to a lower start for Canada’s main stock index on Monday as oil prices fell due to worries about an oversupply in North America.

March futures on the S&P TSX index were down 0.58 percent at 7.15 a.m. ET.

No major economic events are scheduled for the day.

Canada’s main stock index ended little changed on Friday as a drop in shares of banks ahead of their results helped offset a gain in shares of Valeant Pharmaceuticals International Inc.

Dow Jones Industrial Average e-mini futures were down 0.23 percent at 7.15 a.m. ET, while S&P 500 e-mini futures were down 0.24 percent and Nasdaq 100 e-mini futures were down 0.02 percent. (Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s) (more…)

CANADA STOCKS-TSX lower as weak financials offset gold strength

Canada’s main stock index slipped on Friday as grim domestic economic news and prospects for another interest rate cut weighed on financials, offsetting strength in gold stocks and a surge in drugmaker Valeant as it closes in on a deal to buy Salix.

Retail sales fell by the most in four years in December, data showed, with subdued holiday shopping and cheaper oil accounting for the surprise 2 percent drop.

Bets that the Bank of Canada will cut rates at its March 4 meeting have increased as signs of economic weakness multiply.

The heavyweight financial sector fell 1.2 percent, with Royal Bank of Canada down 1.7 percent to C$75.92 and Toronto-Dominion Bank shedding 1.3 percent to C$53.75.

Elsewhere, investors remained focused on a possible agreement between international lenders on Greece’s proposal for extending its loan agreement. (more…)

PRECIOUS-Gold turns down as Greek accord is drafted, 4th weekly drop

Gold turned lower in choppy dealings on Friday, flirting with a seven-week low after the euro zone discussed extending the Greek bailout by just four months, while prices headed for their fourth straight weekly drop.

A draft text on extending Greece’s bailout from its international creditors proposes prolonging the program by four months rather than a previously suggested six, officials from Greece and other euro zone states said on Friday.

Spot gold turned down 0.7 percent at $1,198.55 an ounce by 2:49 p.m. EST (1949 GMT). The metal has lost 2.5 percent so far this week, dipping to its lowest in six weeks at $1,197.56 on Wednesday, when hopes for a successful resolution to Greece’s debt talks boosted investor appetite for risk.

U.S. gold futures for April delivery settled down $2.70 an ounce at $1,204.90 on the day.

“Overall, gold is lower as the market grows increasingly optimistic about a positive resolution, hence less need for a safe haven investment,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. (more…)

CANADA STOCKS-TSX set to open higher as crude prices rise

Stock futures pointed to a higher opening for Canada’s main stock index on Friday after crude prices rose.

March futures on the S&P TSX index were up 0.11 percent at 7:15 a.m. ET.

Retail sales data for December is due at 8:30 a.m. ET.

Canada’s main stock index fell on Thursday, hurt by sharp selloffs in Goldcorp Inc and SNC-Lavalin Group Inc .

Dow Jones Industrial Average e-mini futures were up 0.05 percent, S&P 500 e-mini futures were up 0.02 percent and Nasdaq 100 e-mini futures were up 0.11 percent. (more…)