Precious Metals Overview

Gold prices ended the U.S. day session modestly higher in thin holiday dealings Thursday. Some short covering and bargain hunting, and even some fresh safe-haven demand, lifted the yellow metal. February gold last traded up $3.40 an ounce at $1,664.10. Spot gold was last quoted up $4.00 at $1,664.00. March Comex silver last traded up $0.17 at $30.205 an ounce. Many traders and investors are on the sidelines this week, enjoying the holiday season. That is making for thin market conditions. Investors and traders continue to worry about the U.S. fiscal cliff negotiations that have stalled and now with only a few days left for U.S. lawmakers to reach a deal. President Obama did come back from his Hawaii vacation early. However, there was no progress on the matter as of Thursday afternoon. That did prompt some mild safe-haven demand for gold Thursday. U.S. lawmakers have until January 3 to come to agreement before the government falls off the fiscal cliff. Markets do not like uncertainty and most markets remain jittery as the deadline draws closer. Some slightly better U.S. economic data released Thursday provided little fresh impetus to the precious metals markets, or any of the other markets for that matter. In overnight news, the Japanese stock market rallied to a nearly two-year high on hopes for more monetary policy stimulus coming from the Bank of Japan. European stock markets were firmer, helped in part by a successful auction of Italian bonds and better Italian manufacturing data. Technically, February gold futures prices closed nearer the session high Thursday. But the gold bears still have the overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the November low of $1,674.70. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at $1,630.00. First resistance is seen at this week’s high of $1,668.70 and then at 1,674.70. First support is seen at this week’s low of 1,650.60 and then at $1,640.00. March silver futures closed prices closed near mid-range Thursday. Short covering and bargain hunting were also featured. The silver bears still have the near-term technical advantage. Prices are in a steep four-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $32.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $29.00. First resistance is seen at Thursday’s high of $30.53 and then at $30.79. Next support is seen at last week’s low of $29.635 and then at $29.50.
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DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

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Precious Metals Overview

Gold eased on Thursday and was in sight of last week’s four-month lows, with investors focused on talks between the White House and Congress to prevent the U.S. economy from plunging into recession next year. Republican House of Representatives Speaker John Boehner urged the Democrat-controlled Senate to act to pull back from the so-called fiscal cliff and offered to at least consider any bill the upper chamber produced, raising hopes there may be a way through deadlock in Congress. Gold fell $4.58 an ounce to $1,654.91 by 1059 GMT. It has come off a 4-month low of $1,635.09 struck last Thursday, but remains below a record high of around $1,920 hit in September 2011. U.S. gold for February fell 0.3 percent to $1,655.70 an ounce. The United States faces $109 billion in across-the-board spending cuts starting in January unless a deal is reached to either replace or delay them. Democrats want to switch the spending cuts to tax increases for the most part. “If the politicians reach an agreement on the fiscal cliff, the dollar could suffer and there could be more investment into gold,” said Afshin Nabavi, head of trading at MKS Finance, referring to gold’s behavior as a risk asset similar to shares. He said he expected gold to trade in a range of $1,650-1,670 per ounce in the near term. “Every time we go to the lows near $1,650, there seems to be good buying,” Nabavi said, talking of brisk physical off take over the past week from China and India, the world’s top two gold consumers. A failure in the fiscal talks could spur safe-haven buying, boosting gold. For the year, bullion is up around 6 percent, on track for a twelfth straight year of gains on rock-bottom interest rates, concerns over the financial stability of the euro zone, and diversification into bullion by central banks. Investors await the release of U.S. weekly jobless claims data due at 1330 GMT after a recent run of positive economic data from the United States. Economists in a Reuters survey forecast a total of 360,000 new filings compared with 361,000 in the prior week. “The better the data the more the fear that monetary easing will ultimately come to an end,” said Credit Suisse analyst Tobias Merath. “Every time there is this fear that monetary easing may not be continued to the extent that was previously expected there can always be a little bit of selling pressure.” Gold prices have benefited from the ultra-loose monetary policy of leading central banks because of gold’s appeal as a hedge against inflationary fears. Spot gold is expected to drop into a range of $1,397-$1,447 per ounce over the next three months, as indicated by its wave pattern and a Fibonacci retracement analysis, according to Reuters market analyst Wang Tao. In other markets, world shares and the euro edged higher on Thursday, while the yen hit a two-year low on the prospect of drastic monetary easing. Gold demand in India, the world’s biggest buyer of the metal, remained strong on Thursday as jewelers were restocking for a key festival, though retail demand was weak. Miner Randgold Resources Plc has cut the production forecast for its troubled Ivory Coast gold mine after a fire over Christmas at the project’s mill. Silver was down 0.17 percent to $29.92 an ounce, platinum eased 0.02 percent to $1,532.74 and sister metal palladium firmed 0.28 percent to $691.47 an ounce.
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DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

Precious Metals Overview – Weekend Wrap Up

Gold prices ended the U.S. day session moderately higher Thursday, posting a corrective technical bounce from Wednesday’s strong selling pressure. Bargain hunting and short covering were featured Thursday. The key outside markets were also bullish for the precious metals Thursday, as the U.S. dollar index was weaker and crude oil prices were higher. February gold last traded up $11.20 at $1,730.00 an ounce. Spot gold was last quoted up $8.40 at $1,728.75. March Comex silver last traded up $0.64 at $34.41 an ounce. The gold arena is still buzzing about the swift and steep downdraft in gold futures prices Wednesday morning. Just after the Comex gold futures market opened at 8:20 a.m. EST Wednesday heavy sell orders flooded in and prices very quickly dropped by over $20 an ounce. Some reports said there were heavy put options purchases seen in the gold futures market Tuesday. There was no major news event which occurred during or near that timeframe Wednesday morning to explain the sudden downdraft in gold prices. There were rumors in the market Thursday that a large “fund” trader unleashed a major sell order at the futures open Wednesday. If that large fund trader was the one that purchased the put options on gold futures the day before, or was involved with the firm that did, then it lends credibility to those market watchers who reckon gold can be and has been manipulated. At the very least it appears a group of traders tried to “game” the gold market on a very short-term basis. Still, from an overall and a longer-term market perspective, that no single trading entity has the power to control a market’s price for very long—especially a market so robust as gold. It was a bit better risk mentality day in the market place Thursday, and that benefitted the raw commodity markets, including gold and silver. The rhetoric continued among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching. House Speaker John Boehner and Senate leader Harry Reid traded barbs Thursday. However, this time the market place reacted little to their rhetoric. This suggests the market place is coming to the conclusion that some type of agreement will be reached on the fiscal cliff matter before the end of the year. There was some more upbeat economic data coming out of the U.S. and European Union Thursday. The U.S. third-quarter gross domestic product came in at up 2.7%, which was the strongest growth rate in three years. Meantime, lower unemployment in Germany and upbeat business confidence in the EU were reported Thursday. Spanish and Italian bond yields declined to their lowest levels in months. Declining Spanish and Italian bond yields suggest a stabilizing European Union debt situation, even though serious financial problems in the bloc remain. The London P.M. gold fixing was $1,725.00 versus the previous P.M. fixing of $1,708.00. Technically, February gold futures prices closed nearer the session high Thursday. Gold bulls still have the overall near-term technical advantage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the November high of $1,757.10. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at $1,700.00. First resistance is seen at $1,740.00 and then at $1,750.00. First support is seen at Thursday’s low of $1,720.10 and then at this week’s low of $1,707.90. March silver futures prices closed nearer the session high Thursday, hit a fresh seven-week high and saw bargain hunting and short covering. A four-week-old uptrend is in place on the daily bar chart and silver bulls have the solid overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $35.51 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at this week’s low of $32.995. First resistance is seen at Thursday’s high of $34.49 and then at $35.00. Next support is seen at $34.00 and then at Thursday’s low of $33.61.
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DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

Precious Metals Overview

Gold futures settle with a modest loss Monday, slipping back below $1,750 an ounce amid caution over developments in Europe and ahead of a spate of U.S. economic data and due out this week. For December delivery, gold slipped $1.80, or 0.1%, at settle at $1,749.60 an ounce on the Comex division of the New York Mercantile Exchange. That marked a slight pullback from Friday’s 1.3% climb to $1,751.40, its highest settlement since Oct. 17 “Gold has now found some very strong buying since the dip below $1,700, and we anticipate the rally to continue as deep bullish fundamentals are still in place — the Europe/Greece uncertainty and the U.S. fiscal-cliff uncertainty,” said Anthony Lazzara, chief executive of Lido Isle Advisors, an alternative investment firm in Newport Beach, Calif. Euro-zone finance ministers met Monday to discuss debt sustainability for Greece in an effort to clear the way for the nation’s next tranche of bailout money. Three euro-area officials said the European Central Bank is considering new ways to help reduce Greece’s funding gap by using the Greek debt in its investment portfolios, Bloomberg News reported Monday. The general mood in equity and currency trading also portrayed investor risk aversion, as markets digested the result of elections in Spain’s wealthy Catalonia region. In the Catalonian region’s elections, a nationalist party seeking a referendum on independence won fewer seats than required for an absolute majority, but enough to return as the single largest party in the local parliament. On the heels of the uncertainty in Europe, the euro weakened against the dollar, falling at $1.2961 from $1.2983 Friday afternoon in North America. The ICE dollar index, which measures the greenback against a basket of six other global currencies, rose to 80.258 from 80.190 Friday. The stronger greenback tends to weigh on prices for dollar-denominated commodities, including gold. With European news in the spotlight, U.S. and European stocks declined. Overall, gold prices hovered around unchanged Monday “as market participants are likely still getting back into their offices after a holiday week,” Lazzara said. But “we don’t see many reasons for gold to head lower into the new year.” He added that “further exacerbating the bullish tendency is the Gaza tension in the Middle East.” Looking ahead, the market awaits a flurry of economic data due out this week, according to Jeffrey Wright, a managing director at Global Hunter Securities. Consumer confidence will be an early driver Tuesday, but the “big data point will be Thursday’s GDP report,” he said. “Both will give signals if gold’s safe haven status is necessary in the immediate term to protect against movement in the U.S. dollar or a potential recession in early 2013 that has been widely discussed.” Elsewhere in the metals complex Monday, silver for December delivery rose 2 cents, or 0.1%, to end at $34.14 an ounce and December copper finished nearly flat, up less than a penny at $3.54 a pound. December palladium fell $6.40, or 1%, at $661.20 an ounce. January platinum futures slipped $6.10, or 0.4%, at $1,611 an ounce.
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DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

Precious Metals Overview

Gold moved lower on Monday as a lack of an agreement by euro zone governments to disburse more money to Greece prompted bullion investors to sell and take profits. The metal on Monday largely tracked lower with riskier assets such as the euro after euro zone finance ministers gave Athens two more years to make the budget deficit cuts they demanded. A steadier Wall Street, amid better economic sentiment following last week’s over 2 percent drop in S&P 500 index , lessened safe-haven demand in gold, analysts said. “Healthy economic data in the short term will be negative for risk-on markets as it reduces the urgency for global central banks to continue their ‘easy money’ stance,” said Adam Sarhan, CEO of Sarhan Capital. Spot gold edged down 0.2 percent to $1,727.39 by 3:33 p.m. EST , within reach to a three-week high around $1,738 struck on Friday. Flight-to-quality buying lifted gold 3.2 percent last week, its biggest weekly rise since late August. Global markets have turned their focus from the election to the U.S. “fiscal cliff”, a combination of government spending cuts and tax increases due to be implemented under existing law in early 2013. Gold would benefit from the government spending cuts and tax increases as a U.S. fiscal crisis could send the economy back into recession, economists say. An encouraging U.S. nonfarm payrolls report earlier this month had erased all of gold’s gains, gains that followed the Federal Reserve in September announcing it would keep buying mortgage-backed securities, until the job market dramatically improves. U.S. COMEX gold futures for December delivery settled unchanged at $1,730.90 an ounce. Trading volume was lower than usual, 30 percent below its 250-day average, as the U.S. bond market was closed for the U.S. Veteran’s Day holiday and as the Hindu festival of Diwali began in India. Silver dropped 0.6 percent to $32.38 an ounce. In metals exchange news, the president of the Shanghai Gold Exchange told Reuters at the London Bullion Marketing Association (LBMA) conference that the bourse would launch an interbank market early next month that would start with spot contracts and gradually offer forward contracts. Among platinum group metals, platinum rose 0.5 percent to $1,558.10 an ounce, while palladium inched down 12 cents at $603.80 an ounce. Traders will closely watch an industry report on Tuesday by platinum refiner Johnson Matthey which will shed light on whether reduced supply due to mine labor violence in top producer South Africa might turn the market into a deficit this year.
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DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

Precious Metals Overview

Comex gold prices ended the U.S. day session higher and near the daily high Thursday. Some fresh safe-haven demand is surfacing this week, amid concerns about the approaching U.S. “fiscal cliff” and about the European Union sovereign debt crisis. The gold market also saw technical chart consolidation Thursday, following active price movements earlier this week. December gold last traded up $11.50 at $1,725.50 an ounce. Spot gold was last quoted up $8.40 at $1,726.25. December Comex silver last traded up $0.559 at $32.215 an ounce. The fresh safe-haven demand in the gold market Thursday was further evidenced by very strong demand at a U.S. government Treasury note auction at midday. The Euro currency fell to a fresh two-month low Thursday amid heightened concerns regarding the European Union sovereign debt crisis. And the U.S. debt problem has also come to the front burner of the market place this week. In overnight news, the Bank of England kept its key interest rates unchanged, which was expected. The European Central Bank held its monthly meeting on Thursday. The ECB did not make any big changes to its monetary policy, as expected. ECB president Draghi’s press conference after the meeting provided no fresh clues on ECB policy changes. The Greek parliament did pass fresh austerity measures for that nation, but violent public protests occurred in Athens in reaction. It was reported Thursday that Greece’s unemployment rate rose to 25.4% in August. There is fresh speculation Spain will not ask for a financial bailout from the European Union this year. Many European Union watchers want Spain to seek assistance because it would trigger the European Central Bank’s bond-buying program and help to lower borrowing costs for financially troubled EU countries. All of the above drove the Euro currency on Thursday to a fresh two-month low against the U.S. dollar. There is a general leadership conference in China starting Thursday. The 18th National Congress of the Communist Party of China will select a new generation of leaders over the next week. Technically, December gold futures prices closed nearer the session high Thursday. Bulls have the overall near-term technical advantage and are having a good week. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at $1,755.00. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,672.50. First resistance is seen at this week’s high of $1,733.00 and then at $1,740.00. First support is seen at Thursday’s low of $1,712.60 and then at $1,703.00. December silver futures prices closed nearer the session high Thursday on short covering and bargain hunting. A five-week-old downtrend on the daily bar chart is still in place, but now just barely. The silver bulls and bears are on a level near-term technical playing field. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $32.695 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $30.655. First resistance is seen at this week’s high of $32.42 and then at $32.695. Next support is seen at Thursday’s low of $31.63 and then at Wednesday’s low of $31.215.
Great Southern Coins

DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.

Precious Metals Overview

Gold prices firmed a touch on Monday after posting their biggest one-day drop since mid-June in the previous session as investors took to the sidelines ahead of Tuesday’s US presidential election. Gains in the metal were limited by weakness in stock markets and a rise in the dollar, however, as low-risk assets rose at the start of a week in which the United States votes in a new president. The US elections will be closely watched by financial markets, with incumbent Barack Obama seen as more supportive of continued stimulus measures, while Republican challenger Mitt Romney is expected not to favor additional easing. A Romney team skeptical of strong Federal Reserve stimulus would be unlikely to re-nominate Fed chief Ben Bernanke for a third term in 2014. “Although the race is close, I think if Romney won, it would be a shock to the market,” said Mitsubishi precious metals strategist Matthew Turner. “The general expectation is of an Obama victory, which is more of the same. That’s bullish for gold,” he added, referring to expectations for a continuation of relaxed monetary policy, which will stoke inflation concerns and keep interest rates low. Spot gold was up 0.4 percent at $1,682.66 at 1421 GMT, having earlier touched a nine-week low of $1,672.24. US gold futures for December rose $7.50 to $1,682.70. Prices slid more than 2 percent on Friday after better than expected US jobs data lifted the dollar and reduced pressure on the US authorities for a continuation of its ultra-loose monetary policy. “The selling was overdone on Friday. You often get a bounce back after a big fall as jewelers and investors take advantage of the price fall,” Turner said. Cash printing by central banks boosts gold’s appeal by stoking concerns over inflation while keeping pressure on interest rates. The metal jumped to nearly $1,800 an ounce last month on central bank stimulus measures, but has since eased. Ahead of Tuesday’s vote, Obama and Romney criss-crossed the country in the closing stages of a campaign that polls show is deadlocked nationally. In addition to monetary policy, the elections have implications for how the US will deal with its so-called fiscal cliff, when about $600 billion in government spending cuts and higher taxes are set to kick in from January 1. “The outcome of a divided Congress, and in turn much back and forth disagreement surrounding the fiscal cliff and the debt ceiling, would be gold supportive,” UBS said in a note. Hong Kong’s gold shipments to mainland China jumped 23 percent on the year in September to 69.711 tonnes as demand picked up ahead of the holiday season. Net exports decreased 13 percent on the year. As China does not publish gold trade data, the numbers from Hong Kong – a main conduit for gold into China – help gauge China’s gold trade. China is gearing up to overtake India as the world’s top gold consumer this year. Importers in India stocked up on gold in the week preceding key festivals as prices hovered near their lowest level in more than 10 weeks, helped by a weaker rupee. Indian gold futures are likely to fall past their lowest level in more than 10 weeks over the next fortnight, weighed by a stronger dollar, considered as an alternative to the yellow metal, and falling crude oil prices, but recovering physical demand could help limit the downside. The bullish money held by hedge funds and other big speculators in US commodities fell by $8 billion in the week to October 30 – the biggest weekly decline in nearly six months – after Hurricane Sandy’s devastating hit on the US East Coast. Gold saw an exit of $2 billion in managed money net longs, adding to the previous week’s decline of $3.8 billion, data showed on Friday. This leaves plenty of scope for these positions to rise, analysts said. “Given the price move on Friday, positioning is likely to have been scaled back even further, leaving a relatively clean market base ahead of the US elections,” Barclays Capital said in a note. Spot platinum was up 0.4 percent at $1,542.75 and spot palladium fell 1.6 percent to $599.50. Silver was up 0.8 percent at $31.04 an ounce.
Great Southern Coins

DISCLAIMER: Trading precious metals could involve sizable risk. Sizable fluctuations in prices can and do occur frequently. In no event should the content of this website be construed as an express or implied promise, guarantee or implication by Great Southern Coins that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future results. Information provided on this site is intended solely for informative purposes and is obtained from sources believed reliable.