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.
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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 fell on Friday, pressured by gains in the dollar ahead of a closely watched jobs report that will give the last major signal on the state of the world’s largest economy before U.S. elections next week, and could set the tone for monetary policy. U.S. non-farm payrolls data, due at 1230 GMT, is expected to show the economy added 125,000 jobs last month, a Reuters poll showed, though the unemployment rate is seen at 7.9 percent, against 7.8 percent the previous month. Ahead of the data, the dollar rose to a near four-month high against the yen and a near three-week high against the euro as investors bet on an upbeat report after private employers added jobs at the fastest pace in eight months. Spot gold was at $1,709.26 at 1102 GMT, down 0.63 percent, while U.S. gold futures for December fell $5.80 to $1,709.70. In the short term, it could benefit from a positive reading of the U.S. jobs market. “The stronger dollar is bringing down a number of markets including gold,” Standard Chartered analyst Daniel Smith said. He said the payroll data was likely to show strong job creation after a recent run of positive U.S. economic data, which augured for a weaker dollar and higher gold prices. “More surprising than not, we’ll see good numbers today, and generally that will be pro-risk — I think we’re going to see higher metals prices and higher gold on the back of that, because the dollar is likely to weaken.” But in the longer term, a positive reading could weigh on gold if it trims expectations for monetary easing. The U.S. authorities have explicitly tied the extent of monetary stimulus measures – news of which sent gold above $1,795 an ounce in October – to the health of the jobs market. Looser monetary policy stokes longer-term inflationary fears and maintains pressure on interest rates, both good for gold. “A downside surprise in non-farm payrolls is likely to help fuel a gold rally, in our view,” HSBC said in a note. Gold importers in India, historically the world’s biggest gold consumer, rushed to stock up ahead of major festivals after prices of the metal fell to their lowest in nearly a month. India is approaching the height of its festival season, with the Diwali and Dhanteras later this month. Gold is a key part of gifts and is used for dowries at weddings, which are popular at this time of year. Data released by the Istanbul Gold Exchange on Friday showed Turkey’s gold imports fell to 3.7 tonnes in October from 7.49 tonnes a year earlier, and 3.84 tonnes in September. Platinum and palladium were both headed for their first weekly gains after three weeks of straight falls, although spot platinum lost half a percent to $1,553.24 and spot palladium fell 0.84 percent to $605.47. Silver was down 0.62 percent at $32.01 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

Comex gold prices ended the U.S. day session modestly lower in quieter trading Monday. A major storm has shut down much of the U.S. eastern seaboard, including New York City. All New York markets closed early or did not open at all Monday, and all New York markets are closed Tuesday. The key “outside markets” were in a bearish posture for the precious metals Monday, as the U.S. dollar index was firmer and crude oil prices were lower. December gold last traded down $3.70 at $1,708.20 an ounce. Spot gold was last quoted down $3.40 at $1,708.25. December Comex silver last traded down $0.311 at $31.725 an ounce. The main news event in the market place to start the new trading week is Hurricane Sandy, which is lashing the U.S. eastern coast. The New York Stock Exchange and New York futures exchanges all closed Monday, although there was some electronic trading of New York markets that occurred early Monday. Still, with New York City virtually shut down early this week, along with some of the U.S. government offices in Washington, D.C., trading activity will likely be lighter early this week, or even most of the week. Traders are awaiting Friday’s U.S. employment report, which is arguably the most important economic event of the week. However, the major storm could even delay that report. Some U.S. economic data due for release Monday was not released. The U.S. dollar index traded modestly higher Monday. The index Friday hit a six-week high and closed at a bullish weekly high close, on some perceived safe-haven demand. The U.S. dollar bears still have the overall near-term technical advantage, but the greenback bulls are gaining upside technical momentum. Meantime, Nymex crude oil prices were lower Monday and hovering not far above the recent 13-week low. The crude oil bears have the overall near-term technical advantage. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices. Technically, December gold futures prices closed an abbreviated session nearer the session low Monday. The gold bulls still have the slight overall near-term technical advantage need to show fresh power soon to avoid serious near-term chart damage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,731.20. Bears’ next near-term downside breakout price objective is closing prices below psychological support at $1,700.00. First resistance is seen at Monday’s high of 1,717.80 and then at $1,725.00. First support is seen at Monday’s low of $1,706.20 and then at last week’s low of $1,698.70. December silver futures prices closed nearer the session low Monday. The silver bulls are on a level near-term technical playing field with the bears. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $32.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.00. First resistance is seen at $32.00 and then at Monday’s high of $32.23. Next support is seen at last week’s low of $31.535 and then at $31.315.
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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 prices inched up on Monday after slumping more than 1 percent in the previous session as some bargain hunting, better demand from Jewelers in Asia and firmer euro lifted the demand for the precious metal; nevertheless, bullion investors are expected to tread with caution ahead of Federal Reserve’s policy statement, slated to be released on Wednesday. Earlier on Monday, the metal found a strong support as prices started to drift towards $1,700 an ounce level. While bargain hunting provided some boost to bullion prices, uptick in demand from Indian Jewelers in the wake of upcoming festival season also helped the metal to recover some of its lost ground. Still, traders say that physical demand in Asia continues to remain subdued due to higher metal prices and economic slowdown in world’s two biggest gold consumers, China and India. Weaker dollar also provided some support to gold prices. On Monday, the euro gained vis-à-vis the U.S. dollar after results from regional elections in Spain boosted the single currency. The ruling centre right government, Partido Popular headed by Mariano Rajoy, won a regional election in Galicia. Analysts pointed out that by bringing PP back to power; voters seem to have approved the ongoing austerity measures. It is speculated that the election results will embolden Mr. Rajoy’s attempt to fix country’s fiscal imbalances even as expectations increased that Spain could soon ask for a bailout. Spot gold edged up 0.3 percent to settle at $1,725.10 an ounce, having earlier plunged as low as $1,713.39, its lowest level since Sept. 7 while U.S. gold futures for December delivery gained $2.30 an ounce to close at $1,726.30. According to Reuters, the trading volume was nearly 35 percent below its 30-day average. However, gains were capped as U.S. dollar Index ticked higher on Monday. The ICE dollar Index, a gauge on U.S. unit’s performance against a basket of six major currencies, climbed to 79.642 on Monday from 79.629 on Friday. In general, a weaker U.S. dollar tends to bolster the demand for dollar dominated commodities as they become cheaper to buy for those traders who deal in currencies other than the greenback. Metal analysts expect bullion market will be under pressure as investors are likely to adopt wait and watch policy ahead of Federal Reserve’s policy statement. Fed’s policy setting arm will start its meeting on Tuesday and the policy statement is scheduled to be released on Wednesday. According to Reuters, some analysts have warned that if gold prices fall below 50 day moving average then it could trigger more technical weakness. In a note to investors, Jeffery Wright, managing director at Global Hunter Securities said, “The gold market will be taking signals from the Federal Open Market Committee meeting, presidential debate tonight if any surprises come about and European developments regarding Spain through the end of the week.” James Steel, metal analyst at HSBC, wrote in his note, “With prices near the $1,720 support level, a sustained drop below this key level may elicit further short-term liquidations, in our view.” A data provided by Reuters showed that net interest, a measure on total outstanding long and short positions on gold futures fell by 8 percent at the U.S. Comex division of the New York Mercantile Exchange, during last week as metal consistently failed to cross the key resistance level of $1,800 an ounce. Moving onto some other precious metal markets, silver jumped 0.5 percent to end the day at $32.22 an ounce, while platinum settled up 0.4 percent to $1,600.99 an ounce and palladium slipped 8 cents to close at $618.22 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

Comex gold prices ended the U.S. day session weaker Thursday. Gold and silver were pressured by a firmer U.S. dollar index, and on some profit taking and technical consolidation. December gold last traded down $7.80 at $1,745.20 an ounce. Spot gold was last quoted down $5.90 at $1,744.50. December Comex silver last traded down $0.317 at $32.915 an ounce. The precious metals were negatively impacted by the firmer greenback Thursday. Fresh economic data out Thursday saw the Philadelphia Fed business index come in stronger than expected, which continues a trend of better-than-expected U.S. economic data. However, the weekly U.S. jobless claims report was weaker than expected. Still the dollar index moved to its session high following the “Philly Fed” report. The dollar index saw short covering in a bear market Thursday and the U.S. dollar bears still have the solid overall near-term technical advantage. Meantime, Nymex crude oil prices traded not far from unchanged Thursday. Crude oil bulls and bears are on a level near-term technical playing field amid choppy trading. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices. In overnight news, China’s third-quarter gross domestic product came in at 7.4% growth, on an annual basis—the lowest growth rate since 2009 and the seventh quarter in a row of a decreasing growth rate. The second-quarter GDP number came in at 7.6%, on an annual basis. The latest figure was in line with market expectations. Asian stock markets rallied a bit and the precious metals showed a muted reaction to the latest China economic news. Many Asia market watchers now reckon the Chinese economy is on a good trajectory following recent stimulus efforts by the Chinese central bank. Such would be a bullish clue for the precious metals. Market attention is also on a two-day European Union leaders summit that began Thursday. Focus regarding the EU debt crisis is on when or if Spain will formally ask for more EU financial assistance. Falling Spanish bond yields this week, amid good demand at their debt auctions, hint that Spanish officials may not be in a hurry to seek financial assistance from the EU. Technically, December gold futures prices closed near mid-range Thursday. The gold bulls still have the overall near-term technical advantage but need to show power soon to regain upside technical momentum. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at $1,720.00. First resistance is seen at this week’s high of $1,755.50 and then at $1,765.00. First support is seen at Thursday’s low of $1,739.00 and then at this week’s low of $1,729.70. December silver futures prices closed nearer the session low Thursday and scored a mildly bearish “outside day” down on the daily bar chart. The firmer U.S. dollar index today helped to pressure silver. Bulls still need to show power soon to gain fresh upside technical momentum. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $34.38 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $32.00. First resistance is seen at Thursday’s high of $33.325 and then at this week’s high of $33.47. Next support is seen at Thursday’s low of $32.745 and then at this week’s low of $32.57.
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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 closed Monday with a more than $20-an-ounce loss as data from two of the world’s biggest economies helped spur an overall rally in global stock markets and the U.S. dollar strengthened, dulling the metal’s investment appeal. Gold for December delivery fell $22.10, or 1.3%, to settle at $1,737.60 an ounce, following an intraday low at $1,729.70. Prices, which extended a decline from Friday, when the precious metal fell $10.90 for a weekly drop of 1.2%, settled at its lowest level since mid-September, according to FactSet data. “Gold’s lack of follow-through on its recent rally is leading traders with itchy trigger fingers to sell,” said Brien Lundin, editor of Gold Newsletter. “Right now the gold market is stuck in the gray area between the QE3 hype and the reality of this money-printing actually hitting the economy,” he said in an emailed response. “In addition, it’s going to be difficult for gold to mount a sustained upward move until after the presidential election provides some clarity as to the direction of U.S. economic policy going forward.” Data out Monday showed a 1.1% jump for U.S. retail sales in September, more than analysts had expected, while sales growth was also revised slightly higher for August and July. Other U.S. data showed that the Empire state index rose to a negative 6.2 in October from negative 10.4 in September, the weakest reading for the gauge in nearly two years, while business inventories climbed 0.6% in August. Following the data, the ICE dollar index, which measures the greenback against a basket of six major currencies, stood at 79.754, off the session’s high of 79.968, but up from 79.677 late Friday. Strength in the dollar tends to weigh on dollar-denominated commodities such as gold and oil because it makes them more expensive for holders of other currencies. Overall strength in global stock markets following economic data from China, not to mention the U.S., also drew investor attention away from gold as a safe-haven asset. China on Saturday said that its trade surplus widened in September, easing worries about consumer demand. Exports rose 9.9% to a record monthly high of $186.9 billion. Despite the relatively upbeat economic data Monday, Global Hunter Securities maintains its “conviction that gold is going higher in the medium to longer term,” said Jeffrey Wright, a managing director at GHS. Gold’s seeing some profit taking on the recent run up, and it’s still holding “$1,725-ish support.” Among other metals, silver was a standout, leading the decline among the major metals traded on Comex. December silver fell 93 cents, or 2.8%, to settle at $32.74 an ounce, on the heels of a 2.3% pullback last week. Copper for December delivery ended little changed at $3.70 per pound. Goldman Sachs cut its 12-month price outlook on copper, citing concerns over demand from China’s construction industry. The investment bank now sees prices at $8,000 a metric ton in 12 months, down from a prior forecast of $9,000 a metric ton. Palladium for December delivery fell $6.45, or 1%, to end at $632.60 an ounce, while January platinum dropped $27, or 1.6%, to $1,632.30 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

Comex gold prices ended the U.S. day session modestly higher Thursday. Some light bargain hunting interest again surfaced following selling pressure earlier this week. The key “outside markets” were also in a bullish posture for the precious metals Thursday, as the U.S. dollar index was weaker and crude oil prices were higher. December gold last traded up $4.50 at $1,769.60 an ounce. Spot gold was last quoted up $5.50 at $1,768.75. December Comex silver last traded down $0.039 at $34.07 an ounce. U.S. economic data released Thursday morning had a modest impact on the precious metals. A sharp decline in weekly U.S. jobless claims did knock the precious metals prices down from their daily highs. Gold and silver also saw no lasting reaction to news late Wednesday that the Standard & Poors ratings agency downgraded Spain’s credit rating to near junk status. The Euro currency sold off and the U.S. dollar index rallied in the immediate aftermath of that news. However, by Thursday morning the Euro had recovered its losses and the dollar index had pulled back. The S&P move was a bit surprising to the market place, but not really a significant shocker to change the overall perception of Spain’s financial condition or the overall EU debt crisis. That notion was reinforced by a fairly well-subscribed Italian government bond auction on Thursday. However, the S&P downgrade did bolster ideas Spain will seek further bailout funds from the EU sooner rather than later. In other news, reports Thursday said Indian demand for gold exchange traded funds was at a record high in September, despite weak retail sales of gold jewelry in the country. The U.S. dollar index traded weaker Thursday. The U.S. dollar bulls had gained a bit of upside technical momentum this week, but the greenback bears still have the overall near-term technical advantage. Meantime, Nymex crude oil prices are higher Thursday. Some heightened Middle East tensions supported crude, and did offset a bearish U.S. weekly DOE storage report Thursday. Crude oil bulls and bears are on a level near-term technical playing field amid choppy and volatile trading recently. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices. Technically, December gold futures prices closed near mid-range again Thursday. Gold bulls have the overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the 2012 high of $1,800.90. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,738.30. First resistance is seen at Thursday’s high of $1,776.60 and then at this week’s high of $1,782.50. First support is seen at this week’s low of $1,758.50 and then at $1,753.20. December silver futures prices closed near mid-range Thursday. Silver bulls are still in overall near-term technical command, but have faded a bit and need to show some fresh power soon. Prices are still in a 2.5-month-old uptrend on the daily bar chart, but just barely. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $35.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $33.36. First resistance is seen at Thursday’s high of $34.38 and then at this week’s high of $34.605. Next support is seen at Thursday’s low of $33.815 and then at this week’s low of $33.57.
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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.