February 25th, 2014

Gold futures traded near a 16-week high in New York as investors weighed turmoil in Ukraine against the outlook for slowing bullion demand at higher prices.

Ukraine’s Acting President Oleksandr Turchynov pushed back a parliamentary vote on a national unity government to Feb. 27 from today as he attempts to win agreement with protest leaders who orchestrated last week’s ouster of Viktor Yanukovych. Physical demand for gold from Asia is “muted,” Standard Bank Group Ltd. said in a report yesterday.

After slumping the most since 1981 last year, gold is set for the first back-to-back monthly increase since August as data that trailed estimates fueled concern the U.S. recovery may be faltering. Prices gained even as the Federal Reserve lowered its bond-buying program by $10 billion a month in January and again in February, reducing the purchases to $65 billion.

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October 17th, 2013

Gold futures will drop in each of the next four quarters and reach a four-year low as reduced U.S. stimulus in response to faster economic growth curbs demand for bullion as a haven, the most accurate forecasters said.

The metal will decline to an average of $1,175 an ounce in the third quarter next year, or 10 percent less than now, according to the median of estimates from the 10 most-accurate precious metals analysts tracked by Bloomberg over the past two years. Prices were last at that level in 2010.

The forecasts underscore how some investors lost faith in gold as a store of value, driving prices to their first annual loss in 13 years. More than $63 billion was erased from the value of gold-backed funds this year, spurring losses for billionaire hedge-fund manager John Paulson, and mining companies announced at least $26 billion of writedowns. Bullion jumped today after Dagong Global Credit Rating Co. cut its U.S. credit rating and on speculation the Federal Reserve will postpone slowing stimulus.

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Gold Options

Gold Futures

October 10th, 2013

Gold futures will extend losses into 2014 amid expectations the Federal Reserve will pare stimulus as the U.S. recovers, according to Morgan Stanley, adding to bearish calls from Goldman Sachs Group Inc. and Credit Suisse Group AG.

“We recommend staying away from gold at this point in the cycle,” Melbourne-based analyst Joel Crane said in a video report received today. Bullion will average $1,313 an ounce in 2014, down from the $1,420 forecast for this year, Morgan Stanley said in its quarterly metals report on Oct. 7.

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Commodity Futures

October 7th, 2013

Ben S. Bernanke, the world’s most-powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.

Bernanke, who holds economics degrees from Harvard College and the Massachusetts Institute of Technology and led the Federal Reserve through the biggest financial disaster since the Great Depression, told the Senate Banking Committee in July that “nobody really understands gold prices and I don’t pretend to really understand them either.”

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gold options

Gold futures rise

August 18th, 2013

Speculators cut bullish and bearish bets on gold simultaneously for the first time in two months as prices advanced to the highest since mid-June on signs of strengthening physical demand.

The net-bullish position rose 18 percent to 56,604 futures and options by Aug. 13, as the 17 percent contraction in short bets exceeded the 3 percent drop in long wagers, U.S. Commodity Futures Trading Commission data show. Net-long holdings across 18 U.S.-traded commodities expanded 23 percent as the position in silver more than doubled and investors turned positive on copper for the first time since February.

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Gold Slips to 34-Month Low

On June 26, 2013, in gold futures trading news report, by Infinity Trading
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Gold futures slip

June 26th, 2013

Gold futures plunged to a 34-month low, set for a record quarterly drop, as improving U.S. economic data strengthened the case for the Federal Reserve to reduce stimulus. Silver futures fell to the lowest since August 2010.

Gold dropped 23 percent this quarter, heading for its biggest loss since at least 1920 in London. Fed Chairman Ben S. Bernanke said last week the central bank may slow its asset-purchase program this year if the economy continues to improve. U.S. durable-goods orders rose more than expected, home sales advanced to the highest in almost five years and consumer confidence climbed, data showed yesterday.

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Gold Rebounds in New York

On June 21, 2013, in gold futures trading news report, by Infinity Trading
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Gold futures rebound

June 21st, 2013

Gold futures rose from their lowest level since 2010 on speculation the slump may spur purchases. The metal is still set for its worst week since April after Federal Reserve Chairman Ben S. Bernanke said that the central bank may start curbing stimulus.

Bullion futures slid 6.4 percent yesterday, a day after Bernanke said the central bank may start reducing $85 billion in monthly debt buying this year and end the program in 2014. Prices reached $1,268.70 an ounce today, the cheapest since Sept. 16, 2010. Gold’s 14-day relative strength index was at 30.3, near the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent.

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gold futures drop

May 28th, 2013

Gold futures may decline to a three-year low if the price breaches the April 16 low by the end of June, extending a bear market that started last month, according to technical analysis by research company JSC Corp.

The most-active contract on the Comex in New York fell below the so-called cloud on Ichimoku charts and traded below the 50-day moving average since February, said Takaki Shigemoto, an analyst at the Tokyo-based company. If futures retreat below $1,321.50 an ounce in coming weeks, they will then drop to $1,155.80, reached in April 2010, he said.

Gold has dropped 17 percent this year in New York after climbing in the previous 12 years. Futures plunged into a bear market as some investors lost faith in the metal as a store of value amid economic optimism, low inflation and a rally in equities. The drop will be intensified if the Federal Reserve begins scaling back monetary stimulus later this year, he said. Bullion for August delivery rose 0.2 percent to $1,389.90 at 4:19 p.m. in Tokyo.

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Gold Bears Revived as Rout Resumes

On May 17, 2013, in gold futures trading news report, by Infinity Trading
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gold futures fall

May 17th, 2013

Gold bears are dominant again after prices resumed their slump and billionaire George Soros joined investors selling holdings in exchange-traded products that have retreated to a two-year low.

Seventeen analysts surveyed by Bloomberg expect prices to fall next week, with eight bullish and three neutral, the highest proportion of bears in two weeks. The analysts were divided a week ago after gold rebounded as much as 13 percent from the two-year low of $1,321.95 an ounce on April 16. ETP holdings slid 16 percent to 2,207.1 metric tons this year, the lowest since July 2011, data compiled by Bloomberg show.

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gold futures and options news

Gold futures move higher

April 24th, 2013

Gold futures rose for the fourth time in five sessions as investor demand for coins surged amid a slump in exchange-traded products backed by the metal.

Britain’s Royal Mint sold more than three times the amount of coins this month than a year earlier after prices dropped the most in three decades, while the U.S. Mint ran out of its smallest American Eagle coin. Last week, futures plunged 7 percent, the most since September 2011, and ETP holdings headed for a record monthly plunge.

“Support for gold prices is coming from the cash market,” Jeffrey Friedman, a senior commodity broker at RJO Futures in Chicago, said in a telephone interview. “There’s still a bearish tone to things, but a lot of the weak longs have been flushed out. People who take physical delivery of gold tend to hold onto it for a while.”

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