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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gold futures news

Gold Futures Slump

April 16th, 2013

Gold Futures – The selloff in gold that cut futures 13 percent over two days was sparked by investor concern that European governments may have to follow Cyprus in selling part of their holdings, according to Goldman Sachs Group Inc.

The slump, which drove prices to their lowest level since January 2011 today, was exacerbated as the metal fell below so- called technical-support levels, analysts including Jeff Currie and Damien Courvalin said in a report dated today, entitled “There Are Weeks When Decades Happen.”

Gold has plunged into a bear market as investors reduced holdings in exchange-traded products amid signs the U.S. economy is recovering, paring haven demand. Goldman said April 10 the turn in the gold cycle was quickening and investors should sell the metal. The drop in the past two days was one of the largest corrections in modern history, according to Deutsche Bank AG.

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April 15th, 2013

Gold Futures – Hedge funds and other speculators added to bullish gold bets before the metal slumped into a bear market and Goldman Sachs Group Inc. warned the retreat is accelerating after the longest rally in nine decades.

The investors increased net-long positions by 19 percent to 56,084 futures and options in the week ended April 9, the first gain in three weeks, U.S. Commodity Futures Trading Commission data show. That contrasts with a 7.9 percent decline in bullish wagers across 18 U.S.-traded raw materials, which fell to a five-week low of 431,581 contracts. Holdings in agriculture dropped to the lowest since September 2006.

The turn in the gold cycle is quickening and investors should sell the metal, Goldman Sachs said in an April 10 recommendation that returned 5.4 percent in three days. Gold retreated as the Standard & Poor’s GSCI Index of 24 raw materials fell to a nine-month low, extending a slump that Citigroup Inc. said marks the “death bell” for the supercycle, or longer-than-average period of rising prices. Global equities advanced to the highest since June 2008 as U.S. stocks reached a record.

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April 11th, 2013

Gold futures gained for the second time in three days as a weaker dollar increased demand for the precious metal as an alternative investment.

The dollar slipped as much as 0.6 percent against a basket of six currencies. Cyprus denied that it plans to sell bullion to ease its debt crisis. Gold tumbled 1.8 percent yesterday, the most since November, after a draft of a European Commission report obtained by Bloomberg News showed that Cypriot authorities would sell metal reserves.

“A weaker dollar is supporting gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “The Cyprus denial is helpful, and we are definitely seeing some demand as prices have fallen sharply.”

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gold futures charts

gold poised for gain

March 14th,2013

Gold was set for the first back-to- back weekly advance since January as investors weighed prospects for more stimulus against improving U.S. economic data. Silver, platinum and palladium headed for weekly losses.

Spot gold traded at $1,591.70 an ounce at 9:37 a.m. in Singapore from $1,590.20 yesterday. The metal climbed to a two- week high of $1,599.85 an ounce on March 13 and is 0.8 percent higher this week. Assets in gold-backed exchange-traded products rose for the first time in five weeks, climbing from the lowest level since September, according to data compiled by Bloomberg.

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gold futures charts

Gold futures climb

March 11th, 2013

Gold futures swung between gains and losses as investors weighed data showing an improving U.S. economy against signs that Europe’s debt crisis is continuing.

The Dow Jones Industrial Average reached an all-time high last week and the dollar traded near a seven-month high against six counterparts on signs that the U.S. economy is strengthening. Fitch Ratings cut Italy’s credit rating by one level on March 8. Gold exchange-traded holdings fell for a fourth straight week.

“The positive data out of the U.S. is very negative for gold, and at the same time the Fitch downgrading of Italy is providing some support,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in a telephone interview. “Gold has been getting slaughtered because of equities this year.”

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March 5th, 2013

Gold futures climbed for the first time in five days on speculation central banks will maintain stimulus measures. Silver, platinum and palladium advanced.

Federal Reserve Vice Chairman Janet Yellen said the U.S. central bank should press on with $85 billion in monthly bond buying, while Haruhiko Kuroda, the nominee to be Bank of Japan (8301) governor, said he would do whatever is needed to end 15 years of deflation. European Central Bank policy makers meet on March 7, after data last week showed manufacturing in the region contracted and unemployment climbed to a record in February.

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February 12th, 2013

Gold futures rallied from its lowest level in more than a month as North Korea conducted its third nuclear test, spurring demand for a haven. Platinum advanced.

Gold for immediate delivery was little changed at $1,646.40 an ounce at 3:12 p.m. in Singapore after losing as much as 0.3 percent to $1,642.90, the cheapest since Jan. 4. Spot silver was 0.3 percent lower after declining as much as 0.7 percent to $30.735 an ounce, the lowest since Jan. 28.

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January 2nd, 2013

Gold futures rose to a two-week high in New York, as commodities gained and the dollar weakened after U.S. lawmakers passed legislation to avert the so-called fiscal cliff of automatic spending cuts and tax increases.

The U.S. Dollar Index, a gauge against six currencies, fell 0.4 percent and the Standard & Poor’s GSCI gauge of raw materials rose 1.1 percent after the House of Representatives approved a bill that prevents income taxes from rising for most U.S. workers. Republicans vowed to fight President Barack Obama in coming weeks for spending cuts in exchange for raising the debt ceiling. Japan’s Prime Minister Shinzo Abe reiterated his intention to weaken the nation’s currency.

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