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April 26th, 2012
Gold futures rose in New York after Federal Reserve Chairman Ben S. Bernanke said he’ll do more to fuel growth if necessary, weakening the dollar and boosting bullion’s appeal as a store of value.
Bernanke said the central bank is ready to add stimulus if needed even after leaving its policy unchanged yesterday and upgrading its view of the economy for 2012. Additional bond- buying is still “very much on the table,” he said. That helped stoke a rally in global stocks and drove the greenback lower. The Fed bought $2.3 trillion of debt in two rounds of so-called quantitative easing from 2008 to June 2011.
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April 12th, 2012
Gold futures rose on Thursday, getting a boost from a weaker dollar and rising U.S. stocks and as talks surfaced of another round of economic stimulus in the U.S. and elsewhere.
Gold for June delivery (CNS:GCM2) rallied $13.90, or 0.8%, to $1,674.10 an ounce on the Comex division of the New York Mercantile Exchange, keeping it close to session highs. The metal traded as high as $1,676.90 an ounce, according to FactSet Research.
The Federal Reserve’s No. 2 official makes the case for sticking to the central bank’s low interest-rate policies and says the Fed might need to take additional action to bolster the economy.
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April 4th, 2012
Gold futures fell to a 12-week low on signs that the Federal Reserve won’t provide more U.S. economic stimulus, boosting the dollar and eroding the appeal of precious metals as alternative investments. Silver tumbled 6.7 percent.
The Fed will hold off on increasing monetary accommodation unless economic expansion falters, according to minutes of a March 13 policy meeting released yesterday. The dollar rose to a one-week high against a basket of six major currencies, and the euro slumped on Spain’s debt woes.
“The market has decided that yesterday’s statement is probably the final nail in the coffin” for additional Fed stimulus, Frank Lesh, a trader at FuturePath Trading in Chicago, said in a telephone interview. “Gold is reacting to the strength in the dollar.”
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March 29th, 2012
Gold Futures – UBS AG (UBSN) cut its full-year gold forecast 18 percent to $1,680 an ounce, citing evidence of a U.S. economic recovery and decline in expectations that the Federal Reserve will add further stimulus.
The revision compared with an earlier estimate of $2,050 an ounce, a target described as “aggressive,” analysts including Edel Tully and Julien Garran wrote in a report dated yesterday. UBS cut one- and three-month targets for gold earlier this month.
The outlook from the Zurich-based lender is less bullish than that from Goldman Sachs Group Inc. (GS), which forecasts higher gold prices over three, six and 12 months as there will be additional easing from the U.S. central bank. Fed Chairman Ben S. Bernanke has said the recovery in the U.S. isn’t assured.
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March 22nd, 2012
Gold futures dropped to the lowest price since January in New York after reports showed manufacturing may contract from China to Germany and a stronger dollar curbed demand.
China’s manufacturing may contract for a fifth straight month in March, a report showed, hurting the outlook for commodities and sending the Standard & Poor’s GSCI Index (SPGSCI) of 24 raw materials to a one-week low. The U.S. dollar rose to the highest level in almost a week against a six-currency basket including the euro and the yen. About half of the jewelry stores in India remain closed as owners protest higher taxes.
“At the moment gold is looking weak, investors are coming out of it,” David Govett, head of precious metals at Marex Spectron Group, said today by phone from London. “Data out of China is weaker, so you are going to look for gold imports there to drop. And with the Indian tax increase, the two major buyers of gold got reasons not to buy it.”
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March 20th, 2012
Gold futures trimmed losses on Tuesday, bouncing off the session low as the dollar index moderated its gains and some bargain buying emerged from traders reluctant to bet that prices will fall further.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,656.35 a troy ounce during U.S. morning trade, slumping 0.66%.
It earlier fell by as much as 1.36% to trade at a two-day low of USD1,641.35 a troy ounce.
Gold futures were likely to find support at USD1,634.75 a troy ounce, the low from March 14 and short-term resistance at USD1,669.85, the previous day’s high.
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March 8th, 2012
Commodity Brokers – Gold traders are the most bullish in four months after investors accumulated more metal than ever and hedge funds raised bets on gains to a five-month high.
Sixteen of 23 analysts surveyed by Bloomberg expect prices to gain next week and one was neutral, the highest proportion since Nov. 11. Investors increased their holdings in exchange- traded products backed by bullion for seven consecutive weeks and now hold 2,407 metric tons valued at $131 billion, data compiled by Bloomberg show.
Demand for gold is strengthening as European leaders seek to contain the region’s debt crisis and governments from the U.S. to the U.K. keep interest rates at all-time lows to shore up growth. The Federal Reserve and Bank of England have bought debt and the European Central Bank offered unlimited three-year loans to the region’s lenders, actions that spurred some investors to buy gold as protection against inflation.
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March 8th, 2012
Gold futures climbed for a second day in New York as a decline in the value of the dollar may signal more demand for precious metals.
The dollar fell for a second day against the euro as the European Central Bank kept interest rates on hold. Stocks and other commodities gained as Greece moved closer to completing its debt swap.
“Gold’s trading slightly higher today on a combination of a marginally weaker dollar and improved risk sentiment, which is seeing stronger equity and commodity prices,” said Matthew Turner, an analyst at Mitsubishi Corp. International (Europe) in London, by e-mail today. “While gold often moves in the opposite direction to other assets, due to its perceived safe- haven quality, its default position is in fact to move in line. That is happening today.”
Gold futures for delivery in April climbed 0.8 percent to $1,697.90 an ounce at 8:27 a.m. on the Comex in New York, after gaining 0.7 percent yesterday. Prices may climb to $2,100 this year, Turner said.
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February 02nd, 2012 7:57AM
GOLD futures climbed to the highest level in almost two months overnight as investors sought the precious metal as an alternative to the slipping US dollar after a batch of upbeat global economic data.
Gold futures for April delivery, the most actively traded contract, rose $US9.10, or 0.5 per cent, at $US1,749.50 a troy ounce on the Comex division of the New York Mercantile Exchange, the highest settlement price since December 2.
The dollar eased as investors dumped the perceived safe-haven currency after relatively upbeat readings on everything from Chinese and European manufacturing to US private-sector hiring. A weaker dollar can lift dollar-denominated gold and other commodities by making the futures appear cheaper for investors using other currencies.
Gold and the dollar have an added link, as some investors use gold as a hedge against instability in the currency. The ICE US Dollar Index overnight touched its lowest level since December 9.
“It’s hard to look at this rally and believe that it is not going to continue,” said Dave Meger, director of metals trading with brokerage Vision Financial Markets. “Obviously if Europe fell apart once again you’d start seeing selling pressure across the board, but shy of that I think we have the environment for higher metals prices.”
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January 25th, 2012
Gold futures surged to a six-week high after the Federal Reserve said it expects “exceptionally low” interest rates through at least late 2014. Silver, platinum and palladium also advanced.
Fed Reserve Chairman Ben S. Bernanke said at a press conference after the central bank’s statement that the option of further large- scale bond purchases is still “on the table.” Gold has jumped 28 percent in the past 12 months, partly as record-low rates boosted the appeal of the metal as a hedge against inflation.
“We saw an immediate reaction in gold” after the Fed’s announcement, Michael A. Gayed, the chief investment strategist who helps oversee $150 million at New York-based Pension Partners LLC, said in a telephone interview. “People are betting that at some point the economy will face inflationary pressures because of the low interest rate.”
Gold futures for April delivery climbed 2.1 percent to close at $1,703 an ounce at 1:44 p.m. on the Comex in New York, the biggest gain since Jan. 3. In electronic trading after the settlement, the metal reached $1,716.10, the highest for a most- active contract since Dec. 12.
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