Not too long ago, gold was making all-time highs as investors poured into the yellow metal seeking safety. That is old news: the gold trade has completely broken down since last September, with bullion now down more than 30% since then, and possibly making its way down to $1,000 an ounce if it breaks through key levels of resistance that are fast approaching. Initially fueled by a rotation into stocks, and currently exacerbated by fears that the Bernanke Fed may taper QE sooner than expected, the recent rout in gold doesn’t seem set to stop any time soon.
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Thursday, 27 June 2013
Wall Street Journal: Gold Falls to Near Three-Year Low
Gold prices slumped to their lowest level in nearly three years Wednesday after a selloff at the start of Asian trading reverberated through trading floors in London and New York.
The most actively traded contract, for August delivery, fell $45.30, or 3.6%, to $1,229.80 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold's lowest settlement price since Aug. 23, 2010. Gold for June delivery also fell 3.6%, down $45.20 to settle at $1,229.60 an ounce.
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The most actively traded contract, for August delivery, fell $45.30, or 3.6%, to $1,229.80 a troy ounce on the Comex division of the New York Mercantile Exchange. This was gold's lowest settlement price since Aug. 23, 2010. Gold for June delivery also fell 3.6%, down $45.20 to settle at $1,229.60 an ounce.
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Business Week: Can Anything Stop Gold's Slide?
Traditionally, gold prices rise when equities fall, and vice versa, making it a good place to park assets when the stock market is in turmoil. These days, gold just seems to fall regardless of what stocks are doing, as they fluctuate wildly in the wake of Federal Reserve Chairman Ben Bernanke’s attempts to talk about the end of the Fed’s efforts to stimulate the economy.
The Standard & Poor’s 500-stock index dropped as much as 5 percent in the days after Bernanke’s June 19 press conference, and gold might have benefited from investors seeking to ride out the storm—that’s what has happened during selloffs in the past. Instead, gold fell too. This may have to do partly with the general consensus that stock prices aren’t overinflated, as they were during the dot-com bubble of the late 1990s, when shares’ price-earnings ratio went as high as 30. Today, the multiple is about half that.
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The Standard & Poor’s 500-stock index dropped as much as 5 percent in the days after Bernanke’s June 19 press conference, and gold might have benefited from investors seeking to ride out the storm—that’s what has happened during selloffs in the past. Instead, gold fell too. This may have to do partly with the general consensus that stock prices aren’t overinflated, as they were during the dot-com bubble of the late 1990s, when shares’ price-earnings ratio went as high as 30. Today, the multiple is about half that.
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Financial Times: Gold sinks to near 3-year low as investors rush for exit
Gold has tumbled to its lowest level in nearly three years, putting it on track for its biggest quarterly fall since the collapse in 1971 of the Bretton Woods system of exchange rates, which pegged the value of the dollar to the precious metal.
Gold has tumbled to its lowest level in nearly three years, putting it on track for its biggest quarterly fall since the collapse in 1971 of the Bretton Woods system of exchange rates, which pegged the value of the dollar to the precious metal.
“The word at the moment is capitulation,” said Tom Kendall, precious metals analyst at Credit Suisse, adding the past week’s selling had been driven by long-term investors.
“Those are the guys who you would have expected to hold on through thick and thin and they’re not,” he said.
The price of gold on the spot market slid 4.2 per cent on Wednesday, compounding recent falls to hit a low of $1,223.54 a troy ounce. Since the start of April, the precious metal has fallen 23 per cent.
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Gold has tumbled to its lowest level in nearly three years, putting it on track for its biggest quarterly fall since the collapse in 1971 of the Bretton Woods system of exchange rates, which pegged the value of the dollar to the precious metal.
“The word at the moment is capitulation,” said Tom Kendall, precious metals analyst at Credit Suisse, adding the past week’s selling had been driven by long-term investors.
“Those are the guys who you would have expected to hold on through thick and thin and they’re not,” he said.
The price of gold on the spot market slid 4.2 per cent on Wednesday, compounding recent falls to hit a low of $1,223.54 a troy ounce. Since the start of April, the precious metal has fallen 23 per cent.
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Fox Business: Gold Melts to 34-Month Low
Gold fell to its lowest in almost three years on Wednesday, putting it on course for a record quarterly loss, as U.S. economic data increased fears the Federal Reserve will soon end ultra-loose monetary policy.
Prices could slide further - some investors saying below $1,000 per ounce - while there is little potential for data, market trends or economic developments in the United States or Europe to reverse an accelerating investor move out of gold.
Spot gold tumbled to its lowest since August 2010 at $1,223.54 an ounce and was down 3.8 percent at $1,227.86 an ounce at 1032 GMT. U.S. gold futures for August delivery were down $47.60 at $1,227.90, having hit a low of $1,223.20.
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Prices could slide further - some investors saying below $1,000 per ounce - while there is little potential for data, market trends or economic developments in the United States or Europe to reverse an accelerating investor move out of gold.
Spot gold tumbled to its lowest since August 2010 at $1,223.54 an ounce and was down 3.8 percent at $1,227.86 an ounce at 1032 GMT. U.S. gold futures for August delivery were down $47.60 at $1,227.90, having hit a low of $1,223.20.
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CNBC: Gold Drops With a Thud, Slides to End at $1,229
Gold tumbled 4 percent on Wednesday, taking it near a three-year low as a rallying U.S. equity markets further cut into demand for bullion as a hedge against economic uncertainty.
Silver dropped 5 percent and platinum group metals also declined sharply. Bullion tumbled again even after the U.S. government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its U.S. economic stimulus.
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Silver dropped 5 percent and platinum group metals also declined sharply. Bullion tumbled again even after the U.S. government slashed its estimate for first-quarter economic growth, which made investors less worried that the Federal Reserve would move soon to end its U.S. economic stimulus.
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Monday, 24 June 2013
Bloomberg: Gold Miner Writedowns at $17 Billion After Newcrest Fallout
Newcrest Mining Ltd. (NCM)’s decision to write down the value of its mines by as much as A$6 billion ($5.5 billion) will lead to the biggest one-time charge in gold mining history. It also heralds pain for competitors.
Barrick Gold Corp. (ABX), the world’s biggest producer, Newmont Mining Corp. (NEM) and Gold Fields Ltd. (GFI) may be next, according to Jefferies International Ltd. Nouriel Roubini, professor of economics and international business at New York University and known as Dr. Doom for predicting turmoil before the global financial crisis began in 2008, says gold may drop to $1,000 an ounce by 2015, from $1,284.50 now.
Gold companies that spent $195 billion on acquisitions in a decade-long price boom are at risk of taking writedowns like Newcrest’s. Producers face more stresses with brokers from Goldman Sachs Group Inc. to Citigroup Inc. cutting price forecasts as bullion heads for its first annual drop since 2000.
“We would expect that there would be several, if not many companies, who would also in the next reporting period be coming to a list of impairments,” Michael Elliott, sector leader for Ernst & Young LLP’s global mining practice, said in a phone interview from Sydney. “It’s just a question of timing, and who had the largest exposures.”
Newcrest’s writedown, which Australia’s biggest producer said is a result of gold’s slump, is probably the largest aggregate charge announced in the industry, said Elliott, who’s been advising producers for more than 30 years.
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Barrick Gold Corp. (ABX), the world’s biggest producer, Newmont Mining Corp. (NEM) and Gold Fields Ltd. (GFI) may be next, according to Jefferies International Ltd. Nouriel Roubini, professor of economics and international business at New York University and known as Dr. Doom for predicting turmoil before the global financial crisis began in 2008, says gold may drop to $1,000 an ounce by 2015, from $1,284.50 now.
Gold companies that spent $195 billion on acquisitions in a decade-long price boom are at risk of taking writedowns like Newcrest’s. Producers face more stresses with brokers from Goldman Sachs Group Inc. to Citigroup Inc. cutting price forecasts as bullion heads for its first annual drop since 2000.
“We would expect that there would be several, if not many companies, who would also in the next reporting period be coming to a list of impairments,” Michael Elliott, sector leader for Ernst & Young LLP’s global mining practice, said in a phone interview from Sydney. “It’s just a question of timing, and who had the largest exposures.”
Newcrest’s writedown, which Australia’s biggest producer said is a result of gold’s slump, is probably the largest aggregate charge announced in the industry, said Elliott, who’s been advising producers for more than 30 years.
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Bloomberg: Gold Wagers Slump as $55 Billion Erased From Funds: Commodities
Hedge funds cut bets on a gold rally by the most since February after the Federal Reserve laid out plans for reducing stimulus and this year’s drop in the value of exchange-traded products extended to $55 billion.
Speculators reduced their net-long position by 29 percent to 38,951 futures and options by June 18, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts jumped 14 percent, the most in eight weeks. Net-bullish wagers across 18 commodities slid 2.2 percent as investors became more bearish on copper and wheat.
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Speculators reduced their net-long position by 29 percent to 38,951 futures and options by June 18, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts jumped 14 percent, the most in eight weeks. Net-bullish wagers across 18 commodities slid 2.2 percent as investors became more bearish on copper and wheat.
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Bloomberg: Gold Extends Rebound on Demand After Drop to Lowest Since 2010
Gold extended a rebound from its lowest level since September 2010 as investors weighed the prospect of increased purchases against reduced monetary stimulus by the U.S. Federal Reserve.
Cash bullion rose as much as 0.4 percent to $1,301.78 an ounce and was at $1,296.58 at 9:12 a.m. in Singapore, gaining for a second day. Gold’s 14-day relative strength index was near the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent.
Gold slumped to $1,269.46 last week, the cheapest since Sept. 16, 2010, after Fed Chairman Ben S. Bernanke said that the central bank may begin reducing stimulus this year and end the program in 2014 should the economy continue to improve. The Fed currently buys $85 billion of Treasury and mortgage debt each month. In China, the seven-day repurchase rate, a measure of interbank funding availability, climbed to a record last week.
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Cash bullion rose as much as 0.4 percent to $1,301.78 an ounce and was at $1,296.58 at 9:12 a.m. in Singapore, gaining for a second day. Gold’s 14-day relative strength index was near the level of 30 that indicates to some analysts who study technical charts that a rebound may be imminent.
Gold slumped to $1,269.46 last week, the cheapest since Sept. 16, 2010, after Fed Chairman Ben S. Bernanke said that the central bank may begin reducing stimulus this year and end the program in 2014 should the economy continue to improve. The Fed currently buys $85 billion of Treasury and mortgage debt each month. In China, the seven-day repurchase rate, a measure of interbank funding availability, climbed to a record last week.
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Financial Times: Gold miners face writedown pressure
Gold producers face renewed pressure to write down asset values and clamp down on costs after the fall in the price of the precious metal.
Shares in a clutch of gold miners were among the equities worst hit after comments last week by Ben Bernanke, the US Federal Reserve chairman, suggested there would be a phasing out of the “quantitative easing” that has supported global liquidity and with it the price of gold.
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Shares in a clutch of gold miners were among the equities worst hit after comments last week by Ben Bernanke, the US Federal Reserve chairman, suggested there would be a phasing out of the “quantitative easing” that has supported global liquidity and with it the price of gold.
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Sunday, 23 June 2013
CNBC: Feeling Contrarian? Try Mining Dulled Gold Miners
Gold mining stocks have lost their luster over the past 18 months as a stronger dollar and falling commodity prices have investors fleeing the resources sectors.
Gold prices have corrected by more than a fifth this year, and the Market Vectors Gold Miners Index ETF is down nearly 45 percent. Gold miners Barrick Gold and Newmont Mining are down 53 percent and 36 percent, respectively, year to date.
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Gold prices have corrected by more than a fifth this year, and the Market Vectors Gold Miners Index ETF is down nearly 45 percent. Gold miners Barrick Gold and Newmont Mining are down 53 percent and 36 percent, respectively, year to date.
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Investing.com: Gold / Silver / Copper futures - Weekly outlook: June 24 - 28
Investing.com - Gold and silver futures ended Friday’s session higher, as investors returned to the market to seek cheap valuations after prices fell to the lowest level since September 2010 earlier in the day.
Sentiment on the precious metals was dampened amid expectations the Federal Reserve will begin to taper off its bond-buying program by the end of this year.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.75% on Friday to settle the week at USD1,295.55 a troy ounce.
Earlier in the session, Comex gold prices fell to a daily low of USD1,268.75 a troy ounce, the weakest level since September 16.
For the week, gold prices lost 6.8%, the worst weekly decline since September 2011.
Gold futures were likely to find support at USD1,246.20 a troy ounce, the low from September 14, 2010 and near-term resistance at USD1,310.10, the high from September 28, 2010.
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Sentiment on the precious metals was dampened amid expectations the Federal Reserve will begin to taper off its bond-buying program by the end of this year.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.75% on Friday to settle the week at USD1,295.55 a troy ounce.
Earlier in the session, Comex gold prices fell to a daily low of USD1,268.75 a troy ounce, the weakest level since September 16.
For the week, gold prices lost 6.8%, the worst weekly decline since September 2011.
Gold futures were likely to find support at USD1,246.20 a troy ounce, the low from September 14, 2010 and near-term resistance at USD1,310.10, the high from September 28, 2010.
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Thursday, 20 June 2013
Wall Street Journal: Spot Gold at Lowest Price Since September 2010
Spot gold fell Thursday to its lowest price in almost three years as investors digested comments from the U.S. Federal Reserve that stoked fears of a scaling back of bond purchases that have been a crucial support for the yellow metal.
In the European session, spot gold tumbled 4.7% on Wednesday's settlement to trade as low as $1,286.27 a troy ounce, its lowest price since September 2010, and the first time that the metal had traded below the $1,300-an-ounce level since then. Silver fell some 7.4% to $19.748 an ounce, also its lowest since September 2010.
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In the European session, spot gold tumbled 4.7% on Wednesday's settlement to trade as low as $1,286.27 a troy ounce, its lowest price since September 2010, and the first time that the metal had traded below the $1,300-an-ounce level since then. Silver fell some 7.4% to $19.748 an ounce, also its lowest since September 2010.
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Bloomberg: Bonds Tumble With Stocks as Gold Drops in Rout on Fed
Bonds and stocks fell around the world, with shares in emerging markets sinking the most in 20 months, after the Federal Reserve said it may phase out stimulus and China’s cash crunch worsened. Gold led commodities lower.
The 10-year Treasury note yield climbed five basis points to 2.41 percent, the highest since October 2011, at 8:35 a.m. in New York after jumping 17 basis points yesterday, as borrowing costs surged from New Zealand to Germany. The MSCI All-Country World Index (MXWO) lost 1.3 percent and Standard & Poor’s 500 Index futures dropped 0.8 percent. Emerging-market assets fell with India’s rupee and Turkey’s lira weakening to records. The S&P GSCI gauge of raw materials slid 1.6 percent as gold sank below $1,300 an ounce for the first time since September 2010.
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The 10-year Treasury note yield climbed five basis points to 2.41 percent, the highest since October 2011, at 8:35 a.m. in New York after jumping 17 basis points yesterday, as borrowing costs surged from New Zealand to Germany. The MSCI All-Country World Index (MXWO) lost 1.3 percent and Standard & Poor’s 500 Index futures dropped 0.8 percent. Emerging-market assets fell with India’s rupee and Turkey’s lira weakening to records. The S&P GSCI gauge of raw materials slid 1.6 percent as gold sank below $1,300 an ounce for the first time since September 2010.
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The Week: Everything you need to know about investing in gold
Everywhere you look, people are talking about gold, and it isn't even Oscar season. So why have precious metals been taking center stage?
Well, when investors are scared, they have historically bought gold, silver and other precious metals as a security blanket.
Beyond their uses in jewelry and industry, precious metals are seen as a hedge against inflation. Why? Because investors assume such metals will hold or increase in value as major currencies decline in value due to financial uncertainty.
Famed investor Warren Buffett describes the dynamics of this phenomenon best when he talks about gold: "Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid, you make money; if they become less afraid, you lose money. But the gold itself doesn't produce anything."
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Well, when investors are scared, they have historically bought gold, silver and other precious metals as a security blanket.
Beyond their uses in jewelry and industry, precious metals are seen as a hedge against inflation. Why? Because investors assume such metals will hold or increase in value as major currencies decline in value due to financial uncertainty.
Famed investor Warren Buffett describes the dynamics of this phenomenon best when he talks about gold: "Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid, you make money; if they become less afraid, you lose money. But the gold itself doesn't produce anything."
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SPDR Gold Holdings Slump Below 1,000 Tons on Fed Outlook
Holdings in the SPDR Gold Trust, the world’s largest exchange-traded product backed by the metal, fell below 1,000 metric tons for the first time in four years, erasing more than $29 billion from the fund’s value this year.
In 2013, the assets have slumped 351.3 tons, or 26 percent, to 999.56 tons, the lowest since February 2009, according to data compiled by Bloomberg. Holdings reached a record 1,353.35 tons in December. Billionaire John Paulson is the biggest investor in the fund
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In 2013, the assets have slumped 351.3 tons, or 26 percent, to 999.56 tons, the lowest since February 2009, according to data compiled by Bloomberg. Holdings reached a record 1,353.35 tons in December. Billionaire John Paulson is the biggest investor in the fund
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Wednesday, 19 June 2013
Bloomberg: Gold Trades Near Three-Week Low Before Fed Concludes Meeting
Gold held losses near the lowest level in more than three weeks before the U.S. Federal Reserve concludes a policy meeting that may indicate when the central bank will reduce asset purchases.
Spot gold traded at $1,367.05 an ounce at 2:06 p.m. in Singapore from $1,367.65 yesterday, when the metal dropped to $1,361.08, the cheapest since May 23. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, slid to 1,001.66 metric tons yesterday, the least since February 2009.
Gold has slumped 18 percent this year, entering a bear market in April, as some investors lost faith in the precious metal as a store of value amid speculation the Fed will scale back monetary stimulus as the U.S. economy recovers. The central bank, ending a two-day meeting today, currently buys $85 billion of Treasury and mortgage debt a month.
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Spot gold traded at $1,367.05 an ounce at 2:06 p.m. in Singapore from $1,367.65 yesterday, when the metal dropped to $1,361.08, the cheapest since May 23. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, slid to 1,001.66 metric tons yesterday, the least since February 2009.
Gold has slumped 18 percent this year, entering a bear market in April, as some investors lost faith in the precious metal as a store of value amid speculation the Fed will scale back monetary stimulus as the U.S. economy recovers. The central bank, ending a two-day meeting today, currently buys $85 billion of Treasury and mortgage debt a month.
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CNBC: Gold Slips for 3rd Day on Rally in Stocks, Fed Caution
Gold fell for a third straight session on Wednesday, hovering near the lowest level in four weeks, as a rally in stocks and investor caution over the Federal Reserve curbing its stimulus program sapped support for bullion.
Fed Chairman Ben Bernanke said last month the bank could scale back its $85 billion monthly bond purchases if the U.S. economy strengthens, but a lack of clarity on the timing has unsettled markets. A policy statement from the central bank will be released on Wednesday after its meeting.
"Everyone is waiting for the FOMC meeting to end and what Bernanke is going to say about the future of the easing," said a trader in Hong Kong, referring to the Federal Open Market Committee.
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Fed Chairman Ben Bernanke said last month the bank could scale back its $85 billion monthly bond purchases if the U.S. economy strengthens, but a lack of clarity on the timing has unsettled markets. A policy statement from the central bank will be released on Wednesday after its meeting.
"Everyone is waiting for the FOMC meeting to end and what Bernanke is going to say about the future of the easing," said a trader in Hong Kong, referring to the Federal Open Market Committee.
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Tuesday, 18 June 2013
Business Standard: June gold import expected to see sharp fall
After a sharp increase in April and May, gold imports are expected to come down significantly in June, due to the Reserve Bank of India (RBI) blocking the consignment import route for the domestic market and the central government imposing a two per cent additional import duty.
“In June, hardly 40 tonnes of gold would be imported, as there is a huge carried-forward stock in the market from the past two months,” a veteran bullion analyst said. A little over 100 tonnes has been carried forward.
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“In June, hardly 40 tonnes of gold would be imported, as there is a huge carried-forward stock in the market from the past two months,” a veteran bullion analyst said. A little over 100 tonnes has been carried forward.
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CNBC: Ron Paul: Gold Could Go to 'Infinity'
There are gold bears, gold bulls, and gold bugs. And then there's Ron Paul.
The former congressman and presidential candidate is known for favoring gold, and he still believes it will go higher. How much higher?
"Eventually, if we're not carefully, it will go to infinity, because the dollar will collapse totally," Paul said on CNBC.com's "Futures Now."
A gold price of "infinity" might be hard to conceptualize, but Paul's point is actually quite simple.
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The former congressman and presidential candidate is known for favoring gold, and he still believes it will go higher. How much higher?
"Eventually, if we're not carefully, it will go to infinity, because the dollar will collapse totally," Paul said on CNBC.com's "Futures Now."
A gold price of "infinity" might be hard to conceptualize, but Paul's point is actually quite simple.
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CNN Money: Is gold losing its safe haven appeal?
The recent volatility in global financial markets hasn't done much to boost falling gold prices.Despite choppy trading in stocks and bonds, gold prices have struggled to move back above $1,400 an ounce.
At the same time, the VIX (VIX), a benchmark of investor anxiety, has jumped 35% in the past month.
Gold is often seen as a safe haven when markets are volatile, since it's tangible and tends to hold value better than other assets.
But that has not been the case recently.
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At the same time, the VIX (VIX), a benchmark of investor anxiety, has jumped 35% in the past month.
Gold is often seen as a safe haven when markets are volatile, since it's tangible and tends to hold value better than other assets.
But that has not been the case recently.
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Bloomberg: Gold Falls to One-Week Low on Bets Fed May Scale Back Stimulus
Gold fell to a one-week low as the Federal Reserve starts a policy meeting that may provide information about when the central bank will start slowing the pace of its stimulus. Palladium dropped to a five-week low.
The U.S. central bank, which begins a two-day meeting today, currently buys $85 billion a month of Treasuries and mortgage debt. Fed Chairman Ben S. Bernanke said last month the pace of monthly purchases could be reduced if the employment outlook shows sustainable improvement. Physical demand in North America and Europe has dropped about 80 percent compared with sales in April, according to Kitco Metals Inc.
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The U.S. central bank, which begins a two-day meeting today, currently buys $85 billion a month of Treasuries and mortgage debt. Fed Chairman Ben S. Bernanke said last month the pace of monthly purchases could be reduced if the employment outlook shows sustainable improvement. Physical demand in North America and Europe has dropped about 80 percent compared with sales in April, according to Kitco Metals Inc.
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Bloomberg: Gold Prices Retreat Ahead of Fed Meeting
Gold prices fell on Tuesday as traders took to the sidelines ahead of a Federal Reserve policy meeting they hope will give greater clarity on the outlook for U.S. monetary policy.
The Fed meets this week amid intense speculation that it may rein in its $85 billion-a-month bond-buying programme after firmer than expected economic data this year and a rally in stock markets.
The programme, part of the Fed's quantitative easing (QE) policy to stimulate U.S. growth, has helped to drive gold prices to record highs in recent years by keeping up pressure on long-term interest rates and stoking inflation fears.
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The Fed meets this week amid intense speculation that it may rein in its $85 billion-a-month bond-buying programme after firmer than expected economic data this year and a rally in stock markets.
The programme, part of the Fed's quantitative easing (QE) policy to stimulate U.S. growth, has helped to drive gold prices to record highs in recent years by keeping up pressure on long-term interest rates and stoking inflation fears.
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Bloomberg: Gold Retreats a Second Day in London Before Fed Policy Meeting
Gold fell for a second day in London before the U.S. Federal Reserve starts a policy meeting as investors weighed when the central bank will taper stimulus. Palladium declined.
The U.S. central bank, which begins a two-day meeting today, currently buys $85 billion a month of Treasury and mortgage debt. Fed Chairman Ben S. Bernanke said last month the pace of monthly purchases could be reduced if the employment outlook shows sustained improvement. Data due today may show U.S. housing starts rose in May, economists said.
“The atmosphere is clearly difficult for gold at the moment, and downside risks loom,” Joni Teves, an analyst at UBS AG in London, wrote today in a report. “It will either have to take a materially dovish statement and/or a significant scaling back in the Fed’s economic projections for greater upside prospects to emerge.”
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The U.S. central bank, which begins a two-day meeting today, currently buys $85 billion a month of Treasury and mortgage debt. Fed Chairman Ben S. Bernanke said last month the pace of monthly purchases could be reduced if the employment outlook shows sustained improvement. Data due today may show U.S. housing starts rose in May, economists said.
“The atmosphere is clearly difficult for gold at the moment, and downside risks loom,” Joni Teves, an analyst at UBS AG in London, wrote today in a report. “It will either have to take a materially dovish statement and/or a significant scaling back in the Fed’s economic projections for greater upside prospects to emerge.”
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Market Watch: ‘Paradigm shift’ to send gold sliding to $1,200 an ounce: SocGen
Gold has tumbled further and faster than even the bears at Societe Generale thought in April, leading the bank on Monday to cut its year-end forecast for the yellow metal.
In a fresh note, analysts led by commodities-research chief Michael Haigh penciled in a a drop to $1,200 an ounce by Dec. 31, down from their April 2 call of $1,375 — a call that was made when gold GCQ3 -0.35% – now changing hands near $1,382 — was trading closer to $1,600. They write:
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In a fresh note, analysts led by commodities-research chief Michael Haigh penciled in a a drop to $1,200 an ounce by Dec. 31, down from their April 2 call of $1,375 — a call that was made when gold GCQ3 -0.35% – now changing hands near $1,382 — was trading closer to $1,600. They write:
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Bloomberg: Gold Spared From Global Rout, for Now Anyway
Gold has emerged largely unscathed from the sharp selloff that's gripped markets in recent weeks, helped by a combination of factors from physical demand from the world's largest consumers India and China, to a slowdown in selling by investors, analysts say.
While almost every other asset class from currencies to equities and bonds succumbed to the market rout that started in late May, bullion has managed to stay in a trading range of $1380-$1410.
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While almost every other asset class from currencies to equities and bonds succumbed to the market rout that started in late May, bullion has managed to stay in a trading range of $1380-$1410.
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Monday, 17 June 2013
CNBC: Gold Slips as Focus Turns to US Stimulus Outlook
Gold dropped on Monday as the dollar rose broadly and stock markets rebounded, with investors keeping a sharp eye on this week's U.S. Federal Reserve meeting for signals on the latest plans for its bond buying program.
The Fed meets on Tuesday and Wednesday against a backdrop of stronger-than-expected data on U.S. retail sales and the job market, leading to speculation that its monthly stimulus could be trimmed.
"You could really argue that sellers have the upper hand at the moment because some recent dollar weakness hasn't really lent support to gold," Saxo Banksenior manager Ole Hansen said.
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The Fed meets on Tuesday and Wednesday against a backdrop of stronger-than-expected data on U.S. retail sales and the job market, leading to speculation that its monthly stimulus could be trimmed.
"You could really argue that sellers have the upper hand at the moment because some recent dollar weakness hasn't really lent support to gold," Saxo Banksenior manager Ole Hansen said.
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Forbes: FOCUS: Speculators Net Bullish Gold Positions Fall -- CFTC
The net-long positions for large speculators in gold futures and options on the Comex division of the New York Mercantile Exchange fell as the new short positions they added more than offset the new bullish positions, according to U.S. government data released late Friday.
For the week ended June 11, large speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report added both gross longs and gross shorts in gold, but they added many more gross shorts, effectively lowering the net-long position. In silver, large speculators flipped to a tiny net-short position in the disaggregated report, while in the legacy report they cut their net-long silver holdings.
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For the week ended June 11, large speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report added both gross longs and gross shorts in gold, but they added many more gross shorts, effectively lowering the net-long position. In silver, large speculators flipped to a tiny net-short position in the disaggregated report, while in the legacy report they cut their net-long silver holdings.
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Forbes: Technical Trading: Gold Trade Remains Lethargic, Volatility Narrows Into FOMC
Comex August gold futures are slightly weaker heading into Monday’s New York trade, but the yellow metal continues to consolidate within recent ranges.
Traders should brace for a potentially big move this week. There is an old market adage: “the longer a market coils, the longer and stronger the breakout is once it occurs.” Gold has been coiling or consolidating in recent weeks and this week’s Fed meeting has the potential to ignite some fireworks.
The main event this week will be this week’s U.S. Federal Open Market Committee (FOMC) meeting. The meeting summary is slated for release Wednesday, with Fed Chairman Ben Bernanke speaking in a press conference to follow.
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Traders should brace for a potentially big move this week. There is an old market adage: “the longer a market coils, the longer and stronger the breakout is once it occurs.” Gold has been coiling or consolidating in recent weeks and this week’s Fed meeting has the potential to ignite some fireworks.
The main event this week will be this week’s U.S. Federal Open Market Committee (FOMC) meeting. The meeting summary is slated for release Wednesday, with Fed Chairman Ben Bernanke speaking in a press conference to follow.
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Motley Fool: 3 Gold Shares Rising Strongly
LONDON -- The price of gold bounced around last week, ranging between $1,366 and $1,395 per ounce. However, by the end of the week, little had changed, and gold for immediate delivery ended the week 0.4% higher at $1,387 per ounce.
Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $51 billion SPDR Gold Trust (NYSEMKT: GLD ) , ended the week 0.73% higher at $134.43, while London-listed Gold Bullion Securities (LSE: GBS ) edged up 0.53% to end the week at $133.93. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 15.2%, while the value of SPDR Gold Trust shares has fallen by 17.6%.
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Of course, the only practical way for most private investors to invest in gold is through exchange-traded funds. The largest gold ETF, the $51 billion SPDR Gold Trust (NYSEMKT: GLD ) , ended the week 0.73% higher at $134.43, while London-listed Gold Bullion Securities (LSE: GBS ) edged up 0.53% to end the week at $133.93. So far this year, shareholders of Gold Bullion Securities have seen the value of their holdings fall by 15.2%, while the value of SPDR Gold Trust shares has fallen by 17.6%.
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Bloomberg: Gold Falls Before Fed Meets as Investors Weigh Stimulus Outlook
Gold declined in New York before the Federal Reserve starts a two-day meeting as investors weighed when the central bank will taper asset purchases.
The Federal Open Market Committee begins its two-day policy meeting tomorrow. Fed Chairman Ben S. Bernanke said last month the central bank, which is buying $85 billion of Treasuries and mortgage securities a month to spur the economy, could scale back stimulus efforts if the employment outlook shows sustainable improvement. Holdings in exchange-traded products backed by gold fell to the lowest since March 2011.
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The Federal Open Market Committee begins its two-day policy meeting tomorrow. Fed Chairman Ben S. Bernanke said last month the central bank, which is buying $85 billion of Treasuries and mortgage securities a month to spur the economy, could scale back stimulus efforts if the employment outlook shows sustainable improvement. Holdings in exchange-traded products backed by gold fell to the lowest since March 2011.
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Economic Times: Gold can still add shine to your portfolio, but it's best to take SIPs
The price of gold has fallen 18.75% in the past six months in dollar terms in the international market. However, the yellow metal has lost only 13.45% in India during the same period. Globally, with the advent of 'risk on trade', an environment in which investors are willing to take risk, gold prices are expected to remain under pressure.
However, the story may be a little different in India - the weak rupee may support gold prices. Also, the legendary Indian appetite for gold is likely to emerge every time the precious metal takes a beating. Sure, the government has been making a lot of noise about curbing gold imports, but it remains to be seen how it will materialise.
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However, the story may be a little different in India - the weak rupee may support gold prices. Also, the legendary Indian appetite for gold is likely to emerge every time the precious metal takes a beating. Sure, the government has been making a lot of noise about curbing gold imports, but it remains to be seen how it will materialise.
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Bloomberg: Huaan’s China Gold ETF Seeks $400 Million After Bullion Slumps
Huaan Asset Management Co. aims to attract as much as $400 million in initial funding for one of China’s first two gold exchange-traded funds as a drop in prices attracts buyers in the second-biggest consumer of bullion.
The product, to be listed on the Shanghai Stock Exchange, will track the performance of spot contracts on the city’s gold bourse, Xu Yiyi, the fund manager who will run the ETF, said in a telephone interview. Shanghai-based Huaan has yet to set a date to market the fund to investors, he said.
Gold sank into a bear market in April, after rallying for 12 years, amid bets the Federal Reserve may taper stimulus. While the rout hurt investors including hedge fund manager John Paulson and withdrawals from exchange-traded products set a record pace this year, many buyers in China viewed the slump as chance to stock up on jewelry, coins and bars.
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The product, to be listed on the Shanghai Stock Exchange, will track the performance of spot contracts on the city’s gold bourse, Xu Yiyi, the fund manager who will run the ETF, said in a telephone interview. Shanghai-based Huaan has yet to set a date to market the fund to investors, he said.
Gold sank into a bear market in April, after rallying for 12 years, amid bets the Federal Reserve may taper stimulus. While the rout hurt investors including hedge fund manager John Paulson and withdrawals from exchange-traded products set a record pace this year, many buyers in China viewed the slump as chance to stock up on jewelry, coins and bars.
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Bloomberg: Hedge Funds Cut Gold Bets as Paulson’s Loss Widens: Commodities
Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson.
The funds and other large speculators lowered their net-long position by 4.1 percent to 54,779 futures and options by June 11, U.S. Commodity Futures Trading Commission data show. Net-bullish wagers across 18 U.S.-traded commodities rose 0.1 percent. Bearish copper bets more than doubled as the metal had its longest slump since November. Cocoa holdings advanced to the highest since 2008 before the biggest weekly slide since January.
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The funds and other large speculators lowered their net-long position by 4.1 percent to 54,779 futures and options by June 11, U.S. Commodity Futures Trading Commission data show. Net-bullish wagers across 18 U.S.-traded commodities rose 0.1 percent. Bearish copper bets more than doubled as the metal had its longest slump since November. Cocoa holdings advanced to the highest since 2008 before the biggest weekly slide since January.
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The Australian: Gold producers keep digging despite the downturn
GOLD prices and gold equity values have plunged but production by the local industry is weathering the storm, so far at least.
According to the March quarter survey of the industry released yesterday by Melbourne-based consultant Surbiton Associates, local production for the period was 63.5 tonnes (2.04 million ounces), worth $US2.84 billion ($2.96bn) at current spot prices.
March quarter production -- the shortest reporting period for the year and one in which summer cyclones affect output -- was about 3 tonnes, or 5 per cent, lower than for the preceding December 2012 quarter but was up by one tonne on the previous corresponding period.
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According to the March quarter survey of the industry released yesterday by Melbourne-based consultant Surbiton Associates, local production for the period was 63.5 tonnes (2.04 million ounces), worth $US2.84 billion ($2.96bn) at current spot prices.
March quarter production -- the shortest reporting period for the year and one in which summer cyclones affect output -- was about 3 tonnes, or 5 per cent, lower than for the preceding December 2012 quarter but was up by one tonne on the previous corresponding period.
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Market Watch: Gold rises as some bet on Fed inaction
LOS ANGELES (MarketWatch) — Futures prices for gold rose Monday, stepping higher as some investors wagered the Federal Reserve will hold off on tapering its monetary stimulus program this week.
Gold futures for August delivery /quotes/zigman/6585799 GCQ3 -0.12% rose $1.20, or 0.1%, to $1,388.80 an ounce in electronic trade, with the gain for the dollar-denominated commodity recorded despite an advance in the U.S. dollar /quotes/zigman/1652083 DXY +0.11% .
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Gold futures for August delivery /quotes/zigman/6585799 GCQ3 -0.12% rose $1.20, or 0.1%, to $1,388.80 an ounce in electronic trade, with the gain for the dollar-denominated commodity recorded despite an advance in the U.S. dollar /quotes/zigman/1652083 DXY +0.11% .
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Economic Times: Gold slips as investors await outlook for bond purchases
SINGAPORE: Gold fell in early Asian trading on Monday as investors await indications from a key US Federal Reserve meeting this week on the pace of the central bank's bond buying programme.
Spot gold eased 0.2 per cent to $1,387.24 an ounce by 0022 GMT. Bullion closed up about 0.5 per cent for the week on Friday helped by strong demand for coins and bars, a pullback in US stocks and rising tensions in the Middle East.
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Spot gold eased 0.2 per cent to $1,387.24 an ounce by 0022 GMT. Bullion closed up about 0.5 per cent for the week on Friday helped by strong demand for coins and bars, a pullback in US stocks and rising tensions in the Middle East.
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allAfrica: Tanzania: Geita Gold Mine Keen On Expanding Business
GEITA Gold Mine expects to increase production by pumping into its operations 478.6 bn/- (300 million US dollars).
They company envisages expanding exploration activities. Geita Gold Mine will embark on an eight-year exploration programme that will see the mine continue employing locals and foreigners, for a much longer period due to extension of the mine's lifespan.
"Besides exploration activities the money will also be invested in purchases of heavy duty trucks which are essential in ferrying the ore from the open pit floor to the surface for further processing," said Mr Tenga Tenga, Communications Manager, AngloGold Ashanti Limited.
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They company envisages expanding exploration activities. Geita Gold Mine will embark on an eight-year exploration programme that will see the mine continue employing locals and foreigners, for a much longer period due to extension of the mine's lifespan.
"Besides exploration activities the money will also be invested in purchases of heavy duty trucks which are essential in ferrying the ore from the open pit floor to the surface for further processing," said Mr Tenga Tenga, Communications Manager, AngloGold Ashanti Limited.
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Sunday, 16 June 2013
3 News: Groser: Chinese infant formula a gold rush
Trade Minister Tim Groser has likened the supply of infant formula to China to a gold rush.
He says New Zealand is "right at the centre" of dealing with issues relating to infant formula exports to China, noting reports that more people are being caught smuggling formula from Hong Kong to China than drugs.
The Weekend Herald reported yesterday New Zealand supermarkets are legally selling Karicare infant formula to exporters who are shipping it to Hong Kong. It is then being smuggled into China where it is sold online with New Zealand supermarket receipts to prove it is New Zealand-made.
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He says New Zealand is "right at the centre" of dealing with issues relating to infant formula exports to China, noting reports that more people are being caught smuggling formula from Hong Kong to China than drugs.
The Weekend Herald reported yesterday New Zealand supermarkets are legally selling Karicare infant formula to exporters who are shipping it to Hong Kong. It is then being smuggled into China where it is sold online with New Zealand supermarket receipts to prove it is New Zealand-made.
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Seeking Alpha: Gartman: 'Gold Is A Broken Commodity'
Dennis Gartman, Founder and Publisher of The Gartman Letter, gave a very interesting interview on CNBC where he shared his insights into gold. His take home messages were:
The high in gold is almost 2 years behind us.
We've failed to make a new high and broken many trend lines support.
Gold is a broken commodity and is likely to head lower.
Gold is likely to head lower even with all the news of the Fed expanding reserves to the system.
The trend seems to be downward, and if $1,200 is broken, the next level of support is $1,000.
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The high in gold is almost 2 years behind us.
We've failed to make a new high and broken many trend lines support.
Gold is a broken commodity and is likely to head lower.
Gold is likely to head lower even with all the news of the Fed expanding reserves to the system.
The trend seems to be downward, and if $1,200 is broken, the next level of support is $1,000.
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Saturday, 15 June 2013
Forbes: Feature: Is It Sustainable To Mine Gold In This Current Price Environment?
After seeing gold prices plummet in 2013 and with gold miners battling high operating costs, gold companies find themselves with razor thin profit margins with the ounces they’re pulling out of the ground.
The cost to mine and produce an ounce of gold, on average, ranges from $1,100 to $1,250.. Some mines produce gold at a very affordable cost while others are now producing gold at costs that are higher than the metal is valued.
As gold rose to over $1,900 an ounce in the fall of 2011, the general thought process that accompanied the rise was that gold miners were reaping enormous profit margins.
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The cost to mine and produce an ounce of gold, on average, ranges from $1,100 to $1,250.. Some mines produce gold at a very affordable cost while others are now producing gold at costs that are higher than the metal is valued.
As gold rose to over $1,900 an ounce in the fall of 2011, the general thought process that accompanied the rise was that gold miners were reaping enormous profit margins.
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Friday, 14 June 2013
Forbes: Labor Dispute Shuts Down Mexican Tycoon Carlos Slim's Gold Mine
The Minera Frisco company, owned by Mexican mogul Carlos Slim Helú, reported that its El Coronel mine suspended production of gold and silver as a result of being shuttered by workers during a conflict between two rival unions. Located in the north-central state of Zacatecas, El Coronel is Minera Frisco’s biggest mine. In 2011 El Coronel produced 197,631 ounces of gold and 20,419 ounces of silver.
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Forbes: Gold Survey: Higher Prices Expected In Gold Next Week -- Survey Participants
Gold values could rise next week, at least within the current price range, said a majority of participants in the Kitco News Weekly Gold Survey.
In the Kitco News Gold Survey, out of 36 participants, 23 responded this week. Of those 23 participants, 15 see prices up, while six see prices down and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
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In the Kitco News Gold Survey, out of 36 participants, 23 responded this week. Of those 23 participants, 15 see prices up, while six see prices down and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
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Bloomberg: Gold Bears Return as ETP Rout Extends to 17th Week: Commodities
Gold traders turned bearish for the first time in a month as investors reduced holdings in exchange-traded products for an unprecedented 17th consecutive week and India, the biggest buyer, announced curbs on imports.
Eighteen analysts surveyed by Bloomberg expect prices to fall next week, with 14 bullish and four neutral, the largest proportion of bears since May 17. Investors sold 497.2 metric tons valued at about $22 billion through ETPs since Feb. 8 and the 2,117.96 tons left is the least they have held since March 2011, data compiled by Bloomberg show.
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Eighteen analysts surveyed by Bloomberg expect prices to fall next week, with 14 bullish and four neutral, the largest proportion of bears since May 17. Investors sold 497.2 metric tons valued at about $22 billion through ETPs since Feb. 8 and the 2,117.96 tons left is the least they have held since March 2011, data compiled by Bloomberg show.
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Times of India: Gold, silver fall on weak demand, global cues
Gold prices dropped at the domestic bullion market today amid weak demand and fall in prices in the international markets.
Silver also fell back on subdued industrial buying.
Standard gold of 99.5 per cent purity was down by Rs 190 to end at Rs 27,670 per 10 gm from Thursday's closing level of Rs 27,860.
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Silver also fell back on subdued industrial buying.
Standard gold of 99.5 per cent purity was down by Rs 190 to end at Rs 27,670 per 10 gm from Thursday's closing level of Rs 27,860.
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Mail online: Incredible £500,000 display of Asian gold jewellery
Incredible £500,000 display of Asian gold jewellery taken in handbag thefts over the last six years
Police hope to reunite the jewellery with its owners after thefts in London
Among stolen jewellery are rings, bracelets, necklaces and watches
Theft of Asian gold increases around the time of religious celebrations
These pictures show hundreds of thousands of pounds of gold jewellery that police have recovered over the last six years.
The haul, which has been recovered from across London, has been valued at £510,000 and detectives are hoping to reunite the valuables with their owners.
There is an array of Asian gold rings, bracelets, necklaces and watches - many of which are believed to have been taken as a result of handbag thefts.
Asian gold jewellery is often bought as it is seen as the safest way to store wealth as it keeps its value better than property, currency and other investments.
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Police hope to reunite the jewellery with its owners after thefts in London
Among stolen jewellery are rings, bracelets, necklaces and watches
Theft of Asian gold increases around the time of religious celebrations
These pictures show hundreds of thousands of pounds of gold jewellery that police have recovered over the last six years.
The haul, which has been recovered from across London, has been valued at £510,000 and detectives are hoping to reunite the valuables with their owners.
There is an array of Asian gold rings, bracelets, necklaces and watches - many of which are believed to have been taken as a result of handbag thefts.
Asian gold jewellery is often bought as it is seen as the safest way to store wealth as it keeps its value better than property, currency and other investments.
Read more...
Bloomberg: Gold Drops as SPDR Assets Decrease Amid Fed Stimulus Speculation
Gold declined for a second day as holdings in the largest bullion backed exchange-traded product dropped to the lowest level in more than four years amid speculation the Federal Reserve will curb stimulus.
Bullion for immediate delivery lost as much as 0.3 percent to $1,382.06 an ounce before trading at $1,383.79 by 12:40 p.m. in Singapore. Prices are little changed this week after dropping 0.4 percent a week earlier. Gold for August delivery climbed 0.4 percent to $1,383.60 an ounce on the Comex after falling 1 percent yesterday when a report showed fewer Americans than forecast filed applications for jobless benefits.
Assets in the SPDR Gold Trust fell 0.6 percent to 1,003.53 metric tons yesterday, according to data on the company’s website. That’s the biggest fall since May 21 and the lowest level since February 2009, data compiled by Bloomberg showed. Fed Chairman Ben S. Bernanke said on May 22 the central bank could reduce its $85 billion monthly bond purchases if the employment outlook shows a sustainable improvement.
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Bullion for immediate delivery lost as much as 0.3 percent to $1,382.06 an ounce before trading at $1,383.79 by 12:40 p.m. in Singapore. Prices are little changed this week after dropping 0.4 percent a week earlier. Gold for August delivery climbed 0.4 percent to $1,383.60 an ounce on the Comex after falling 1 percent yesterday when a report showed fewer Americans than forecast filed applications for jobless benefits.
Assets in the SPDR Gold Trust fell 0.6 percent to 1,003.53 metric tons yesterday, according to data on the company’s website. That’s the biggest fall since May 21 and the lowest level since February 2009, data compiled by Bloomberg showed. Fed Chairman Ben S. Bernanke said on May 22 the central bank could reduce its $85 billion monthly bond purchases if the employment outlook shows a sustainable improvement.
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The Economic Times: Gold imports to taper as government curbs dent demand
Chidambaram, who has appealed to Indians to stop buying gold for a year to bring down the widening current account deficit (CAD), can heave a sigh of relief because gold traders say imports will drop drastically this month and next with a decline in demand.
Bullion dealers and jewellers say shipments will be less than the average $36-million imports witnessed in the last fortnight of May. Talking to ET, Haresh Soni, chairman of All India Gem and Jewellery Trade Federation, said, "Demand has already tapered off beginning June and this trend is likely to continue till the middle of August. However, we do not think Indians will stay away from gold as wished by the FM. We know CAD is a major issue before the government. We think the government should put a restriction of using gold as an investment product."
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Bullion dealers and jewellers say shipments will be less than the average $36-million imports witnessed in the last fortnight of May. Talking to ET, Haresh Soni, chairman of All India Gem and Jewellery Trade Federation, said, "Demand has already tapered off beginning June and this trend is likely to continue till the middle of August. However, we do not think Indians will stay away from gold as wished by the FM. We know CAD is a major issue before the government. We think the government should put a restriction of using gold as an investment product."
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CNN: Gold prices drop 1%. Is $1,150 next?
U.S. stocks were able to evade the rout in Asia, but gold wasn't so lucky.
In fact, the precious metal has been one of the most jittery asset classes this year.
Gold prices plunged to a two-year low in April on worries about slowing growth in China. Investors also shunned gold in favor of stocks, which have had a record-setting run this year...before all the recent volatility.
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In fact, the precious metal has been one of the most jittery asset classes this year.
Gold prices plunged to a two-year low in April on worries about slowing growth in China. Investors also shunned gold in favor of stocks, which have had a record-setting run this year...before all the recent volatility.
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Thursday, 13 June 2013
Market Watch: Gold extends drop on stronger-than-expected data
NEW YORK (MarketWatch) — Gold futures extended losses Thursday as stronger-than-expected data on weekly U.S. jobless claims and May retail sales underscored expectations the Federal Reserve will begin scaling back monetary stimulus in coming months.
Gold for August delivery /quotes/zigman/6585799 GCQ3 -1.01% fell $9.30, or 0.7%, to $1,382.40 an ounce on the New York Mercantile Exchange.
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Gold for August delivery /quotes/zigman/6585799 GCQ3 -1.01% fell $9.30, or 0.7%, to $1,382.40 an ounce on the New York Mercantile Exchange.
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Bloomberg: Gold Falls on Jobs Data, Bets Fed May Scale Back Stimulus
Gold futures fell after fewer Americans than forecast filed applications for unemployment benefits last week, easing pressure on the Federal Reserve to maintain stimulus measures to bolster the economy.
Jobless claims dropped to 334,000 in the week ended June 8 from 346,000 a week earlier, according to government data. U.S. retail sales rose more than forecast in May, a separate report showed today. Through yesterday, gold fell 17 percent this year amid concern that Fed may scale back debt purchases as the economy gains.
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Jobless claims dropped to 334,000 in the week ended June 8 from 346,000 a week earlier, according to government data. U.S. retail sales rose more than forecast in May, a separate report showed today. Through yesterday, gold fell 17 percent this year amid concern that Fed may scale back debt purchases as the economy gains.
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Bloomberg: Gold Imports by India Seen Tumbling as Curbs Boost Titan’s Costs
Gold imports by India, the world’s largest consumer, are plunging as an increase in tax and restrictions on financing shipments boost costs for jewelers, helping the nation contain a record current-account deficit.
Shipments in June will decline as only orders placed before the curbs are being imported now, said Rajesh Mehta, chairman of Rajesh Exports Ltd. (RJEX) Overseas purchases tumbled to an average $36 million a day in the 14 business days through June 7, compared with an average $135 million a day through 13 days until May 20, Raghuram Rajan, chief economic adviser in the Finance Ministry, said in a statement on June 11.
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Shipments in June will decline as only orders placed before the curbs are being imported now, said Rajesh Mehta, chairman of Rajesh Exports Ltd. (RJEX) Overseas purchases tumbled to an average $36 million a day in the 14 business days through June 7, compared with an average $135 million a day through 13 days until May 20, Raghuram Rajan, chief economic adviser in the Finance Ministry, said in a statement on June 11.
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Yahoo News: Gold extends gains as stocks tumble, dollar falls
SINGAPORE (Reuters) - Gold extended gains into a second session on Thursday, as Asian stock markets fell sharply and the U.S dollar dropped to a 10-week low on persistent uncertainty over the Federal Reserve's massive stimulus programme.
Investors were still weighing the Bank of Japan's decision on Tuesday to leave its policies unchanged and Standard & Poor's Monday upgrade of the U.S. credit outlook, viewing the moves as a sign of economic recovery and a trigger for the Fed to end its $85-billion monthly bond purchases.
"The sentiment is still very divided over whether the Fed will taper or not," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
"Due to the lack of major market-moving events, people are just trading on technicals until some senior Fed officials say something before the FOMC meeting next week," she said, referring to the Federal Open Market Committee.
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Investors were still weighing the Bank of Japan's decision on Tuesday to leave its policies unchanged and Standard & Poor's Monday upgrade of the U.S. credit outlook, viewing the moves as a sign of economic recovery and a trigger for the Fed to end its $85-billion monthly bond purchases.
"The sentiment is still very divided over whether the Fed will taper or not," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
"Due to the lack of major market-moving events, people are just trading on technicals until some senior Fed officials say something before the FOMC meeting next week," she said, referring to the Federal Open Market Committee.
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CNBC: Gold Gives Up Early Gains; Fed Policy in Focus
Gold extended earlier losses on Thursday as U.S. economic data added to feverish speculation on the possible timing of scaled-back U.S. Federal Reserve monetary stimulus.
U.S. stock markets were mixed and U.S. bonds pared gains, while the dollar arrested falls versus the yen as U.S. retail sales rose more than expected and jobless claims dropped in the latest week.
The data was seen as adding to arguments for the Fed to end its $85-billion monthly bond purchases.
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U.S. stock markets were mixed and U.S. bonds pared gains, while the dollar arrested falls versus the yen as U.S. retail sales rose more than expected and jobless claims dropped in the latest week.
The data was seen as adding to arguments for the Fed to end its $85-billion monthly bond purchases.
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Market Watch: Gold futures rise, rebounding from losses
NEW YORK (MarketWatch) — Gold futures ended in positive territory Wednesday, bouncing back from early weakness as traders continued to ponder the prospects for the Federal Reserve to begin unwinding its monetary-policy stimulus.
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Wednesday, 12 June 2013
Financial Post: Investors shy away from gold, buy palladium
Palladium prices have reached their highest versus gold in more than two years this week as a rally in risk assets boosts the appeal of industrial commodities, with further rises likely as the economic recovery gains impetus.
The ratio of gold to palladium slid to 1.81 on Monday, its lowest since March 2011, as firm U.S. jobs data fuelled hopes the U.S. recovery is on track, and after Standard & Poor’s revised up its sovereign credit outlook for the United States.
Rising optimism over the U.S. economy has battered gold, which is widely viewed by investors as a hedge against financial market instability.
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The ratio of gold to palladium slid to 1.81 on Monday, its lowest since March 2011, as firm U.S. jobs data fuelled hopes the U.S. recovery is on track, and after Standard & Poor’s revised up its sovereign credit outlook for the United States.
Rising optimism over the U.S. economy has battered gold, which is widely viewed by investors as a hedge against financial market instability.
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Bloomberg: Gold Swings Near 2-Week Low as Investors Weigh Stimulus, Dollar
Gold swung between gains and losses near a two-week low in London as investors weighed speculation the U.S. Federal Reserve will curb stimulus against a weakening dollar.
Data released last week showed U.S. payrolls increased more than forecast in May, and Fed Chairman Ben S. Bernanke said last month that the central bank could curtail its $85 billion monthly bond purchases if the economy improves. The dollar was little changed against six major currencies after falling to the lowest level since Feb. 21 yesterday.
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Data released last week showed U.S. payrolls increased more than forecast in May, and Fed Chairman Ben S. Bernanke said last month that the central bank could curtail its $85 billion monthly bond purchases if the economy improves. The dollar was little changed against six major currencies after falling to the lowest level since Feb. 21 yesterday.
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CNBC: Gold Extends Losses as China Holiday Weakens support
Gold fell for a second straight day on Wednesday due to a holiday in China that deprived the metal of a strong support base and as investors worried about global central banks rolling back their easy-money policies.
The Bank of Japan's (BoJ) move on Tuesday to refrain from taking fresh steps to calm turbulence in the domestic bond market, and Standard & Poor's upgrade of the U.S. credit outlook on Monday indicated that the global economy was on track for a recovery, hurting bullion's appeal as a hedge against inflation.
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The Bank of Japan's (BoJ) move on Tuesday to refrain from taking fresh steps to calm turbulence in the domestic bond market, and Standard & Poor's upgrade of the U.S. credit outlook on Monday indicated that the global economy was on track for a recovery, hurting bullion's appeal as a hedge against inflation.
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Bloomberg: Gold Premium in Vietnam Seen Dropping on Central Bank Sales
The premium paid by gold buyers in Vietnam, the largest user in Southeast Asia after Thailand, will extend declines from a record after banks complete the return of bullion deposits to investors this month.
The gap between domestic and global prices for immediate delivery will probably drop to 4 million dong a tael ($158 an ounce) by the end of July, according to Nguyen Thanh Truc, vice chairman of the Vietnam Gold Traders Association. The premium reached an all-time high of more than 6 million dong in April, when bullion tumbled into a bear market, spurring physical demand across Asia, according to Truc.
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The gap between domestic and global prices for immediate delivery will probably drop to 4 million dong a tael ($158 an ounce) by the end of July, according to Nguyen Thanh Truc, vice chairman of the Vietnam Gold Traders Association. The premium reached an all-time high of more than 6 million dong in April, when bullion tumbled into a bear market, spurring physical demand across Asia, according to Truc.
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CNBC: Gold Settles Down on BoJ Stimulus Worries
Gold hit a near three-week low on Tuesday, ending lower as a lack of new economic stimulus from the Bank of Japan fueled worries that other central banks may also withdraw their support, denting bullion's inflation-hedge appeal.
The precious metal was down as much as 1.4 percent after the Bank of Japan said it held off on new measures, arguing that bond markets had stabilized. Gold closed around 0.6 percent lower.
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The precious metal was down as much as 1.4 percent after the Bank of Japan said it held off on new measures, arguing that bond markets had stabilized. Gold closed around 0.6 percent lower.
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Yahoo Finance: Gold: Respect the Range from $1,350 – $1,422 Says Kilburg
Dirty Little Secret: Picking winners is relatively easy compared to controlling losses. Once an investment has racked up gains for an investor it's extremely difficult to sell. When a position has been a loser since day 1 it can be even harder to get rid of it, if only because doing so is tantamount to confession of defeat.
Such has been the case with gold. Over the last decade an investment in the SPDR Gold Trust ETF (GLD) has risen 200% compared to about 50% for the Dow Jones Industrial Average (^DJI). What really set the hook for gold lovers were the five years of relative performance of the GLD over the five years ending at gold's peak in September of 2011. Over that terrifying period of global economic history gold rose 200% while the Dow was virtually flat.
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Such has been the case with gold. Over the last decade an investment in the SPDR Gold Trust ETF (GLD) has risen 200% compared to about 50% for the Dow Jones Industrial Average (^DJI). What really set the hook for gold lovers were the five years of relative performance of the GLD over the five years ending at gold's peak in September of 2011. Over that terrifying period of global economic history gold rose 200% while the Dow was virtually flat.
Read more...
Bloomberg: Gold Rises From Two-Week Low on Bets Asia Demand to Climb
Gold futures rose from the lowest in almost two weeks on bets that demand for the precious metal as a store of value will increase in Asia, the world’s top consumer.
China approved two domestic exchange-traded products backed by the metal, and Deutsche Bank AG started a gold-storage facility in Singapore with a capacity to hold as much as 200 metric tons, its largest vault outside London. The dollar pared gains of as much as 0.5 percent against a basket of major currencies to trade little changed.
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China approved two domestic exchange-traded products backed by the metal, and Deutsche Bank AG started a gold-storage facility in Singapore with a capacity to hold as much as 200 metric tons, its largest vault outside London. The dollar pared gains of as much as 0.5 percent against a basket of major currencies to trade little changed.
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Bloomberg: Paulson Gold Fund Fell 13 Percent in May to Steepen Loss
Billionaire John Paulson, the hedge-fund manager trying to recover from losses related to bullion this year, posted a 13 percent decline in his Gold Fund last month, according to a letter to investors.
The drop brings losses in the strategy to 54 percent since the start of the year, the firm said in the letter, a copy of which was obtained by Bloomberg News. The Gold Fund is the smallest strategy of the $19 billion money manager, with about $360 million, or 2 percent of assets, most of it Paulson’s own money.
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The drop brings losses in the strategy to 54 percent since the start of the year, the firm said in the letter, a copy of which was obtained by Bloomberg News. The Gold Fund is the smallest strategy of the $19 billion money manager, with about $360 million, or 2 percent of assets, most of it Paulson’s own money.
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Tuesday, 11 June 2013
BBC News: Ghana arrests gold miners from Niger, Nigeria and Togo
Ghana's police have arrested at least 55 West Africans suspected of illegal gold mining, an immigration spokesman has told the BBC.
The arrests suggest that the police's focus has shifted away from Chinese miners to African miners, reports the BBC's Akwasi Sarpong in Accra.
More than 200 Chinese workers would be repatriated after their arrest last week, the spokesman said.
Ghanaian law prevents foreigners from working in small-scale gold mines.
Ghana is Africa's biggest gold producer after South Africa.
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The arrests suggest that the police's focus has shifted away from Chinese miners to African miners, reports the BBC's Akwasi Sarpong in Accra.
More than 200 Chinese workers would be repatriated after their arrest last week, the spokesman said.
Ghanaian law prevents foreigners from working in small-scale gold mines.
Ghana is Africa's biggest gold producer after South Africa.
Read more...
The Globe and Mail: Kinross Gold cancels Ecuador project over tax impasse
Kinross Gold Corp. said on Monday it is halting development at its Fruta del Norte gold project in Ecuador after failing to reach an agreement with the government over a windfall tax on revenues.
Chief Executive Paul Rollinson said Ecuador had refused to budge on the 70-per-cent tax, and had indicated that it would not approve a sale or extend the company’s license beyond an Aug. 1 deadline.
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Chief Executive Paul Rollinson said Ecuador had refused to budge on the 70-per-cent tax, and had indicated that it would not approve a sale or extend the company’s license beyond an Aug. 1 deadline.
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Bloomberg: Gold Trades Near Two-Week Low on Stimulus Outlook, Assets Gain
Gold traded near the lowest level in two weeks as investors weighed an increase in holdings against speculation the Federal Reserve may curb stimulus after Standard & Poor’s boosted its outlook for the world’s largest economy.
Bullion for immediate delivery fell 0.2 percent to $1,383.97 an ounce at 9:31 a.m. in Singapore. Prices declined to $1,375.95 yesterday, the lowest level since May 28, after S&P lifted the U.S.’s AA+ credit rating outlook to stable from negative, citing receding fiscal risks. Gold for August delivery fell 0.2 percent to $1,382.90 on the Comex.
Gold dropped 2.2 percent on June 7 after data showed U.S. payrolls increased more than forecast in May, spurring speculation the Fed will curb its debt purchases that helped bullion cap a 12-year bull run in 2012. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, expanded yesterday for the first time since May 29, according to data on the company’s website.
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Bullion for immediate delivery fell 0.2 percent to $1,383.97 an ounce at 9:31 a.m. in Singapore. Prices declined to $1,375.95 yesterday, the lowest level since May 28, after S&P lifted the U.S.’s AA+ credit rating outlook to stable from negative, citing receding fiscal risks. Gold for August delivery fell 0.2 percent to $1,382.90 on the Comex.
Gold dropped 2.2 percent on June 7 after data showed U.S. payrolls increased more than forecast in May, spurring speculation the Fed will curb its debt purchases that helped bullion cap a 12-year bull run in 2012. Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, expanded yesterday for the first time since May 29, according to data on the company’s website.
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Bloomberg: Alex Jones Sells Gold on Sirius With Bombing Conspiracies
Heda Umarova first encountered conspiracy theorist Alex Jones while scouring the Internet to understand how her friend Dzhokhar Tsarnaev went from free-wheeling student to terrorism suspect.
Umarova, a 21-year-old Chechen native from Chelsea, Massachusetts, found logic and comfort in Jones, who uses his 17 hours of weekly radio broadcasts and a sprawling online empire to advance the idea that the U.S. government played a part in the April 15 explosions that killed three and injured more than 260 at the Boston Marathon.
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Umarova, a 21-year-old Chechen native from Chelsea, Massachusetts, found logic and comfort in Jones, who uses his 17 hours of weekly radio broadcasts and a sprawling online empire to advance the idea that the U.S. government played a part in the April 15 explosions that killed three and injured more than 260 at the Boston Marathon.
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CNBC: Gold’s Secret Enemy: The Yen
People have blamed gold's 18 percent decline this year on many different factors: a lack of fear in the market, a bubble that has burst, talk that the Federal Reserve will soon end qualitative easing. But some market participants say the single biggest factor could be the Japanese yen.
"It is difficult to deny the strong correlation between the yen's decline and the consequent collapse in gold," said Jim Iuorio, TJM Institutional Services managing director and contributor to CNBC.com's "Futures Now."
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"It is difficult to deny the strong correlation between the yen's decline and the consequent collapse in gold," said Jim Iuorio, TJM Institutional Services managing director and contributor to CNBC.com's "Futures Now."
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Monday, 10 June 2013
Wall Street Journal: Deutsche Bank Opens Singapore Gold Vault
SINGAPORE—Deutsche Bank AG DBK.XE +1.50% is opening a vault in Singapore that can hold $9 billion of gold, as it hopes to tap rising demand for the precious metal in Asia amid a push by the city-state to burnish its image as a bullion-trading hub.
Singapore last year scrapped a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10%-15% within a decade from around 2% in 2012 as it seeks to compete with more established bullion-trading centers.
"Gold has traditionally been stored in London, Zurich and New York, but there is a serious shift in dynamics going on as the global financial crisis continues to evolve," Mark Smallwood, Deutsche Asset & Wealth Management's head of wealth planning in the Asia-Pacific region, told The Wall Street JournalFriday.
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Singapore last year scrapped a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10%-15% within a decade from around 2% in 2012 as it seeks to compete with more established bullion-trading centers.
"Gold has traditionally been stored in London, Zurich and New York, but there is a serious shift in dynamics going on as the global financial crisis continues to evolve," Mark Smallwood, Deutsche Asset & Wealth Management's head of wealth planning in the Asia-Pacific region, told The Wall Street JournalFriday.
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Bloomberg: Gold Bull Bets Reach Seven-Week High Before Retreat: Commodities
Hedge funds increased wagers on a gold rally to the highest in seven weeks before a report showing the U.S. added more jobs than forecast spurred the biggest retreat in prices since April.
Speculators raised their net-long position by 19 percent to 57,113 futures and options by June 4, U.S. Commodity Futures Trading Commission data show. The holdings surged 60 percent in two weeks, the most since March, as short bets contracted. Net-bullish wagers across 18 U.S.-traded commodities slid 3.3 percent as investors became more bearish on sugar and coffee.
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Speculators raised their net-long position by 19 percent to 57,113 futures and options by June 4, U.S. Commodity Futures Trading Commission data show. The holdings surged 60 percent in two weeks, the most since March, as short bets contracted. Net-bullish wagers across 18 U.S.-traded commodities slid 3.3 percent as investors became more bearish on sugar and coffee.
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Reuters: PRECIOUS-Gold drops on uncertainty over U.S. stimulus outlook
Gold fell on Monday,
reversing earlier gains to extend a 2-percent decline in the
previous session, as stronger-than-expected U.S. jobs data
fuelled uncertainty over the outlook for the Federal Reserve's
stimulus programme.
The United States added more jobs in May than the month
before, denting hopes for prolonged stimulus and weighing on
gold's appeal as a hedge against inflation.
"The higher-than-expected reading now increases the
likelihood that the Fed may start to pull back some of its
stimulus earlier than expected," said INTL FCStone analyst
Edward Meir.
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reversing earlier gains to extend a 2-percent decline in the
previous session, as stronger-than-expected U.S. jobs data
fuelled uncertainty over the outlook for the Federal Reserve's
stimulus programme.
The United States added more jobs in May than the month
before, denting hopes for prolonged stimulus and weighing on
gold's appeal as a hedge against inflation.
"The higher-than-expected reading now increases the
likelihood that the Fed may start to pull back some of its
stimulus earlier than expected," said INTL FCStone analyst
Edward Meir.
Read more...
Bloomberg: Gold futures up on global cues
NEW DELHI: Gold futures prices today rose by 0.53 per cent to Rs 27,725 per 10 grams as speculators enlarged their positions, driven by a firming trend in the Asian region.
At the Multi Commodity Exchange, gold for delivery in August rose by Rs 145, or 0.53 per cent, to Rs 27,725 per 10 gm in business turnover of 1,901 lots.
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At the Multi Commodity Exchange, gold for delivery in August rose by Rs 145, or 0.53 per cent, to Rs 27,725 per 10 gm in business turnover of 1,901 lots.
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Sunday, 9 June 2013
The Telegraph: Tony Blair strikes gold in Mongolia
The former prime minister has negotiated a contract to advise the Mongolian government just as the country strikes it rich from a vast copper and gold mine in the Gobi desert.
The Sunday Telegraph can disclose that Mr Blair spent two days in March in Ulaanbataar, Mongolia’s capital, striking the deal with the country’s president and prime minister.
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The Sunday Telegraph can disclose that Mr Blair spent two days in March in Ulaanbataar, Mongolia’s capital, striking the deal with the country’s president and prime minister.
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Teh Economic Times: Consumer sentiment may continue to fuel gold demand: Experts
Government's move to hike import duty on gold may do little to curb its demand and make it an even more sought after commodity in the near-term, pushing up the price of the precious metal, say industry experts.
With spiralling gold imports putting huge pressure on the current account deficit, government last week hiked the import duty on the metal to 8 per cent, up by 2 per cent, in a bid to rein in demand.
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With spiralling gold imports putting huge pressure on the current account deficit, government last week hiked the import duty on the metal to 8 per cent, up by 2 per cent, in a bid to rein in demand.
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Huffington Post: Wesley Carrington, UK Man, Finds $156,000 In Roman Gold Coins On First Time Using Metal Detector
Some people spend a lifetime trying to amass a fortune through hard work and guile. For one British man, it took only 20 minutes in a field with a metal detector -- the first 20 minutes he had ever used such a machine.
According to the St. Albans & Harpenden Review, Wesley Carrington took his newly bought metal detector out into a field near St. Albans in Hertfordshire, England, last October. After finding a spoon and then a half penny, Carrington's machine beeped a third time, and he dug seven inches down to uncover a coin that was gold in color with a Roman figure on it.
As it turns out, the gold coloring was actually gold, the coin was an ancient Roman solidus, and there were 158 more buried with it, a hoard with an estimated worth of 100,000 pounds sterling, or $156,000, according to The Daily Mail.
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According to the St. Albans & Harpenden Review, Wesley Carrington took his newly bought metal detector out into a field near St. Albans in Hertfordshire, England, last October. After finding a spoon and then a half penny, Carrington's machine beeped a third time, and he dug seven inches down to uncover a coin that was gold in color with a Roman figure on it.
As it turns out, the gold coloring was actually gold, the coin was an ancient Roman solidus, and there were 158 more buried with it, a hoard with an estimated worth of 100,000 pounds sterling, or $156,000, according to The Daily Mail.
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Florida Today: Is gold losing its luster? Some think so
For about the past five years, as the economy seemed to teeter and investors fled to what they saw was the safety of gold, dozens of entrepreneurs waving “We Buy Gold” signs began popping up all over Brevard County.
Maybe it was more confidence that the economy is improving or the record-setting growth in the stock market, but gold started taking it on the chin several weeks ago, with some questioning if the love affair with the metal is starting to cool.
Mike Grumbley, who runs Chester’s Gold in Titusville with his wife and shop owner, Lorrie, has noticed a cooling in the competition in North Brevard.
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Maybe it was more confidence that the economy is improving or the record-setting growth in the stock market, but gold started taking it on the chin several weeks ago, with some questioning if the love affair with the metal is starting to cool.
Mike Grumbley, who runs Chester’s Gold in Titusville with his wife and shop owner, Lorrie, has noticed a cooling in the competition in North Brevard.
Read more...
Saturday, 8 June 2013
Economic Times: CAD likely to improve as govt, RBI sharpen attack on gold imports
MUMBAI: The government and the Reserve Bank of India (RBI) have stepped up their concurrent efforts to check the unbridled gold imports as they look to improve the current account deficit (CAD).
The government has raised gold import duties (from 6 per cent to 8 per cent) this week and is considering further remedial actions in a bid to dissuade investors from loading up too much on gold. Also, Finance Minister P Chidambaram this week urged banks not to promote sale of gold coins to their clients.
The RBI too announced a spate of measures aimed at curbing gold demand, including restrictions on gold imports to check speculation in the precious metal.
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The government has raised gold import duties (from 6 per cent to 8 per cent) this week and is considering further remedial actions in a bid to dissuade investors from loading up too much on gold. Also, Finance Minister P Chidambaram this week urged banks not to promote sale of gold coins to their clients.
The RBI too announced a spate of measures aimed at curbing gold demand, including restrictions on gold imports to check speculation in the precious metal.
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Town Hall: Understanding Gold
Often times, in the discussion of financial news and the stock market, there's an entire industry that goes without a word on the nightly news: precious metals. This is due mostly to a long history of gold selling incredibly cheap and the derogative term "gold bug" being slung at those who had bought into the precious metals market; after all, who wants to be compared to a bug? But the truth of the matter is that gold has moved from a niche survivalist's interest into the mainstream and with good reason.
Gold is what many consider to be a crisis investment; the truth is that it fits better in financial discussions as wealth insurance. Typically, when the economy is pressing on and moving soundly, gold tends to be dormant, making small moves and maintaining value - but when the economy is struggling and the unemployment rate climbs significantly higher than normal, gold's value skyrockets as a hedge against financial trouble. This is due to the fact that the gold market tends to run counter to the more typical stock and bond markets. This is also due to the fact that unlike many corporations or countries, gold can never truly lose value.
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Gold is what many consider to be a crisis investment; the truth is that it fits better in financial discussions as wealth insurance. Typically, when the economy is pressing on and moving soundly, gold tends to be dormant, making small moves and maintaining value - but when the economy is struggling and the unemployment rate climbs significantly higher than normal, gold's value skyrockets as a hedge against financial trouble. This is due to the fact that the gold market tends to run counter to the more typical stock and bond markets. This is also due to the fact that unlike many corporations or countries, gold can never truly lose value.
Read more...
Miami Herald: Falling gold prices indicate a rise in optimism
Gold prices have been falling this spring, from a record high of $1,887.70 in the summer of 2011, as the U.S. stock market has climbed to record highs. Now that investors worldwide feel more optimistic about stocks and bonds, the price of gold could fall even further this summer — unless a crisis in the Middle East or elsewhere shakes their confidence.
However, the falling price of gold could also be considered as a buying opportunity for some investors. If you are building a diversified portfolio with many different types of assets, you might want to include a small percentage of gold.
Like stocks, bonds, real estate or other assets, gold has both positive and negative aspects as an investment. In that regard, gold can play a protective role in your portfolio. Since gold prices historically have tended to rise during periods of high inflation, owning gold can help guard against the risk of a serious loss of purchasing power in the future.
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However, the falling price of gold could also be considered as a buying opportunity for some investors. If you are building a diversified portfolio with many different types of assets, you might want to include a small percentage of gold.
Like stocks, bonds, real estate or other assets, gold has both positive and negative aspects as an investment. In that regard, gold can play a protective role in your portfolio. Since gold prices historically have tended to rise during periods of high inflation, owning gold can help guard against the risk of a serious loss of purchasing power in the future.
Read more...
Forbes: METALS OUTLOOK: Gold May Stay Range Bound, To Watch Dollar
Economic data and U.S. dollar movements will continue to influence the gold market next week, but market watchers said they wouldn’t be surprised if the yellow metal remains within its established range.
August gold futures fell Friday, settling at $1,383 an ounce on the Comex division of the New York Mercantile Exchange, down 0.72% on the week. July silver slipped Friday, settling at $21.743 an ounce, down 2.25 % on the week.
In the Kitco News Gold Survey, out of 36 participants, 22 responded this week. Of those 22 participants, nine see prices up, while seven see prices down and six see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
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August gold futures fell Friday, settling at $1,383 an ounce on the Comex division of the New York Mercantile Exchange, down 0.72% on the week. July silver slipped Friday, settling at $21.743 an ounce, down 2.25 % on the week.
In the Kitco News Gold Survey, out of 36 participants, 22 responded this week. Of those 22 participants, nine see prices up, while seven see prices down and six see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Read more...
Friday, 7 June 2013
Forbes: Goldilocks Bashes Gold
In the nursery tale, Goldilocks is a vulnerable child, but in financial markets Goldilocks is a powerful force and on Friday she abruptly reversed the gold comeback.
The May U.S. jobs report that was released on Friday indicated a kind of perfect environment for stocks, reflecting an economy that was marching ahead at a measured pace that was less likely to provoke the Federal Reserve into making any sudden and drastic moves. It was disastrous for the yellow metal, which slumped by more than 2% on Friday, falling back down to $1,382 an ounce. Gold has now dropped by 15% since late March when the gold sell-off started in earnest.
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The May U.S. jobs report that was released on Friday indicated a kind of perfect environment for stocks, reflecting an economy that was marching ahead at a measured pace that was less likely to provoke the Federal Reserve into making any sudden and drastic moves. It was disastrous for the yellow metal, which slumped by more than 2% on Friday, falling back down to $1,382 an ounce. Gold has now dropped by 15% since late March when the gold sell-off started in earnest.
Read more...
Reuters: PRECIOUS-Gold falls 2 pct as U.S. jobs data dims stimulus hope
Gold fell around 2
percent on Friday, its biggest one-day drop in over three weeks,
as funds dumped bullion after resilient U.S. jobs data suggested
the Federal Reserve could begin to scale back its monetary
stimulus later this year.
The metal posted its first weekly drop in two weeks after
Friday's selloff more than erased gains earlier this week. A
sharp dollar drop and strong physical demand had lifted gold
above $1,400 an ounce for most of this week. For the week,
bullion eased 0.3 percent.
Read more...
percent on Friday, its biggest one-day drop in over three weeks,
as funds dumped bullion after resilient U.S. jobs data suggested
the Federal Reserve could begin to scale back its monetary
stimulus later this year.
The metal posted its first weekly drop in two weeks after
Friday's selloff more than erased gains earlier this week. A
sharp dollar drop and strong physical demand had lifted gold
above $1,400 an ounce for most of this week. For the week,
bullion eased 0.3 percent.
Read more...
Bloomberg: Gold, Silver Tumble Most in Seven Weeks on Stimulus Bets
Gold and silver futures tumbled the most in seven weeks after employment in the U.S. increased more than forecast in May, boosting concern that the Federal Reserve may scale back monetary stimulus.
Payrolls rose 175,000 after a revised 149,000 increase in April that was smaller than estimated, Labor Department data showed today. The median forecast in a Bloomberg survey called for a 163,000 gain. Gold has dropped 17 percent this year, entering a bear market in April as economic optimism increased speculation that the Fed may slow its $85 billion of monthly debt purchases.
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Payrolls rose 175,000 after a revised 149,000 increase in April that was smaller than estimated, Labor Department data showed today. The median forecast in a Bloomberg survey called for a 163,000 gain. Gold has dropped 17 percent this year, entering a bear market in April as economic optimism increased speculation that the Fed may slow its $85 billion of monthly debt purchases.
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Market Watch: Gold futures drop over 2% to log a weekly loss
Gold futures tumbled Friday by more than $30 an ounce, for their first weekly loss in three, after jobs growth data came in slightly better than expected, driving Wall Street stocks higher and pulling investors away from the metal.
Gold for August delivery /quotes/zigman/6585799 GCQ3 -2.22% fell $32.80, or 2.3%, to settle at $1,383 an ounce on the Comex division of the New York Mercantile Exchange. It was down $7.40 ahead of the jobs data, then bounced around before making a firm push lower.
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Gold for August delivery /quotes/zigman/6585799 GCQ3 -2.22% fell $32.80, or 2.3%, to settle at $1,383 an ounce on the Comex division of the New York Mercantile Exchange. It was down $7.40 ahead of the jobs data, then bounced around before making a firm push lower.
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Bloomberg: Gold Traders Most Bullish Since Bear Market Began: Commodities
Gold traders are the most bullish since before the bear market began two months ago after a retreat in equities from an almost five-year high and a weakening dollar spurred demand for bullion.
Nineteen analysts surveyed by Bloomberg expect prices to rise next week, with eight bearish and six neutral, the largest proportion of bulls since March 22. Global stocks that rose to the highest since June 2008 on May 22 reached a six-week low yesterday amid mounting speculation about whether the Federal Reserve will taper stimulus. The U.S. Dollar Index, a measure against six currencies, slipped to the lowest in three months.
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Nineteen analysts surveyed by Bloomberg expect prices to rise next week, with eight bearish and six neutral, the largest proportion of bulls since March 22. Global stocks that rose to the highest since June 2008 on May 22 reached a six-week low yesterday amid mounting speculation about whether the Federal Reserve will taper stimulus. The U.S. Dollar Index, a measure against six currencies, slipped to the lowest in three months.
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Forbes: Gold Survey: Survey Participants Torn Over Gold Market Direction For Next Week
Friday’s U.S. monthly jobs report did not provide any guidance for market direction, so market participants are back to debating whether or not gold can break out of its current range. Participants in the weekly Kitco News gold survey are equally torn over next week’s price direction.
Until Friday’s sell off, gold was looking to end the week with gains, but the late-session break erased those hopes.
In the Kitco News Gold Survey, out of 36 participants, 22 responded this week. Of those 22 participants, nine see prices up, while seven see prices down and six see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Read more...
Until Friday’s sell off, gold was looking to end the week with gains, but the late-session break erased those hopes.
In the Kitco News Gold Survey, out of 36 participants, 22 responded this week. Of those 22 participants, nine see prices up, while seven see prices down and six see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Read more...
The New York Times: Australian Gold Miner Takes Big Hit as Price Slides
Rising operating costs and slumping commodity prices continue to create problems for global mining companies.
The latest to come under pressure is Newcrest Mining, Australia’s biggest gold miner, which said Friday it would write down assets worth 6 billion Australian dollars, or $5.7 billion, and scale back planned spending on exploration and new projects.
Newcrest, which has gold mines in Australia, Papua New Guinea, Indonesia and Ivory Coast, said its moves were the result of ‘'the current market environment and outlook, including a recent sharp deterioration in the gold price, the largest in 30 years.'’ The company also blamed rising costs and the strong Australian dollar.
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The latest to come under pressure is Newcrest Mining, Australia’s biggest gold miner, which said Friday it would write down assets worth 6 billion Australian dollars, or $5.7 billion, and scale back planned spending on exploration and new projects.
Newcrest, which has gold mines in Australia, Papua New Guinea, Indonesia and Ivory Coast, said its moves were the result of ‘'the current market environment and outlook, including a recent sharp deterioration in the gold price, the largest in 30 years.'’ The company also blamed rising costs and the strong Australian dollar.
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Forbes: A.M. Kitco Metals Roundup: Gold Moderately Lower, Shows Mildly Bearish Initial Reaction to U.S. Jobs Data
Comex gold futures prices are modestly lower in early U.S. trading Friday. A slightly better-than-expected U.S. employment report did have a slightly bearish initial impact on gold and silver. Comex August gold last traded down $12.00 at $1,403.00 an ounce. Spot gold was last quoted down $9.40 at $1,404.75. July Comex silver last traded down $0.337 at $22.40 an ounce.
The U.S. Labor Department on Friday morning reported U.S. non-farm payrolls rose by a slightly higher than expected 175,000 in May. Forecasts called for the non-farm figure to have grown by around 170,000. This particular jobs report held extra significance in the market place, with some calling it the most important U.S. economic report in years. Reason: The May jobs data could have tipped the Federal Reserve’s hand on whether or not to continue, and for long, its quantitative easing of monetary policy. However, the non-farm payrolls number that was close to expectations provided the market place with no compelling evidence to push the Fed one way or the other. So now it’s on to next week’s economic data to be gleaned by market watchers for fresh clues on the direction of U.S. monetary policy.
Read more...
The U.S. Labor Department on Friday morning reported U.S. non-farm payrolls rose by a slightly higher than expected 175,000 in May. Forecasts called for the non-farm figure to have grown by around 170,000. This particular jobs report held extra significance in the market place, with some calling it the most important U.S. economic report in years. Reason: The May jobs data could have tipped the Federal Reserve’s hand on whether or not to continue, and for long, its quantitative easing of monetary policy. However, the non-farm payrolls number that was close to expectations provided the market place with no compelling evidence to push the Fed one way or the other. So now it’s on to next week’s economic data to be gleaned by market watchers for fresh clues on the direction of U.S. monetary policy.
Read more...
Market Watch: When should you melt down gold?
If you need to sell off gold quickly, you don't want to find yourself haggling over the value of dental fixtures. Nevertheless, deciding when it makes sense to melt down extra gold pieces is a very personal decision.
It can become a necessity if you've lost your job, have serious medical problems, or if some other crisis arises ... the point comes where we have to start selling off assets. If that's the case, be grateful that you have the gold to sell.
Gold is gold, whether it's in a coin with a recognized value, jewelry, or the gold bridge my dentist handed me when he replaced it. However, on a practical level, some gold is more easily recognized for what it is. In some forms, like a one-ounce Gold Eagle, gold's value is never questioned. In certain circumstances, that can sure make our lives a lot easier.
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It can become a necessity if you've lost your job, have serious medical problems, or if some other crisis arises ... the point comes where we have to start selling off assets. If that's the case, be grateful that you have the gold to sell.
Gold is gold, whether it's in a coin with a recognized value, jewelry, or the gold bridge my dentist handed me when he replaced it. However, on a practical level, some gold is more easily recognized for what it is. In some forms, like a one-ounce Gold Eagle, gold's value is never questioned. In certain circumstances, that can sure make our lives a lot easier.
Read more...
Wall Street Journal: India's Jewelers Seek Rollback of Gold Import Tax
NEW DELHI—India's jewelry industry is seeking an immediate rollback by the government of an import tax on refined gold to its previous level following a sharp rise in production costs for thousands of small jewelers, a senior industry executive said Friday.
"We are with the government on the need to reduce the current account deficit, but not at the cost of damaging the industry," Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation, told The Wall Street Journal.
Mr. Soni said industry representatives plan to meet Finance Minister P. Chidambaram next week, as the profit margins of thousands of small jewelers are under pressure.
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"We are with the government on the need to reduce the current account deficit, but not at the cost of damaging the industry," Haresh Soni, chairman of the All India Gems & Jewellery Trade Federation, told The Wall Street Journal.
Mr. Soni said industry representatives plan to meet Finance Minister P. Chidambaram next week, as the profit margins of thousands of small jewelers are under pressure.
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Wall Street Journal: Paulson: All That Glitters Isn't Gold
John Paulson has a message for investors: Stop paying so much attention to my gold bets.
Mr. Paulson, the billionaire hedge-fund manager who has been one of the most bullish investors in the precious metal and suffered deep losses as a result, is eager to focus attention on his better-performing investments, which also dwarf his firm's gold fund in size.
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Mr. Paulson, the billionaire hedge-fund manager who has been one of the most bullish investors in the precious metal and suffered deep losses as a result, is eager to focus attention on his better-performing investments, which also dwarf his firm's gold fund in size.
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Reuters: FM urged banks to advise clients not to invest in gold
The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit.
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Thursday, 6 June 2013
Reuters: PRECIOUS-Gold rises 1 pct on dollar tumble ahead of U.S. payrolls
Gold rose 1 percent on
Thursday as the dollar fell sharply against the yen and the euro
on fears of disappointing U.S. jobs data the next day.
After trading mostly flat, gold suddenly turned higher at
midday in New York as investors sold long positions on the
greenback - or bets that the U.S. currency will rise - ahead of
Friday's all-important U.S. nonfarm payrolls numbers.
Gold has been under pressure recently on a resurgent dollar
driven by expectations that upbeat data would prompt the U.S.
Federal Reserve to taper its $85-billion-per-month bond-buying
program.
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Thursday as the dollar fell sharply against the yen and the euro
on fears of disappointing U.S. jobs data the next day.
After trading mostly flat, gold suddenly turned higher at
midday in New York as investors sold long positions on the
greenback - or bets that the U.S. currency will rise - ahead of
Friday's all-important U.S. nonfarm payrolls numbers.
Gold has been under pressure recently on a resurgent dollar
driven by expectations that upbeat data would prompt the U.S.
Federal Reserve to taper its $85-billion-per-month bond-buying
program.
Read more...
Forbes: RBI And Government Target Gold To Lower Current Account Deficit
The Indian government continues to target gold as a way to reduce its current account deficit and has now increased the duty on gold imports to 8% from 6%.
The increase comes only a day after the Reserve Bank of India announced that it was expanding restrictions on gold imports on consignment basis to all nominated agencies including premium and star trading houses.
In its continued attempt to dissuade people from investing in gold, Thursday, at an event in Mumbai, Finance Minister P. Chidambaram said that the RBI has advised banks against selling gold coins to retail customers. The minister also said that banks should not advise their clients to invest in gold.
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The increase comes only a day after the Reserve Bank of India announced that it was expanding restrictions on gold imports on consignment basis to all nominated agencies including premium and star trading houses.
In its continued attempt to dissuade people from investing in gold, Thursday, at an event in Mumbai, Finance Minister P. Chidambaram said that the RBI has advised banks against selling gold coins to retail customers. The minister also said that banks should not advise their clients to invest in gold.
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Reuters: Gold slips ahead of ECB, U.S. data, India demand worries weigh
Gold edged lower on Thursday, ahead of key U.S. jobs data and a European Central Bank (ECB) policy meeting later, while a gold import duty hike in India raised worries about future demand.
The Indian government raised imports tax on the metal for the second time this year on Thursday.
Spot gold fell 0.3 percent to $1,399.16 by 0944 GMT. U.S. gold futures for August delivery were unchanged at$1,398.10 an ounce.
The metal had gained slightly on Wednesday as investors looked for safer assets after a private U.S. jobs reading fell short of expectations.
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The Indian government raised imports tax on the metal for the second time this year on Thursday.
Spot gold fell 0.3 percent to $1,399.16 by 0944 GMT. U.S. gold futures for August delivery were unchanged at$1,398.10 an ounce.
The metal had gained slightly on Wednesday as investors looked for safer assets after a private U.S. jobs reading fell short of expectations.
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Forbes: In The Crowdfunding Gold Rush, This Company Has A Rare Edge
Playing armchair venture capitalist has never been easier. For investors registered with MicroVentures, an eight-person crowdfunding outfit based in San Francisco, opportunities to invest in young tech startups arrive via e-mail. A link takes you to an eight-page summary of each company, laying out management bios, market size, competition and financials. You can also sign up for a webinar with the startup’s CEO. Or call up a MicroVentures broker who can speak for the company and relay questions to the founders. If you’re ready to commit, type in the amount you want to invest–usual minimum: $5,000–and click. The money sits in escrow until the deal closes.
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The Guardian: Ghana arrests 124 Chinese citizens for illegal gold mining
Ghanaian authorities have arrested 124 Chinese citizens for illegal gold mining in the resource-rich west African country, highlighting the social and environmental challenges posed by China's growing presence on the continent.
Local police arrested the suspected illegal miners in the country's capital, Accra, China's state newswire Xinhua reported on Thursday, citing Francis Palmdeti, the head of the Ghana immigration service. Many of them are likely to face deportation.
Ghana, the continent's second-largest gold producer, has forbidden foreigners from working in its small-scale mines since the 1980s. Locals have criticised Chinese miners for taking local jobs, polluting lakes and rivers, and wielding weapons such as AK-47 rifles to ward off robbers.
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Local police arrested the suspected illegal miners in the country's capital, Accra, China's state newswire Xinhua reported on Thursday, citing Francis Palmdeti, the head of the Ghana immigration service. Many of them are likely to face deportation.
Ghana, the continent's second-largest gold producer, has forbidden foreigners from working in its small-scale mines since the 1980s. Locals have criticised Chinese miners for taking local jobs, polluting lakes and rivers, and wielding weapons such as AK-47 rifles to ward off robbers.
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BBC News: India raises duty on gold imports as demand surges
India has increased the duty on gold imports for the second time in six months, in an attempt to rein in surging demand for the precious metal.
The finance ministry said it had raised the duty to 8% from 6%.
Gold is a preferred investment option among Indian consumers and the recent drop in its price has boosted demand.
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The finance ministry said it had raised the duty to 8% from 6%.
Gold is a preferred investment option among Indian consumers and the recent drop in its price has boosted demand.
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The Economic Times: RBI has advised against selling gold coins: FM Chidambaram
MUMBAI: A day after the government raised import duty on gold to 8 per cent, Finance Minister P Chidambaram today said the surging imports are unsustainable and advised the banks to tell customers not to invest in the precious metal.
"Banks have a role to play in dampening the enthusiasm for gold...I would urge all banks to please advise their branches that they should not encourage their customers to invest in or buy gold", he said while addressing the annual general meeting of the Indian Banks' Association (IBA).
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"Banks have a role to play in dampening the enthusiasm for gold...I would urge all banks to please advise their branches that they should not encourage their customers to invest in or buy gold", he said while addressing the annual general meeting of the Indian Banks' Association (IBA).
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Bloomberg: India Boosts Gold Import Tax to Curb Record Deficit, Demand
India, the world’s largest gold buyer, increased a tax on bullion imports to curb a record current-account deficit at a time when the World Gold Council predicts an all-time high quarterly demand for the metal.
The duty will rise to 8 percent from 6 percent, effective immediately, Revenue Secretary Sumit Bose said in a telephone interview yesterday in New Delhi. Before the move, India had tripled the tax since January last year. Gold imports may fall as much as 20 percent this year, the All India Gems & Jewellery Trade Federation said. The levy on platinum imports was also increased to 8 percent from 6 percent.
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The duty will rise to 8 percent from 6 percent, effective immediately, Revenue Secretary Sumit Bose said in a telephone interview yesterday in New Delhi. Before the move, India had tripled the tax since January last year. Gold imports may fall as much as 20 percent this year, the All India Gems & Jewellery Trade Federation said. The levy on platinum imports was also increased to 8 percent from 6 percent.
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Global Development: Gold rush could help transform Uganda's wild west
The sun is already beating down at 7.30am as Lotyang Sagal stands next to a deep dark hole at the foothills of the Moroto mountains, ready to dig for gold.
Sagal, wearing a green top hat with an orange band, is eager to get started. Like human moles, he and his companion, have been working these holes for the past three years. And they are not alone. The area around them is pockmarked with small mounds of earth.
Until a few years ago Sagal was a cattle herder, like most semi-nomadic Karamojong people. But now he has joined the gold rush that has the potential to transform Karamoja – a remote region in the north-east of Uganda that is not only the country's poorest, but also its most marginalised.
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Sagal, wearing a green top hat with an orange band, is eager to get started. Like human moles, he and his companion, have been working these holes for the past three years. And they are not alone. The area around them is pockmarked with small mounds of earth.
Until a few years ago Sagal was a cattle herder, like most semi-nomadic Karamojong people. But now he has joined the gold rush that has the potential to transform Karamoja – a remote region in the north-east of Uganda that is not only the country's poorest, but also its most marginalised.
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Bloomberg: Gold Declines as Investors Weigh Stimulus, Indian Import Curbs
Gold dropped as investors weighed whether the U.S. economy is strong enough for the U.S. Federal Reserve to pare stimulus and assessed India’s latest move to rein in imports. Silver, platinum and palladium fell.
Spot gold lost as much as 0.5 percent to $1,396.25 an ounce, and traded at $1,396.65 at 2:16 p.m. in Singapore. Prices rose 0.3 percent yesterday as a private report showed that U.S. companies hired fewer workers than projected in May, backing the case for the Fed to maintain asset purchases.
Gold fell 17 percent this year as the Dollar Index, little changed today, rallied 3.5 percent amid speculation that Fed policy makers will start to wind down bond purchases. India’s imports may fall as much as 20 percent this year, the All India Gems & Jewellery Trade Federation said, after the largest bullion user yesterday increased a duty on inbound shipments.
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Spot gold lost as much as 0.5 percent to $1,396.25 an ounce, and traded at $1,396.65 at 2:16 p.m. in Singapore. Prices rose 0.3 percent yesterday as a private report showed that U.S. companies hired fewer workers than projected in May, backing the case for the Fed to maintain asset purchases.
Gold fell 17 percent this year as the Dollar Index, little changed today, rallied 3.5 percent amid speculation that Fed policy makers will start to wind down bond purchases. India’s imports may fall as much as 20 percent this year, the All India Gems & Jewellery Trade Federation said, after the largest bullion user yesterday increased a duty on inbound shipments.
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The Economic Times: Restriction in gold imports may lead to increased smuggling
KOLKATA: The government's latest measures to restrict gold imports may lead to an increase in smuggling. Jewellers and bullion traders say that nearly 200 -250 tonne of gold may be smuggled into India this year following the Reserve Bank of India's moves to check the metal's shipments.
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The Economic Times: Jewellery stocks fall after hike in import duty of gold
NEW DELHI: Shares in jewellery companies such as Tara Jewels, Goenka Diamonds, TBZ slipped 1-5 per cent in morning trade after the government increased import duty on gold by a third to 8 percent to control current account deficit.
The rise in import duty is likely to weigh on earnings outlook of these companies as well as margins, according to analysts. India is the world's biggest buyer of bullion and the government is seeking to halt a surge in demand.
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The rise in import duty is likely to weigh on earnings outlook of these companies as well as margins, according to analysts. India is the world's biggest buyer of bullion and the government is seeking to halt a surge in demand.
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The Economic Times: Gold import duty hiked to 8% to rein in demand
NEW DELHI: The government raised the import duty on gold and platinum by another two percentage points on Wednesday to discourage buying that threatens to worsen India's already high current account deficit.
The yellow metal, the demand for which is mostly met for imports, will now attract 8% import duty against 6% levied earlier, marking third such increase in about a year but the measure does not seem to have helped.
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The yellow metal, the demand for which is mostly met for imports, will now attract 8% import duty against 6% levied earlier, marking third such increase in about a year but the measure does not seem to have helped.
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Wednesday, 5 June 2013
Forbes: RBI's Restrictions On Gold Imports Could Have Negative Consequences: WGC
The Reserve Bank of India’s restrictions on gold imports could “result in negative unintended consequences,” according to the World Gold Council.
The central bank’s move to curb gold demand is starting to attract attention in the global gold industry. On Tuesday, the Indian central bank extended its restrictions on gold imports on consignment basis to all nominated agencies including premium and star trading houses. The restrictions are the RBI’s solution to lower the country’s current account deficit.
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The central bank’s move to curb gold demand is starting to attract attention in the global gold industry. On Tuesday, the Indian central bank extended its restrictions on gold imports on consignment basis to all nominated agencies including premium and star trading houses. The restrictions are the RBI’s solution to lower the country’s current account deficit.
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Financial Post: Why this year’s gold selloff might actually be a bullish sign
Gold prices have been plunging this year and redemptions have been soaring, but not all analysts are convinced this is the start of a rush out of gold.
Prices for the precious metal are down 17% year-to-date. The big driver behind the move has been speculation that the U.S. Federal Reserve may soon move to ease its bond buying program, depriving gold of the liquidity and inflation fears that have helped propel its stellar rise in the past few years.
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Prices for the precious metal are down 17% year-to-date. The big driver behind the move has been speculation that the U.S. Federal Reserve may soon move to ease its bond buying program, depriving gold of the liquidity and inflation fears that have helped propel its stellar rise in the past few years.
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Market Watch: Gold cuts gain at close as investors show caution
Gold futures climbed Wednesday, with disappointing growth in U.S. private-sector employment and broad losses in equities providing support, but prices cut the bulk of their gains by the session’s close.
Investors showed caution ahead of the European Central Bank’s meeting on Thursday, as well as official U.S. government employment figures due Friday that were likely to offer a hint as to what the Federal Reserve will decide to do with its bond-buying program.
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Investors showed caution ahead of the European Central Bank’s meeting on Thursday, as well as official U.S. government employment figures due Friday that were likely to offer a hint as to what the Federal Reserve will decide to do with its bond-buying program.
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Forbes: FOCUS: Gold To Remain Range Bound As ECB Likely Holds Rates Steady
With the European Central Bank likely to hold interest rates steady at 0.50%, analysts are not expecting to see a major move in gold prices following the decision.
The ECB will officially announce monetary policy at 8:30 a.m. EDT Thursday, which will be followed by a press conference by ECB President Mario Draghi.
Bart Melek, head of commodity strategy with TD Securities, said TDS is not expecting any official move in ECB interest rates; however, he will pay close attention to Draghi’s conference as his comments could drive trading activity.
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The ECB will officially announce monetary policy at 8:30 a.m. EDT Thursday, which will be followed by a press conference by ECB President Mario Draghi.
Bart Melek, head of commodity strategy with TD Securities, said TDS is not expecting any official move in ECB interest rates; however, he will pay close attention to Draghi’s conference as his comments could drive trading activity.
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Life Science: Fabled 19th-Century Shipwreck May Hold Gold Treasure
The wreck of a fabled 19th-century gunrunner that may also contain a treasure in gold has been identified off the coast of South Carolina.
The SS Ozama, a 216-foot-long (66 meters) iron-hulled steamship, had a colorful history, according to Discovery News. Launched in Scotland in 1881 as the Craigallion, the ship was active in the Caribbean Seas and helped build the Panama Canal.
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The SS Ozama, a 216-foot-long (66 meters) iron-hulled steamship, had a colorful history, according to Discovery News. Launched in Scotland in 1881 as the Craigallion, the ship was active in the Caribbean Seas and helped build the Panama Canal.
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The Economic Times: Poke Me: Government is responsible for India's craze for gold
Indians, it is said, have a strange love for gold that seems to border on an as yet unnamed manic obsession. The world uses gold in jewellery. But we believe we have surpassed everyone in the innovative ways we use gold. We wear it, we drape it, we eat it and eat from it, we drink it and drink from it, we pray to it, we put it in our medicines, in our cold creams, in the various concoctions used for facials and massages. Strangely though, we have not yet figured out a way of having sex with it. Or have we?
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Forbes: A.M. Kitco Metals Roundup: Gold Near Steady Ahead Of Economic Data
Comex gold futures prices are trading not far from unchanged early U.S. dealings Wednesday. There are several U.S. economic reports out Wednesday, but traders and investors are more eagerly awaiting major monthly data when the European Central Bank holds its monthly meeting on Thursday, followed by Friday’s U.S. employment report. Gold trading remains choppy and sideways on the daily bar chart. Comex August gold last traded up $0.60 at $1,397.80 an ounce. Spot gold was last quoted down $2.90 at $1,397.50. July Comex silver last traded up $0.056 at $22.465 an ounce.
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Bloomberg: China’s April Gold Imports From Hong Kong Fall on Quota Backlog
China’s gold imports from Hong Kong slumped in April from a record as banks failed to get quotas fast enough to meet surging demand from mainland buyers keen to purchase bullion as prices fell into a bear market.
Mainland buyers purchased 126,135 kilograms, including scrap, compared with 223,519 kilograms in March, according to Hong Kong government data today. Net imports, after deducting flows from China into Hong Kong, were 75,891 kilograms, from 130,038 kilograms a month earlier, according to Bloomberg calculations.
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Mainland buyers purchased 126,135 kilograms, including scrap, compared with 223,519 kilograms in March, according to Hong Kong government data today. Net imports, after deducting flows from China into Hong Kong, were 75,891 kilograms, from 130,038 kilograms a month earlier, according to Bloomberg calculations.
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New York Post: ‘Fool’s gold’ coins
They weren’t wooden nickels — but a Queens man still took the world’s largest coin dealer for $31,000 when he sold three supposedly rare gold US coins that were actually Chinese counterfeits, according to a new lawsuit.
Boris Koyen Aminov, 37, of Rego Park, sold Heritage Auctioneers & Galleries on Park Avenue the three gold coins in April.
Aminov identified himself as a coin collector and presented supposedly rare coins to Heritage for sale, the auction house says in court papers filed yesterday in Manhattan Supreme Court.
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Boris Koyen Aminov, 37, of Rego Park, sold Heritage Auctioneers & Galleries on Park Avenue the three gold coins in April.
Aminov identified himself as a coin collector and presented supposedly rare coins to Heritage for sale, the auction house says in court papers filed yesterday in Manhattan Supreme Court.
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Business Standard: Import curbs will change landscape of gold economy
Imports and demand will come down, easing current account deficit; round tripping will stop, but smuggling may rise.
The Reserve Bank of India has killed several birds with two stones. It has created walls around gold import simply by asking banks and nominated agencies not to import gold on consignment basis for domestic use. Second, it has said no import of gold on credit.
As a result of these measures, gold demand and import will come down, which in turn will help keep current account deficit on account of gold imports under check, while round tripping of gold will become matter of past. However, smuggling of the precious metal is likely to go up.
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The Reserve Bank of India has killed several birds with two stones. It has created walls around gold import simply by asking banks and nominated agencies not to import gold on consignment basis for domestic use. Second, it has said no import of gold on credit.
As a result of these measures, gold demand and import will come down, which in turn will help keep current account deficit on account of gold imports under check, while round tripping of gold will become matter of past. However, smuggling of the precious metal is likely to go up.
Read more...
Reuters: PRECIOUS-Gold gains as U.S. bond-buying hopes outweigh India import curbs
Gold recovered on Wednesday
from a near 1 percent fall in the previous session as investors'
hopes of the U.S. bond-buying program staying intact for some
more time overshadowed their fears of slowing bullion demand in
India, the world's top consumer.
Investors are awaiting U.S. nonfarm payroll data on Friday,
a key factor in determining whether the U.S. Federal Reserve
would start winding down its $85 billion monthly bond purchases.
Gold, seen as a hedge against inflation, would benefit if the
purchases continue.
Read more...
from a near 1 percent fall in the previous session as investors'
hopes of the U.S. bond-buying program staying intact for some
more time overshadowed their fears of slowing bullion demand in
India, the world's top consumer.
Investors are awaiting U.S. nonfarm payroll data on Friday,
a key factor in determining whether the U.S. Federal Reserve
would start winding down its $85 billion monthly bond purchases.
Gold, seen as a hedge against inflation, would benefit if the
purchases continue.
Read more...
Bloomberg: Gold Climbs Above $1,400 as Decline in Stocks Increases Demand
Gold rebounded to trade above $1,400 an ounce as equities retreated and the dollar’s rally halted, boosting demand for the metal as a store of value. Silver, platinum and palladium increased.
Spot gold rose as much as 0.7 percent to $1,408.50 an ounce, and traded at $1,405.06 at 2:12 p.m. in Singapore. Prices decreased 0.9 percent yesterday. Cash silver advanced 0.4 percent to $22.6295 an ounce.
Gold dropped 16 percent this year as investors sold the metal from exchange-traded products at a record pace and the MSCI All-Country World Index rallied 7.8 percent. Asian stocks fell for the fourth time in five days, while the Dollar Index lost 0.2 percent. Assets in the SPDR Gold Trust declined to 1,010.45 metric tons, shrinking for the first time in a week.
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Spot gold rose as much as 0.7 percent to $1,408.50 an ounce, and traded at $1,405.06 at 2:12 p.m. in Singapore. Prices decreased 0.9 percent yesterday. Cash silver advanced 0.4 percent to $22.6295 an ounce.
Gold dropped 16 percent this year as investors sold the metal from exchange-traded products at a record pace and the MSCI All-Country World Index rallied 7.8 percent. Asian stocks fell for the fourth time in five days, while the Dollar Index lost 0.2 percent. Assets in the SPDR Gold Trust declined to 1,010.45 metric tons, shrinking for the first time in a week.
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CNBC: Gold Gains as US Bond-Buying Hopes Outweigh India Import Curbs
Gold prices recovered on Wednesday from a near 1 percent fall in the previous session as investors' hopes of the U.S. bond-buying program staying intact for some more time overshadowed their fears of slowing bullion demand in India, the world's top consumer.
Investors are awaiting U.S. nonfarm payroll data on Friday, a key factor in determining whether the U.S. Federal Reserve would start winding down its $85 billion monthly bond purchases. Gold, seen as a hedge against inflation, would benefit if the purchases continue.
Read more...
Investors are awaiting U.S. nonfarm payroll data on Friday, a key factor in determining whether the U.S. Federal Reserve would start winding down its $85 billion monthly bond purchases. Gold, seen as a hedge against inflation, would benefit if the purchases continue.
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Townhall: The Gold Bull vs The Paper Tiger
That's all, folks. One look at the headlines will tell you the gold bull market is officially over: the stock market is booming, a modest recovery of the US economy is underway, and the dollar is dominating the forex. Time to sell your bullion and get back into US stocks!
Does anyone really believe this story at this point? Haven't we been through this time and again since 2008? Remember "green shoots"?
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Does anyone really believe this story at this point? Haven't we been through this time and again since 2008? Remember "green shoots"?
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Tuesday, 4 June 2013
Forbes: RBI Import Restrictions Will Not Impact Gold Prices
New restrictions from the Reserve Bank of India on gold imports will not have a major long-term impact on gold prices, according to analysts.
Jeffrey Nichols, senior economic adviser to Rosland Capital and managing director of American Precious Metals Advisors said that a good analogy to the central bank’s restrictions is Prohibition on alcohol in the U.S. in the 1930s. Prohibition didn’t work and he said he doesn’t think the Indian central bank’s restrictions will work in curbing demand for the yellow metal.
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Jeffrey Nichols, senior economic adviser to Rosland Capital and managing director of American Precious Metals Advisors said that a good analogy to the central bank’s restrictions is Prohibition on alcohol in the U.S. in the 1930s. Prohibition didn’t work and he said he doesn’t think the Indian central bank’s restrictions will work in curbing demand for the yellow metal.
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Fox Business: Is the Worst Finally Over for Gold?
The recent price movement of gold has been extremely bearish. Despite logging twelve consecutive annual gains, the precious metal is one of the worst performing assets this year. However, with sentiment at rock-bottom levels, the worst may finally be over.
Over the course of only two days in April, gold plunged $200 to reach its lowest level since February 2011. In the process, gold posted its worst one-day percentage drop since 1980, and the largest fall in dollar terms on record. On a technical basis, gold reached its most oversold reading since at least 1975. The dismal performance was followed with a 5.4 percent loss in May. In fact, gold has now declined for seven of the past eight months.
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Over the course of only two days in April, gold plunged $200 to reach its lowest level since February 2011. In the process, gold posted its worst one-day percentage drop since 1980, and the largest fall in dollar terms on record. On a technical basis, gold reached its most oversold reading since at least 1975. The dismal performance was followed with a 5.4 percent loss in May. In fact, gold has now declined for seven of the past eight months.
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Bloomberg: Canada’s Stocks Falls to 2-Week Low as Gold Producers Slide
Canadian stocks fell for a third day, to the lowest close in more than two weeks, as consumer staples and gold producers declined and investors considered mixed trade data and prospects for Federal Reserve stimulus.
Alimentation Couche-Tard Inc. lost 1.5 percent after Seven & I Holdings Co., operator of 7-Eleven convenience stores, said it may more than double its North American outlets. Canadian Pacific Railway Ltd. fell 2.8 percent as Pershing Square Capital Management LP said it will sell part of its stake. Barrick (ABX) Gold Corp. retreated 1.7 percent after saying production at its Pascua-Lama project will be delayed.
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Alimentation Couche-Tard Inc. lost 1.5 percent after Seven & I Holdings Co., operator of 7-Eleven convenience stores, said it may more than double its North American outlets. Canadian Pacific Railway Ltd. fell 2.8 percent as Pershing Square Capital Management LP said it will sell part of its stake. Barrick (ABX) Gold Corp. retreated 1.7 percent after saying production at its Pascua-Lama project will be delayed.
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Forbes: Roubini The Biggest Bear On Gold Prices, But Not Alone
Although Roubini made headlines on Monday with his forecast that gold will drop to $1,000 an ounce by 2015, he is not the only bear in the marketplace. A few firms have updated their forecasts and expect prices will continue to drop.
By far Roubini, nicknamed Dr. Doom, is the most bearish in his predictions; on Saturday he published a report highlighting six reasons why prices would fall to $1,000 by 2015.
Mathieu D’Anjou, senior economist at Desjardins Economic Studies said that although he is expecting prices to decline, he doesn’t think that prices will reach Roubini’s target. He expects prices to hit $1,200 in the long-term.
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By far Roubini, nicknamed Dr. Doom, is the most bearish in his predictions; on Saturday he published a report highlighting six reasons why prices would fall to $1,000 by 2015.
Mathieu D’Anjou, senior economist at Desjardins Economic Studies said that although he is expecting prices to decline, he doesn’t think that prices will reach Roubini’s target. He expects prices to hit $1,200 in the long-term.
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The Economic Times: RBI extends gold import restrictions to agencies
MUMBAI: The Reserve Bank of India extended restriction on gold import on consignment basis to all nominated agencies involved in gold imports including star trading houses, besides further tightening gold import procedures.
Earlier on May 13, the RBI had announced its decision to restrict gold imports on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. "It has now been decided to extend the provisions of this circular to all nominated agencies/ premier/star trading houses who have been permitted by government of India to import gold." The RBI said in a circular issued to bank on Tuesday.
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Earlier on May 13, the RBI had announced its decision to restrict gold imports on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. "It has now been decided to extend the provisions of this circular to all nominated agencies/ premier/star trading houses who have been permitted by government of India to import gold." The RBI said in a circular issued to bank on Tuesday.
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CNBC: The Chart Will Reveal Gold’s Next Move: Pro
Gold is searching for direction.
Gold followed up on Friday's near-$40 swing lower by stabilizing above major support, and August gold futures retested a high of $1,416.5.
A surprise contraction in the ISM Manufacturing Index led to a lower dollar and thus stronger gold, as traders felt more comfortable that the Federal Reserve will maintain its easing policy.
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Gold followed up on Friday's near-$40 swing lower by stabilizing above major support, and August gold futures retested a high of $1,416.5.
A surprise contraction in the ISM Manufacturing Index led to a lower dollar and thus stronger gold, as traders felt more comfortable that the Federal Reserve will maintain its easing policy.
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The Economic Times: RBI extends gold import restrictions to agencies
MUMBAI: The Reserve Bank of India extended restriction on gold import on consignment basis to all nominated agencies involved in gold imports including star trading houses, besides further tightening gold import procedures.
Earlier on May 13, the RBI had announced its decision to restrict gold imports on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. "It has now been decided to extend the provisions of this circular to all nominated agencies/ premier/star trading houses who have been permitted by government of India to import gold." The RBI said in a circular issued to bank on Tuesday.
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Earlier on May 13, the RBI had announced its decision to restrict gold imports on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. "It has now been decided to extend the provisions of this circular to all nominated agencies/ premier/star trading houses who have been permitted by government of India to import gold." The RBI said in a circular issued to bank on Tuesday.
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Forbes: A.M. Kitco Metals Roundup: Gold Lower Amid Firmer U.S. Dollar; Trading Remains Choppy
Comex gold futures prices are lower in early U.S. trading Tuesday. The market is seeing a technical pullback from the solid gains scored Monday. Trading remains choppy and sideways on the daily bar chart. The firmer U.S. dollar index Tuesday morning is a slight negative for the precious metals markets. Comex August gold last traded down $14.30 at $1,397.60 an ounce. Spot gold was last quoted down $13.30 at $1,398.50. July Comex silver last traded down $0.361 at $22.36 an ounce.
In overnight news, the Japanese stock market rebounded Tuesday following recent strong selling pressure. The Chinese stock market remained weak following the downbeat manufacturing data released during the weekend.
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In overnight news, the Japanese stock market rebounded Tuesday following recent strong selling pressure. The Chinese stock market remained weak following the downbeat manufacturing data released during the weekend.
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