Author Archive: GoldMoney

rss feed

Author's Website

Silver price at $158 in 12-18 months?

The Facebook IPO and the $80 billion Glencore/Xstrata merger are the talk of the markets this morning, with both lending encouragement to equities. North American stock markets had another up day yesterday, with Asian exchanges recording further gains this morning. European markets are however more mixed, with continuing Greek debt talks casting a shadow over the generally bullish mood. April Comex gold futures – the most actively traded month – settled just 50 cents shy of $1,750 per troy ounce. $1,750 is becoming an increasingly significant short-term resistance level for gold. Encouraging news about German and Chinese manufacturing output led to more selling of the US dollar as investors headed back […]

Continue Reading

‘January Barometer’ gives green light to stocks

‘January Barometer’ gives green light to stocks

Though precious metal struggled yesterday to overcome important resistance levels on the price charts, overall January was a good month for gold, silver and the companies that dig these metals out of the ground. The HUI Index of leading gold and silver mining companies gained 3.6% over the course of the month – an encouraging, albeit modest, change of fortune when compared with the poor year that these stocks had over the course of 2011. However, the share prices of gold and silver producers continue to lag behind gains in the actual metals. As ZeroHedge reports, gold and silver were clear winners over the course of January in terms of performance when […]

Continue Reading

Rumours about Iranian oil-for-gold programme persist

Despite official denials by the Indian government, rumours are spreading that India and China are planning to use gold to pay for future purchases of Iranian crude oil. According to unconfirmed speculation, the Indian government is planning a swap agreement with Iran which will assure future deliveries of Iranian crude oil to be paid in gold and Indian rupees. At the end of 2011 the US imposed an embargo on Iran, which was endorsed by the European Union last week. India and China are two major Iranian crude oil importers. Both states purchase roughly 30% of yearly Iranian production, amounting to a total of US$30 billion. Should these persistent rumours be […]

Continue Reading

Currency Wars hotting up

Gold and silver prices paused for breath yesterday following their price breakouts last week. Gold for April delivery at the New York Comex settled down 0.1% at $1,734.40 per troy ounce, while silver …

Continue Reading

Greek crisis close to climax, gold & silver price fall slightly

Markets have been hit by another bout of selling this morning as Europe prepares for what could be a crunch week in terms of the continent’s debt crisis. As reported at The Telegraph, Greece’s prime minister Lucas Papademos warned last night that his country faced “the spectre of bankruptcy and all the dire consequences that entails”, while the weekend also saw calls from German economy minister Philipp Rösler for stronger “monitoring” of the Greek government’s finances. Unsurprisingly, Greece’s Finance Minister has rejected this, describing it as undermining his nation’s “national identity and dignity”. European Union heads of government are due to meet in Brussels later today for more discussions on a new […]

Continue Reading

Fed’s zero interest rate policy could affect GDP and gold’s price

Both the US Federal Reserve and the European Central Bank are now offering limitless quantities of new money – the ECB to support the banks, and the Fed for reasons (despite explanations) that are not entirely clear. The Fed in its press release announced that it expected interest rates to “warrant exceptionally low levels for the Federal Funds Rate at least through late 2014.” The fact that the central banks governing the two most important currencies in the world are issuing money to all-comers at very little interest cost for up three years has not been lost on gold and silver, whose prices shot up in response to the Fed’s […]

Continue Reading

Central banks’ determination to inflate

Gold and silver moved further up the price chart yesterday, with the most-actively traded Comex gold contract (February) gaining $26.60 (1.6%) to settle at $1,726.70 per troy ounce. Silver for March delivery gained 62 cents (1.9%), settling at $33.74 per troy ounce. The HUI Index of gold and silver mining stocks put in a good showing following the FOMC news on Wednesday and continued higher early in the session yesterday. However, later on yesterday the shares faltered, which as some analysts have pointed out could be a sign that hedge funds lack confidence on the sustainability of this latest risk rally. Certainly there have been times over the last few months […]

Continue Reading

Bernanke lights a fire under gold and silver prices

“Party on!” was Federal Reserve Chairman Ben Bernanke’s message to Wall Street yesterday, as he announced that the Fed will be keeping interest rates at “exceptionally low” levels until late 2014, owing to concerns about stubbornly-high unemployment and the sustainability of the current statistical recovery. Bernanke also confirmed that for the first time in the Fed’s 99-year history, the institution will explicitly target a 2% inflation rate, as measured on the Personal Consumption Index (PCI). Other central banks have long had explicit inflation targets, but not the Fed. Unsurprisingly given their enthusiasm for easy money, the market response to this move was euphoric. The Dow gained 0.64% to settle at […]

Continue Reading

Gold is money?! Indians to pay for Iranian oil with gold

Markets enjoyed another “risk on” day yesterday, with stock markets and commodities all recording gains on the back of a weakening US dollar. The Dollar Index fell below 80, with the gold price also benefiting from increasing brinkmanship between Iran and western nations, with the European Union announcing the implementation of an embargo on Iranian crude oil. Comex gold futures for February delivery gained 0.9% to settle at $1,678.30 per troy ounce. Silver for delivery in March gained 1.9% to settle at $32.27 per troy ounce – another solid day for the white metal, though it keeps banging up against selling resistance around $32.50. Greece is once again the topic […]

Continue Reading

Fear Index shows that gold is undervalued

| January 25, 2012 | Articles: Insights
Fear Index shows that gold is undervalued

The year 2011 ended on a very weak note for the price of gold, which tested support near the lowest levels since August as the precious metal slid below $1,550. This movement even drove the GoldMoney Fear Index below 3% as US M3 continued to rise, surpassing $14.4 Trillion. The downward path of gold since the September highs immediately prompted cries that the “bubble was bursting” from every corner of the financial press. They could not be more wrong. Neither a rising price, nor anecdotal reports of increased buying are in any way proper evidence of a bubble. If we ignore the chatter and actually look at empirical data, it […]

Continue Reading

Silver bulls’ confidence growing

In response to the general positive trend at the global markets, the Indian futures markets has recorded significant gains in the silver price. At the Mumbai Multi Commodity Exchange, silver futures for March delivery climbed 1.28% (close to 700 rupees) to 56,260 rupees per kilo. Market observers expect that the Indian silver price will continue to rise as central banks move towards further stimulus measures. Besides silver, gold and most base and non-ferrous metals also recorded gains. During Friday’s session at the New York Comex the gold price climbed $10 to $1,665 per troy ounce. Indian gold and silver prices also recorded gains. Last week market observers were still cautious […]

Continue Reading

North Sudan to introduce new gold and commodity trading platforms

Ever since Christian South Sudan declared its independence in July 2011, the Islamic government of North Sudan has urgently been looking for new sources of income. With South Sudan’s independence, Khartoum – seat of the northern government – has lost almost two thirds of its crude oil revenues. As a result, the North has been encouraging gold exploration and mining activities, in the hope of using this to compensate for the lost oil revenue. Therefore, the Khartoum stock exchange – currently a rather small market – is planning to significantly expand its activities by offering trading in gold and other commodities. Following the end of civil war in Sudan in […]

Continue Reading

Gold price benefiting from QE speculation

Signs of a decelerating global economy will likely prompt central banks to take drastic new measures in terms of fiscal expansion. This is especially true for China, where GDP growth continues to slow. Market participants also suspect that the US Federal Reserve may be edging closer to announcing more quantitative easing, in an effort to help the economic recovery in America. This speculation has led to gains in the gold price, which climbed as high as $1,667 per troy ounce in trading yesterday – although it lost some of these gains later in the day. Nevertheless, this marked a new five-week price high which could open the way for more […]

Continue Reading

Central banks huge gold buyers in 2011

Gold had a solid day yesterday, closing the Comex pit session above important resistance at $1,650 per ounce. Silver for March delivery also finished above $30 per ounce. At the currency markets the US dollar weakened slightly, with the Dollar Index losing 0.36% to close at 81.18. This helped solidify recent gains in crude oil prices, with WTI crude now back above $101 a barrel. With negotiations still on-going between the Greek government and its private creditors and the situation in Hungary looking increasingly fraught, the World Bank has warned that developing nations should prepare for a slump in economic activity comparable to the 2008/09 downturn. Though the Bank’s chief […]

Continue Reading