RSSCategory: Articles: Gold Silver Prices

Gold Prices Fall Ahead of Fed Decision

Gold Prices Fall Ahead of Fed Decision

Gold Prices fell back towards $1600 per ounce ahead of Wednesday’s US session – 1.5% down on the week so far – while stocks and commodities were broadly flat and US Treasury bonds fell, ahead of the Federal Reserve monetary policy decision due later today. Silver Prices dropped to $28.08 an ounce – 2.2% down on last week’s close. As well as announcing its latest decisions on interest rate and asset purchases, the Fed will also publish policymakers’ economic projections, while Fed chairman Ben Bernanke will give a press conference. “We think Bernanke will talk up the Fed’s readiness to act if required and there is a chance of a policy gesture […]

Continue Reading

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

There is the possibility of a pandemic financial meltdown.  To avoid such a catastrophe, the Greeks elected to stay in the Eurozone.  Remember that the Federal Reserve are scheduled for a press conference today.  Some form of quantitative easing or Operation Twist 2 may come riding to the rescue in order to buttress the Greek decision to stay in the Eurozone. We believe that these decisions may become baked into the pie during this Federal Reserve Meeting.  Gold and silver traders are betting big money on buying contracts expiring in July that become profitable if gold should reach $2000 by that date.  Based on what we know is smart money […]

Continue Reading

Weak Euro Weighing on Gold Price while Eurozone Growth Plan Based on Funny Money

Weak Euro Weighing on Gold Price while Eurozone Growth Plan Based on Funny Money

The Gold Price hovered around $1620 per ounce for most of Monday morning’s London trading – slightly below where it ended last week – while stocks and commodities were also broadly flat, after initial rallies that followed yesterday’s Greek election result quickly petered out. The Silver Price drifted lower to $28.41 per ounce by Monday lunchtime in London – a 1% drop on Friday’s close – while US, UK and German government bond prices all saw gains ahead of the week’s Federal Reserve policy meeting. The Euro meantime briefly broke above $1.27 for the first time in nearly a month, before dropping by more than one cent by lunchtime. “There is a downward bias […]

Continue Reading

Waiting for the other shoe to drop

Waiting for the other shoe to drop

All was sunshine and happiness for a few short hours earlier this morning, following news that Greece’s conservative New Democracy party had won yesterday’s election, and will attempt to form a pro-bailout government with other parties. The radical left’s threat to the country’s euro membership has subsided. The euro initially rallied over $1.272, but has now fallen back sharply on the back of a continuing rise in Spanish bond yields, which reached as high as 7.1% earlier. The Italian 10-year bond is creeping back towards the 6% mark. Gold and silver came under selling pressure when news of the election results first broke, though both have recovered and remain basically […]

Continue Reading

Is Silver Currently Riskier Than Gold?

Is Silver Currently Riskier Than Gold?

Gold futures closed higher edging past the $1,600 mark Wednesday, extending their advance to a fourth session – perhaps traders considered prospects for further quantitative easing by the Federal Reserve and other central banks, including the Bank of England, the European Central Bank and the Bank of Japan. Thursday Comex gold futures prices ended the U.S. day session near unchanged in subdued trading and today Gold edged up extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing. With an agreement last weekend to bail out Spain’s struggling banks, Europe again avoided financial chaos but it still faces far bigger challenges that threaten […]

Continue Reading

UK Treasury and Bank of England liquor up banks again

UK Treasury and Bank of England liquor up banks again

Stocks and commodities have rallied this morning on rumours that central banks are about to launch a coordinated market intervention following Sunday’s Greek election. Government bond yields have fallen (relief for the Spanish and Italians), while the euro reached a four-day high at $1.2685 earlier. Gold continues to face resistance at $1,630, while $28.50 still exerts a magnetic pull on silver. However, talk from G20 officials that “central banks are preparing for coordinated action to provide liquidity” in the event that the Greek election results upset the markets is raising bullish hopes. Meanwhile in the UK, bank shares have risen after Chancellor George Osborne announced last night that HM Treasury […]

Continue Reading

Dan Norcini about addiction, excessive debt and the gold price

Dan Norcini about addiction, excessive debt and the gold price

That’s the attitude that gold bulls have apparently adopted heading into this weekend’s crucial Greece vote. Whereas yesterday seemed to be a day of caution among traders, today seems to have morphed into a day of expectations of the punch bowl, complete with accompanying hard liquor, being filled to capacity by the Central Banks of the West. If the Greece vote turns out to be one which threatens the stability of the Euro and sends shock waves through the foreign exchange markets, traders are convinced that a large bouquet of liquidity is coming their way early next week. If the Greece vote turns out to be one in which the […]

Continue Reading

Physical silver demand heading higher

Physical silver demand heading higher

The silver price is depressed compared with its historical relationship to gold, one ounce being worth about 55 of silver, against the historical rate of 15 or 16. The reason, perhaps, has to do with silver’s demonetisation and its role as an industrial metal. However, with global supply from mines and recycling running at about one billion ounces and demand at only a hundred million less, it does not take much investment demand to create a severe shortage. For now, pricing is managed for industrial use, and industry has a vested interest in keeping the price low. For clues of future prices, we need to look at market data, and the graph […]

Continue Reading

Gold Price Jumps Again on 13 June 2012

Gold Price Jumps Again on 13 June 2012

The Gold Price rose again as New York trading began on Wednesday, extending yesterday’s 1.8% jump to reach $1620 per ounce as the Euro currency held flat but European stock markets slipped with commodity prices. Silver Bullion recovered an earlier slip to trade just shy of $29.00 per ounce. Spanish borrowing costs rose to new Euro-era highs at 6.73% for 10-year debt, while Italian bond yields also rose to a 6-month record, unwinding the effect of €1.1 trillion in LTRO loans made by the European Central Bank last winter. Rome today cut to €6.5 billion the amount of new 1-year debt being sold at auction, but it still had to pay investors 3.97% per year in […]

Continue Reading

Dollar Still Makes a Negative Impact on Gold

Dollar Still Makes a Negative Impact on Gold

Remember the disaster movie, “The Day After Tomorrow,” in which melting polar ice causes disruption to the north Atlantic currents precipitating a new Ice Age? The main character, a paleoclimatologist played by actor Dennis Quaid, warns government officials of the approaching disaster, but no one heeds his warnings. One of the fears of global warming is a disruption to the nature of ocean currents that could bring profound and possibly destructive changes to our weather patterns. In economics there are also great currents that have natural patterns and it looks like they are undergoing profound changes. Weather patterns can take centuries or even eons to evolve, but in economics, things […]

Continue Reading

Gold Market Continues to Reflect Currency Turmoil

Gold Market Continues to Reflect Currency Turmoil

Simply put – as the situation in Europe further deteriorates (yesterday the market YAWNED at the $125 billion Spain bailout), Italy is now coming into focus. Strangely enough, the US equity markets somehow think all of this is inconsequential as the bulls there continue to be giddy with delight.Their attitude is best described by an old Steve Wariner song, “Some Fools Never Learn”. You play with the fire, you’re gonna get burned”.Considering just how tenuous things are, the degree of complacency that exists among equity bulls is nothing short of astonishing. The situation can best be described by looking at a chart of the VIX, or Volatility Index.While the index […]

Continue Reading

Gold Market Prices Regain $1600, Italy May Also Need Bailout

Gold Market Prices Regain $1600, Italy May Also Need Bailout

Bullion prices on the wholesale Gold Market rallied back above $1600 per ounce shortly before Tuesday’s US trading, having failed to breach that level in the earlier Asian session, while European stock markets also ticked higher after a quiet morning’s trading. A day earlier, gold briefly rose above $1600 on Monday following the news that Spain will borrow up to €100 billion to rescue its banks, but along with stocks and the Euro gold failed to hold those gains. Silver Prices meantime jumped to $28.94 per ounce, a 1.5% gain on the week so far, while commodity prices reversed earlier losses. Earlier on Tuesday, Indian dealers reported flat trading, with one citing traditional […]

Continue Reading

US money supply data hints at trouble ahead

US money supply data hints at trouble ahead

Confirmation over the weekend that the Spanish government will receive €100 billion from eurozone rescue funds to help shore up Spain’s fragile banking system has lifted stocks and commodities this morning. Spain’s benchmark IBEX-35 index surged 4.5%, with strong gains seen on British, French and German exchanges. However, though the euro bounced early in trading it has started sinking again, though it remains above last week’s low of $1.241. Gold and silver have also been lifted following the Spanish news, with some traders looking to lighten up on their US dollar/Treasury positions. Gold broke back above $1,600 briefly during Asian trading – suitably so given the strength of sovereign demand […]

Continue Reading

Silver Price Forecast: Silver Could Preserve More Value Than Gold

Silver Price Forecast: Silver Could Preserve More Value Than Gold

The fundamentals for silver and gold are very strong, and with all the massive bailouts, which are increasing debt levels, they are just getting stronger. Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals. The repayment of debt (or default on debt – which is more likely) will result in significantly reduced economic activity. Significantly reduced economic activity will have a negative effect on the stock market, which in this case, will likely result in a huge crash. It is these conditions (a deflating debt bubble) that will drive gold and silver prices significantly higher. […]

Continue Reading