RSSCategory: Articles: Gold Silver Prices

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 […]

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Why China has become key to the Gold Price

Why China has become key to the Gold Price

The growth of China’s role in the world gold market has been nothing short of phenomenal over the last dozen years, writes Julian Phillips at GoldForecaster. Prior to this century, HSBC sent a delegation from their London gold department to see the Chinese financial authorities and were rebuffed as ‘trying to sell gold to China’. Since then, the Chinese financial authorities switched on and set off with a purpose. In 2001, the Chinese government lifted its final controls on the gold market, releasing a pent-up demand that since then has become stronger. From 2001 to 2010, China’s annual consumption of gold grew at a 7.5% compounded annual growth rate. The chart below […]

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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 […]

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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 […]

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Gold has Resistance at $1667/oz

Dollar prices to Buy Gold rallied to $1658 per ounce Wednesday morning in London – 0.8% up on Asian session lows – following reports that the International Monetary Fund is seeking to boost its lending capacity by $1 trillion. European stock markets also recovered from an early dip, with industrial commodities also edging higher. Prices to Buy Gold remained below the five-week high of $1667 hit yesterday, though by Wednesday lunchtime it was up 1.0% for the week so far. “Gold is working on its third up week,” says the latest market commentary from technical analysts at Scotia Mocatta. “[Gold] faces critical resistance at $1667 [which] was the mid-November low. Our view is that […]

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China slowdown continues; UK inflation eases

China slowdown continues; UK inflation eases

Today seems to be shaping up to be a “risk on” kind of day as far as the markets are concerned, following the release of Chinese GDP data for the fourth quarter 2011. The world’s second-largest economy grew by 8.9% in comparison with the same period a year earlier, which was down from 9.1% in the third quarter, though better than the 8.7% increase economists surveyed by Bloomberg had expected. As reported by the BBC, growth for the full year was 9.2% – down from 10.3% in 2010. Thus the economic slowdown in China continues, though commodities and the stocks of commodity producers are rallying on speculation that this will prompt the […]

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Spot Gold Rises with Dollar

Spot Gold rose to a high of $1647 per ounce Monday morning in London – 0.8% below last week’s peak – while stocks and commodities were broadly flat as markets absorbed Friday’s news of cuts to nine Eurozone sovereign credit ratings, while US markets were closed for Martin Luther King Jr. Day. “Spot Gold [however] is expected to fall to $1417 per ounce over the next three months,” warns Reuters technical analyst Wang Tao in the newswires Q1 2012 commodities outlook published Monday.” “[The] medium-term downtrend that started at the Sept. 6 high of $1,920.30 will continue.” Spot Silver rose to $30.10 per ounce – 0.9% up on Friday’s close. The Euro meantime […]

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Indian dealers remain optimistic about gold sales

Towards the end of 2011 India’s gold and silver imports fell. Upon conclusion of the festival season – which started back in October with the Diwali festival of light, followed by the wedding season – local dealers reported that demand for precious metals had decreased more than expected, owing to weakness in the rupee. Nevertheless, over the whole of 2011 Indian demand for gold jewellery increased by 5 to 7 % in comparison with 2010. Indian dealers remain optimistic for 2012, with locals expecting Indian gold jewellery sales to increase another 10 to 15% this year. This is good news for precious metals bulls, as India is the second largest […]

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Using vaults to store gold and silver

I consider gold and silver to be the bedrock asset of an investment portfolio. In other words, it is the foundation stone upon which the rest of a portfolio is built. Given this important role in which I hold the precious metals, it is essential to keep them safe. Safety can mean different things to different people. Until recently, for example, many investors believed that Switzerland was isolated from the world’s monetary turmoil. They therefore thought that the Swiss franc was a safe place to keep their money, but the illusion of safety vanished instantly when the Swiss National Bank announced that it would not let the Swiss franc strengthen […]

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Precious metal prices firm following French downgrade

Though it has yet to break through selling resistance at $1,650, gold has recorded small gains in trading this morning following on from Friday’s announcement from Standard & Poor’s that they were going to downgrade France from a Triple A credit rating to an AA+. Friday the 13th was an apt choice of days for S&P’s decision, with the rating agency also cutting the ratings of Austria, Italy, Portugal, Spain, Cyprus, Malta, Slovakia and Slovenia. Markets received early inkling of this move, with the euro falling below US$1.27 during trading on Friday (though S&P’s announcement was delayed until after markets had closed). Short interest in the euro is now at […]

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