RSSCategory: Articles: Gold Silver Prices

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 […]

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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 […]

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Gold closed week with biggest weekly gain in 8 weeks

Spot market Gold Prices looked set for their biggest weekly gain since early December on Friday, rallying back above $1720 per ounce – a gain of over 3% on the week. Silver Prices meantime hovered around $33.60 per ounce – 4.2% up on last week’s close – while other commodities and stocks were broadly flat and US Treasury bond prices slipped. A day earlier, Gold Prices hit a 7-week high at $1730 per ounce before easing in Friday’s Asian session. “Lack of physical demand partly explains the inability of gold to make a sustained move beyond the $1730 level,” says Standard bank commodities strategist Marc Ground, citing this week’s Chinese Lunar New Year holiday as […]

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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 […]

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Gold vs paper money

Gold vs paper money

The gold price just broke through its downtrend – the line joining its tops – from summer 2011’s record high. Or so technical analysts studying the price charts will tell you, says Adrian Ash of BullionVault. Just as in late 2007, however – from where gold began a 55% run inside 6 months – the price jumped Wednesday on a very fundamental fact: the price of money, specifically Dollars, the world’s #1 currency for trade and central-bank reserves. Back in 2007, the catalyst came as a baby-step cut of 0.25%, signaling the Fed’s switch from raising to destroying the returns paid on cash savings. Now the Fed’s new zero-rate promise “took gold […]

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Demand to Buy Gold continues to push prices higher

Demand to Buy Gold continued to push prices higher Thursday morning in London, with bullion setting new 7-week highs against all major currencies after the US Federal Reserve vowed to keep Dollar interest rates at zero until at least 2014 – one year later than previously promised. London’s AM Gold Fix was set at $1713 per ounce today, more than 3.8% higher from Wednesday afternoon and the highest level since Dec. 8th. Wednesday saw the most-active US gold futures contract enjoy its heaviest volume in six weeks according to Amanda Cooper at Reuters. Investors wanting to Buy Gold exposure added 9 tonnes to the holdings of the New York-listed SPDR Gold Trust, whose assets rose to […]

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Stand By $140 Silver Price In 2012

Stand By $140 Silver Price In 2012

There is a well-established relationship between how silver and gold trade. They often trade similar in the same time period, but also at similar milestones, although those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone. I have previously used this relationship to predict how silver will trade. Below, is an extract of that update: Currently, there is another situation in the silver and gold market that provides an opportunity to predict how silver prices might trade over the coming months. I have pointed this out before, in a previous article. Here, I would just like to […]

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Yesterday’s Gold Chart – updated

Yesterday’s Gold Chart – updated

Gold shattered overhead resistance near $1680 and has continued higher as momentum based buying is coming in driving out panicked shorts who were hoping for a halt in the advance to occur as the market encountered bullion bank selling originating at $1680. The FOMC made that a mirage as a zero interest rate environment for the next two years means an environment in which it pays to own gold. The yellow metal pays no interest but at this point, neither do short term Treasuries and those offer no protection from currency induced price increases. Just look at what is occuring across the commodity sector today as hedge funds now push the […]

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Jim Sinclair about yesterday’s action in gold & silver: mainstream entities will now enter gold market

With gold and silver exploding to the upside on the Fed announcement, today King World News interviewed legendary Jim Sinclair, to get his take on where things are headed. Sinclair told KWN he now expects mainstream entities to enter the gold market. Here is what Sinclair had to say: “Today is an important day. There are many days we talk but this is a mile-marker. What the Fed did today is they turned on the light of what will be QE to infinity. Today the light went on with regards to the intentions of the Fed. They did that for very specific reasons, we have troubles people can’t see and […]

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Fed Announces Record Low Interest Rates Until Late 2014 and Commodities Soar

Presently we notice the European Central Bank is pumping money into the sovereign institutions following the precedent of the U.S. Federal Reserve.  Indeed, this move is an admission that debt is being monetized before our very eyes.  Once again the lemmings have jumped off a cliff into what they mistakenly thought was a safe haven.  Isn’t that the name of the game, which is to get you to swing at the wrong pitch at the wrong time?     As we write, the Federal Reserve has announced the expansion of the future horizon of record low interest rates from mid 2013 until late 2014. This rally from October 4th, 2011 […]

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A Swiss Signal to Buy Gold

Investors were given a major signal to Buy Gold on December 21 2011,writes Porter Stansberry for the Daily Wealth. It was on that day that the European Central Bank (ECB) “loaned” roughly €500 billion to Europe’s major banks at 1% interest. This capital will allow all the big banks to report adequate capital ratios when they file their annual reports…which is code for “getting a huge bailout.” Whatever you want to call it, simply know this: There will not be a deflationary collapse in Europe. The Euro will not collapse in the near term. Instead, Europe will see a gigantic increase in its money supply. When asked by the Financial Times if there […]

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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 […]

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Dollar’s Influence on Gold

Dollar’s Influence on Gold

In our previous essays, we emphasized that the long- and short-term trends for gold are up. In today’s article, we will feature the current situation in the USD and Euro Indices and in the general stock market. After analyzing each of them, we will move to implications for the precious metals investors. Let’s start with the analysis of the USD Index (charts courtesy by http://stockcharts.com.) Our first chart this week is the very long-term USD Index chart. We see little change in the situation since last week. There has been no confirmed breakout above the late 2010- early 2011 highs and the long-term trend remains down. In the short-term Euro Index chart, there […]

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Gold Chart and comments

Gold Chart and comments

Gold has made it into a formidable resistance level near $1680 which has served to bring out some heavy selling, just as expected seeing that a breach of this defensive line by the bulls will set the market for a run to $1700 and higher. Gold bears can read the charts just as we can and understand what will bring in the momentum buyers if they fail to hold it here. If the recent price advance falters here at this critical zone, then we will see a setback towards $1650 – $1645 initially followed by a bit deeper drop to $1620 or so if the dip buyers are a bit […]

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