Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Silver posts biggest monthly gain in 22 years; gold rallies"
Author: Moming Zhou
Website: MarketWatch.com
Main Points: Gold for June delivery finished the week strong, keeping the rally going and ending at $978.80 an ounce, up $17.30. It was the highest finish since February 23, which came a mere few days after eclipsing $1,000 an ounce.
Drops have become rare the last few weeks for gold. In fact, it was the strongest month for the precious metal since November, rising 9.8 percent.
The strong close came on the heals of a report that the first quarter economy contracted at 5.7 percent, not at the 6.3 percent that was originally reported. It could be a sign of economic recovery, and inflation may not be far down the road. Gold, of course, is a hedge against inflation.
Analysis: We love to analyze round numbers and dates when reviewing data, so the 9.8 percent rise during the month is used -- and is indeed impressive. However, it nearly works in this case as gold started it's rally on May 4, the second session of the month. Since May 4, there have been only four sessions on which the price of gold dropped out of a possible 19, and on two of those days the price dropped less than $1.50. Since the start of May 4, the price of gold is up $90.60, or 10.2 percent.
As the experts have been saying of late, there appears to be little resistance. Hitting and surpassing $1,000 appears to be inevitable. The question is what happens once the price does hit that magic number. In February, it was a very temporary achievement.
Friday, May 29, 2009
Thursday, May 28, 2009
Today in Gold: Thursday, May 28
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"PRECIOUS METALS: Fund Buying, Euro, Oil Push NY Gold Higher"
Author: Matt Whittaker
Website: WSJ.com
Main Points: Gold finished up $8 to settle at $963.20 an ounce today. Reasons for the increase included rallies in the Euro and crude oil as well as fund buying.
The Wall Street Journal cited Pat Donnelly, senior broker with Peak Trading Group, as saying that we could soon be "off to the races," and that there is no resistance between $965 and $1,000.
Analysis: After weeks of uneasiness, experts are now bullish on gold, expecting a clear path to $1,000 an ounce and beyond. The momentum is certainly there. Watch this trend closely.
"PRECIOUS METALS: Fund Buying, Euro, Oil Push NY Gold Higher"
Author: Matt Whittaker
Website: WSJ.com
Main Points: Gold finished up $8 to settle at $963.20 an ounce today. Reasons for the increase included rallies in the Euro and crude oil as well as fund buying.
The Wall Street Journal cited Pat Donnelly, senior broker with Peak Trading Group, as saying that we could soon be "off to the races," and that there is no resistance between $965 and $1,000.
Analysis: After weeks of uneasiness, experts are now bullish on gold, expecting a clear path to $1,000 an ounce and beyond. The momentum is certainly there. Watch this trend closely.
Wednesday, May 27, 2009
Today in Gold: Wednesday, May 27
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"US gold ends flat as oil rises, dollar up"
Author: James Pethokoukis
Website: Reuters.com
Main Points: Gold finished the day unchanged, settling at $953.30 an ounce. The price was as low as $946.20 and as high as $959.60 during the day.
The initial drop was in response to a strengthening dollar, but then rose amid a crude oil rally.
Analysis: There are opposing forces involved, which makes upward momentum difficult and raises doubts about passing the $1,000 level sometime soon. The dollar strengthens, gold will drop; but as the economy rebounds, inflationary concerns increase -- and gold will rise.
This is the first time that gold dropped on the second session of a week during the past three weeks. Thursday will be a key indicator.
"US gold ends flat as oil rises, dollar up"
Author: James Pethokoukis
Website: Reuters.com
Main Points: Gold finished the day unchanged, settling at $953.30 an ounce. The price was as low as $946.20 and as high as $959.60 during the day.
The initial drop was in response to a strengthening dollar, but then rose amid a crude oil rally.
Analysis: There are opposing forces involved, which makes upward momentum difficult and raises doubts about passing the $1,000 level sometime soon. The dollar strengthens, gold will drop; but as the economy rebounds, inflationary concerns increase -- and gold will rise.
This is the first time that gold dropped on the second session of a week during the past three weeks. Thursday will be a key indicator.
Tuesday, May 26, 2009
Today in Gold: Tuesday, May 26
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices pull back on firmer dollar"
Author: Sara Lepro
Website: Google.com
Main Points: The dollar strengthened today while major stock indexes rose more than 2.3 percent. As a result of increased investor confidence, gold dropped $5.60 to finish the day at $953.30 an ounce. Gold had actually dropped as low as $936.30 during the session before a late rally.
In addition to being a reflection of a stronger dollar, another reason for the dip, according to Dave Meger of Alaron, could be profit taking after a long positive trend.
Analysis: This was gold's first drop since last Monday, when it fell $8.60. It has actually dropped on the first day of the week (yesterday was a holiday) for three consecutive weeks -- the only declines during that period (since May 11).
In other words, a bad start to the week is not necessarily a sign of things to come, at least according to recent history. In fact, it may be a positive sign. That said, gold is up $65.10 since the end of trading on May 1. Given that gain over a little more than three weeks, we may see more profit taking during the next few days.
"Gold prices pull back on firmer dollar"
Author: Sara Lepro
Website: Google.com
Main Points: The dollar strengthened today while major stock indexes rose more than 2.3 percent. As a result of increased investor confidence, gold dropped $5.60 to finish the day at $953.30 an ounce. Gold had actually dropped as low as $936.30 during the session before a late rally.
In addition to being a reflection of a stronger dollar, another reason for the dip, according to Dave Meger of Alaron, could be profit taking after a long positive trend.
Analysis: This was gold's first drop since last Monday, when it fell $8.60. It has actually dropped on the first day of the week (yesterday was a holiday) for three consecutive weeks -- the only declines during that period (since May 11).
In other words, a bad start to the week is not necessarily a sign of things to come, at least according to recent history. In fact, it may be a positive sign. That said, gold is up $65.10 since the end of trading on May 1. Given that gain over a little more than three weeks, we may see more profit taking during the next few days.
Monday, May 25, 2009
Today in Gold: Monday, May 25
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold on verge of historic breakout?"
Author: Peter Brimelow
Website: MarketWatch.com
Main Points: Gold closed out Friday at $956.50 an ounce, so where does it go from here?
According to Martin Pring, "Gold could be on the verge of a historical breakout. Watch that $990-1,000 area like a hawk."
The price of gold has seen resistance of late, being stuck in a range from the upper $890s to lower $900s. Once that range was broken, gold has maintained a consistent rally with no end in sight.
"I think we are very close to the beginning of a hyperinflationary spiral," said FGMR's James Turk. "If I am right ... there obviously is an exceptional opportunity to load up by buying gold." Turk later adds: "One of these days (and there's at least a 50% chance now is that time), gold will just keep rising."
Analysis: It appears that gold has broken free of the dead weight of retail gold, which has prevented a bull run in otherwise ideal conditions. While this run may continue to and beyond $1,000 an ounce due to inflationary concerns, investors also remain cautious due to rumors that IMF, the third largest gold holder, will soon sell off a large amount of the precious metal. If that happens, the bottom may fall out.
"Gold on verge of historic breakout?"
Author: Peter Brimelow
Website: MarketWatch.com
Main Points: Gold closed out Friday at $956.50 an ounce, so where does it go from here?
According to Martin Pring, "Gold could be on the verge of a historical breakout. Watch that $990-1,000 area like a hawk."
The price of gold has seen resistance of late, being stuck in a range from the upper $890s to lower $900s. Once that range was broken, gold has maintained a consistent rally with no end in sight.
"I think we are very close to the beginning of a hyperinflationary spiral," said FGMR's James Turk. "If I am right ... there obviously is an exceptional opportunity to load up by buying gold." Turk later adds: "One of these days (and there's at least a 50% chance now is that time), gold will just keep rising."
Analysis: It appears that gold has broken free of the dead weight of retail gold, which has prevented a bull run in otherwise ideal conditions. While this run may continue to and beyond $1,000 an ounce due to inflationary concerns, investors also remain cautious due to rumors that IMF, the third largest gold holder, will soon sell off a large amount of the precious metal. If that happens, the bottom may fall out.
Friday, May 22, 2009
Today in Gold: Friday, May 22
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold rises above $960 as dollar wilts"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold finished a strong week by settling up $7.70 to $958.90 an ounce. The price was able to slip past $960 an ounce briefly during the day for the first time since March 20.
Gold benefited from further weakening of the dollar versus the Euro.
Analysis: It was quite the week for gold, which was up every day accept Monday. Week over week, gold finished up a shade less than $30 below last Friday's $931.30 an ounce finish.
More impressively, gold has finished up eight of the last night days, rising approximately $45 since the end of last Monday, May 11. Maybe the gold bugs were right. Maybe, just maybe, gold will now be able to sustain some momentum after months of failing to live up to the hype.
Or maybe not. Time will tell.
"Gold Prices in Danger of Falling From Year’s High Point"
Author: Mike Caggeso
Website: MoneyMorning.com
Main Points: Although Caggeso has confidence in gold as a long term investment, he expects some falls -- potentially dramatic -- in the short term. Gold is in the midst of a rally, approaching record highs, but two scenarios could significantly alter the short term path of gold.
1) US Federal Reserve will raise interest rates. Rates are currently very low, which has weakened the dollar and benefited gold. Once the economy improves, however, rates will be raised. This will increase the value of the dollar and hurt the investment in gold.
2) International Monetary Fund will sell large sums of gold. The IMF is the world's third largest holder of gold, and it has been rumored that they are on the verge of cashing in on the current gold price. Such a move would likely result in a dramatic drop in the gold price.
Analysis: The IMF scenario has been discussed here before. It is about supply and demand. If the IMF suddenly infuses mass amounts of gold back into the supply, the demand drops. Projections have the gold price going as low as $700 in this case.
As mentioned many times, the best time to sell gold is when you need the money. Gold will drop again. Gold will rise again. If you do not need the money now, it is a very safe and stable investment. If you are planning to sell but hoping to capitalize on a higher gold price, it is a risky proposition.
"Gold rises above $960 as dollar wilts"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold finished a strong week by settling up $7.70 to $958.90 an ounce. The price was able to slip past $960 an ounce briefly during the day for the first time since March 20.
Gold benefited from further weakening of the dollar versus the Euro.
Analysis: It was quite the week for gold, which was up every day accept Monday. Week over week, gold finished up a shade less than $30 below last Friday's $931.30 an ounce finish.
More impressively, gold has finished up eight of the last night days, rising approximately $45 since the end of last Monday, May 11. Maybe the gold bugs were right. Maybe, just maybe, gold will now be able to sustain some momentum after months of failing to live up to the hype.
Or maybe not. Time will tell.
"Gold Prices in Danger of Falling From Year’s High Point"
Author: Mike Caggeso
Website: MoneyMorning.com
Main Points: Although Caggeso has confidence in gold as a long term investment, he expects some falls -- potentially dramatic -- in the short term. Gold is in the midst of a rally, approaching record highs, but two scenarios could significantly alter the short term path of gold.
1) US Federal Reserve will raise interest rates. Rates are currently very low, which has weakened the dollar and benefited gold. Once the economy improves, however, rates will be raised. This will increase the value of the dollar and hurt the investment in gold.
2) International Monetary Fund will sell large sums of gold. The IMF is the world's third largest holder of gold, and it has been rumored that they are on the verge of cashing in on the current gold price. Such a move would likely result in a dramatic drop in the gold price.
Analysis: The IMF scenario has been discussed here before. It is about supply and demand. If the IMF suddenly infuses mass amounts of gold back into the supply, the demand drops. Projections have the gold price going as low as $700 in this case.
As mentioned many times, the best time to sell gold is when you need the money. Gold will drop again. Gold will rise again. If you do not need the money now, it is a very safe and stable investment. If you are planning to sell but hoping to capitalize on a higher gold price, it is a risky proposition.
Thursday, May 21, 2009
Today in Gold: Thursday, May 21
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"U.S. Markets Wrap: Stocks, Dollar, Treasuries Fall; Gold Rises"
Author: Eric Martin and Margot Habiby
Website: Bloomberg.com
Main Points: Stocks weakened and the dollar fell amid concerns over US government credit worthiness today. Reports of jobless claims were worse than anticipated, and S&P talked about lowering the UK's AAA credit rating. The US's credit rating, then, is also a potential target, according to Bill Gross of Pacific Investment Management Co.
"The markets are beginning to anticipate the possibility," said Gross. "It’s certainly nothing that's going to happen overnight."
The result? Gold for June delivery was up $13.80 to $951.20 an ounce. The price was as high as $951.80 today, the highest price since March 23.
Analysis: Momentum has sustained and gold eclipses the elusive $950 threshold. Friday will be yet another test. Economic fears seem to ebb and flow on a daily basis on Wall Street. One day investor confidence is soaring, the next it appears we're headed towards a financial apocalypse. Stay tuned.
"U.S. Markets Wrap: Stocks, Dollar, Treasuries Fall; Gold Rises"
Author: Eric Martin and Margot Habiby
Website: Bloomberg.com
Main Points: Stocks weakened and the dollar fell amid concerns over US government credit worthiness today. Reports of jobless claims were worse than anticipated, and S&P talked about lowering the UK's AAA credit rating. The US's credit rating, then, is also a potential target, according to Bill Gross of Pacific Investment Management Co.
"The markets are beginning to anticipate the possibility," said Gross. "It’s certainly nothing that's going to happen overnight."
The result? Gold for June delivery was up $13.80 to $951.20 an ounce. The price was as high as $951.80 today, the highest price since March 23.
Analysis: Momentum has sustained and gold eclipses the elusive $950 threshold. Friday will be yet another test. Economic fears seem to ebb and flow on a daily basis on Wall Street. One day investor confidence is soaring, the next it appears we're headed towards a financial apocalypse. Stay tuned.
Wednesday, May 20, 2009
Today in Gold: Wednesday, May 20
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices climb as dollar hits fresh lows"
Author: Sara Lepro
Website: Google.com
Main Points: The US dollar fell to new lows today, resulting in a rising gold price. The dollar fell to its lowest point against the Euro since January and against the pound in about a year. Gold for June delivery finished up $10.70 to finish the day at $937.40 an ounce.
Investor confidence continues to soar, which is not typically good for the value of gold. However, considering the further weakening of the dollar and increasing fears of inflation, gold remains desirable.
"As the economy improves," says Lepro, "prices for goods and services will increase, which could lead to inflation down the road. At the same time, the Federal Reserve has kept interest rates at record low levels and continues to pour money into the financial system, which has the potential to weaken the dollar further."
Analysis: This is gold's highest point in seven weeks, when the yellow metal was at $941 on March 26. The yellow metal is risen more than $15 in the past two days. Can the momentum be sustained? During the past couple of months, it has not. But the $940 range is new ground as of late.
There is no consensus on the immediate future of the gold price. There is no better time than now, while the price is high, to sell gold.
"Gold prices climb as dollar hits fresh lows"
Author: Sara Lepro
Website: Google.com
Main Points: The US dollar fell to new lows today, resulting in a rising gold price. The dollar fell to its lowest point against the Euro since January and against the pound in about a year. Gold for June delivery finished up $10.70 to finish the day at $937.40 an ounce.
Investor confidence continues to soar, which is not typically good for the value of gold. However, considering the further weakening of the dollar and increasing fears of inflation, gold remains desirable.
"As the economy improves," says Lepro, "prices for goods and services will increase, which could lead to inflation down the road. At the same time, the Federal Reserve has kept interest rates at record low levels and continues to pour money into the financial system, which has the potential to weaken the dollar further."
Analysis: This is gold's highest point in seven weeks, when the yellow metal was at $941 on March 26. The yellow metal is risen more than $15 in the past two days. Can the momentum be sustained? During the past couple of months, it has not. But the $940 range is new ground as of late.
There is no consensus on the immediate future of the gold price. There is no better time than now, while the price is high, to sell gold.
Tuesday, May 19, 2009
Today in Gold: Tuesday, May 19
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices up modestly as dollar slips"
Author: Sara Lepro
Website: Google.com
Main Points: Gold for June delivery was up $5 to finish at $926.70 an ounce, thanks to a weakened dollar against other currencies.
Although gold is a popular investment as a hedge against inflation, it is not clear when that value will be realized.
"The longer the interest rates are at these levels, the more likely and the more ferocious inflation is going to be down the road," said Matt Zeman of LaSalle Futures. "But again, until that comes to a head I don't expect to see a real big pop in gold."
Analysis: As the dollar weakens, the expert opinion seems to be that inflation and the resultant rise in the gold price are inevitable. It's simply a matter of when. It could be weeks, months or years. Many investors trade month to month, week to week or day to day, so they are simply not patient enough to wait around for inflation. Hence, the lack of momentum in the gold price.
"Gold prices up modestly as dollar slips"
Author: Sara Lepro
Website: Google.com
Main Points: Gold for June delivery was up $5 to finish at $926.70 an ounce, thanks to a weakened dollar against other currencies.
Although gold is a popular investment as a hedge against inflation, it is not clear when that value will be realized.
"The longer the interest rates are at these levels, the more likely and the more ferocious inflation is going to be down the road," said Matt Zeman of LaSalle Futures. "But again, until that comes to a head I don't expect to see a real big pop in gold."
Analysis: As the dollar weakens, the expert opinion seems to be that inflation and the resultant rise in the gold price are inevitable. It's simply a matter of when. It could be weeks, months or years. Many investors trade month to month, week to week or day to day, so they are simply not patient enough to wait around for inflation. Hence, the lack of momentum in the gold price.
Monday, May 18, 2009
Today in Gold: Monday, May 18
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold slips as stocks rise, economy concerns support"
Author: Felix Salmon
Website: Reuters.com
Main Points: Although gold for June delivery fell $8.60 to $922.70 an ounce today, experts are still optimistic about the investment.
"The outlook for gold is a lot better than the outlook for the U.S. economy," said Charles Kernot of Evolution Securities. "There is still a lot of uncertainty in terms of the outlook for the global economy...People are now looking at it being a much slower recovery (than expected)."
Analysis: The positive and the negative seem to cancel each other out. Some question the strength of gold since it hasn't been able to sustain any momentum during ideal conditions. A possible cause of that is the damage that a poor economy (and a higher gold price) does to the retail jewelry industry. On the other hand, the economy is still not good, and if things do turn around inflation is likely to follow.
Will gold rise dramatically? Probably not. Will gold drop dramatically? Probably not. Treading water in the $900 - $950 range seems about right.
"Gold slips as stocks rise, economy concerns support"
Author: Felix Salmon
Website: Reuters.com
Main Points: Although gold for June delivery fell $8.60 to $922.70 an ounce today, experts are still optimistic about the investment.
"The outlook for gold is a lot better than the outlook for the U.S. economy," said Charles Kernot of Evolution Securities. "There is still a lot of uncertainty in terms of the outlook for the global economy...People are now looking at it being a much slower recovery (than expected)."
Analysis: The positive and the negative seem to cancel each other out. Some question the strength of gold since it hasn't been able to sustain any momentum during ideal conditions. A possible cause of that is the damage that a poor economy (and a higher gold price) does to the retail jewelry industry. On the other hand, the economy is still not good, and if things do turn around inflation is likely to follow.
Will gold rise dramatically? Probably not. Will gold drop dramatically? Probably not. Treading water in the $900 - $950 range seems about right.
Friday, May 15, 2009
Today in Gold: Friday, May 15
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"US gold ends higher on inflation worries"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold for June delivery nudged up $2.90 to finish the session and week at $931.30. Reports revealed that core inflation rose .3 percent during the month of April, more than had been expected, driving the increase. Gold is typically seen as a hedge investment against inflation.
Analysis: It's quite surprising that the price of gold only rose $2.90 considering how sensitive investors tend to be to the fear of inflation. That said, gold is impacted not only by inflation but several other factors, including the strength of the dollar, the stock market, and international markets (in particular, China).
It was a good week for gold, finishing up $16.60 since the end of last Friday. The range is still quite tight, and it will be interesting to see if the inflation fears can carry momentum to and beyond $950 an ounce next week.
"US gold ends higher on inflation worries"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold for June delivery nudged up $2.90 to finish the session and week at $931.30. Reports revealed that core inflation rose .3 percent during the month of April, more than had been expected, driving the increase. Gold is typically seen as a hedge investment against inflation.
Analysis: It's quite surprising that the price of gold only rose $2.90 considering how sensitive investors tend to be to the fear of inflation. That said, gold is impacted not only by inflation but several other factors, including the strength of the dollar, the stock market, and international markets (in particular, China).
It was a good week for gold, finishing up $16.60 since the end of last Friday. The range is still quite tight, and it will be interesting to see if the inflation fears can carry momentum to and beyond $950 an ounce next week.
Thursday, May 14, 2009
Today in Gold: Thursday, May 14
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"US gold ends higher on weak dollar, inflation fear"
Author: Frank Tang
Website: UK.Reuters.com
Main Points: Gold for June delivery finished today at $928.40 an ounce, up $2.50 since the prior session. The modest drive was driven largely by a weakened dollar and down stock market.
Reuters cited Tom Pawlicki of MF Global as saying that gold could soon reach $970 an ounce based on signs that commodity investment is reaching a "fever pitch."
Analysis: Other than a $1.40 drop on Monday, it's been a good week for gold. Spurned by positive movement on Tuesday, Wednesday and today, gold is currently up $13.50 for the week.
"HSBC raises 2009 gold forecast to $875 from $825"
Author: Felix Salmon
Website: Reuters.com
Main Points: HSBC raised its 2009 projection for gold from $825 to $875 an ounce, citing inflation fears.
"Inflation fears are supporting gold," said James Steel, HSBC chief commodities analyst. "Possible USD weakness remains a potential source of support. Stagnant mine output, reduced official sector sales, and robust ETF and retail demand are also supportive factors.
Analysis: This report is somewhat confusing considering the average price of gold for 2009 is currently beyond $875 an ounce, and HSBC cites an expected environment through the balance of 2009 that will favor gold. If the environment will favor gold (and the price is currently hovering around $925 an ounce), isn't $875 a bit conservative? Somewhere in their projection, there should be an explanation that the price will dip below $875 (and why) and then balance out to $875 for the year. Otherwise, the projection isn't supported by their explanation.
"US gold ends higher on weak dollar, inflation fear"
Author: Frank Tang
Website: UK.Reuters.com
Main Points: Gold for June delivery finished today at $928.40 an ounce, up $2.50 since the prior session. The modest drive was driven largely by a weakened dollar and down stock market.
Reuters cited Tom Pawlicki of MF Global as saying that gold could soon reach $970 an ounce based on signs that commodity investment is reaching a "fever pitch."
Analysis: Other than a $1.40 drop on Monday, it's been a good week for gold. Spurned by positive movement on Tuesday, Wednesday and today, gold is currently up $13.50 for the week.
"HSBC raises 2009 gold forecast to $875 from $825"
Author: Felix Salmon
Website: Reuters.com
Main Points: HSBC raised its 2009 projection for gold from $825 to $875 an ounce, citing inflation fears.
"Inflation fears are supporting gold," said James Steel, HSBC chief commodities analyst. "Possible USD weakness remains a potential source of support. Stagnant mine output, reduced official sector sales, and robust ETF and retail demand are also supportive factors.
Analysis: This report is somewhat confusing considering the average price of gold for 2009 is currently beyond $875 an ounce, and HSBC cites an expected environment through the balance of 2009 that will favor gold. If the environment will favor gold (and the price is currently hovering around $925 an ounce), isn't $875 a bit conservative? Somewhere in their projection, there should be an explanation that the price will dip below $875 (and why) and then balance out to $875 for the year. Otherwise, the projection isn't supported by their explanation.
Wednesday, May 13, 2009
Today in Gold: Wednesday, May 13
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices up slightly despite strength in dollar"
Author: Sara Lepro
Website: Google.com
Main Points: Reports of weak retail sales helped strengthen the dollar, driving investors to sell off stocks. Surprisingly, this did not correspond with a drop in the gold price, which instead rose $2 to $925.90 an ounce.
Analysis: Gold typically moves in the inverse direction of the dollar, so this was a sign of some strength as gold is concerned. Gold did drop early in the day but rallied for the slight gain.
Gold has plateaued, but whether that means a decline is to follow is unknown. Some reports tell of an improving economy while others claim we have yet to see the worst of the recession. An improved economy would seem to benefit the dollar, assuming inflation would follow, although that does not appear to be a foregone conclusion among investors who have yet to hitch themselves to the precious metal.
"Gold prices up slightly despite strength in dollar"
Author: Sara Lepro
Website: Google.com
Main Points: Reports of weak retail sales helped strengthen the dollar, driving investors to sell off stocks. Surprisingly, this did not correspond with a drop in the gold price, which instead rose $2 to $925.90 an ounce.
Analysis: Gold typically moves in the inverse direction of the dollar, so this was a sign of some strength as gold is concerned. Gold did drop early in the day but rallied for the slight gain.
Gold has plateaued, but whether that means a decline is to follow is unknown. Some reports tell of an improving economy while others claim we have yet to see the worst of the recession. An improved economy would seem to benefit the dollar, assuming inflation would follow, although that does not appear to be a foregone conclusion among investors who have yet to hitch themselves to the precious metal.
Tuesday, May 12, 2009
Today in Gold: Tuesday, May 12
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices slightly higher as dollar falls"
Author: Sara Lepro
Website: Google.com
Main Points: The dollar fell today, leading to a rising gold price. Gold for June delivery finished at $923.90 an ounce, up $10.40.
Gold has been stronger lately, but still has troubles getting outside of the $880 - $930 range. Despite the perfect conditions for a rising gold price -- conditions that would improve if the economy rebounds and leads to inflation -- investors remain wary.
"You might have thought gold would have been doing a bit better under the current circumstances, given the strong move against the dollar," said Philip Klapwijk, chairman of GFMS Ltd. "We're at a trading range in gold at the moment, and it's almost as if something new is required to punch gold a bit higher."
Analysis: What new event could give gold that necessary push? A global economic disaster equaled a temporary stay above $1,000 an ounce. Swine flu barely caused a blip on the radar. In the past, it is bad news that has pushed gold ahead, but it would seem gold has already been severely tested in that area without leaving its bounds.
Might a fully rebounded economy be the answer, resulting in inflation? Time will tell.
"Gold prices slightly higher as dollar falls"
Author: Sara Lepro
Website: Google.com
Main Points: The dollar fell today, leading to a rising gold price. Gold for June delivery finished at $923.90 an ounce, up $10.40.
Gold has been stronger lately, but still has troubles getting outside of the $880 - $930 range. Despite the perfect conditions for a rising gold price -- conditions that would improve if the economy rebounds and leads to inflation -- investors remain wary.
"You might have thought gold would have been doing a bit better under the current circumstances, given the strong move against the dollar," said Philip Klapwijk, chairman of GFMS Ltd. "We're at a trading range in gold at the moment, and it's almost as if something new is required to punch gold a bit higher."
Analysis: What new event could give gold that necessary push? A global economic disaster equaled a temporary stay above $1,000 an ounce. Swine flu barely caused a blip on the radar. In the past, it is bad news that has pushed gold ahead, but it would seem gold has already been severely tested in that area without leaving its bounds.
Might a fully rebounded economy be the answer, resulting in inflation? Time will tell.
Monday, May 11, 2009
Today in Gold: Monday, May 11
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices little changed as dollar rises"
Author: Sara Lepro
Website: Google.com
Main Points: On a day in which the dollar strengthened and stocks declined, the price of gold dropped a meager $1.40 to finish the day at $913.50 an ounce today.
Given that a report out of China also revealed that consumer prices fell 1.5 percent in April since the prior year, it is somewhat surprising that gold managed to stay about even.
"Given those reasons, I think gold held up reasonably well," said James Steel, an analyst with HSBC. "There's enough investment demand to keep it steady."
Analysis: This is a strong day for gold given the environment. Investors were selling off profits and the dollar strengthened. The strength of the dollar is typically inverse of the direction of gold.
"Gold prices little changed as dollar rises"
Author: Sara Lepro
Website: Google.com
Main Points: On a day in which the dollar strengthened and stocks declined, the price of gold dropped a meager $1.40 to finish the day at $913.50 an ounce today.
Given that a report out of China also revealed that consumer prices fell 1.5 percent in April since the prior year, it is somewhat surprising that gold managed to stay about even.
"Given those reasons, I think gold held up reasonably well," said James Steel, an analyst with HSBC. "There's enough investment demand to keep it steady."
Analysis: This is a strong day for gold given the environment. Investors were selling off profits and the dollar strengthened. The strength of the dollar is typically inverse of the direction of gold.
Friday, May 8, 2009
Today in Gold: Friday, May 8
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices hold steady as Wall Street rallies"
Author: Sara Lepro
Website: Google.com
Main Points: Gold for June delivery held ground today, dropping 60 cents to finish the session at $914.90 an ounce. The price of gold was up 3 percent for the week.
Though the dollar did weaken, gold was held back by an otherwise optimistic day on Wall Street. The government's report that 10 banks will need to raise an additional $75 Billion was actually better than expected, and it was also revealed that fewer jobs were eliminated last month.
Analysis: More evidence of the sensitivity of the gold price. The dollar weakened, which is typically enough for the price of gold to go up. However, since economic news from the government wasn't as bad as expected, gold remained steady. Considering this apparent stabilization of the economy, you have to wonder if the price of gold is peaking. That, of course, depends partly on the role of potential inflation down the road.
"Gold prices hold steady as Wall Street rallies"
Author: Sara Lepro
Website: Google.com
Main Points: Gold for June delivery held ground today, dropping 60 cents to finish the session at $914.90 an ounce. The price of gold was up 3 percent for the week.
Though the dollar did weaken, gold was held back by an otherwise optimistic day on Wall Street. The government's report that 10 banks will need to raise an additional $75 Billion was actually better than expected, and it was also revealed that fewer jobs were eliminated last month.
Analysis: More evidence of the sensitivity of the gold price. The dollar weakened, which is typically enough for the price of gold to go up. However, since economic news from the government wasn't as bad as expected, gold remained steady. Considering this apparent stabilization of the economy, you have to wonder if the price of gold is peaking. That, of course, depends partly on the role of potential inflation down the road.
Thursday, May 7, 2009
Today in Gold: Thursday, May 7
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"If the Gold Price Closes Above 920 it Will Run Long and Hard"
Website: GoldPrice.com
Main Points: The price of gold was up $4.50 to settle at $915.00 an ounce today, in light of a further weakened dollar and down stock market. GoldPrice projects that if gold finishes a session above $920, the sky's the limit.
Analysis: No actual numbers given or specific reasons why gold would suddenly run free if it could escape the stranglehold of $920. We've heard many make similar predictions based on thresholds that haven't come to fruition. We'll have to wait and see.
"Gold Prices will hit $1,500 in 'two to three years'"
Author: Goldbug
Website: BullionVault.com
Main Points: According to an article quoted from Bloomberg, Aaron Smith of Superfund Financial Singapore claims that the price of gold could rise to $1,500 during the next few years, driven largely by a further weakening dollar.
Analysis: Following are a list of the times BullionVault has been quoted in this blog:
4/27: "China buying 'could push Gold Prices past $1,000 per oz'"
4/20: "Gold Prices 'could rise to $1,500 per oz'"
4/15: "Gold Prices 'to surge' at end of bull run"
4/9: "Gold Prices may rise by 'thousands of dollars' in the long term"
3/12: "Numis increases 2009 Gold Price forecast"
3/2: "Gold Price to stay high due to economic 'panic'"
There's a theme here. Maybe they are just sticking to their story, which is commendable. But keep in mind that we've never quoted BullionVault on a story that they or anyone have a negative outlook on gold.
"If the Gold Price Closes Above 920 it Will Run Long and Hard"
Website: GoldPrice.com
Main Points: The price of gold was up $4.50 to settle at $915.00 an ounce today, in light of a further weakened dollar and down stock market. GoldPrice projects that if gold finishes a session above $920, the sky's the limit.
Analysis: No actual numbers given or specific reasons why gold would suddenly run free if it could escape the stranglehold of $920. We've heard many make similar predictions based on thresholds that haven't come to fruition. We'll have to wait and see.
"Gold Prices will hit $1,500 in 'two to three years'"
Author: Goldbug
Website: BullionVault.com
Main Points: According to an article quoted from Bloomberg, Aaron Smith of Superfund Financial Singapore claims that the price of gold could rise to $1,500 during the next few years, driven largely by a further weakening dollar.
Analysis: Following are a list of the times BullionVault has been quoted in this blog:
4/27: "China buying 'could push Gold Prices past $1,000 per oz'"
4/20: "Gold Prices 'could rise to $1,500 per oz'"
4/15: "Gold Prices 'to surge' at end of bull run"
4/9: "Gold Prices may rise by 'thousands of dollars' in the long term"
3/12: "Numis increases 2009 Gold Price forecast"
3/2: "Gold Price to stay high due to economic 'panic'"
There's a theme here. Maybe they are just sticking to their story, which is commendable. But keep in mind that we've never quoted BullionVault on a story that they or anyone have a negative outlook on gold.
Wednesday, May 6, 2009
Today in Gold: Wednesday, May 6
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"The Gold Price is Creeping and the Silver Price is Leaping Up"
Website: GoldPrice.com
Main Points: Gold nudged up $6.80 to end the session at $910.50 an ounce today. While stocks were up, the dollar weakened, thereby driving the gold rally.
GoldPrice believes the yellow metal still has a shot at $1,000 an ounce, saying, "Ultimately gold must pass 967, the March intraday high, to set up for another attack on $1,000.00."
Analysis: Eh. We've heard this before. Anyone with a stake in gold is bullish on the investment. Anyone without bias is either unsure, predicting little change, or expecting a significant drop in the near future.
Don't wait around for the next increase to $1,000 an ounce. If you own gold jewelry and you need money, there is no reason to risk another drop.
"The Gold Price is Creeping and the Silver Price is Leaping Up"
Website: GoldPrice.com
Main Points: Gold nudged up $6.80 to end the session at $910.50 an ounce today. While stocks were up, the dollar weakened, thereby driving the gold rally.
GoldPrice believes the yellow metal still has a shot at $1,000 an ounce, saying, "Ultimately gold must pass 967, the March intraday high, to set up for another attack on $1,000.00."
Analysis: Eh. We've heard this before. Anyone with a stake in gold is bullish on the investment. Anyone without bias is either unsure, predicting little change, or expecting a significant drop in the near future.
Don't wait around for the next increase to $1,000 an ounce. If you own gold jewelry and you need money, there is no reason to risk another drop.
Tuesday, May 5, 2009
Today in Gold: Tuesday, May 5
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"Gold prices little changed as demand weakens"
Author: Sara Lepro
Website: Google.com
Main Points: Although the price of gold rose as high as $916.70 an ounce today, it settled at $904.30, a modest $2.10 rise.
According to Tom Pawlicki, commodities analyst with MF Global Research, the initial rise was due to an expectation that the stock market would take a hit after yesterday's jump. When it was clear the effects would be minimal, gold dropped back around the session's starting point.
Analysis: Barring any major news, expect the price of gold to plateau for the time being. Of course, as reported yesterday, if the IMF goes through with its sale of 403 metric tons of gold, the price could drop sharply. Otherwise, the price of gold should rise with an improved economy, which should precede inflation.
"Gold prices little changed as demand weakens"
Author: Sara Lepro
Website: Google.com
Main Points: Although the price of gold rose as high as $916.70 an ounce today, it settled at $904.30, a modest $2.10 rise.
According to Tom Pawlicki, commodities analyst with MF Global Research, the initial rise was due to an expectation that the stock market would take a hit after yesterday's jump. When it was clear the effects would be minimal, gold dropped back around the session's starting point.
Analysis: Barring any major news, expect the price of gold to plateau for the time being. Of course, as reported yesterday, if the IMF goes through with its sale of 403 metric tons of gold, the price could drop sharply. Otherwise, the price of gold should rise with an improved economy, which should precede inflation.
Monday, May 4, 2009
Today in Gold: Monday, May 4
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"PRECIOUS METALS: Comex Gold Lifted By Inflation Fears, Charts"
Author: Allen Sykora
Website: WSJ.com
Main Points: Gold finished the day at $902.20 an ounce, up $14 since Friday. Holidays in London and Tokyo made it a quiet day overall, but the rise in the gold price is attributed to a weakened dollar and inflationary fears.
With signs pointing to a rebounding economy, inflation could be right around the corner. And, as has been established, gold is often purchased as a hedge against inflation.
"We're seeing more indications of perhaps a bottoming in the economy," said Bill O'Neill of LOGIC Advisors. "So there is an increasing - and it will continue to increase - concern surrounding inflation potential."
Analysis: The trend the past few weeks is that gold is unable to sustain momentum above $10-20 over $900 and tends to bottom out around $880-890. So, if the trend continues, gold could potentially rise again tomorrow, but its immediate ceiling may be limited.
"Gold prices may go to a bottom: Jim Rogers"
Author:
Website: CommodityOnline.com
Main Points: According to commodities investor Jim Rogers, the International Monetary Fund's decision to sell 403 metric tons of gold could cause the price of gold to plunge to or below $700 an ounce.
"The fact is that IMF is trying to get permission from everybody to sell gold," said Rogers. "I don’t know it will succeed or not. But if and when IMF sells its gold, gold prices may go to a bottom. Who knows? It may go down to $700. IMF has got a lot of gold to sell. If it does, I hope I'm brave enough and smart enough to buy more."
The IMF is the largest holder of gold behind the US and Germany. Therefore, such an action would make a significant impact on the market.
Rogers owns some gold, but says he won't buy more until the price drops.
Analysis: In other words, gold is at or near its peak. Something to keep in mind is that the IMF first proposed such a sale in 2007 and it was approved in 2008. It hasn't yet happened -- and it may not happen. But if it does, the price will drop quickly due to new supply in the system.
"PRECIOUS METALS: Comex Gold Lifted By Inflation Fears, Charts"
Author: Allen Sykora
Website: WSJ.com
Main Points: Gold finished the day at $902.20 an ounce, up $14 since Friday. Holidays in London and Tokyo made it a quiet day overall, but the rise in the gold price is attributed to a weakened dollar and inflationary fears.
With signs pointing to a rebounding economy, inflation could be right around the corner. And, as has been established, gold is often purchased as a hedge against inflation.
"We're seeing more indications of perhaps a bottoming in the economy," said Bill O'Neill of LOGIC Advisors. "So there is an increasing - and it will continue to increase - concern surrounding inflation potential."
Analysis: The trend the past few weeks is that gold is unable to sustain momentum above $10-20 over $900 and tends to bottom out around $880-890. So, if the trend continues, gold could potentially rise again tomorrow, but its immediate ceiling may be limited.
"Gold prices may go to a bottom: Jim Rogers"
Author:
Website: CommodityOnline.com
Main Points: According to commodities investor Jim Rogers, the International Monetary Fund's decision to sell 403 metric tons of gold could cause the price of gold to plunge to or below $700 an ounce.
"The fact is that IMF is trying to get permission from everybody to sell gold," said Rogers. "I don’t know it will succeed or not. But if and when IMF sells its gold, gold prices may go to a bottom. Who knows? It may go down to $700. IMF has got a lot of gold to sell. If it does, I hope I'm brave enough and smart enough to buy more."
The IMF is the largest holder of gold behind the US and Germany. Therefore, such an action would make a significant impact on the market.
Rogers owns some gold, but says he won't buy more until the price drops.
Analysis: In other words, gold is at or near its peak. Something to keep in mind is that the IMF first proposed such a sale in 2007 and it was approved in 2008. It hasn't yet happened -- and it may not happen. But if it does, the price will drop quickly due to new supply in the system.
Friday, May 1, 2009
Today in Gold: Friday, May 1
Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"PRECIOUS METALS: Comex Gold Dims As Risk Appetite Rises"
Author: Matt Whittaker
Website: WSJ.com
Main Points: Gold dropped $3 to finish the week at $888.20 an ounce today. Investors simply have more appetite for risk, and are therefore preferring other high reward options.
Analysis: Gold couldn't sustain $900 an ounce and it couldn't keep any momentum amid swine flu fears. Gold really does appear to be capped since there's not much more that could be thrown at the economy right now (well, it could theoretically always get worse) to provide a better environment for gold. It may again rise above $900 an ounce, but $1,000 an ounce in the near future seems to look less likely by the day.
"Employee accused of stealing up to $12 million in gold"
Author: Edmund DeMarche
Website: CNN.com
Main Points: Teresa Tambunting, 50, of Scarsdale, New York, is accused of stealing as much as $12 Million in gold from Jacmel Jewelry, a Long Island, New York business.
An employee with the company for 28 years, Tambunting had been vault manager since 1991. It is thought that she created pockets in her purse as ways to sneak the gold. It is not known for how long she had been stealing it.
After determining that the vault was missing $12 Million in gold, Tambunting brought a suitcase containing 66 pounds of the metal, worth less than $1 Million. A search of her residence revealed an additional 450 pounds of gold.
Analysis: Not a typical featured article on this blog, but a fascinating story. How long did she have that gold? What did she plan to do with it? It's quite amazing that someone thought that they could get away with $12 Million of gold.
Also a lesson learned by jewelers when it comes to security. Clearly, the controls could have been much tighter. At Cash4Gold, for example, no personal clothing or accessories are allowed within the building. All employees wear smocks, go through metal detectors and security wands upon entrance and exit, and have security guards and cameras watching them at all times.
"PRECIOUS METALS: Comex Gold Dims As Risk Appetite Rises"
Author: Matt Whittaker
Website: WSJ.com
Main Points: Gold dropped $3 to finish the week at $888.20 an ounce today. Investors simply have more appetite for risk, and are therefore preferring other high reward options.
Analysis: Gold couldn't sustain $900 an ounce and it couldn't keep any momentum amid swine flu fears. Gold really does appear to be capped since there's not much more that could be thrown at the economy right now (well, it could theoretically always get worse) to provide a better environment for gold. It may again rise above $900 an ounce, but $1,000 an ounce in the near future seems to look less likely by the day.
"Employee accused of stealing up to $12 million in gold"
Author: Edmund DeMarche
Website: CNN.com
Main Points: Teresa Tambunting, 50, of Scarsdale, New York, is accused of stealing as much as $12 Million in gold from Jacmel Jewelry, a Long Island, New York business.
An employee with the company for 28 years, Tambunting had been vault manager since 1991. It is thought that she created pockets in her purse as ways to sneak the gold. It is not known for how long she had been stealing it.
After determining that the vault was missing $12 Million in gold, Tambunting brought a suitcase containing 66 pounds of the metal, worth less than $1 Million. A search of her residence revealed an additional 450 pounds of gold.
Analysis: Not a typical featured article on this blog, but a fascinating story. How long did she have that gold? What did she plan to do with it? It's quite amazing that someone thought that they could get away with $12 Million of gold.
Also a lesson learned by jewelers when it comes to security. Clearly, the controls could have been much tighter. At Cash4Gold, for example, no personal clothing or accessories are allowed within the building. All employees wear smocks, go through metal detectors and security wands upon entrance and exit, and have security guards and cameras watching them at all times.
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