Gold and silver prices may remain elevated

Gold and silver prices may remain elevated this week, at least during the first few days. Investors remain interested in these metals, as portfolio diversifiers and safe havens in the face of greater concern over U.S. economic performance. Industrial commodities may move sideways. They weakened early last week as investors reduced their expectations for fabrication demand in the face of lower U.S. overall economic growth, but recovered late in the week as the markets moved away from the gloomy assessment. Investors realized U.S. economic conditions, while weakening, still were expanding, with the more important realization that economic conditions in the rest of the world still were in better shape. Even with the slower growth projected for China as the government there seeks to rein in growth demand still is expected to remain vibrant. Oil prices rose late last week in part on short-covering, and are vulnerable to declining once again based on ample supplies and some anticipated seasonal moderation in demand for distillates. Read more

Gold prices still on track to $1500/oz, according BofA Merrill Lynch

BofA Merrill Lynch Global Research maintains it’s 18-month $1500/oz target on gold in recent report, titled, “BofA ML Commodities – Global Metals Weekly”.

As it was  discussed in October 2008 Metals Strategist issue,  BofA Merrill Lynch still expects gold prices to hit $1500/oz over the next 18 months. More recently, they revised their average gold price forecasts in line with the target. Read more

Double-Dip Recession Is `Not Going to Happen’

Don Hays, founder of Hays Advisory Group, discusses his view of the European bank stress tests, the prospects of a double-dip recession and the possible implications of the U.S. mid-term elections for the economy. Hays speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.”

BofA Merrill Lynch Fund Manager Survey Finds Bear Market Sentiment Is Back

Investors have turned bearish in their outlook for the global economy and corporate earnings, according to the BofA Merrill Lynch Survey of Fund Managers for July.

The survey shows a net 12 percent of respondents predicting the global economy will deteriorate in the coming 12 months, the first negative forecast since February 2009. This represents a big turnaround from June when a net 24 percent forecast the economy to strengthen. Read more

NASDAQ Dubai’s Jeff Singer on Inside Business

Jeff Singer Chief Executive at NASDAQ Dubai talks about the listing of NASDAQ Dubai’s equities on the DFM trading platform.

Gold price touched its lowest level in seven weeks

Gold futures ended 1% lower on Tuesday, as the Euro strengthened and stocks advanced. The price reached below $1,200 an ounce for the first time since late May and touched its lowest level in seven weeks.

Gold for August delivery lost $12.60, or 1%, to $1,195.10 an ounce on  the New York Mercantile Exchange. Other metals traded higher, with copper and palladium leading the way.

The euro strengthened in foreign-exchange trading and with as bullion has tended to trade inversely to the currency in recent sessions,  investors offloaded gold bought in euros when that currency had fallen sharply. Read more

Barclays’s Gill Says Gold Prices a `Little Too High’

Jim Rogers says: “Bond Market Bubble Developing”

Gold price at record high

The gold price came within $2.82 of closing at an all-time high in the spot market, as fears that the economic recovery may slow toke over the investor’s sentiment.

The gold price finished at $1,254.48 per ounce, which is up 3.3% for June.

In the fifteen months, since  massive stimulus programs were deployed to stabilize and restart the economy, the gold prices has advanced 33%.

Gold stocks also made strong gains in the last week’s sessions, riding the gold price wave higher and getting some mild assistance from a stock market which reversed earlier losses to close modestly higher. Read more

“Buy Silver”, says Jim Rogers

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