Gold to remain volatile

Gold erased four days of gains on Friday on the back of much stronger than expected US employment growth, a rebound in the dollar and a sharp fall in US treasury prices.

The market posted its worst daily performance since the end of last year. Read more

Gold, silver, palladium, platinum outlook

The January non-farm-payroll in the United States has been significantly better than expected. This has helped stock markets around the world to continue their excellent start into 2012. With 243,000 more people joining the ranks of the employed, the unemployment rate in the US has been pushed down to 8.3 per cent. This has raised concerns that the Federal Reserve Bank might have to start raising interest rates well before the recently published end of 2014. It also negates immediate expectations of the potential introduction of Quantitative Easing 3 (QE3), and these factors have triggered some profit taking in the precious metals sector, most notably in gold. Read more

Lack of inflation – negative factor for silver price

Last week, optimistic investors continued to hike demand for the dual-purpose precious metal, lifting spot silver prices higher for the fourth consecutive week. With a firm footing over the $30 mark, the white metal has provided good profit-taking opportunities since the beginning of the year. Read more

Bullish sentiment on gold as hedge against inflation

Last week, gold provided additional profit taking opportunities as it reached a seven week high.

A weakening US dollar encouraged investors to renew their safe haven interest in the yellow metal, but temporary lack of Chinese demand due to public holidays kept the gains moderate. The decision by the U.S. Federal Reserve to push back the date for any increases in its benchmark interest rate only fuelled investor appetite, pushing the gold prices above $1700 for the first time in more than five weeks. Read more

Precious Metals bullish in the week ahead

Precious metals are seen broadly bullish in the week ahead, according to the report of Gerhard Schubert, Head of Precious Metals, Emirates NBD.

Gold: 1739.00 – up US $73 since last week. Gold has moved decisively to the upside and the comments from the Federal Reserve Bank have provided the spark to overcome the resistance levels around US $1670. The outlook of at least another two years in a low interest environment, has cemented the role of gold as an asset class in investor’s minds. The diversification efforts from the institutional participants will support gold on dips and provide vital support for the market. Read more

Gold decade-long bull run nears the end

Gold is nearing the end of a decade-long run that has lifted prices by more than 600 percent, some market observers believe.

The yellow metal has been a top-performing asset since 2001, as portfolio diversification, concerns over sovereign risk and rock-bottom interest rates aided to push prices from a low around $250 an ounce in 2001 to a height above $1,920 in September 2011. Read more

Time to Buy Gold

As we start the new year we enter into a unique opportunity to buy gold as it is beginning to show various signs of recovery from the recent correction during the final months of 2011. Over the past 3 years there has been at least 3 other times when the price of gold has corrected itself in such a drastic manner. Each time though, the recovery took the metal to new record highs: with 10-20% drops followed by 50-85% increases. What will be the magnitude of this current recovery will only be determined by the market however, what can be said confidently (and with consensus) is that gold will recover as it does time and time again.

Morgan Stanley for example, lists gold among its “favorite longs” and forecast prices of $2200 an ounce. “We believe the defensive nature of gold…will create significant investment demand as investors look for safe havens in a period of risk aversion.” Read more

Silver outshone gold

Last week, silver extended its gains for the third consecutive week taking its cue from gold.

The past year’s volatility had many investors reduce demand for sliver, but recent developments have lifted the dual purpose metal to above $30 / oz. With the exception of Monday, spot prices closed above $30 every single day. Read more

Gold prices continue on the way up

Last week, precious metals were poised to register a third continuous weekly gain, judging from the up trend during most of the trading sessions.

After closing at $1660.60 on Wednesday, its highest level since middle of December, gold continued its way up, before a fading euro rally pulled spot prices lower during the second half of the week. Read more

Precious Metals Bullish, ENBD

Gold: US$1666.00 – up US$27 since last week. Gold keeps up the good work, and the help from the other precious metals has been evident in order for Gold to overcome the US$1650’s resistance levels. Silver in particular, has been instrumental in Friday’s Gold rally, as Silver inspired the Gold market to close the week on or near the highs of the week. Physical buying has been solid, and the much discussed huge Gold imports from China through Hong Kong have also helped the sentiment. Next week is going to be quieter due to the closure of the Chinese markets for the Chinese New Year. Read more

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