Gold, commodity prices fell to a 5-month low

Gold “Testing $1550″ as Stocks Sink, Bund Yields Vanish, Investors Flee Risk for Cash

The wholesale gold price bounced from a 4-session low at $1552 per ounce Wednesday morning in London, rallying with the Euro currency as world stock markets slumped.

In New York, gold for June delivery  sank $38, or 2.4%, at $1,538.60 an ounce, extending the week’s decline into a third session. Earlier, the contract fell by as much as $43.80 to touch a low of $1,532.80.

The Athens stock market hit a fresh 22-year low, and Wall Street futures pointed 0.7% down, while US Treasuries rose sharply together with Japanese, German and UK bonds. Read more

Physical demand for gold rises

Physical Demand for Gold “Rises as Consumer Adjust” But Technical Analysts See “Another Leg Lower”

 Wholesale prices to buy gold fell further from $1600 an ounce in London on Tuesday morning, finding a floor at $1575 as European stock markets rose for the second day running after falling for two weeks in succession. Read more

Gold speculators slash bullish bets

QE3 “not off the table” as Euro crisis gives gold “significant upside” but speculators slash bullish bets

Wholesale market spot gold prices hit a 7-session high just below $1600 per ounce in London trade early Monday, before dropping back through last week’s finish at $1593 as European stock markets rose for the first time in two weeks. Read more

Gold, silver ripe to glitter again

Gold returns to safe-haven status

Given the strong performance of the US dollar during the past two weeks, and the relentless selling in everything else than the dollar, it may be a time for market scenario to change.

Major lows in September 2011, December 2011, and in May 2012 for both gold and silver have all the makings of the kind of threefold correction. Such development often anticipates a significant reversal to the upside, especially with the last May correction failing to take out the December lows in either ETF. Read more

Gold and other precious metals to regain positions

Gold will need to clear resistance level at US $ 1600 next week

 Moodys has downgraded 16 Spanish banks, whilst Fitch has downgraded Greece again. Greece goes to the polls on the 17th June, whilst a caretaker government has been established. The Philadelphia Fed Index numbers were released as a minus 5.8 figure, against the median expectation from analysts of a plus 10 figure.

The minutes of the Federal Open Market Committee meeting indicate that the Federal Reserve Bank is not excluding more stimuli for the economy, if needed. This might be in the form of more quantitative easing, but could also be in the form of a renewed Operation Twist. Operation Twist achieves a similar effect to quantitative easing, but without the negative public relations reverberations, according to other market watchers. Read more

Further losses in silver expected

Silver has only registered one positive weekly performance in the past eleven weeks.

The white metal has been caught up in the storm created by a deteriorating global growth outlook, weaker than forecast output from China, selling in the gold market and a move to safe haven assets.

The silver market broke beneath the psychologically important $30.00 level last week, as investors posted the worst weekly decline in eight weeks. Read more

Limited gains in silver, with no buy signal

During the past week, in three of the five trading sessions silver registered minor gains. It seems investors sentiment towards silver improved slightly.

However, the silver market has only ended higher on the week three times during the past twelve weeks. During the last one moth,  selling pressures have not been so strong and a band of congestion just above 31.00 continues to offer steady support. Read more

Precious metals stuck in narrow ranges

All in all, a disappointing week as the precious metals markets have been stuck in relatively narrow ranges.

Developments in Spain and the first round of the French election have been at the forefront of the business news. The Spanish 10 year bond auction went well, with a yield of 5.74 per cent and the issue was 2.4 times oversubscribed. The Spanish bond levels will be closely monitored by the investment community as worries continue about the sustainability of the Spanish debt situation. There have been comments from the French president Sarkozy, about widening the mandate of the ECB to include growth, but it has to be seen if this is still on the agenda after the French election has been decided. Read more

Silver investors strengthening positions

Silver ended slightly lower last week. The market is trending sideways, with silver posting gains three of the past six days, while registering three posting losses.

Investor indecision is apparent as silver registered its second inside week in a month last week. Read more

Gold and silver in the week ahead

It was the expected slow start into last week, with many countries still out for the Easter holiday, and the market returned fully only on Tuesday. The implications from the negative US non-farm-payroll figures was already absorbed and digested by the time the markets returned.

Developments in Spain have been among the major focus during last week with the yield for Spanish bonds rising up to the six per cent mark, and closing shy of that level for the weekend. The broad difficulties of the Spanish economy and austerity measures are so well publicised, that it is baffling where these sudden “surprises” in the mind of the investment community are coming from. Could this already be the arrival, or what we have to look forward to, of the “summer lethargy?” Read more

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