Weekly Gold & Silver Market Recap – 1/24/2014

GOLD REMAINS AT SIX-WEEK HIGH

Lower equities and a weaker U.S. dollar buoyed Precious Metals at the beginning of the week. Though gains were modest, Gold futures traded at their highest levels in almost six weeks. “I think the worst of the outflows is behind us,” Danny Laidler, head of ETF Securities’ Australia and New Zealand business, said. “A lot of our clients are still holding onto Gold as a risk-event hedge.” Gold bugs will continue to eye metals prices as Chinese demand ahead of the Lunar New Year, coupled with other economic factors, could continue to boost the yellow metal.

INVESTORS ANTICIPATE EARNING RESULTS FOR FOURTH QUARTER

The U.S. stock market closed Monday in observance of Martin Luther King, Jr. Day. However, it was expected investors would be focused Tuesday as earnings season continues and several Dow Jones Industrial companies were slated to announce fourth quarter results. Strong earnings reports were needed to boost stocks as poor industrial output and weak employment data have weighed on equities to start 2014.

PRECIOUS METALS PRESSURED FROM QE SPECULATION

Precious Metals prices headed downward through mid-day trading Tuesday, giving back gains earned at the end of last week. Speculation of continued quantitative easing (QE) tapering, a stronger U.S. dollar and a downbeat price forecast for Gold this year have weighed on Precious Metals. Mike Cullinane, head of Treasuries trading with D.A. Davidson in St. Petersburg, Florida, said, “The view out there is there’s going to be continued tapering on a gradual basis. Another $10 billion in tapering is a logical way to go.”

THREE RISKS POSED TO STOCK MARKET

MarketWatch’s Jeff Reeves wrote about three risks that could crash the stock market  in 2014, the first being disappointing jobs numbers. Reeves wrote that December’s disappointing report (released at the beginning of this month) was an outlier due to the bad weather, but “of course, the second option is that December’s jobs numbers weren’t a fluke… Friday, Feb. 7 [is] going to be a big day for the markets when January jobs data hits.” The second risk is bad earnings. “Profit margins have been at record highs for a while and haven’t cracked, so why would they this earnings season? Or the next? That’s the million-dollar question, and a huge risk to watch.” A lending drought is also a large concern for the markets. “If reports continue to show slowing lending in the U.S. and around the world, it could get painful for investors.”

PLATINUM REMAINS STRONG AS STRIKES BEGIN

Precious Metals prices fell slightly Wednesday as the U.S. dollar and equities strengthened over the course of the day, which encouraged some profit taking. Gold has already felt pressure this year as the U.S. economy continues to reflect growth and stability, along with concerns of further stimulus reduction measures. The next Federal Reserve policy meeting is set for January 28-29, and the market predicts that the Fed will announce its second round of tapering. Platinum, on the other hand, was the only metal with positive performance Wednesday, due mainly to Impala Platinum shutting down production at all of its South African operations a day ahead of planned strikes concerning wages.

EUROPE TO EXIT DEBT CRISIS SOON

Europe’s financial crisis has been a major concern for several years; however some economists suggest they may be exiting their fiscal issues soon. For instance, Switzerland appears to have escaped its recessionary bonds and may begin to show growth again. Sir Martin Sorrell, CEO at WPP Group and noted British businessman, said, “I think the answer is yes-ish. There are two Europes. There’s a Western Europe and there’s an Eastern Europe. I’m very bullish about Eastern Europe,” which includes Germany, Poland and Russia. German economist Axel Weber said, “Everyone expects the eurozone to grow, so that’s good. After several years of crisis, it’s quite normal to look on the bright side of things, to get excited about improvements. It may be too one-sided of a view.”

WEAK JOBLESS CLAIMS SUPPORTS GOLD

The Gold price overturned Wednesday’s losses on Thursday as a weaker U.S. dollar and a flat jobless claims report indicated economic growth is not as robust as predicted. Federal Reserve policymakers look to employment numbers as an overall gauge of domestic economic growth and use the data to determine the future of their quantitative easing (QE) program. This week’s downward revision of jobless claims projections marks the second week in a row that employment expectations were altered. As next week’s Federal Open Market Committee meeting approaches, jobs data will remain central to Fed officials’ decision to perpetuate QE or not.

GOLD PRODUCTION TO BE CUT IN 2014

As U.S. investors look to employment numbers, stock momentum and the Federal Reserve to gain insight into the future of Precious Metals prices, last year’s price drop has affected production of physical Gold. “The miners were mining at the highest possible cost because the Gold price was going up and when it stopped going up, they had to reduce that. So that means that they will mine less Gold,” Peter Hambro, chairman of Russian Gold mining company Petropavlovsk, said. With smaller scale mining operations closing up shop, larger firms like Petropavlovsk are cutting production back significantly this year. The diminished supply of physical Gold prompted Reuters to predict the yellow metal would be unable to slip much below current levels.

GOLD TRADING FLAT, STILL SET FOR FIFTH STRAIGHT WEEKLY GAIN

Precious Metals prices took a slight pullback Friday, though Gold was still poised for its fifth straight weekly gain. Even with today’s decline, an approaching Fed meeting and speculation that India will lower its import duty, many investors still have a positive outlook on Gold. Jeffrey Wright, managing director at H.C. Wainwright, said, “The existing pullback in equities markets has led to some ‘safe-haven’ buying, the potential for an increase in Gold imports to India if they lower the import duty, along with efforts in Europe to continue their own quantitative-easing policies are all supportive of Gold at the present time.”

 

Enhanced by Zemanta

Weekly Gold & Silver Market Recap – 5/10/2013

GOLD ENDS WEEK LOWER
As the week comes to a close, Gold is sitting at a two and a half week low. On Tuesday, the first of numerous reports that affected the price of Gold came out of Europe regarding formation of a banking union. This has caused a belief that there will be less financial risk in the region, which has in turn caused a drop in safe haven assets such as Gold. “Any indication that Europe is working towards a resolution is bad for Gold,” Adam Klopfenstein, a senior market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Money is flowing into riskier assets like equities.” The next move in the Gold price came on Wednesday when the U.S. weekly jobless claims fell to a five year low. Improved labor conditions tend to put pressure on the yellow metal due to the Federal Reserve’s preservation of a low federal funds rate as compared to the unemployment rate. If the Fed raises interest rates, the market perceives that as a sign they may also cut back on current monetary policy, which makes Gold shine as a safe haven asset. “Jobless claims were better than expected, indicative of a recovering U.S. economy, and the dollar is a little bit stronger … In that kind of environment you would expect Gold to come under pressure,” Deutsche Bank analyst Daniel Brebner said. The Gold price declined as the U.S. dollar strengthened against the yen and investors focused on Federal Reserve Chairman Ben Bernanke’s speech Friday morning. Expectations that Bernanke might reveal a plan to slow the Fed’s bond purchase program weighed on the metal as similar rumors have negatively impacted Gold in the past. Friday’s price dip drove Gold down 2.5 percent to its lowest level in two weeks.

GOLD STILL SHINES FOR MANY
Even in the face of lower Gold prices, many investors and market analysts believe the future for the yellow metal is strong. Investors have noticed the movement metals have experienced and continue to feel confident purchasing hard assets. New concerns come from the Federal Reserve’s proposal to modify quantitative easing (QE) based on recent positive economic data. “With the Fed’s recent commitment to stand ready to alter the pace of QE, based on employment and inflation expectations, bullion prices are likely to remain highly sensitive to changes in U.S. employment data,” HSBC said in a note. Andy Xie of MarketWatch believes that with growth stuck at about a two percent range and inflation seemingly rising in the future, the U.S. is in a period of stagflation. Xie wrote, “Despite its recent setback, Gold remains a big beneficiary of the current macro environment. It could make a new high in the current year and rise much higher in 2014. The Gold bull market will end when an inflation crisis pushes central bankers around the world to tighten aggressively… For the masses, Gold is the best inflation hedge.” Last month, Gold imports into China more than doubled, setting an all-time high. One of the most impressive things to note is that all of this happened before Gold’s price dropped in April. “This is quite out of expectation as all these imports were done before the market slump in April. Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April,” said Qu Mingyu, a trader at Bank of China, one of the country’s three largest bullion banks.

At 4:00 pm (EDT), the APMEX precious metals spot prices were:

Gold, $1445.30, Down $25.60.
Silver, $23.85, Down $0.15.
Platinum, $1491.80, Down $26.20.
Palladium, $709.00, Down $7.80.

For more APMEX reviews of daily and weekly Precious Metals market activities, visit our News and Commentaries page.

Weekly Gold & Silver Market Recap – 4/26/2013

PHYSICAL BUYERS DRIVE GOLD MARKET

After last week’s Gold and Silver prices hit a two year low, physical buyers jumped on the opportunity to buy at the reduced market pricing. That buying of Gold and Silver gave prices a boost this week. On Monday, the Gold price recovered some of the ground lost after last week’s major price drop as expectations for the metal remain positive among many investors. “As the price moved over $1,400 per ounce, physical traders, on the expectation that Gold could possibly correct back higher, rushed into Gold.” MKS Group Senior Vice President Frederic Panizzutti said. The demand for physical Gold along with continued support by central banks has helped buoy prices over the last few sessions. One of the driving factors of the increase in the Gold price this week was the U.S. durable goods report, which was lower than expected. “Overall, the weak tone of this report underscored the emerging narrative of a considerable slowing in economic growth momentum in March,” TD Securities senior economist Millan Mulraine said. Many economists blame the slowdown on the budget cuts that took place earlier in the year and believe businesses are being more hesitant due to the uncertainty in the economy. Gold climbed to its highest price in ten days during overnight trading on Thursday, hitting $1,447.66 an ounce. The increase is credited to a weaker dollar, firmer prices in other commodities and a ninth straight session of physical Precious Metals demand. Investors have also noted that Russian and Turkish central bank purchases, as reported by the International Monetary Fund, increased in March. Daily outflows from exchange traded funds (ETF) are keeping the largest Gold backed ETF, New York’s SPDR Gold Trust, at its lowest level since late 2009.

IS GOLD UNDERVALUED DUE TO ECONOMIC UNCERTAINTY?

Gold’s price movement over the past few weeks has the market questioning whether the bull run is over. Compared to fiat money, the yellow metal continues to be undervalued, according to Hinde Capital CEO Ben Davies, who believes Gold has held its ground throughout history and is currently being pressured by paper money. Author Detlev Schlichter said, “After 40 years of relentless paper money expansion and in particular 25 years of Fed-led global bubble finance, the dislocations in the global financial system are so massive that nobody in power dares to turn off the monetary spigot and allow market forces to do their work, that is to price credit and to price risk according to the available pool of real savings and the potential for real income generation rather than according to the wishes of our master monetary planners.” The continued easing in the major global markets is not the only sign of uncertainty that investors are taking note of. Volatility in equities markets remains as many experts have cut corporate earnings projections for the second quarter. Economists who initially forecasted a 6.2 percent increase at the beginning of April have scaled back their predictions to 5.5 percent expansion in the coming quarter. “The earnings season has been enough to hold stocks where they are in light of some less than hoped for macro data,” Federated Investors Inc. fund manager Lawrence Creatura said. “Time will tell if it will remain enough as we move through what’s a seasonally more difficult time.” In Europe the debt crisis is spreading to the eurozone’s stronger economies now, according to German industrial giant Daimler, maker of Mercedes-Benz autos and trucks. Daimler said it is feeling the effects of the crisis in Germany, signaling the spread of the problem from the smaller countries to the eurozone’s economic powerhouse. High Frequency Economics chief economist Carl B. Weinberg said, “The EU has made Europe a much more cohesive economy, which is good when things are going up, but when things are going down the multiplier is very strong. An outgoing tide lowers all ships.”

At 5:00 pm (EDT), the APMEX precious metals spot prices were:

  • Gold, $1463.70, Down $0.80.
  • Silver, $24.04, Down $0.21.
  • Platinum, $1479.30, Up $13.70.
  • Palladium, $683.00, Down $0.40.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 7 p.m. (CDT)! Or call us Fridays until 5 p.m. (CDT)! If you have any questions about investing in precious metals or simply would prefer to place your order by telephone, we are here to help.

 

Spot Price For Silver Now Down Over 80 Cents – Act Now

Silver Prices Are On The Move
Take Advantage Of This Buying Opportunity!

If you’ve been waiting for a price dip in order to begin or expand your holdings in Silver, now may be a good time to act. Silver prices have pulled back creating opportunities for savvy investors.

SILVER REMAINS A VALUABLE ASSET

Given the ongoing uncertainty of the global markets and today’s weakness in Silver prices, now may be the time to build your investment. Read more about Precious Metals prices in our Daily Gold & Silver Market Report, always updated three times throughout the day.

LOCK IN YOUR PRICE WHEN YOU ORDER FROM APMEX

When you buy Silver from APMEX, the price listed is the price you pay (not including shipping) — locked in at the time of your order. There are no commissions and no hidden fees. That means you can take maximum advantage of the recent price pullback in Silver to buy your favorite items.

DON’T MISS THIS BUYING OPPORTUNITY IN SILVER

2013 1 oz Silver American Eagle coins

  • Size, weight and purity are guaranteed by the U.S. government.
  • Eligible for Precious Metals IRAs.
  • Multiples of 20 are packaged in mint tubes. Multiples of 500 are packaged in “Monster Boxes.”
  • .999 fine Silver in Brilliant Uncirculated condition
  • Feature stunning, patriotic designs — the classic Walking Liberty on the obverse, or front, and an American eagle, the very symbol of our nation’s freedom, on the reverse

2013 1 oz Silver Canadian Maple coins

  • Contains 1 oz of .9999 fine Silver.
  • Multiples of 25 are packaged in mint tubes. Multiples of 500 are packaged in “Monster Boxes.” All other coins will be in protective plastic flips.
  • Eligible for Precious Metals IRAs.
  • Obverse: Right-facing profile of Queen Elizabeth II, along with the year and face value.
  • Reverse: A large, single maple leaf with the weight and purity.
  • Guaranteed by the Royal Canadian Mint.

Silver Plunges Below $30 Act Now

SIVLER PLUNGES BELOW $30 FOR THE FIRST TIME IN MONTHS. TAKE ADVANTAGE OF THIS BUYING OPPORTUNITY.

If you’ve been waiting for a price dip in order to begin or expand your holdings in Silver, now may be a good time to act. Silver prices have pulled back creating opportunities for savvy collectors.

SILVER REMAINS A VALUABLE ASSET

Given the ongoing uncertainty of the global markets and today’s weakness in Silver prices, now may be the time to build your investment. Read more about Precious Metals prices in our Daily Gold & Silver Market Report, always updated three times throughout the day.

LOCK IN YOUR PRICE WHEN YOU ORDER FROM APMEX

When you buy Silver from APMEX, the price listed is the price you pay (not including shipping) — locked in at the time of your order. There are no commissions and no hidden fees. That means you can take maximum advantage of the recent price pullback in Silver to buy your favorite items.

DON’T MISS THIS BUYING OPPORTUNITY IN SILVER

Debt-to-GDP and Misdiagnosing a Bubble Economy’s Ills. Guest Post by Tim Iacono

A few economists seem to be catching on, but not nearly enough…

About a year ago, St. Louis Fed President James Bullard wondered whether too much faith was being placed in what models say economic growth should be but, as detailed in When Models Trump Common Sense, he was rebuffed by nearly the entire establishment (or at least “a small army of bloggers with PhDs in economics”).

Now, in a story at Project Syndicate, Raghuram Rajan, Professor of Finance at the University of Chicago Booth School of Business and the IMF’s youngest-ever chief economist tries to explain Why Stimulus Has Failed and, in doing so, questions whether the root cause of our current economic troubles is simply a lack of demand, casting himself as an Austrian sympathizer in the process: Read more…

About Tim:

Tim Iacono is the founder of the investment website ‘Iacono Research’ (http://iaconoresearch.com/), a subscription service providing market commentary and investment advisory services specializing in natural resources. He also writes a financial blog, formerly known as ‘The Mess That Greenspan Made’, a sometimes irreverent look at the many and varied after-effects of the Greenspan term at the Federal Reserve.

Disclaimer:

The views expressed in the posts and comments of this blog do not necessarily reflect APMEX Inc. They should be understood as the personal opinions of the author. No information on this blog will be understood as official.

 

How to Buy Gold and Silver: Basic Terms Explained

If you are thinking about investing in metals like Gold and Silver watch this video. Once you know some basic terms about buying and selling Precious Metals go online to APMEX.COM http://po.st/cJUTkP and start shopping. If you have any questions, call us toll free at 1-800-375-9006. You will learn about basic precious metals investing terms like troy ounce, ask, bid, spot, premium and grading.