8/8/2014 8:16:20 AM By: Ryan Schwimmer

 

PRICES WHIPSAW ON GEOPOLITICS, DATA

The Gold price hit a 3 1/2 year high earlier this morning after last night&rsquo s announcement that President Barack Obama authorized air strikes in Iraq. Sharps Pixley CEO Ross Norman said, " We keep seeing some strength in Gold prices on geopolitical tensions but we constantly see rallies fade... before the important $1,345 [per ounce] level. We' ve come through some technical levels but we keep losing momentum on the upside ... Gold keeps reverting to a mean, which is killing enthusiasm ... only very serious escalation of tensions in Ukraine or the Middle East could drive price prices higher."

The Gold price turned lower after U.S. productivity numbers were released, but started to recover shortly thereafter as the U.S. military began an airstrike on ISIS artillery in Iraq. Evan Lucas, market strategist at IG, said, " Any signs that the U.S. is going to have to support the Iraqi military and security forces against the rise of ISIS will fuel market suspicion of another U.S.-led offense in the country." U.S. stock futures also bobbed higher and lower after the data, airstrike announcement, and a report showing Russia could be aiming to soothe tensions with Ukraine.

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,311.30, Down $1.20.
• Silver, $19.97, Down $0.04.

8/7/2014 3:58:27 PM By: Ted Prince

 

GOLD HIGHER, STOCKS RETREAT AS U.S. THREATENS FURTHER SANCTIONS ON PUTIN

The Gold price is trading higher for the second straight session as ongoing weakness among U.S. equities increased the safe-haven demand for Precious Metals.  The retreat from stocks into Gold and Silver is partly influenced by escalating geopolitical tension surrounding Ukraine.  As Russian forces mobilize near the border of Ukraine, the U.S. has threatened increased sanctions on Russia.  The rise in crises in the Middle East and Ukraine has been the sole motivator of a higher Gold price this year.  The yellow metal has risen 9.2 percent year-to-date while upbeat economic factors have done much to quell any significant upward momentum for Precious Metals.

U.S. stocks continue their descent on Thursday as the crisis in Ukraine continues to escalate, forcing many investors away from riskier assets.  " Putin is still the big wild card in all of this," Chris Gaffney, senior market strategist at EverBank Wealth Management, said. " If tensions escalate, what does that do to the markets: It drives people to dollars, and into Treasuries for liquidity safe haven, and keeps a lid on interest rates here in the U.S.," he added.  The threat of military violence in certain sections of the world is always a cause of bearishness when it comes to equities markets.  However, the rising tension that suppresses stocks lends to higher prices for Gold as nervous investors seek out the asset as a safe-haven against geopolitical uncertainty. 

At 5:00 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,314.00 Up $5.80
• Silver, $20.00 Down $0.05

Daily

 

 

Chart Prepared by Jamie Saettele, CMT 

-" The decline from the top is impulsive. The implication is for a minor low to form and for gold to trade back into 1315/20 before trading lower again (1270/80 is estimated support)." Gold has traded into resistance (slightly above as of Thursday). If a larger decline is underway, then gold should turn down between now and 1335.

 

-" Weakness has stalled at the 200 DMA (also the 61.8% of the advance from the June low). I&rsquo m looking for a turn higher." Look towards 1366.

 

 

8/7/2014 9:08:52 AM By: Ryan Schwimmer

 

GOLD RETAINS $1,300 PER OUNCE MARK

The Gold price is lower this morning, though it still clings to the psychological $1,300 per ounce level. As the dollar firms,  pressure increases on the Gold price. Deutsche Bank global head of commodity research Michael Lewis said, " There are a lot of crosswinds going on for Gold. You have long-term U.S. real yields going down to new lows and geopolitics, which should be supportive, but on the flip side you have dollar strength coming through and equities hitting new highs. Those various forces are working against each other, which is maybe why we' re still in this rangebound market."

U.S. stock futures are pointing toward a positive open for Wall Street after the weekly jobless claims report showed a  decline in the number of new claims filed  last week. The European Central Bank expectedly announced it would maintain current interest rates in the eurozone. Marvin Barth and Bill Diviney of Barclays Research wrote, " Global risk sentiment remains weak, led by European growth concerns as tension escalations around the Ukraine situation."

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,305.90, Down $2.30.
• Silver, $19.96, Down $0.07.

8/6/2014 4:49:40 PM By: Paul Stevens

 

GOLD HOLDS AS RUSSIAN FEARS MOUNT

Precious Metal prices continued to show strength through afternoon trading. As tensions between Ukraine and Russia escalate, investors are avoiding riskier assets and turning to Gold as a safe haven. Charlie Bilello, director of research at New York-based Pension Partners LLC, said in a phone interview, " Gold is getting the fear bid. Concern about a correction in the equity market is also bringing some people to Gold."

As concern continues to mount over Russia' s decision to build up their troops along the Ukraine border, European investors are running from risk and causing European stocks to fall. When asked his opinion on the 20,000 additional Russian troops and its effect on the market, Charles Schwab managing director of trading and derivatives Randy Frederick said the situation " is certainly going to spook the market and we saw a little of that yesterday."

At 5 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,306.90 Up $21.60
• Silver, $20.06 Up $0.22

8/6/2014 10:11:47 AM By: Ryan Schwimmer

 

GOLD RECLAIMS $1,300 PER OUNCE MARK

The Gold price is reacting strongly to increased tensions between Russia and Ukraine as it reclaimed the $1,300 per ounce mark. Tensions increased after Russian President Vladimir Putin warned of retaliatory measures against sanctions put in place by the U.S. and Europe. With Gold' s safe haven appeal primarily boosting the price, if U.S. stocks continue to fall, some expect further gains for the yellow metal.

In addition to geopolitical tensions, news that Italy has unexpectedly fallen back into recession is another reason stocks are lower in premarket trade. Evan Lucas, market strategist at IG, said, " If Poland is indeed right that Russia is about to increase its presence in the east of Ukraine, buyers of all things risk will disappear fast as this is an undefinable event with an undefinable outcome for markets."

At 9 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,303.80, Up $18.50.
• Silver, $19.98, Up $0.14.

 

8/5/2014 4:20:42 PM By: Ted Prince

 

GOLD BACK TO EVEN AS STOCK SELLOFF BOOSTS DEMAND

The Gold price has rebounded from morning lows as a dip in bond yields pushed the dollar lower and a broad selloff of equities increased demand for bullion.  Though the yellow metal has benefited primarily from the presence of geopolitical turmoil in Ukraine and the Middle East during 2014, economic motivators will ultimately need to facilitate the advance of higher Precious Metals prices.  " We suspect that while political outbreaks provide the occasional jolt, it is the economic crises that seem to have more long-lasting impact," INTL FCStone analyst Edward Meir, said.  Strong U.S. economic data has been jousting with safe-haven demand gained from crises abroad to keep Gold and Silver range-bound for most of the year.

U.S. stocks fell again on Tuesday as escalating concern over tensions in Ukraine forced equities to erase gains made from yesterday' s rebound.  Anxiety surrounding the possibility of a Russian invasion of Ukraine sent many high-frequency traders to the sidelines and exacerbated the selloff of stocks as the S& P 500 dipped below last week&rsquo s closing level.  As problems mount overseas, U.S. investors will continue to eye military developments, comments from U.S. Fed officials and upcoming market activity to determine how to structure their portfolios in the coming weeks and months.

At 5 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,289.60 Up $0.70
• Silver, $19.79 Down $0.45

Daily

 

 

Chart Prepared by Jamie Saettele, CMT 

--The decline from the top is impulsive. The implication is for a minor low to form and for gold to trade back into 1315/20 before trading lower again (1270/80 is estimated support). Gold has traded into resistance (slightly above as of Thursday). If a larger decline is underway, then gold should turn down between now and 1335."

 

-- Weakness has stalled at the 200 DMA (also the 61.8% of the advance from the June low). I&rsquo m looking for a turn higher.