8/5/2014 8:13:18 AM By: Paul Stevens

 

METALS FLAT AS INVESTORS AWAIT DIRECTION

Precious Metals prices are trading relatively flat through early morning trading.    Although geopolitical tensions are continuing to rise  in the Middle East and other parts of the world,  investors are returning to stocks a week after a big dip in major indexes.  David Govett of Marex Spectrum said, " Psychologically, we are still below $1,300 and unless there is further serious unrest in any of the trouble spots in the world, I don&rsquo t believe there is a great deal of mileage on the upside."

Disappointing economic data out of China released Tuesday provided a small boost to Gold Prices.  The service sector slowed at a rapid pace in July and reached near its  lowest level in almost nine years, which hurt Asian stocks and boosted Gold.  Saxo Bank senior manager Ole Hansen said, " On the upside, $1,305 is the next level to watch, but in terms of economic data we don' t have much this week apart from the ECB (European Central Bank) on Thursday, which is expected to deliver a dovish message."

At 9:12 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,288.50, Down $0.50.
• Silver, $20.01, Down $0.24.

04 Aug ' 14

8/4/2014 4:08:52 PM By: Peter LaTona

 

PRICES ON THE RISE DESPITE FED DASHBOARD

Sara Eisen, writing for CNBC, brings an interesting view on inflation. She points out that now that we have heard the earnings report from more than three quarters of the companies, there is an easy to spot trend. Companies across all industries are raising prices on the consumer. Hershey and Mars are passing along rising costs of cocoa, dairy and nuts to the tune of 8 percent and 7 percent respectively. Kraft is raising prices between 5 percent and 12 percent on beef, turkey, cold cuts, and cheese. Restaurants, airline tickets, coffee, cars, shoes, and soft drinks are all going up. Even Netflix is increasing prices for new subscribers. The bottom line is that no matter what is showing up on the Fed dashboard, prices are going up and inflation is here. If there is a Fed misstep, could it be a golden age for Gold?

Strong earnings boosted stock prices today despite sharp drops in the high dividend paying utility stocks. August tends to be a quiet month so many traders are expecting weaker volumes the next several weeks. " The S& P has had a huge run, and it' s earned the right to sit for a bit. The key is to make sure selling remains somewhat contained," Adam Sarhan, chief executive of Sarhan Capital in New York, said. " We' re in a very strong bull market right now. Markets may retreat over the next few weeks as traders go on vacation and the Fed continues backing out of its bond-buying program. The real question becomes, will the Fed be able to transition and exit from QE3 gracefully?"

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

• Gold, $1,289.10 Down $5.70
• Silver, $20.19 Down $0.19

8/4/2014 8:44:59 AM By: Ryan Schwimmer

 

GOLD SHINING AS AN ALTERNATIVE INVESTMENT

Gold and Silver prices are relatively flat in morning trading as investors and  analysts try to predict  when the U.S. Federal Reserve will raise interest rates. Saxo Bank analyst Ole Hansen said, " ...[W]e are seeing bond yields falling again and stock markets have shown signs of weakness over the past week. This could potentially sway some investors back into Gold, not from a safe-haven perspective as recently seen, but more as an alternative investment." Summer is traditionally a soft period for Precious Metals, and 2014 has been no exception.

U.S. stock futures are pointing to a higher open for Wall Street after the  S& P 500' s worst weekly finish  in two years. Valutrades analyst Joao Monteiro warned of the low trading volumes in August, as relatively small moves could have larger impact than normal. Monteiro said, " It could now be a case of traders sitting on hands in the short term, although with at least the economic calendar set to pick up from tomorrow, any calm could be short lived."

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

• Gold, $1,293.10, Down $1.20.
• Silver, $20.41, Up $0.04.

 

 

 

 

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8/1/2014 12:42:14 PM By: Paul Stevens

 

METALS ON THE MOVE AFTER JOBS DATA

Precious Metal prices are continuing to fluctuate through mid-day trading.  After today&rsquo s  jobs report confirmed the U.S. economy added fewer jobs than expected  in July, Gold futures are rebounding from six-week lows.  Macquarie analyst Matthew Turner said, " Yesterday there were some thoughts that interest rates might rise more quickly, and that' s what hit gold. But then today, people were looking for a big payrolls figure and they didn' t get one, so gold gained."

The U.S. dollar lost ground Friday against other major world currencies after disappointing jobs data was released.  With the new data release, some feel the Federal Reserve&rsquo s  plan to hike interest rates in the coming months may be affected.  Jan Hatzius, Goldman Sachs' top economist told CNBC, " To the extent that people have pulled forward their expectations for ... when the Fed might start to move into the first half of 2015, I think this is going to lead them to push it back again."

At 1:41 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,294.30, Up $12.00.
• Silver, $20.39, Down $0.03.

8/1/2014 8:54:58 AM By: Ryan Schwimmer

 

JOBS REPORT DISAPPOINTS DESPITE MILESTONE

Gold and Silver prices recovered from early losses after the highly anticipated jobs report. Though the U.S. Labor Department' s jobs report released this morning showed the first time since 1997 that the economy has seen  200,000-plus gains in six straight months, the 209,000 jobs added in July missed the mark expected by analysts. The unemployment rate increased to 6.2 percent, and the Labor Department believes this is due to more people entering the workforce and looking for work.

Economic data has been the main trigger of late for the Gold price, as investors await the eventual hike in interest rates from the U.S. Federal Reserve. Mistubishi analyst Jonathan Butler said, " Another gain in employment will  really focus the mind on the Fed' s response. We heard earlier this week that they are maintaining their accommodative monetary policy for some time after their quantitative easing programme comes to an end." HSBC said in a note, " Gold and the U.S. dollar have a strong historical negative correlation, as bullion is most frequently priced in dollar terms. Expectations for a stronger dollar may keep a lid on gold prices in the near to medium term."

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

• Gold, $1,287.80, Up $5.50.
• Silver, $20.46, Up $0.05.

7/31/2014 4:07:59 PM By: Ted Prince

 

GOLD COULD BE STRONG BET AS STOCKS TUMBLE AND IMPROVEMENT GOES UNREALIZED

The Gold price dipped lower today as the yellow metal is set to post a 3.1 percent loss for the month of July.  Strong U.S. employment numbers added to the current downward pressure on Precious Metals.  Though reports point to a rebound in the U.S. economy, many individuals are not experiencing the improvement first-hand.  Many of the jobs added are part-time positions, which leave countless underemployed.  Income has yet to improve as Americans continue to watch the gas prices and other goods rise higher and higher.  With looming geopolitical crises escalating, fear of a stock market correction and mounting national debt, many investors still feel the need to protect themselves with safe-haven assets like Gold and Silver.

U.S. stocks took a drastic turn downward today as a global selloff of shares has left the Dow Jones Industrial Average down over 300 points today.  " The Fed is stepping out of the way and the market' s valuation is high enough that people are quick to take profit," Wayne Wilbanks, chief investment officer at Wilbanks, Smith & Thomas Asset Management LLC, said.  " You are going to get more days like today, where investors are more trigger happy, quicker to liquidate. Everybody knows a correction is coming and it will come."   If a correction in major stock indexes were to hit markets, Gold would most likely benefit greatly due to the metal' s inverse relationship with equities.

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

• Gold, $1,283.00, Down $13.40.
• Silver, $20.42, Down $0.18.

7/31/2014 8:47:29 AM By: Ryan Schwimmer

 

CITI ANALYST MAKES CASE FOR GOLD

Precious Metals and U.S. stocks fell after the release of the weekly jobless claims report, which showed  302,000 new claims were filed  the week ended July 26. Last week saw a 14-year low for jobless claims, so many expected this week' s increase. July is a notoriously volatile month for jobless claims due to annually scheduled manufacturing plant shutdowns.

Optimism over the U.S. economy appears to be  hampering demand for Gold at the moment, even as the U.S. Federal Reserve says it has no plans to raise interest rates in the short term. Citi analyst David Wilson offered a case for Gold ownership, saying, " The biggest price move we had over the past couple of months was in reaction to (Fed Chair Janet) Yellen' s comments on interest rates in mid-June, and it seems to me that the focus is now economic growth. But if you have strong economic growth and low interest rates, you at some point reach capacity constraints and then inflation rises. And if you are scared of inflation, you buy Gold as the metal is seen as an hedge against it."

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

• Gold, $1,288.10, Down $8.30.
• Silver, $20.60, Up $0.01.