8/21/2014 8:06:58 AM By: Ryan Schwimmer

 

GOLD DOWN, STOCKS UP ON INTEREST RATE SPECULATION

The Gold price is trading near a two-month low due to a strengthening U.S. dollar and economic data. The weekly jobless claims report showed fewer than 300,000 new claims for the  third time in five weeks. One Precious Metals trader said, " Gold had already been under pressure from the dollar. Once it broke below the 200-day moving average near $1,284 [per ounce], there was heavy selling." Gold investors are  wary of positive economic data  as it spurs talk the Federal Reserve could increase interest rates sooner than expected.

U.S. stock futures are pointing toward a  higher open for Wall Street, though one analyst believes it could be too hasty on the investors&rsquo part. IG Markets Chief Market Strategist Brenda Kelly said regarding interest rates, " It&rsquo s still unlikely that it&rsquo s going to be immediate and remains data dependent. Markets are making hay while the sun shines -- possibly in a delusional manner based on previous equity moves in the runup and aftermath of the Jackson Hole symposium. [Federal Reserve Chair Janet] Yellen, however, is not [former chair Ben] Bernanke, and she may offer some surprises."

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

• Gold, $1,277.70, Down $18.50.
• Silver, $19.40, Down $0.14.

8/20/2014 5:33:05 PM By: Ted Prince

 

FED MINUTES INDICATE RATE HIKE COULD BE SOONER THAN EXPECTED

The Gold price fell to a two-week low as investors speculate an interest rate hike may come sooner than expected.  After the release of the minutes from the Federal Reserve' s July policy meeting, Gold came under pressure as non-interest earning assets like Precious Metals reacted negatively to the anticipation of a rate increase.  Continued improvements in the domestic economy are adding fuel to the argument that the Fed should end its stimulus program and begin raising interest rates. " The hawkish voices within the Fed have become louder," Jerry Webman, chief economist at OppenheimerFunds Inc., said. " While the economic numbers are not very strong, they are definitely showing some strength."

The S& P 500 ended the day within two points of its all-time high.  Though the release of today' s Fed policy minutes indicated concern over unsteady improvement in the labor market, many economists are beginning to believe the strength of the U.S. economy has developed to a level that quantitative easing should come to an end. " Investors are seeing that it' ll take time to hit those inflation and unemployment levels that they' re looking for," Stephen Carl, principal and head equity trader at Williams Capital Group LP, said. " It' s imminent that tapering is going to end, so they' re favoring the strong economy."

At 6:30 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,292.90 Down $3.20
• Silver, $19.52 Down $0.02

 

8/20/2014 8:05:57 AM By: Ryan Schwimmer

 

GOLD STILL STUCK IN RANGE

The Gold price and U.S. stock futures are  mostly flat in early-morning trading, but the Silver price is recovering more rapidly from recent losses. Heraeus trader Alexander Zumpfe said, " (Gold is under pressure from) a combination of the stronger dollar, together with ongoing weak demand. It' s a bit frustrating from a trading perspective - it' s not only range trading, this range is also very tight." Investors continue to await an event that could break Gold out of its range.

One thing that could break Gold out of its range is clear direction from the  U.S. Federal Reserve regarding interest rates. Naeem Aslam, chief market analyst at Ava Trade, said, " The question which everyone will be asking is if the Fed are ready to increase the interest rate sooner rather than later. Some hawkish members have certainly started beating the drums of an early increase." Many expect that, should interest rates be raised early, Gold could break out on the downside however, if an announcement is made that no early rate increase will happen, some expect Gold to break its apparent ceiling.

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

• Gold, $1,297.70, Up $0.10.
• Silver, $19.55, Up $0.10.

August 19, 2014 - 14:39:30 PDT

Warren Buffett And The Chinese Are Loading Up On Hard Assets - Jim Rickards

The Gold is gonna go up like this so they' ve created a hedge where they win this way and they win this way so I would sa... read more

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.

 

8/19/2014 3:58:03 PM By: Ted Prince

 

GOLD TRIMMED ON STOCK RALLY AS INVESTORS EYE JACKSON HOLE

Increased risk appetite has weighed on Precious Metals and lifted stocks today as strong U.S. housing data influenced a temporary move away from Gold and Silver.  The Gold price continues to hover around $1,300 an ounce as investors and traders alike mull over geopolitical tensions abroad and domestic economic data for signs of future market movement.  Many investors will be eyeing the outcome of this week' s annual Federal Reserve meeting in Jackson Hole, WY, when central bankers from around the world will gather Thursday and Friday.  The event has historically ended with important policy announcements regarding the future of U.S. and world monetary policy. 

Strong housing and corporate earnings data helped boost U.S. stocks today as the S& P 500 climbs toward another all-time high. " The market has come back strong this week in a repeat of what we' ve seen throughout the bull run, the ability to motor through geopolitical events," Tim Rudderow, president and chief investment officer at Mount Lucas Management Corp., said. " Today' s numbers were solid but not spectacular, and that' s perfect in an environment where really robust economic growth would not be positive."   At present, equities investors prefer slow and steady gains as large economic advances could influence higher interest rates sooner than later. 

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

• Gold, $1,297.40 Down $2.90
• 
  
  Silver, $19.47 Down $0.22

8/19/2014 8:28:26 AM By: Paul Stevens

 

METALS MOVE AS INVESTORS LOOK TO FED FOR DIRECTION

Precious Metals prices are gaining through early morning trading.  After two consecutive days of losses,  Gold prices are rebounding as investors continue to monitor  volatile political situations around the world. Also on investors' minds are U.S. data being released today and Federal Reserve chairwoman Janet Yellen' s speech Friday. VTB Capital analyst Andrey Kryuchenkov said, " We are still trading in small ranges as there' s hardly any volume.  As far as the market is concerned, risk sentiment has improved somewhat, so we will still be paying attention to developments in Iraq and Ukraine as well as the U.S. inflation report later today."

Recent numbers show the U.S. consumer price index climbed at its slowest pace in five months.  Although the economy is slowly showing signs of picking up,  data supports the notion that price pressures remain in place. Michael Feroli, chief U.S. economist at JPMorgan Chase & Co., said, " Some of the inflation concerns that you were hearing back in June will probably ease off a little bit. It takes some pressure off the Fed to speed up rate normalization. There had been a lot of rhetoric about the Fed being behind the curve on inflation, and this probably takes some wind out of that."

At 9:27 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,301.10, Up $0.80.
• Silver, $19.61, Down $0.08.

8/18/2014 4:42:43 PM By: Brandi Brundidge

 

UKRAINE TENSION EASES FED COULD SET DATE TO RAISE RATES

 

Several factors are responsible for pushing Gold below $1,300 an ounce today, such as a stronger U.S. dollar and European and U.S. shares bouncing due to tensions easing in Ukraine. Gold has jumped nearly eight percent this year as investors have opted for the safe haven asset with concerns growing in Ukraine and the Middle East. For the first time in three weeks, hedge funds and money managers increased their bullish wagers on Gold futures and options, according to data released Friday by the Commodity Futures Trading Commission.

Predictions have been made for Friday' s Federal Reserve policy meeting in Jackson Hole, WY, where Janet Yellen will make her first appearance at the annual conference as Fed chair. Economists believe Yellen will steer clear of monetary policy and focus primarily on the labor market, much like former Fed chairman Ben Bernanke in March 2012.  " We look for new clues on how the Fed plans to gain greater control of the Fed funds rate as it tightens policy, while the system is still swimming in reserves as a result of the three quantitative easing programs undertaken," Investec economist Victoria Clark said. The market anticipates Yellen will announce a date to expect increased interest rates, which may encourage investors for the upcoming phase.

At 5:19 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,299.20 Down $8.00
• Silver, $19.63 Up $0.07

8/18/2014 8:42:21 AM By: Paul Stevens

 

METALS FLAT AHEAD OF FED MEETINGS

Precious Metals are trading relatively flat through early morning trading.  News out of Europe that tensions in Ukraine are cooling pressured the metals but a drop in U.S. Treasury yields along  with a relatively flat dollar is helping Gold stay around $1,300.    When asked if the news would affect the Federal Reserve' s monetary policy, Standard Bank analyst Walter de Wet said, " This $1,284-$1,300 range is providing very good support ... with the market pretty much pricing in most of the political tensions."

As investors continue to monitor geopolitical situations around the world, a meeting held between Russia, Ukraine, Germany, and France has provided hope to an end to fighting in the region and a boost to world stocks.  Steen Jakobsen, chief investment officer at Saxo Bank A/S in Copenhagen said, " Every time you have a de-escalation of geopolitical risk it works favorably to the market...  The short-term direction of the stock market at the moment  is driven almost entirely by whatever news is coming out of the Ukraine, Russia situation. I see this as a temporary relief."

At 9:42 a.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,298.60, Down $8.60.
• Silver, $19.60, Up $0.04.