GDP: Great Day to Play

Good Day,

Friday’s market sessions in precious metals started off on a tamer note, following the best gains in gold in three weeks. Explanations follow. The recapture of the $1045 area is noteworthy, although analysts we polled during the wee hours overseas are trying to define the move as everything from a ‘one-hit wonder’ to the ‘re-ignition of what we saw during most of October.’

The Bloomberg weekly survey foresees weaker gold prices come next week - not by a large margin (57% bearish)- but still focusing on a potential comeback by the US currency, the early signs of which became visible this past Monday. Demand for the yellow metal once again slipped away in India, following signs of life during the earlier part of the week when values came close to $1025 per ounce. The country recorded its sixth straight month of declining gold imports, despite a decent gain during September – in anticipation of festival-related sales.

New York spot dealings opened with a $2.60 loss in gold bullion, which was quoted at $1043.20 bid, as against a euro-dollar seen at $1.4798 and the USD index steady-to-higher, at 76.05, with little in the way of fresh news thus far this morning. Oil prices gave back about 50 cents of their whopper-sized Thursday gains, slipping to $79.32 per barrel. Risk traders took a latte break this morning, and this gave the dollar a moment to try to re-group.

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Read the rest of Gold, Silver, Metal Prices: Commentary – 10/30/2009 (2,324 words)

Aluminum Company of China (Chalco) has returned to profit, after three consecutive quarterly losses, and analysts expect profits to continue in line with higher metal prices.

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Fun(d) and Games

Good Day,

Dollar weakness was manifest once gain as the new trading week got underway, with the US currency recording a fresh 14-month low against the euro overnight. The greenback also slipped on the trade-weighted index, losing 0.13 to 75.31 at last check. This morning’s macroeconomic news reveals a mixed bag of confidence, one that is dependent on geography.

German consumer sentiment slipped for the first time in more than a year, as locals worry about continuing job losses. Over in the UK, in the midst of a rather nasty economic picture, business confidence levels rose to an 18-month high based on the latest survey.

New York spot bullion trading got off to a start slightly in the negative column for gold. The yellow metal fell $1.40 at the start of the session, quoted at $1053.40 an ounce, as against the aforementioned drop in the dollar index, and its small decline consisted of  about an 80-cent gain on dollar weakness-induced gain versus about $2.20 worth of declines on market-based selling. Thus, the net starting price outcome on the day.

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Read the rest of Gold, Silver, Metal Prices: Commentary – 10/26/2009 (1,471 words)

The aluminium producer blamed low global metal prices and a weaker rouble for the result.

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A Turkey for Turkey, The UK Lays an Economic Egg, and Russia Sells…Gold?!

Good Day,

Gold prices continued to remain ‘in the zone’ (the $1040-$1070 zone, that is) overnight, with little in the way of fresh market-impactful news making their way into the media stream. The US dollar remained at or very near the 1.50 pivotal level against the euro, but climbed away from the 75-mark on the trade-weighted index. Oil prices hovered just above $81.25 per barrel, while a lackluster session in the Nikkei ended with tiny gains.

New York spot metals dealings opened on a mixed note this morning, as pre-weekend book-squaring and dollar gains made for a bit more than the recently witnessed –and practically daily-one-way fund buying spree. Gold started the Friday session at $1060.00 exactly, basis spot bid, a gain of $0.20 per ounce, as against a tick at the 75.29 level by the dollar on the index. Today’s ‘to watch’ agenda contains US existing home sales data, and a Bernanke speech in Boston. Also keep an eye on closing levels – this is now the fourth week of potential gains before the tally is over.

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Read the rest of Gold, Silver, Metal Prices: Commentary (10/23/2009) (2,143 words)

Some believe an adjustment of up to 20% is overdue

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A Bubble in Bubbles Not So Tiny

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Gold prices started the new week off in Asia overnight by reversing Friday’s slim gains and re-testing the $1050 level as a strengthening US dollar was once again part of the background picture. More than 13.5 tonnes of gold flowed out of the combined balances of gold ETFs on Friday. During a week when the metal inked new records into the books?

The overnight losses in gold did not amount to more than $5 however, and the yellow metal was able to retake the mid-$1050s prior to the start of Monday’s NY session. The European common currency also fell in the early hours, for a second day, due to concerns that Old World financial policy makers will discuss the currency’s recent strength and what to do about it, when they meet later today.

New York spot precious metals dealings opened with a light step into the red, with gold down by $0.10 per ounce at $1052.70 an ounce. This, as against a fresh small dollar decline (except against the yen) on the trade-weighted index (last seen at 75.51) and very small losses in crude oil (last quoted at $78.46 per barrel). Post-Dhanteras activity in India amounted to…not very much.

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Read the rest of Gold, Silver, Metal Prices: Commentary (10/19/2009) (1,829 words)

Norilsk Nickel, the world’s largest nickel and palladium miner, said on Monday lower metal prices pushed first-half profit down sharply, but the results beat analyst forecasts.

Net profit attributable to shareholders fell 84% year-on-year to $419-million, above an average Reuters poll estimate of $349-million.

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A look back at LME week and what the insiders are saying about metals prices.

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Rich Gold Now Sold (By, And To, The Rich)

Good Day,

A second day of falling prices in gold was once again, brought to you courtesy of a strengthening dollar. Initial support at $1048 was once again breached early this morning, precipitated by a gain of 0.35 in the USD on the index (now at 75.77).

Gold spot prices have touched a low of $1042.20 in the minutes following the NY market’s opening. The emergence of profit-taking is becoming a bit more visible, although Thursday’s afternoon settlement at $1050 appeared to manifest continuing hardiness among the longs.

The same can be said about the rebound to $1048 seen within the first hour of Friday’s market action. The overriding component in this morning’s near $6 drop was attributable to dollar strength, as seen on our newly-launched index, below.

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Read the rest of Gold, Silver, Metal Prices: Commentary (10/16/2009) (1,700 words)