Wed Apr 20, 2011 11:28pm EDT
* Gold's bullish target at $1,518-technicals [ID:nL3E7FL06M] * Coming Up: U.S. Unemployment claims weekly; 1230 GMT
(Updates prices, adds quotes) By Lewa Pardomuan SINGAPORE, April 21 (Reuters) - Bullion powered to a
lifetime high for a fifth consecutive session on Thursday on a
sharply weaker dollar, while lingering tensions in the Arab
World, worries about the euro zone crisis and U.S. fiscal health
offered additional support. Silver roared to its highest in more than three decades as
it tracked a rally in gold, which was also spurred by a threat
of a downgrade to the United States' triple-A credit rating. The
gold-silver ratio -- the number of silver ounces needed to buy
an ounce of gold -- was at its lowest since 1983. Spot gold rose to a record high of $1,508 an ounce
and stood at $1,506.19 an ounce by 0243 GMT, up $8.04 an ounce.
U.S. gold futures GCcv1 also hit a lifetime high at $1,508.9
an ounce. "The U.S. effectively lost its triple A rating in the eyes
of investors that really matter quite some time ago, back when
gold broke $1,000 an ounce," said Fat Prophets commodities
analyst David Lennox. "We don't think America's perceived rating will improve
anytime soon and this is the driving force behind our
expectation of gold's continued price strength. Our next target
for gold is $1,590 an ounce." A bullish target at $1,518 per ounce remains intact for spot
gold as indicated by an inverted head-and-shoulders
pattern and its wave pattern, said Wang Tao, a Reuters market
analyst for commodities and energy technicals.
Spot silver rose as high as $45.93 an ounce, its
strongest since 1980, when the Hunt Brothers of Texas cornered
the silver market. The dollar extended losses and struck its lowest in almost
three years against a basket of currencies as the prospect that
U.S. interest rates would remain at record lows prompted
investors to flock back to higher-yielding currencies.
The physical market in Asia saw limited selling of scrap as
investors waited for more gains. Dealers noted physical buying
from India in the previous session ahead of a main religious
festival, suggesting that consumers had no choice but to buy
bullion at higher prices. India, the world's largest gold consumer, celebrates Akshaya
Tritiya on May 6, when consumers buy gold to invoke prosperity.
"Sentiment is still bullish, we can say. The dollar is
weakening and there is no solution to the situation in Libya.
There's a downgrade in U.S. rating and there's still uncertainty
in the euro zone. It's messy around the world," said Ronald
Leung, director of Lee Cheong Gold Dealers in Hong Kong. "But I think gold is rising too fast. We are waiting for
some kind of correction in the near future. Hopefully next
week." France promised Libyan rebels on Wednesday it would
intensify air strikes on Muammar Gaddafi's forces and send
military liaison officers to help them as fighting raged in
Misrata. Gaddafi's government is circumventing international
sanctions to import gasoline to western Libya by using
intermediaries who transfer the fuel between ships in Tunisia.
[ID:nLDE73J1M3] [ID:nN20168707] U.S. crude futures extended gains in early Asian trade on
Thursday, buoyed by a drop in domestic crude and oil product
inventories last week and a broader commodities buying binge
sparked by a weaker dollar.
Precious metals prices 0243 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1506.19 8.04 +0.54 6.11
Spot Silver 45.84 0.64 +1.42 48.54
Spot Platinum 1801.99 10.84 +0.61 1.95
Spot Palladium 765.50 13.75 +1.83 -4.25
TOCOM Gold 3989.00 -19.00 -0.47 6.97 32918
TOCOM Platinum 4801.00 -5.00 -0.10 2.24 7148
TOCOM Silver 121.00 2.80 +2.37 49.38 3117
TOCOM Palladium 2040.00 50.00 +2.51 -2.72 260
Euro/Dollar 1.4573
Dollar/Yen 82.17
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Rujun Shen in SINGAPORE and Jim Regan
in SYDNEY; Editing by Himani Sarkar)
Wednesday, April 20, 2011
Sunday, February 13, 2011
Uncertainty Could Send Gold Skyrocketing
Unpredictables could send gold price skyrocketing
While the gold price on fundamentals alone should achieve new highs again this year, unpredictables could see the price soaring.
Author: Jeffrey Nichols
Posted: Saturday , 12 Feb 2011
NEW YORK -
Readers of these articles should not be surprised by gold's recent rebound. In late January, as gold was testing recent lows near $1,310 an ounce, we said "the fundamentals suggest much higher prices ahead" with "market activity strengthening the case for a surprisingly sharp snapback and new all-time highs later this year."
Indeed, we anticipate gold will retake its all-time high near $1,432 an ounce in the months ahead . . . and reach $1,700 later this year . . . on its way to $2,000 an ounce in 2012 . . . and still higher prices in the next few years.
GLOBAL INFLATION RISING
One of the key forces contributing to expected gold-price strength is the acceleration in inflation now underway around the world.
It seems that almost everywhere - except here in the United States - inflation is on the rise. We now read daily about the rise in agricultural, energy, and industrial commodity prices from one country to the next - and the consequential acceleration in consumer prices. China, India, Brazil, the United Kingdom, and the Eurozone economies make the newspapers because these are the largest economies after the United States and they are the most populous, too.
But, less noticed outside their own borders, one country after the next, is suffering from higher prices, especially for food and energy - and the acceleration of inflation in some countries is beginning to have broader social and political consequences as we have seen recently in Tunisia and Egypt.
Today's global inflation is largely a consequence of U.S. monetary policy and the unbridled flood of dollars into the world economy on the one hand . . . combined with an unwillingness among central bankers in the other big economy countries to allow upward appreciations of their own currencies.
Just as in the United States, central bankers in these countries prefer economic expansion and happy workforces to low inflation with higher unemployment. And, although some - China, India, and Brazil, for example - are raising interest rates and restricting bank lending, these measures are intentionally insufficient to greatly restrain future economic growth and, therefore, insufficient to restore price stability in their respective economies.
It's no wonder that smart savers and investors in China and India are buying hundreds of tons of gold a year - and will most likely continue to do so even as gold prices move significantly higher.
Anyone worried about inflation should be worried about the fantastic growth in the Fed's holdings of U.S. Treasury securities. Recently, the Fed surpassed China as the largest holder of U.S. Treasury securities - and by mid-summer the Fed will likely hold more Treasury securities than both China and Japan combined.
The explosive growth of U.S. Treasury securities - T-bills, notes, and bonds - held by the Federal Reserve is the flip side of the central bank's policy of quantitative easing. The Fed has now replaced foreign central banks as America's financier, funding our Federal budget deficit by creating new money.
This is a policy that must eventually result in a significant erosion in the greenback's purchasing power brought on through a depreciation of the U.S. dollar in world currency markets and an acceleration of inflation here at home - an acceleration that is bound to occur irrespective of continuing economic slack, high unemployment and low capacity utilization.
OTHER PRO-GOLD FUNDAMENTALS
In addition to rising global inflation and inflation-fueling U.S. economic policies, other on-going trends in the world of gold will also contribute to higher prices later this year and beyond:
Continuing strong gold demand for jewelry and investment - even in the face of higher prices - from China, India, and other gold-friendly Asian and Middle Eastern nations. Demand from these countries is driven by rising household incomes and rising inflation expectations - and these trends are likely to persist for some time to come.
Continuing official purchases by China, Russia, and other cash-rich central banks with "under-weighted" gold reserves. Central banks tend to buy on dips when their purchases are least likely to disrupt the market - and official demand in recent weeks with prices near $1,320 helped stabilize and reverse the short-term price decline.
Expanding investment demand from a small but growing segment of retail investors in the United States and Europe who are worried about rising inflation and currency depreciation . . . and from hedge funds and other institutional investors who understand gold's bullish fundamentals.
Given the relatively small size of the gold investment market relative to world stock and bond markets or major currency markets, a very small shift in portfolio preference away from conventional assets in favor of gold may have a negligible affect on the stock and bond markets - but will have a big affect on the price of gold.
Easier access to gold through new investment vehicles, especially exchange-traded funds, is promoting the growth in gold investment from one country to the next. Even India and China are jumping on the bandwagon with new ETFs denominated in local currencies and weight units familiar in each country.
IMAGINING THE UNPREDICTABLE
In addition to these somewhat predictable gold-positive trends, unpredictable geopolitical developments could, under certain circumstances, have an overwhelming affect on the price of gold.
What if Egypt sinks into a prolonged period of social and political chaos?
What if the Suez Canal is threatened or closed by political developments or by terrorism?
What if similar spontaneous revolutions erupt in Lebanon, Yemen, or Saudi Arabia, the world's largest source of oil?
What if new governments in the region threaten Israel militarily?
What if Iran takes advantage of the political vacuum created by these popular uprisings?
Or, in other regions . . .
What if North Korea launches another, but more serious, assault on the South?
What if Europe's sovereign debt problems erupt again, triggering a flight from the euro?
And, closer to home . . .
What if Congress and the Obama Administration fail to make any significant progress in balancing America's Federal budget deficit, triggering a flight from the dollar?
Any of these events are certainly plausible - and there are many others we simply can't imagine - but each has the potential to send gold skyrocketing.
Jeffrey Nichols, Managing Director of American Precious Metals Advisors www.nicholsongold.com and Senior Economic Advisor to Rosland Capital
While the gold price on fundamentals alone should achieve new highs again this year, unpredictables could see the price soaring.
Author: Jeffrey Nichols
Posted: Saturday , 12 Feb 2011
NEW YORK -
Readers of these articles should not be surprised by gold's recent rebound. In late January, as gold was testing recent lows near $1,310 an ounce, we said "the fundamentals suggest much higher prices ahead" with "market activity strengthening the case for a surprisingly sharp snapback and new all-time highs later this year."
Indeed, we anticipate gold will retake its all-time high near $1,432 an ounce in the months ahead . . . and reach $1,700 later this year . . . on its way to $2,000 an ounce in 2012 . . . and still higher prices in the next few years.
GLOBAL INFLATION RISING
One of the key forces contributing to expected gold-price strength is the acceleration in inflation now underway around the world.
It seems that almost everywhere - except here in the United States - inflation is on the rise. We now read daily about the rise in agricultural, energy, and industrial commodity prices from one country to the next - and the consequential acceleration in consumer prices. China, India, Brazil, the United Kingdom, and the Eurozone economies make the newspapers because these are the largest economies after the United States and they are the most populous, too.
But, less noticed outside their own borders, one country after the next, is suffering from higher prices, especially for food and energy - and the acceleration of inflation in some countries is beginning to have broader social and political consequences as we have seen recently in Tunisia and Egypt.
Today's global inflation is largely a consequence of U.S. monetary policy and the unbridled flood of dollars into the world economy on the one hand . . . combined with an unwillingness among central bankers in the other big economy countries to allow upward appreciations of their own currencies.
Just as in the United States, central bankers in these countries prefer economic expansion and happy workforces to low inflation with higher unemployment. And, although some - China, India, and Brazil, for example - are raising interest rates and restricting bank lending, these measures are intentionally insufficient to greatly restrain future economic growth and, therefore, insufficient to restore price stability in their respective economies.
It's no wonder that smart savers and investors in China and India are buying hundreds of tons of gold a year - and will most likely continue to do so even as gold prices move significantly higher.
Anyone worried about inflation should be worried about the fantastic growth in the Fed's holdings of U.S. Treasury securities. Recently, the Fed surpassed China as the largest holder of U.S. Treasury securities - and by mid-summer the Fed will likely hold more Treasury securities than both China and Japan combined.
The explosive growth of U.S. Treasury securities - T-bills, notes, and bonds - held by the Federal Reserve is the flip side of the central bank's policy of quantitative easing. The Fed has now replaced foreign central banks as America's financier, funding our Federal budget deficit by creating new money.
This is a policy that must eventually result in a significant erosion in the greenback's purchasing power brought on through a depreciation of the U.S. dollar in world currency markets and an acceleration of inflation here at home - an acceleration that is bound to occur irrespective of continuing economic slack, high unemployment and low capacity utilization.
OTHER PRO-GOLD FUNDAMENTALS
In addition to rising global inflation and inflation-fueling U.S. economic policies, other on-going trends in the world of gold will also contribute to higher prices later this year and beyond:
Continuing strong gold demand for jewelry and investment - even in the face of higher prices - from China, India, and other gold-friendly Asian and Middle Eastern nations. Demand from these countries is driven by rising household incomes and rising inflation expectations - and these trends are likely to persist for some time to come.
Continuing official purchases by China, Russia, and other cash-rich central banks with "under-weighted" gold reserves. Central banks tend to buy on dips when their purchases are least likely to disrupt the market - and official demand in recent weeks with prices near $1,320 helped stabilize and reverse the short-term price decline.
Expanding investment demand from a small but growing segment of retail investors in the United States and Europe who are worried about rising inflation and currency depreciation . . . and from hedge funds and other institutional investors who understand gold's bullish fundamentals.
Given the relatively small size of the gold investment market relative to world stock and bond markets or major currency markets, a very small shift in portfolio preference away from conventional assets in favor of gold may have a negligible affect on the stock and bond markets - but will have a big affect on the price of gold.
Easier access to gold through new investment vehicles, especially exchange-traded funds, is promoting the growth in gold investment from one country to the next. Even India and China are jumping on the bandwagon with new ETFs denominated in local currencies and weight units familiar in each country.
IMAGINING THE UNPREDICTABLE
In addition to these somewhat predictable gold-positive trends, unpredictable geopolitical developments could, under certain circumstances, have an overwhelming affect on the price of gold.
What if Egypt sinks into a prolonged period of social and political chaos?
What if the Suez Canal is threatened or closed by political developments or by terrorism?
What if similar spontaneous revolutions erupt in Lebanon, Yemen, or Saudi Arabia, the world's largest source of oil?
What if new governments in the region threaten Israel militarily?
What if Iran takes advantage of the political vacuum created by these popular uprisings?
Or, in other regions . . .
What if North Korea launches another, but more serious, assault on the South?
What if Europe's sovereign debt problems erupt again, triggering a flight from the euro?
And, closer to home . . .
What if Congress and the Obama Administration fail to make any significant progress in balancing America's Federal budget deficit, triggering a flight from the dollar?
Any of these events are certainly plausible - and there are many others we simply can't imagine - but each has the potential to send gold skyrocketing.
Jeffrey Nichols, Managing Director of American Precious Metals Advisors www.nicholsongold.com and Senior Economic Advisor to Rosland Capital
Monday, September 6, 2010
Gold Price Calculator
| Gold Calculator - Silver Calculator - Platinum Calculator. Evaluates the current on-line price of all carat golds, silver, platinum, and palladium. Uses the current on-line price for a variety of currencies. |
Monday, August 16, 2010
Gold Accelerates with Massive Momentum
The Gold ETF Train Is Gathering Steam Again (NYSE:GLD)
August 16th, 2010
The SPDR Gold Trust ETF ETF (NYSE:GLD) closed today above its previous major spike peak high of the 12/2/2009 and 12/3/2009 period. This is significant. Volume was seriously lacking the (NYSE:GLD) ETF today however, but still we must give it credit for a solid close near the top of the range.
The (NYSE:GLD) ETF has now positioned itself to enter once again a zone of minimal previous price resistance. This is very important because previous price resistance can be like quicksand, hindering ease of movement in price.
Gold is trading with the Relative Strength Index well above the mid 50 range and in bullish territory. A move into the powerzone above 70 could lead to possibly explosive topside moves.
The gold price seems to be ‘the trade’ right here and now. It has a huge almost one year cup and handle pattern, the handle of which seems to be finishing now. It does not have a messy sloppy extended trading range like the stock market does. So why still the obsession with the stock market? You probably already know the answer. Because of the still astonishingly huge number of stake holders with a vested interest in pumping the market up. Needless to say it is not working too well. The stock market is in a wide swinging trading range with no real trend.
If we assume that the gold price will blast higher to 2000 during the next 6 to 12 months and that the Dow Jones Industrials would stay at 10,300 then it would put the ratio at about 5.00 which is right at the bottom channel line of the 100 year Dow to Gold Ratio Chart.
If the DJIA were to decline from here it would change the movement of the ratio of course but this chart is definitely one to keep in mind assuming gold can get to 2000. This long term chart suggests that the 2000 range of the gold price is an ideal major pausing point for the gold price. Perhaps it would lead to that 50% correction in the gold price I referred to in a much earlier post.
by Tom, best on line trades dot com
August 16th, 2010
The SPDR Gold Trust ETF ETF (NYSE:GLD) closed today above its previous major spike peak high of the 12/2/2009 and 12/3/2009 period. This is significant. Volume was seriously lacking the (NYSE:GLD) ETF today however, but still we must give it credit for a solid close near the top of the range.
The (NYSE:GLD) ETF has now positioned itself to enter once again a zone of minimal previous price resistance. This is very important because previous price resistance can be like quicksand, hindering ease of movement in price.
Gold is trading with the Relative Strength Index well above the mid 50 range and in bullish territory. A move into the powerzone above 70 could lead to possibly explosive topside moves.
The gold price seems to be ‘the trade’ right here and now. It has a huge almost one year cup and handle pattern, the handle of which seems to be finishing now. It does not have a messy sloppy extended trading range like the stock market does. So why still the obsession with the stock market? You probably already know the answer. Because of the still astonishingly huge number of stake holders with a vested interest in pumping the market up. Needless to say it is not working too well. The stock market is in a wide swinging trading range with no real trend.
If we assume that the gold price will blast higher to 2000 during the next 6 to 12 months and that the Dow Jones Industrials would stay at 10,300 then it would put the ratio at about 5.00 which is right at the bottom channel line of the 100 year Dow to Gold Ratio Chart.
If the DJIA were to decline from here it would change the movement of the ratio of course but this chart is definitely one to keep in mind assuming gold can get to 2000. This long term chart suggests that the 2000 range of the gold price is an ideal major pausing point for the gold price. Perhaps it would lead to that 50% correction in the gold price I referred to in a much earlier post.
by Tom, best on line trades dot com
Thursday, March 25, 2010
Host Your Own Gold Parties - Instant Home Business!!!
I love sharing creative ways to make money with gold. Just check out some of our earlier posts for examples, including even how to become a treasure hunter looking for lost gold!
Well, recently I found one that is even more promising and fun. You can learn how to host your own gold buying party, complete with virtually everything that you will need to get started, including how much to pay, and where to go to resell your purchases.
With everyone looking to sell their gold to cash in on gold prices over $1000 per ounce, this is a fun, profitable way to capitalize on the action. You can host a party with your friends in your home, or go big and rent some space and advertise to the public. Or, start small and grow big. You decide how you want to profit!
You can download and receive the information and all of the related forms that you will need right away. It includes calculation tables, forms, and instructions. YOU decide how much you will pay for the gold that you purchase, and YOU decide how much you are going to profit! It's an incredibly affordable set, one that I am sure you will be delighted with.
To learn more about the Complete Gold Party Hosting Kit Click Here!
Also, Here is another e-book showing you how to buy and sell Gold Scrap.
...
Well, recently I found one that is even more promising and fun. You can learn how to host your own gold buying party, complete with virtually everything that you will need to get started, including how much to pay, and where to go to resell your purchases.
With everyone looking to sell their gold to cash in on gold prices over $1000 per ounce, this is a fun, profitable way to capitalize on the action. You can host a party with your friends in your home, or go big and rent some space and advertise to the public. Or, start small and grow big. You decide how you want to profit!
You can download and receive the information and all of the related forms that you will need right away. It includes calculation tables, forms, and instructions. YOU decide how much you will pay for the gold that you purchase, and YOU decide how much you are going to profit! It's an incredibly affordable set, one that I am sure you will be delighted with.
To learn more about the Complete Gold Party Hosting Kit Click Here!
Also, Here is another e-book showing you how to buy and sell Gold Scrap.
...
Great Gold Investing Resources for Beginners
Hi readers. There are a few beginner resources that I wanted to share with you.
A few weeks ago, I came across a new gold trading system from a company called New Millenium. It sounded promising, so I decided to give it a try.
It did not disappoint. It provided everything that I needed to get started profiting from gold on the commodities markets. It breaks everything down for beginners. I won't lie, it's a fast-paced program, but it allows you to start small and build your bank account.
They offer a full 60-day money back guarantee, so that is plenty of time to try it out without risk.
To learn more about the system, Go Here.
Another resource that I want to share shows you creative ways to buy gold at low cost. Sounds impossible, doesn't it? This report shows you how, and will make you a believer. For only $17 with a full 60-day money back guarantee, it's a no-brainer. Click Here to Learn More
A few weeks ago, I came across a new gold trading system from a company called New Millenium. It sounded promising, so I decided to give it a try.
It did not disappoint. It provided everything that I needed to get started profiting from gold on the commodities markets. It breaks everything down for beginners. I won't lie, it's a fast-paced program, but it allows you to start small and build your bank account.
They offer a full 60-day money back guarantee, so that is plenty of time to try it out without risk.
To learn more about the system, Go Here.
Another resource that I want to share shows you creative ways to buy gold at low cost. Sounds impossible, doesn't it? This report shows you how, and will make you a believer. For only $17 with a full 60-day money back guarantee, it's a no-brainer. Click Here to Learn More
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