Hedge funds accumulated their second-biggest bet against gold on record just as prices rallied the most in 15 months on surging demand for coins and jewelry and Goldman Sachs Group Inc. ended a recommendation to sell.
Following last week’s surge in gold prices, the majority of analysts in the weekly Kitco News Gold Survey expect prices to continue to rise.
In the Kitco News Gold Survey, out of 35 participants, 24 responded last week. Of those 24 participants, 14 see prices up, while eight see prices down, and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Many of the participants were encouraged by the unprecedented demand in the physical gold market and the influence that’s had on lifting benchmark futures prices. Because of the $100-plus an ounce rebound from last week’s lows, they see values marching higher.
Public Gold bars. The gold price today climbed to its highest in more than a week.
Gold prices on Thursday climbed to their highest in more than a
week during trading in Singapore, boosted by prospects of more central
bank buying after a recent steep sell-off in the precious metal.
bank purchases and surging physical demand helped gold bounce from a
two-year trough around $1,321 an ounce hit last week, dealers said. But
daily outflows from exchange-traded funds, reflecting sagging investor
confidence, capped gains.
Michelle Smith - Exclusive to Gold Investing News
seen a renewal of risk appetite and with that has come concern about the
outlook for gold. A recent World Gold Council (WGC) commentary notes that the
metal ended 2012 on a bittersweet note, but adds that the metal’s ability to
put a 12th notch in its string of annual gains reflects underlying drivers.
Overall, the organization’s report brushes away pessimism about gold and
outlines the metal’s potential in the current environment.
To answer this question, it is essential to get back to history. Gold was always money until 1971 when US President Richard Nixon and the International Monetary Fund decided it would no longer be so. This decision worked well because oil was firmly linked to the US dollar and vice versa. It allowed the US to dominate the oil producers who were dependent on the country for their security.
The crash in the prices of the yellow metal has sparked off a gold rush across Saudi Arabia.
In the last three days, gold souks in the Kingdom have come alive with buyers flocking to cash in on the sharp drop in gold prices.
Most of the shop owners in the gold souk in Kandra said that their businesses have increased 50 percent in the last three days, whereas those in Balad said sales of 22-carat had gone up by more than 75 per cent and were expected to rise further.
HONG KONG: Gold prices recovered slightly after suffering their heaviest slump in 30 years triggered by weak Chinese growth data and reports Cyprus was planning to sell part of its reserves.
Analysts said the 13 percent drop in prices between Friday's open and Monday's close could show gold's 12-year bull-run was at an end, with investors turning away from the metal, which is traditionally a hedge against inflation.
Cannot tell anything from bounces the silver and GOLD PRICE made today. A dead cat dropped from the 2nd story might have done as well. Gold gained $26.20 to $1,386.80 while silver rose 26.7c to 2362.2. The GOLD/SILVER RATIO, however, is only very slowly rising, today at 58.708.
At this point, another leg down is possible, taking the GOLD PRICE to $1,250.
Gold Crashes Most in 30 Years … What Does It Really Mean?
Gold has fallen off a cliff. It has fallen faster than at any time in the last 30 years.
Zero Hedge notes:
Adding insult to injury, the Shanghai Gold Exchange overnight announced that following the tumbling precious metal prices and limit down drop in early trading, it may raise trading margins for its gold and silver forward contracts.
Gold tumbles to two-year low ... The slide in gold prices became a rout on Monday as the precious metal tumbled a further 5 per cent to its lowest level in two years. Bullion was swept up in a wider sell-off across markets after Chinese growth figures disappointed. But the momentum behind gold's fall has been building for several months, with investors increasingly questioning whether the metal's decade-long bull market may over. – Bloomberg
It seems that collective memory is becoming shorter and shorter. Given this weeks’ performance in the precious metals, people have forgotten that only two weeks ago Cyprus was on the brink of unraveling not only the European union, but the sacrosanct foundations of fractional banking, with the crisis highlighting the fundamental fault lines of both.
The GOLD PRICE ticked lower against the US Dollar early Monday, but held onto the bulk of Friday's sharp rally at $1577 per ounce as world stock markets rose alongside commodities.
Silver bullion traded at $27.30 per ounce, some 2.5% above last week's 9-month low, while both Sterling and the Euro extended their gains versus the US currency, pushing the gold price below £1030 and 1215 per ounce respectively.
Gold prices ended the U.S. day session modestly lower in quieter trading Monday. The market saw chart consolidation and a technical pullback following Friday’s gains. June Comex gold last traded down $3.60 at $1,572.30 an ounce. Spot gold was last quoted down $9.60 at $1,572.25. May Comex silver last traded down $0.055 at $27.165 an ounce.
Gold ‘Bubble’ Seen Turning to Bear Market by SocGen on Recovery
By Nicholas Larkin - Apr 2, 2013
Gold is in a “bubble” after the best annual run in at least nine decades and will head into a so-called bear market as a stronger U.S. economy helps increase interest rates and cut bullion demand, Societe Generale SA said.
Investors are unlikely to raise gold holdings because inflation has remained low, signs that the economy is improving may spur the Federal Reserve to curb stimulus and the dollar has strengthened, the bank said today in a report. Bullion is down 4.6 percent this year after 12 straight annual gains and would need to drop another 4.8 percent to mark the common definition of a bear market.