Goldman Sachs (NYSE:GS) is getting even more bullish than they have on the U.S. economy, increasing its economic growth projections for 2011 and 2012 from 3.4 percent to 3.5 to 4 percent. This year they peg it at 5 percent GDP growth.
Jan Hatzius, Goldman Sachs' Chief U.S. Economist said, "It's a reasonably upbeat view. It’s certainly a reminder that there are still some significant risks in the global economy (food inflation), and of course especially to the extent that it affects oil prices and commodity prices more generally. Having said that, our outlook for global growth and the U.S. economy is pretty positive. We think close to 5% GDP growth this year and next year in the global economy and sort of 3.5-4% over the next two years in the U.S."
One good thing Hatzius admits which others are slow to, is that food price inflation isn't included in economic data at this time, and is still several months out.
He said once that happens there will be upward pressure on the headline CPI numbers.
Even so, Goldman sees consumer spending improving as the year goes on. "I think the first quarter looks a lot softer than a fourth. The number now on record for the fourth quarter is 4.4% ... I think it will come down a bit in the wake of the downwards revisions to the retail sales report. I think the first quarter will be softer. Over the next year or so, I would expect something like 3.5% consumer spending growth, definitely better than what you have seen for the last few years, though not as strong as the recent spurt," added Hatzius.
Somewhat surprisingly, Hatzius also said he sees unemployment dropping to 8 percent by the end of 2012, much lower than his previous estimate of 8.75 percent.
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Thursday, February 17, 2011
Friday, September 10, 2010
Gold Prices Ready to Rebound?
Gold has taken a little bit of a hit this week, as investors ignored the bad economic news and latched onto the good.
That's highly unlikely to continue for long, as the weakness in the global and U.S. economy isn't going to improve any time soon, and mounting evidence confirms we're in for a continuing recession.
Gold prices will respond accordingly and continue their upward push to who knows where, as central banks' and government policies around the world continue to debase currencies and have done nothing to make a difference economically.
As predicted by us here and a number of others, government spending exasperates the problem, it doesn't help it. And gold and gold investors will be the beneficiaries of this folly for years into the future.
In the short term, gold prices could possibly drop, maybe to $1,245, but the support is so strong, that even if it goes below that it's unlikely it'll stay there long.
The revelation, which many of us already knew, that European banks and the stress tests related to them were a joke, and the depth of the sovereign debt risk is probably even worse than we know.
Picking and choosing what economic date we want to focus on isn't a good way to get a good overall picture of what is really happening, and gold investors aren't usually the type to do that, at least those that follow gold throughout the years.
So gold will continue on its upward run, and the economic data, if it can be trusted, will support the fact the global economy is still struggling, and the recession has never really ended. It was just masked by the trillions countries through at it.
That's all good news for gold investors.
That's highly unlikely to continue for long, as the weakness in the global and U.S. economy isn't going to improve any time soon, and mounting evidence confirms we're in for a continuing recession.
Gold prices will respond accordingly and continue their upward push to who knows where, as central banks' and government policies around the world continue to debase currencies and have done nothing to make a difference economically.
As predicted by us here and a number of others, government spending exasperates the problem, it doesn't help it. And gold and gold investors will be the beneficiaries of this folly for years into the future.
In the short term, gold prices could possibly drop, maybe to $1,245, but the support is so strong, that even if it goes below that it's unlikely it'll stay there long.
The revelation, which many of us already knew, that European banks and the stress tests related to them were a joke, and the depth of the sovereign debt risk is probably even worse than we know.
Picking and choosing what economic date we want to focus on isn't a good way to get a good overall picture of what is really happening, and gold investors aren't usually the type to do that, at least those that follow gold throughout the years.
So gold will continue on its upward run, and the economic data, if it can be trusted, will support the fact the global economy is still struggling, and the recession has never really ended. It was just masked by the trillions countries through at it.
That's all good news for gold investors.
Friday, August 6, 2010
Gold Soars for 8th Straight Day, Payrolls Down, Recession Worries Up
News outlets reporting on the "disappointing" and "unexpected" results of the U.S. payroll data, somehow find themselves using those words every time the economic data confirms the frailty of the U.S. economy, which when you remove the government props, at best show they've only slowed down the economic crisis, and at worst, and most probable, exasperated it.
Now we're almost surely going to enter into a period of more quantitative easing, which is just another way of saying the Federal Reserve is going to resume it endless printing of money.
Peter Schiff concurs, saying in a report, “It is now widely accepted that the continued domestic weakness will cause the Fed to significantly expand stimulus efforts through so-called quantitative easing. It’s a strong signal for traders to flee the dollar.”
Now that the historical inverse relationship between gold and the U.S. dollar seems to have returned, after a period of time it moved off that to a euro/gold inverse relationship, we should see gold start to rise again as the reality of the weak American economy again sinks into the minds of investors.
Gold is already responding, as it has ended in positive territory for the eight trading day in a row, moving up to $1,205.30 for December delivery on the Comex division of the New York Mercantile Exchange. That was for the most actively traded contract.
It's incredible to hear the mainstream media outlets focus on the release of census workers, which they attempt to paint as a temporary situation. Unfortunately they, in general, weren't near as aggressive in saying that when the census workers were hired and propped up the jobs market as if was on a solid foundation months ago.
There is nothing really new in these numbers, other than confirming what any discerning person already knew, and that is the private sector hasn't been hiring, and the hiring by the government for needless jobs (even without the census workers included), have created the illusion of at least a level situation. That fallacy has been destroyed with the removal of the government props and we see the American economy naked as it actually is.
I don't believe there has ever been an economic recovery in the United States, only the selling out of the future of our children and grandchildren as the Obama administration and the Federal Reserve attempt to print and spend money in order to buy time until a real recovery begins.
Unfortunately, their Keynesian strategy is backfiring, and future generations will have to pay for the outrageous stimulus programs which have done absolutely nothing to help the economy, but rather are only extending the recession longer.
Not only that, but now an increased tax burden has been added to the problem for the American people, and that should cause an even deeper rebellion and resentment from those Americans, who are increasingly discovering what these actions are doing to their country.
As far as how this affects the relationship between gold and the euro, that has started to revert to the former relationship of moving in tandem with one another, although there is little reason for that to happen, as nothing has really happened to change the sovereign debt crisis in Europe, other than the media's decision to report the crisis is relatively over.
The market is acting like there has been a real change, so while they believe it, the euro/gold relationship looks like it'll act like it has in the past.
If and when that changes, all bets are off as to how high gold prices will go, as there is really nothing in the way any longer to keep it down.
Those with discernment understand the enormous economic challenges ahead, and will invest or hold their money accordingly. Gold will remain one of the best places for safety and returns for some time to come.
Now we're almost surely going to enter into a period of more quantitative easing, which is just another way of saying the Federal Reserve is going to resume it endless printing of money.
Peter Schiff concurs, saying in a report, “It is now widely accepted that the continued domestic weakness will cause the Fed to significantly expand stimulus efforts through so-called quantitative easing. It’s a strong signal for traders to flee the dollar.”
Now that the historical inverse relationship between gold and the U.S. dollar seems to have returned, after a period of time it moved off that to a euro/gold inverse relationship, we should see gold start to rise again as the reality of the weak American economy again sinks into the minds of investors.
Gold is already responding, as it has ended in positive territory for the eight trading day in a row, moving up to $1,205.30 for December delivery on the Comex division of the New York Mercantile Exchange. That was for the most actively traded contract.
It's incredible to hear the mainstream media outlets focus on the release of census workers, which they attempt to paint as a temporary situation. Unfortunately they, in general, weren't near as aggressive in saying that when the census workers were hired and propped up the jobs market as if was on a solid foundation months ago.
There is nothing really new in these numbers, other than confirming what any discerning person already knew, and that is the private sector hasn't been hiring, and the hiring by the government for needless jobs (even without the census workers included), have created the illusion of at least a level situation. That fallacy has been destroyed with the removal of the government props and we see the American economy naked as it actually is.
I don't believe there has ever been an economic recovery in the United States, only the selling out of the future of our children and grandchildren as the Obama administration and the Federal Reserve attempt to print and spend money in order to buy time until a real recovery begins.
Unfortunately, their Keynesian strategy is backfiring, and future generations will have to pay for the outrageous stimulus programs which have done absolutely nothing to help the economy, but rather are only extending the recession longer.
Not only that, but now an increased tax burden has been added to the problem for the American people, and that should cause an even deeper rebellion and resentment from those Americans, who are increasingly discovering what these actions are doing to their country.
As far as how this affects the relationship between gold and the euro, that has started to revert to the former relationship of moving in tandem with one another, although there is little reason for that to happen, as nothing has really happened to change the sovereign debt crisis in Europe, other than the media's decision to report the crisis is relatively over.
The market is acting like there has been a real change, so while they believe it, the euro/gold relationship looks like it'll act like it has in the past.
If and when that changes, all bets are off as to how high gold prices will go, as there is really nothing in the way any longer to keep it down.
Those with discernment understand the enormous economic challenges ahead, and will invest or hold their money accordingly. Gold will remain one of the best places for safety and returns for some time to come.
Monday, July 26, 2010
NovaGold (AMEX:NG), IAMGOLD (NYSE:IAG), Ivanhoe (NYSE:IVN) Down As Gold Prices Fall
NovaGold Resources (AMEX:NG), IAMGOLD Corporation (NYSE:IAG) and Ivanhoe Mines Ltd. (NYSE:IVN) all fell Monday, as gold tested the $1,180 an ounce mark, ending at $1,183.10 an ounce on the Comex division of the New York Mercantile Exchange.
With most economics seeming to be going against gold's grain, the relatively slow decline in price reveals the uncertainty of the market, and even though there is some risk appetite out there, it's not necessarily robust, for obvious global economic reasons.
Although investors were hailing the strong earnings and better-than-expected housing numbers, it isn't convincing, as there is nothing that is really surprising anyone, as the numbers for last quarter were expected to improve over their recessionary numbers from the year before, making everything look good this time around.
The current quarter is different, and we should see some weak numbers next time, although we're in the midst of this reporting season, so many investors aren't discounting that yet as it pertains to gold and equities.
Speaking of gold miners reporting for this quarter, the majority of them will be very strong, based on the strong gold prices last quarter, just like other commodity prices as well.
One thing I think will happen, and it could be any time, is gold prices are looking for an excuse to run, and investors are looking sideways at them, ready to plow money in them as soon as the negative news continues, which it will.
For now though, until investors realize the extraordinary threat the sovereign debt crisis in the European Union really is, and the joke that was the bank stress tests (which were a public relations ploy, not a true test), gold will continue to experience downward pressure, although probably at the incremental moves we've been seeing recently.
Gold miners like NovaGold Resources, IAMGOLD Corporation and Ivanhoe Mines Ltd. will perform in a similar fashion, although some, like Ivanhoe Mines, should do better than many of their peers.
With most economics seeming to be going against gold's grain, the relatively slow decline in price reveals the uncertainty of the market, and even though there is some risk appetite out there, it's not necessarily robust, for obvious global economic reasons.
Although investors were hailing the strong earnings and better-than-expected housing numbers, it isn't convincing, as there is nothing that is really surprising anyone, as the numbers for last quarter were expected to improve over their recessionary numbers from the year before, making everything look good this time around.
The current quarter is different, and we should see some weak numbers next time, although we're in the midst of this reporting season, so many investors aren't discounting that yet as it pertains to gold and equities.
Speaking of gold miners reporting for this quarter, the majority of them will be very strong, based on the strong gold prices last quarter, just like other commodity prices as well.
One thing I think will happen, and it could be any time, is gold prices are looking for an excuse to run, and investors are looking sideways at them, ready to plow money in them as soon as the negative news continues, which it will.
For now though, until investors realize the extraordinary threat the sovereign debt crisis in the European Union really is, and the joke that was the bank stress tests (which were a public relations ploy, not a true test), gold will continue to experience downward pressure, although probably at the incremental moves we've been seeing recently.
Gold miners like NovaGold Resources, IAMGOLD Corporation and Ivanhoe Mines Ltd. will perform in a similar fashion, although some, like Ivanhoe Mines, should do better than many of their peers.
Thursday, July 1, 2010
Gold Up for Seventh Quarter in a Row
Even under pressure gold has been managing to stay ahead of the game and continue on its upward move.
Gold finished the month up close to 2.5 percent, while again having a great quarter, ending up by approximately 12 percent.
August delivery for gold increased to $1,245.90 an ounce, adding $3.50, or 0.3 percent.
Investors continue to move their capital into gold as one of their favorite safe haven places, as economic news continues to confirm the U.S. economy is doing very little, if it has ever left the recession in the first place.
Gold finished the month up close to 2.5 percent, while again having a great quarter, ending up by approximately 12 percent.
August delivery for gold increased to $1,245.90 an ounce, adding $3.50, or 0.3 percent.
Investors continue to move their capital into gold as one of their favorite safe haven places, as economic news continues to confirm the U.S. economy is doing very little, if it has ever left the recession in the first place.
Friday, June 11, 2010
Economic Recovery? Retail Sales Plunge
For those looking to gold for a safe haven and to make money, the release of the latest retail sales report confirms we continually say at Everything Gold, and that is we're not even close to being in a sustainable recovery, and all the massaged numbers the government wants to put out can't cover up the reality of the ongoing recession.
In May, retail sales plunged by 1.2 percent, confirming what I just said, as consumers remain extremely skittish and concerned about the weakness of the economy.
Another thing the government hasn't included in the retail picture is most people were simply spending their tax money, at temporary event, just like the ridiculous notion a bunch of jobs were created, when in fact they were a bunch of temporary census positions, which will end very soon.
It's one thing to listen and read this stuff, it's quite another to believe it.
For gold investors, we need to largely ignore the positive numbers thrown out by the government at this time, as they're largely irrelevant, and only used to show one tiny part of the picture.
All the props and gimmicks are coming to an end, and the real condition of the economy is starting to emerge.
One example of that is the huge decline in hardware and home improvement sales, which plummeted 9.3 percent after the homebuyer tax credit expired.
Keep those types of things in mind when making decisions about investing in general, and investing in gold specifically.
In May, retail sales plunged by 1.2 percent, confirming what I just said, as consumers remain extremely skittish and concerned about the weakness of the economy.
Another thing the government hasn't included in the retail picture is most people were simply spending their tax money, at temporary event, just like the ridiculous notion a bunch of jobs were created, when in fact they were a bunch of temporary census positions, which will end very soon.
It's one thing to listen and read this stuff, it's quite another to believe it.
For gold investors, we need to largely ignore the positive numbers thrown out by the government at this time, as they're largely irrelevant, and only used to show one tiny part of the picture.
All the props and gimmicks are coming to an end, and the real condition of the economy is starting to emerge.
One example of that is the huge decline in hardware and home improvement sales, which plummeted 9.3 percent after the homebuyer tax credit expired.
Keep those types of things in mind when making decisions about investing in general, and investing in gold specifically.
Friday, April 2, 2010
Gold Prices and Unemployment Claims
We've been talking some recently on Everything Gold about the false connections so-called financial reporters are making between alleged improved economic conditions and gold.
The latest example I found was in reference to the U.S. Labor Department reporting unemployment claims dropped to 439,000 last week. This particular writer actually connected this to the reason gold prices rose during the day.
Evidently the reasoning was because gold increased after the data were released, that means the small improvement was good news for gold. It defies belief that someone could be a financial "reporter" and be that clueless.
Even those not that familiar with gold know gold rises on bad news and uncertainty, not on good new. Oh, let's go buy some gold in celebration that everything is okay. Whoever hears that being said? Yet, that's the logic behind this ignorance.
We've been seeing that all over the financial news lately, and thought we would write some on it so those interested in investing in gold don't go around putting their money in the metal because they hear what is perceived as good economic news.
Imagine what that writer was implying: Unemployment claims dropped by a tiny 6,000 last week, so everyone went out to buy gold and caused it to surge in price because of the celebration of that fact. It doesn't get much more ignorant than that about why gold is invested in and what the causes behind it going up in price are.
Gold Investing
The latest example I found was in reference to the U.S. Labor Department reporting unemployment claims dropped to 439,000 last week. This particular writer actually connected this to the reason gold prices rose during the day.
Evidently the reasoning was because gold increased after the data were released, that means the small improvement was good news for gold. It defies belief that someone could be a financial "reporter" and be that clueless.
Even those not that familiar with gold know gold rises on bad news and uncertainty, not on good new. Oh, let's go buy some gold in celebration that everything is okay. Whoever hears that being said? Yet, that's the logic behind this ignorance.
We've been seeing that all over the financial news lately, and thought we would write some on it so those interested in investing in gold don't go around putting their money in the metal because they hear what is perceived as good economic news.
Imagine what that writer was implying: Unemployment claims dropped by a tiny 6,000 last week, so everyone went out to buy gold and caused it to surge in price because of the celebration of that fact. It doesn't get much more ignorant than that about why gold is invested in and what the causes behind it going up in price are.
Gold Investing
Thursday, June 4, 2009
Gold News | Gold Prices Rise As Investors Look to Increasing Demand
Gold News
Optimism about the economy showed through in the commodities markets recently as investors sent prices for gold, oil and grains higher on the belief that demand for basic materials will soon rebound. I think they're right, although no one can predict the timing of any market.
There is "a general feeling that maybe we're starting to stabilize here in terms of the economy," said Stephen Platt, an analyst with Archer Financial Services in Chicago. "There is some hope that the demand might come back."
Surprisingly positive data on the jobs market renewed hopes that the economy is recovering. The Labor Department said Thursday that the number of unemployed workers continuing to receive benefits unexpectedly dropped last week for the first time in 20 weeks. New jobless claims also declined, falling to 621,000 from 625,000, nearly matching analysts' estimates.
Unemployment has been one of the most closely watched gauges of the economy's health throughout the recession. Rising job losses affect vast areas of the economy, including consumer spending, retail sales and the housing market. The report came a day ahead of the government's crucial tally of monthly job losses.
A slightly weaker dollar also helped spur buying of commodities, particularly gold and oil. A weaker dollar makes both gold and oil attractive investments. By buying gold, investors insulate themselves from the risks of inflation, while oil becomes cheaper for foreign buyers when the dollar falls.
On Thursday, the dollar traded mostly lower against other major currencies as central banks in Europe made the decision to keep their benchmark interest rates at historically low levels, signaling a cautious stance on the economy.
Low interest rates are a tool governments often use to revitalize the economy by lowering borrowing costs, but they can also undermine a country's currency. The Federal Reserve also has kept its benchmark interest rate very low — near zero — as it works to boost the U.S. economy, which has put pressure on the dollar.
The dollar has declined steadily since early March as the outlook on the economy improves. This leads investors to look for more traditionally risky assets like stocks in which to park their money.
Gold for August delivery rose $16.70 to $982.30 an ounce on the New York Mercantile Exchange, erasing nearly all of the previous day's 2 percent loss.
Other metals also rose. July silver jumped 58.5 cents to $15.8950 an ounce, while July copper futures added 8.9 cents to $2.3010 a pound.
Gold News
Optimism about the economy showed through in the commodities markets recently as investors sent prices for gold, oil and grains higher on the belief that demand for basic materials will soon rebound. I think they're right, although no one can predict the timing of any market.
There is "a general feeling that maybe we're starting to stabilize here in terms of the economy," said Stephen Platt, an analyst with Archer Financial Services in Chicago. "There is some hope that the demand might come back."
Surprisingly positive data on the jobs market renewed hopes that the economy is recovering. The Labor Department said Thursday that the number of unemployed workers continuing to receive benefits unexpectedly dropped last week for the first time in 20 weeks. New jobless claims also declined, falling to 621,000 from 625,000, nearly matching analysts' estimates.
Unemployment has been one of the most closely watched gauges of the economy's health throughout the recession. Rising job losses affect vast areas of the economy, including consumer spending, retail sales and the housing market. The report came a day ahead of the government's crucial tally of monthly job losses.
A slightly weaker dollar also helped spur buying of commodities, particularly gold and oil. A weaker dollar makes both gold and oil attractive investments. By buying gold, investors insulate themselves from the risks of inflation, while oil becomes cheaper for foreign buyers when the dollar falls.
On Thursday, the dollar traded mostly lower against other major currencies as central banks in Europe made the decision to keep their benchmark interest rates at historically low levels, signaling a cautious stance on the economy.
Low interest rates are a tool governments often use to revitalize the economy by lowering borrowing costs, but they can also undermine a country's currency. The Federal Reserve also has kept its benchmark interest rate very low — near zero — as it works to boost the U.S. economy, which has put pressure on the dollar.
The dollar has declined steadily since early March as the outlook on the economy improves. This leads investors to look for more traditionally risky assets like stocks in which to park their money.
Gold for August delivery rose $16.70 to $982.30 an ounce on the New York Mercantile Exchange, erasing nearly all of the previous day's 2 percent loss.
Other metals also rose. July silver jumped 58.5 cents to $15.8950 an ounce, while July copper futures added 8.9 cents to $2.3010 a pound.
Gold News
Tuesday, November 11, 2008
Gold Futures Settle at $732.80 on the COMEX Division of New York Mercantile Exchange
Even though gold futures for December delivery settled at $732.80 an ounce on the Comex division of the New York Mercantile Exchange, a drop of $13.70, taking into consideration the current economic climate, it's not too bad, as most market forces are working against the yellow metal at this time.
Even so, we may test new recent lows before we see gold start to rise steadily again.
Deleveraging continues to strengthen the U.S. dollar, and gold probably won't be behaving like it normally does until that starts to unwind at a mature level. That's still a relative unknown, even at this stage of the economic crisis.
As the crisis starts to reach its apex, we should also help gold gain in price. We may be nearing the center of the storm in the U.S. soon, but it's impossible to tell because we really haven't any past experience to measure it by. It does seem that we're nearing the eye of the economic hurricane, and that will bode well for gold.
To me the important question for gold isn't when we begin to reach bottom, but how long we're going to stay there. It looks like it will be for some time, and that will definitely be positive for gold prices going ahead.
Even so, we may test new recent lows before we see gold start to rise steadily again.
Deleveraging continues to strengthen the U.S. dollar, and gold probably won't be behaving like it normally does until that starts to unwind at a mature level. That's still a relative unknown, even at this stage of the economic crisis.
As the crisis starts to reach its apex, we should also help gold gain in price. We may be nearing the center of the storm in the U.S. soon, but it's impossible to tell because we really haven't any past experience to measure it by. It does seem that we're nearing the eye of the economic hurricane, and that will bode well for gold.
To me the important question for gold isn't when we begin to reach bottom, but how long we're going to stay there. It looks like it will be for some time, and that will definitely be positive for gold prices going ahead.
Tuesday, October 21, 2008
Gold Futures Continue to Tumble on Stronger U.S. Dollar
For the eighth time in nine sessions, gold futures fell as the U.S. dollar continues to be one of the major safety choices of investors. The yen is the other choice for regular investors seeking safety.
Gold for December delivery dropped by 2.8 percent or $22 to end the session at $768 an ounce on the Comex division of the NYMEX.
Forced liquidation continues to pummel gold, along with most commodities, as funds seek liquidity.
Gold will eventually recover because of the financing of the bailout by the government of the U.S economy. Once that starts to kick in, we should see a significant weakening of the dollar, increased inflation, and gold starting to rise again. It's only a matter of when, not if.
For now though, lack of liquidity is forcing funds especially to sell gold positions. That's driving down the price of gold for now, while the dollar continues to strengthen.
Gold for December delivery dropped by 2.8 percent or $22 to end the session at $768 an ounce on the Comex division of the NYMEX.
Forced liquidation continues to pummel gold, along with most commodities, as funds seek liquidity.
Gold will eventually recover because of the financing of the bailout by the government of the U.S economy. Once that starts to kick in, we should see a significant weakening of the dollar, increased inflation, and gold starting to rise again. It's only a matter of when, not if.
For now though, lack of liquidity is forcing funds especially to sell gold positions. That's driving down the price of gold for now, while the dollar continues to strengthen.
Monday, October 6, 2008
Why Gold isn't Surging at this Time
While gold was the only commodity in the positive today, it hasn't performed quite as strongly as one would expect in the economic conditions we face. There are three reasons for this, with one being the major one to look to as a signal to buy.
The three reasons are a slowing demand for jewelery, speculators holding back, and most importantly, the dollar has remained too strong to cause gold to surge.
When the U.S. dollar starts to drop again, we'll see gold take a big step forward as it becomes the usual safe haven during difficult economic times.
I don't think there's much more to watch for in reference to gold investing at this time than the movement of the dollar.
Speculators and jewelery demand, while part of the picture, aren't the primary movers of gold, so we simply need to watch the performance of the dollar and respond accordingly.
The three reasons are a slowing demand for jewelery, speculators holding back, and most importantly, the dollar has remained too strong to cause gold to surge.
When the U.S. dollar starts to drop again, we'll see gold take a big step forward as it becomes the usual safe haven during difficult economic times.
I don't think there's much more to watch for in reference to gold investing at this time than the movement of the dollar.
Speculators and jewelery demand, while part of the picture, aren't the primary movers of gold, so we simply need to watch the performance of the dollar and respond accordingly.
Wednesday, September 17, 2008
Gold Prices Explode by over $60 an Ounce
Jittery investors pulled their money out of equities and again poured into gold and other commodities as the U.S. dollar fell in price and financial companies continue to flirt with bankruptcy and failure.
December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.
Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.
December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.
Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.
Thursday, May 1, 2008
Gold Plunges to 4-month Low on Strengthening U.S. Dollar
Gold dropped as low as $847.10 an ounce Thursday as a surge by the U.S. dollar weakened the yellow metal's appeal.
With gold last at $850.25/851.65 in New York, Simon Weeks, managing director of precious metals at Bank of Nova Scotia, said, "I think $850 is enough for now, but longer-term I expect to see (gold at) the 200-day moving average, currently at $822, before the correction will be complete."
Most precious metals were pressured by the strengthening U.S. dollar, as it reached a five-week high against the euro. Much of that was driven by better than expected numbers from the U.S. manufacturing index for April.
Gold futures in the U.S. dropped, with the June contract down $14.20 to $850.90 an ounce.
There were also concerns among dealers who watch a drop in bullion holdings in StreetTRACKS Gold Shares, the largest gold ETF in the world. It now holds 580.45 tons, a 10 percent loss over the last 10 days.
With gold last at $850.25/851.65 in New York, Simon Weeks, managing director of precious metals at Bank of Nova Scotia, said, "I think $850 is enough for now, but longer-term I expect to see (gold at) the 200-day moving average, currently at $822, before the correction will be complete."
Most precious metals were pressured by the strengthening U.S. dollar, as it reached a five-week high against the euro. Much of that was driven by better than expected numbers from the U.S. manufacturing index for April.
Gold futures in the U.S. dropped, with the June contract down $14.20 to $850.90 an ounce.
There were also concerns among dealers who watch a drop in bullion holdings in StreetTRACKS Gold Shares, the largest gold ETF in the world. It now holds 580.45 tons, a 10 percent loss over the last 10 days.
Tuesday, March 25, 2008
Gold Again on the Rebound - Surges over $15 an Ounce
The news last week was commodities were out of favor. How a few days changes everything, as the U.S. dollar is plunging again, consumer confidence and expectations are down, and housing prices continue to fall.
That means we're going to see commodities climb again, with gold leading the way.
Last week gold dropped by the most it had in almost two years, as investors, or rather speculators, fled the sector. The increase of over $15 an ounce today shows it's back in favor, and probably ready for another climb.
"The low consumer confidence number definitely helps gold because it's seen as a safe haven and an alternative asset," said Carlos Sanchez, analyst with CPM Group in New York. "The prospects of the economic situation and tightening of the credit fallout hasn't disappeared, so we'll likely see gold hold at these levels and probably go higher."
Other commodities on the upside today were agriculture, copper, crude oil and silver futures.
April delivery for gold increased to $16.30, to finish at $935 an ounce on the NYMEX.
That means we're going to see commodities climb again, with gold leading the way.
Last week gold dropped by the most it had in almost two years, as investors, or rather speculators, fled the sector. The increase of over $15 an ounce today shows it's back in favor, and probably ready for another climb.
"The low consumer confidence number definitely helps gold because it's seen as a safe haven and an alternative asset," said Carlos Sanchez, analyst with CPM Group in New York. "The prospects of the economic situation and tightening of the credit fallout hasn't disappeared, so we'll likely see gold hold at these levels and probably go higher."
Other commodities on the upside today were agriculture, copper, crude oil and silver futures.
April delivery for gold increased to $16.30, to finish at $935 an ounce on the NYMEX.
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