Wednesday, April 23, 2014
After yesterday’s Existing Home Sales figures were better than expected with a reading of 4.59M vs. expectations of 4.55M, gold prices dipped closing at 1281.10 for June delivery. Any positive economic data at this point is bearish for gold as this indicates that the Fed will continue tapering. The preliminary Chinese HSBC Manufacturing PMI was pretty much in line with expectations with a reading of 48.3 signaling an economy that continues to be in contraction. Gold, Silver, Platinum, and Palladium are trading in the green zone this morning up .54%, .70%, .24%, and .20% respectively. Gold prices are up 7.1% for the year based on the political tensions in Ukraine which fueled demand for the safe haven asset. The three Platinum producers came up with a revised offer for the AMCU, however it does not meet the union’s demands. Talks to end the longest and most expensive strike in South Africa will resume today. New Home Sales will be released today at 10:00 am! Have a great day.
Tuesday, April 22, 2014
We should see some more activity in the markets today as everyone has returned from Easter weekend. The precious metals market is trading on the upside this morning with Gold, Silver, Platinum, and Palladium up roughly .23%, .64%, .53%, and 1.07% respectively. Palladium prices took a hit yesterday amid expectations of a negotiation being reached in South Africa. Palladium futures for June delivery settled $29.30 lower yesterday at 777.80. The three PT producers and the Association of Mineworkers Construction Union will meet today to discuss revised wages. People are anxious for this strike to be over as this has been the longest and most exorbitant strike the South African mines have ever experienced. Stay tuned for New Home Sales at 10:00 am! Have a delightful day.
Wednesday, April 16, 2014
Yesterday was tax day and gold prices tumbled significantly to as low as 1284.40 for June futures. A year from yesterday prices were down roughly 9%. Headlines in China about 1,000 tonnes of AU being tied in financing spooked the markets pulling down prices for AU, AG, PT, and PD throughout the day. According to the World Gold Council, the Chinese markets have an appetite for physical AU such as bars and coins as a form of savings and thus, demand will most likely increase by 19% when we enter 2017. Chinese GDP hit a 2 year low of 7.4%, but was still above expectations of 7.3%. Palladium prices were down yesterday with June futures trading as low as 786.50. The PD sponge situation remains the same as people continue to hoard the metal. Building Permits figure for March is .990M vs. February’s result of 1.014M. The Federal Reserve’s Beige Book report will be released at 2:00 pm today. Have a lovely day.
Tuesday, April 15, 2014
The political unrest in Ukraine helped boost gold prices on Monday with June futures closing at 1327.50.
The political unrest in Ukraine helped boost gold prices on Monday with June futures closing at 1327.50. Although the uncertainty is favorable for AU, several analysts are waiting for the demand for the safe haven asset to fizzle out. The tightness in the Palladium markets continue amid tensions in Ukraine and the ongoing strike in South Africa. The precious metal markets are trading in the red zone across the board this morning. A stronger U.S. dollar and profit taking is putting pressure on gold prices in addition to a report by the World Gold Council which indicated that China’s demand for gold will be limited this year due to the vast consumption in 2013. Silver prices are being dragged by the gold and is trading approximately 3.3% on the downside this morning. We see intensified long liquidation in Palladium as the metal broke below $800. CPI for March is up .2% vs. expectations of .1%. Have a great day!
Monday, April 14, 2014
Palladium made a new high at $814.20 as supply concerns continue to escalate and is up roughly 14% for the year.
Palladium made a new high at $814.20 as supply concerns continue to escalate and is up roughly 14% for the year. Tensions in Ukraine and expectations that interest rates will continue to stay low have been supporting gold prices at these levels. The Fed’s March minutes clarified that interest rates will not rise substantially after quantitative easing is over as the markets had previously expected. Morgan Stanley & Goldman Sachs continue to remain bearish on gold as they believe this rally is temporary. Core Retail Sales for March are up .7% vs. expectations of .5%. Have a wonderful day.
Friday, April 4, 2014
Yesterday’s ISM Non-Manufacturing PMI result of 53.1 was close to forecasts of 53.5. This figure indicates that the non-manufacturing sector of the economy is generally expanding. The metals markets are trading on the upside early this morning ahead of the NFP and unemployment numbers. Nonfarm Payroll numbers for March are up 192,000 vs. expectations of 200,000 and the unemployment rate remains at 6.7%. We saw gold break above 1300 on the screens amid the weaker than expected jobs report and slightly come off moments later. Gold and silver are trading on the upside as weaker than forecasted economic data signals that perhaps the Fed won’t hike rates earlier than expected. Have a wonderful weekend!
Monday, March 31, 2014
All the metals are trading on the upside across the board with the exception of gold. Silver, Platinum, Palladium up .18%, .85%, and .66% and Gold down .15% . Gold was down approximately 3% in the month of March amid Janet Yellen’s hawkish statement that eroded interest in the non-yielding asset. Yellen will speak in Chicago today and investors will be listening for her stance on rates. Platinum continues to see support due to supply concerns since the strike has still not come to an end. Overall, the interest for physical gold has been quiet despite the lower prices with the exception of Japan, which saw an escalation in demand for the shiny yellow metal before the nation’s consumption tax rises tomorrow.
Thursday, March 27, 2014
The markets are moving lower this morning with AU, AG, PT, PD down .74%, .71%. 24%. and 2.06% respectively.
The markets are moving lower this morning with AU, AG, PT, PD down .74%, .71%. 24%. and 2.06% respectively. Gold broke below $1,300 based on expectations of rates rising sooner than expected and tensions calming in Ukraine. Next week’s NFP numbers will be scrutinized to give investors a better gauge of the outlook of the U.S. economy. Initial Jobless Claims for the week ending 3/22 missed expectations of 325,000 with a reading of 311,000. GDP (QoQ) is at 2.6% vs. expectations of 2.7%. The Platinum strike has been ongoing for ten weeks with no solution in sight. The mediator met with the union yesterday to discuss bringing the strike to an end.
Wednesday, March 26, 2014
New Home Sales fell 3.3% in February with a reading of 440,000. People are feeling optimistic about the economy as seen by yesterday’s Consumer Confidence result of 82.3 vs. expectations of 78.6. Gold is seeing light support as a safe haven appeal, but the gains are short lived as the overall sentiment for the metal is bearish amid expectations of rising rates. Physical demand for gold remains very weak despite the lower prices. The Palladium situation seems to be somewhat easing and the metal is trading 1.53% on the downside this morning. Core Durable Goods Orders for February are up .2% vs. January’s .9%.
Monday, March 24, 2014
We continue to see pressure on gold this morning as expectations of rising rates have been lifting the U.S. Dollar.
We continue to see pressure on gold this morning as expectations of rising rates have been lifting the U.S. Dollar. According to Richard Fisher, the president of the Federal Reserve Bank of Dallas, the asset buying program should be completed by the end of October. James Bullard, president of the Federal Reserve Bank of St. Louis, believes Janet Yellen’s remarks in regards to when we can expect to see rates rise after QE was in line with market expectations. Gold dropped 3.5% after the Fed’s announcement last week as talks about rising rates are bearish for the metal. Silver continues to follow gold’s slump and is currently trading approximately 1% on the downside this morning. Palladium continues to spike hitting a high of $802 in overnight trading due to supply concerns arousing from the ongoing strike in South Africa and tensions in Ukraine.