Precious Metals | timiacono.com

Gold and silver prices dipped early last week after broad stock market indexes had reached record highs, but then the metals advanced sharply and ended higher as equity markets faltered amid new credit market fears, this time concerning the health of Portugal’s biggest bank. This marked the sixth straight week of gains for precious metals that are now at 3.5 month highs despite recent sharp declines for most other commodity prices.

Gold and SilverThough safe haven demand from a number of different sources (a list that seems to grow every week) has been the key driver behind rising gold and silver futures market buying, the big gains turned in by mining stocks so far this year are also being credited for some of the metals’ strength.

The silver rally has been particularly impressive as the “poor man’s gold” has risen 15 percent in just the last six weeks.

India and China remain non-factors for metals markets this summer and this is likely to continue over the near-term as the new Indian government chose not to reduce gold import duties and inquiries into commodity financing deals cast doubt over China’s gold demand. But quickly approaching seasonally strong periods of the year for both of the world’s top two gold buyers should prompt physical buying in Asia.

After surging in February and then faltering in the spring, precious metals are now again in strong short-term uptrends, seemingly determined to…

[To continue reading this article, please visit Seeking Alpha and to access precious
metals commentary that Tim only shares with subscribers, join Iacono Research.]

Tagged with:  

Following a surprising two-week rally in the middle of the month, precious metals ended the last full week of June almost exactly where they began after the gold price rose to a nine week high and silver reached its highest level since mid-March. The silver surge has been particularly impressive and a new technical setup has developed for both metals after markets appear to have “digested” the big mid-month gains.

Gold BarsThe threat of higher inflation combined with dovish comments by Fed Chief Janet Yellen as detailed here a week ago were countered in recent days by more hawkish outlooks from other central bank officials and geopolitical concerns have faded, at least for the time being. A weakening dollar continues to be positive for precious metals and more disappointing reports on the U.S. economy did little to halt that trend.

In China and India, seasonal factors played a key role in physical market demand reaching its lowest level of the year. There is disagreement about whether the unraveling of gold financing deals in China has had a positive or negative impact on the gold price and the story of Germany’s quest to repatriate a portion of its gold reserves held at the New York Fed took a surprising turn, one that will only add to the many gold conspiracy theories.

It was a quiet week for gold and silver but, given the plethora of potential catalysts to push prices higher, this could be “the pause that refreshes”…

[To continue reading this article, please visit Seeking Alpha and to access precious
metals commentary that Tim only shares with subscribers, join Iacono Research.]

Tagged with:  

Precious metals surged after a series of bullish developments that, on Thursday, sent the gold price to its biggest daily gain in nine months and resulted in an even bigger move up for silver. Higher than expected inflation reported on Tuesday combined with unexpectedly dovish comments by Federal Reserve Chair Janet Yellen on Wednesday spurred the jump in metal prices the following day.

Safe haven demand stemming from developments in Iraq and the threat of even higher oil prices were also factors, as was the unwinding of many commodity financing deals in China that prompted a surge of precious metals buying in the futures markets. The Thursday surge triggered stop-loss orders by those short gold and silver and this exacerbated the move, something that is usually only seen when prices are falling.

Gold fell slightly on Friday as short-term traders took profits and both equity markets and the U.S. dollar rebounded (precious metals often move opposite of these two), however, gold and silver still ended with their best week since mid-February. This sets the stage for the completion of a head-and-shoulders bottom as noted here a week ago and as detailed in this item by veteran trader Peter Brandt. A move back to $1,400 is said to be needed to complete the right shoulder and last week’s rally was a big step toward that goal.

[To continue reading this article, please visit Seeking Alpha and to access precious
metals commentary that Tim only shares with subscribers, join Iacono Research.]

Tagged with:  

Gold and silver prices continue to be range-bound, for gold around $1,300 an ounce and for silver between $19 and $20 an ounce, but with the recent break-out for another safe-haven in Treasuries last week, it’s possible the metals will soon break free of their recent trading ranges as well. Unfortunately for gold bulls, a move to the upside has been made more difficult by the U.S. dollar that is again strengthening, and this appears set to continue amid talk of monetary easing by the European Central Bank that could lead to a weaker euro.

Gold and SilverThe situation in the Ukraine is not improving, but gold traders seem to be getting bored with this story again despite escalating violence and there being no peaceful resolution in sight. Instead, traders pored over a bevy of U.S. economic data last week but, despite clear signs of accelerating inflation in the U.S., this generated little buying interest for gold and silver.

China gold demand has been steady, and U.S. hedge funds made few changes to their gold holdings in the first quarter. Investment banks remain mostly negative about the prospects for precious metals, though less negative than they’ve been over the last six months, as this market seems to be “stuck in neutral” heading into the traditionally slow summer months. The recent elections in India could liven things up if, as expected, the new government relaxes the draconian gold import curbs that have stifled demand there for more than a year.

Precious metals remain stuck in narrow ranges…

[To continue reading this article, please visit Seeking Alpha and to access precious
metals commentary that Tim only shares with subscribers, join Iacono Research.]

Tagged with:  
Page 1 of 8612345102030...Last »
© 2010-2011 The Mess That Greenspan Made