Gold finished out the last week of August by rallying to almost $1,690. This capped its largest monthly gain since January of earlier this year, when gold was hitting all types of records. Federal Reserve Chairman Ben Bernanke's defense of the central bank's previous easy-money policies was a signal that more easing was ahead.

Published in Gold Investing

After price gains in almost every session for the last 10 days or so gold finally eased some as investors get ready for the next Ben Bernanke speech that is scheduled for this Friday. Many investors are still a bit nervous that the Feds will still say they are holding off on another stimulus. We will have to see if Fed Chair Ben Bernanke sheds any more light on the matter.

Published in United States Economy

Gold spiked again today on the heels of a weaker U.S. confidence level, which in turn, boosted the anticipation levels of another Fed stimulus. However, as we know, the Feds are still going to hold off on this stimulus for as long as possible. A possible sell-off if the U.S. central bank does not commit to more monetary easing.

Published in United States Economy
Behold the bond -- the traditional safe-haven proxy for gold!  At any given moment, if an investor had thought that the price of the yellow metal was unlikely to move up or, worse, might soon decline, he was more likely to put his money in bonds.  After all, why accumulate something you felt had a dim future?  Besides, a bond pays interest; there’s a rainbow before you – in the form of a guarantee or “yield” -- when a bond matures.  Now that’s all coming to an end.
Published in From The CEO
In a bit of interesting news, the Republican Party is expected to call for a commission to look at the idea of returning the U.S. to the gold standard. This may help restore the confidence of the dollar. While interesting and perhaps a road to explore more, the fact of the matter is that to do this we would need to find a lot more gold then we currently have.
Published in United States Economy

Gold eased up today only slightly, as investors settled in for the weekend and their original appetite to buy, buy, buy also eased as the week came to a close. The last week was a strong one for gold, the strongest we have seen in almost 5 months.

Published in Gold Investing

Gold continued its torrid streak today, as renewed hope for a stimulus as well as a possible aid package for Spain is being put together. The yellow metal took this news and rose another 1 percent, heading into a 4-month high for 2012. Silver and platinum also spiked up, as the day was good for precious metals overall.

Published in Gold Investing
Wednesday, 22 August 2012

Is Gold About To Take Off?

As I write today, Gold has settled in to its new high since May 7 -- $1,643 –and the US dollar has dropped to a seven week low.  Significant buy stops were triggered, and a number of investors on the short side were forced out of the market.

While this is certainly good news for gold, analysts will be tightly focused on the 200-day moving average at $1,643.67 perched just above the current spot price.  For these same analysts to get really excited, gold will have to take out its next important resistance at $1,658.86, according to UBS Investment Research.  Still, it’s a promising sign that Gold futures have risen in five consecutive days and that the CRB Commodities index jumped by 1.37%.

Positive-Pullback

HSBC analyst Jim Steel points out that gold prices are also being supported by agriculture commodities on anxieties about a rise in food prices.  According to Steel, “corn prices hit a record high of $8.32 (USD) a bushel following the release of a weekly crop condition report from the Us Department of agriculture.” 

Additional encouraging news from gold comes from Reuters who reports that the Central Bank of Russia has added18.6 metric tons of gold to its reserves.  According to information from The International Monetary Fund, the Russian bank’s reserves now totals 853 metric tons. It should be noted too that reports of central bank holdings represent a good signal of support for gold prices if they drop.

Gold is also profiting from a favorable sentiment for commodities on expectation of an additional stimulus in China, and a more optimistic outlook for growth in the United States.  It’s stronger performance was also enhanced by the news that Greece’s bailout program may be allowed to continue.

UBS’s investment research report suggests that expectations of Q3 might already be built in to gold’s price, and that the current increase is merely a technical one.  If that’s the case, it seems reasonable to conclude that the actual announcement of Q3 might give gold an even greater steroid rush.  As I’ve previously suggested, the Fed is not without its hawks on the issue of quantitative easing, so investors are wary of making very large trades.  Still, professional eyes are fixed on the two-week period following the Fed FOMC meeting on August 31.

You do not need the precise judgment of a professional trader to make a profitable investment in gold right now on your own behalf.  Professionals look for profits in small movements in gold, and therefore many of their judgments have to be based on technical considerations.  It’s hard to go wrong buying gold at the current price for a long-term strategy.  You’re armed with enough historical information.  You know where gold’s been, you know how it can perform, and you’re certainly aware of many of the economic forces behind it.  Let the professionals and the crowds wait for a Fed Q3 decision.  Be your own central bank.  Start accumulating now.

Published in From The CEO

Gold slipped overall today, albeit just barely. The slip came a day after the three month high that the yellow metal experienced. Even with the slight slip in price gold remained strong, as plenty of investors are putting their money into it and trading it. Many investors chose the route of consolidation today, thus signaling the small drop in overall price for the yellow metal.

Published in Gold Investing

Gold has been climbing the price per ounce ladder over the last couple of weeks. Today was no different, as the yellow metal rose to its highest level since May, positioning itself to be at its highest level in almost three months.

Published in Gold Investing
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