Wednesday, March 14, 2012

Gold Price Fall


After a rise and shine in a few days, the gold price declines. The price of gold fell to the lowest price since January 2012 after the U.S. central bank policy makers, the Federal Reserve, raising their assessment of the economy. Positive assessment of were signal that monetary stimulus will not be added.

Spot price of gold for fast delivery fell 1.8 percent to US$ 1670.15 per troy ounce (equivalent to 31.1 grams) on Tuesday (3/13/2012) 3:53 pm New York time. Earlier, gold tumbled 2.2 percent to its price of US$ 1666.13, which is the lowest price since January 25, 2012.

Gold futures exchange for April delivery was down 0.3 percent to 1694.20 dollars per troy ounce on Tuesday at 1:50 pm, at the Comex in New York. After the close of trading, the gold contract fell 2.2 percent to a price of 1662.10 U.S. dollars.

Along with the statement of the Federal Open Market Committee that said the U.S. labor market continues to improve, the U.S. dollar also strengthened against several major currencies. As a result, the investment of the market players at gold also declined.

On 29 February, the spot price of gold fell 4.9 percent, the biggest since December 2008, after the Governor of The Fed - Ben S Bernanke dampen speculation that the central bank would take new steps to boost liquidity. It's a huge disappointment for gold investors of anticipate an additional stimulus. People are still happy to hold dollars rather than gold

Monday, March 12, 2012

Price of Gold Shines


Future exchange contract price of gold for April delivery rose for a fourth day on the Comex in New York. Contract price of gold on the opening morning rose 0.3% to U.S. $ 1717.40 per troy ounce. At 6:05 pm today Singapore time, the same contract at the level of U.S. $ 1716.90 per troy ounce. Meanwhile, gold price in Spot Market recorded a little change in the level of U.S. $ 1714.68 per troy ounce.

In addition to the gold price, silver price also rose. Silver futures prices for delivery in May rose 0.5% to 34.375 per troy ounce on the Comex in New York. However, at 6:15 o'clock today, the same contract traded on the position of U.S. $ 34.37 per troy ounce. Silver prices in the spot market also rose by 0.2% to U.S. $ 34.3725 per troy ounce.

Friday, March 9, 2012

Gold Prices Resumed Strengthening

Gold futures contracts has the biggest jump in two weeks along with the progress of Greece's debt restructuring efforts. It finally looks Greece will perform debt relief, and overall positive sentiment.

Greek conditions then strengthens euro against the U.S. dollar pushing gold as an alternative investment to the U.S. dollar. Gold futures for April delivery rose 0.9 percent to US$ 1698.70 per troy ounce (equivalent to 31.1 grams) on Thursday (8/3/2012) at 1:42 PM, at the Comex in New York.

Risk-taking mentality seems to have been re-possessed by market players. Gold futures price increase is the continuing impact of the strengthening euro against the U.S. dollar.

The euro rose as Greece seems increasingly close to complete debt elimination. Debt crisis in Greece necessarily spread to other European countries. Until eventually cut economic growth in a number of countries. President of the European Central Bank (ECB), Mario Draghi said inflation was likely to violate the 2 percent limit set by the bank this year as the economic crisis in the eurozone. ECB was still maintaining its benchmark interest rate at record low at 1 percent.

In addition, according to information from UBS AG, the possibility of a third economic stimulus from the Central Bank of the United States is the key to the future of gold price movements.

Thursday, March 8, 2012

Gold Price Fluctuations - Rise Due to Good News


Gold futures exchange contracts rose from its lowest position of five-week because of the optimism that Greece will recover from its debt crisis and the growing number of U.S. workers are employed.

Gold futures for April delivery rose 0.7 percent to US$ 1683.90 per troy ounce (equivalent to 31.1 grams) on Wednesday (07/03/2012) at 1:59 PM at the Comex, New York. There is some good news out there for the economy, and it helped the price of gold.

The rise in gold price is caused many investors who participated in the Greek debt swap. It is marked by the investor with ownership as much as 58 percent of Greek bonds are eligible for debt relief the country, willing to participate. This condition brings Greece closer to the largest debt restructuring in history.

In addition, rising gold prices also triggered by news of the United States. According to data from ADP Employer Services, U.S. companies hired 216,000 workers last month.

Number of investors have come back after a sharp market downturn. However, even though analysts warn rising gold price is still not stable in the short term. Gold remains vulnerable to further pressure in the short term.

Gold prices had fallen below the 200-day moving average on Tuesday. Gold futures prices touched US$ 1663.40 per troy ounce. The price drop is the first time since mid-January 2012. Fall below that size, which is currently at the level of US.$ 1674, could be a bad signal to investors who follow historical price patterns.

Friday, March 2, 2012

The Importance of Trade in Futures Exchange for the Company

As we know, increasingly active the business will automatically increase the activity of buying and selling contracts. Unfortunately entanglement in the sale and purchase contract also carries the potential impact of the additional revenue loss. Why is this so? This is because the price of an item has a tendency to move upwards or downwards to follow the law of supply and demand of goods traded. Rarely does not happen the price movement.

So most likely the price in the market will move higher than the price of sale and purchase contract, or otherwise, at market prices move lower than prices in the sales contract. You can imagine what happens if the price moves become not equal to the price in the contract?

If the market price moves higher than the price of the contract, it is certain that the seller was a loss. Better for the seller to sell in the market, rather than sell under the contracts with lower prices. Conversely, if market prices move lower than the price in the contract, although the sellers feel disadvantaged, but the buyer feels aggrieved. In this condition, the buyers are better off buying in the market instead of buying a suit contract with a higher price.

The importance of futures exchange for business
Almost all business activities related to sale and purchase contract, with either short or long term (futures), depending on the products that are traded. Entanglement in buying and selling as outlined in the form of purchase agreement is very good for buyers and sellers. Sellers have got the assurance that the parties will buy the product and the buyer can ensure continuity of necessary raw materials.

Casting buying and selling in the form of futures exchange contracts brings the benefits of eliminating the risk of uncertainty in getting buyers and continuity obtain raw materials.

The benefits of futures exchanges for business
Some people are already familiar with futures exchange as one instrument to protect the price. But not many people understand that futures contracts can be used to fix prices in the long-term contracts so that both buyers and sellers still have the opportunity to earn additional income if the market price moves does not equal to price of the contract.

The concept of futures trading is actually equal to concept of other investment, purchasing at a low price and selling at high prices (buy low sell high) or otherwise, sell at high prices and buy back at lower prices.

More easily, if analogous to the case of buying and selling oil (Oil is a major commodity in the futures market). If we know the price of the oil will go down, of course we want to sell it now at a higher price and then buy it when prices have gone down or lower than the previous price. Conversely, if we know the price of oil will go up, then we want to buy now at lower prices and sell later when the commodity prices have gone up higher than the previous price.

How does exchanges of futures for swaps work?
For example, an oil producer signed a sales contract with the consumer at a price of 100 dollars / barrel for a year. After 6 months of the contract is signed, oil prices rose to 110 dollars / barrel. As a result, oil producers lose the potential additional income of 10 dollars / barrel (US$ 110 - US$ 100) for the manufacturer should be able to sell at a price of 110 dollars / ton, instead of the US$ 100 / barrel.

To replace the loss of potential revenue enhancement, manufacturers can open Buy positions in oil futures prices in the range of 110 dollars. Thus when oil prices rose again above 110 dollars / barrel, for example to 115 dollars / barrel, producers can close buy positions owned (US $ 110) by selling at a price of US.$ 115 / barrel.

Activity in futures trading helping manufacturers to get a profit of 5 dollars / barrel. So even though manufacturers already tied oil sales contract with consumers, producers still able to earn additional revenue potential stemming from rising oil prices in the market.

If it turns out to be such as oil prices fell US$ 90 / barrel, now turn to consumers who feel aggrieved, because consumers should be able to buy oil at a cheaper price in the market. . To anticipate this, consumers can open a sell position on oil futures prices in the range of US$ 90 / barrel. Thus, when oil prices fell again below 90 dollars / barrel, for example to 80 dollars / barrel, consumers can cover sell positions (90 dollars) to buy at a price of 80 dollars / barrel.

So, the activity in oil futures trading is also helping consumers get the additional income of 10 dollars / barrel (90 U.S. dollars - 80 dollars). Income can be used to reduce the burden of the purchase price of oil at the price U.S. $ 100 / barrel to 90 dollars / barrel

From the example above can be concluded, that the combination of sale and purchase contract with futures contracts, helping producers and consumers to ascertain the source of the buyer and the continuity of the products that are traded, and still be able to gain additional income, either for the producers, if the market price moves more higher than the contracted price, as well as for consumers, if the market moves lower price than the price in the contract. Both sides can open and close a position to sell or buy according to market conditions.

Share

Twitter Delicious Facebook Digg Stumbleupon Favorites More