Monday, April 30, 2012

Gold Prices are still Stable

Gold prices hold near the high level for 2 weeks on Monday linked the prospect of a safe-haven buying, with the U.S. dollar is depressed due to the release of GDP data under estimates and speculation that the U.S. Federal Reserve is likely to ease policy to trigger the economic growth.

The U.S. economy, the world's largest economy expanded 2.2% to annual basis within 3 months of this year, below economists' expectations at 2.5%.

The spot price of gold almost did not experience any movement in the $ 1,663.04 per troy ounce, gold has moved up to $ 1,667.11 last Friday, its highest price since 13 April, after the release of disappointing U.S. growth data and fears of European debt that triggered the investment request.

U.S. gold contract for June barely moved in the $ 1,664.20 per troy ounce. Precious metals mixed with gold traded at a high level of two weeks in early Asian trading. Precious metals are experiencing intense pressure this month, closed at $ 1,667.80 / oz.

Gold price is expected bullish and move at the potential area to $ 1.700 - $ 1.717 / ounce.

Interest in gold from the official sector and supported by physical demand on the stock trading is still strong, but the ability of gold to restore the safe haven interest in the near future is still not strong due to market conditions re-focus on European countries.

Friday, April 27, 2012

Let's Watch U.S. GDP Data and the condition of Europe

Accurate data is very important to making good business plan. Therefore, the release of data from an institution so long awaited by businesses, including investors.

The emergence of the U.S. GDP data release on Friday may give directions guide the movement of financial markets, as investors seek guidance signals from the country that still gives a mixed signal. While the GDP data is considered as guidelines that likened see previous events, traders hope that this report can be a road map for the momentum that will emerge in the second quarter.

Jobs data itself is still a major concern after data showed the weakness in March that the non-farm payroll numbers that come up with half of number that appears in February. An increase in weekly unemployment claims provided by the weak increase of 120,000 jobs in March, has raised fears for the strengthening of the non-farm payrolls in April, which will be released next week. Jobless claims are at levels higher than Thursday, which appeared in number 388 000, beyond expectation of 375,000.

Meanwhile, from Europe, S & P cuts debt rating of Spanish
Standard & Poor's 500 cut its debt rating of Spain as much as one level of A to BBB +. S & P argued that Spain should continue to provide fiscal support to the banking sector as the contraction in their economy. In addition, S & P also lowered the short-term debt rating of Spain from A-1 to A-2. As for the outlook of this debt ratings is negative.

Just information, the burden of the cost of debt term of 10 years Spain has jumped about 70 basis points so far this year. This causes the Prime Minister Mariano Rajoy hard to convince investors about the Spanish economy, in the midst of high unemployment and a contraction in the economy.

S & P saw Spain's budget will continue to be eroded amid the economic contraction that occurs. At the same time, they also see that the Spanish government will be poured even more fiscal support to the banking sector. As a consequence, there will be an increased risk in Spain.

Gold Prices Jump

Today, contract price of gold recorded the highest rise in the last two weeks. At 13:48 (26/4) New York time, the price of gold contract for June delivery rose 1.1% to U.S. $ 1660.50 per troy ounce on the Comex, New York. This is the biggest jump since April 12nd. If calculated, the price of gold has surged 6% so far this year.

There are a number of factors that allegedly affect the gold price movements. First, the market speculated that the Federal Reserve will increase flushing the stimulus program to boost the U.S. economy.

Second, the U.S. Labor Department data showed an increase in jobless claims from the estimated market last week. Just you know, the number of Americans who filed initial jobless claims fell 1,000 residents to 388 000 in week ending April 21 from the previous week as many as 389 000. Meanwhile, the median 48 economists surveyed by Bloomberg predict as many as 375,000. U.S. labor market began to slow. This will encourage the Fed to conduct policy easing. This is the focus of investors today.

Not only gold, silver contract prices are also soaring. Silver futures prices for July delivery jumped 2.8% to U.S. $ 31.276 per troy ounce on the Comex in New York. This is the biggest jump since April 12nd.

Tuesday, April 24, 2012

Gold Prices Move Sideways

Gold futures fell to its lowest level in two weeks, today (23/4) at 13:42 pm New York time, the price of gold contract for June delivery fell 0.6% to U.S. $ 1632.60 per troy ounce on the Comex in New York. In the previous transaction, the contract price of gold dropped to U.S. $ 1623.60 per troy ounce, its lowest level since April 5. Throughout this month, gold prices have fallen 2.4%.

The decline in gold price occurred as the strengthening of U.S. dollar which in turn cut the demand for gold as an alternative investment. Just information, the mighty U.S. dollar by 0.6% against of currencies in the world. Meanwhile, according to the prediction of Markit Economics and HSBC Holdings Plc, China manufacturing data is predicted will experience a contraction for the next six months. There is anxiety and investors want to hold cash. In addition, the level of production in China is also expected to disappoint investors.

Physical demand for gold is currently very low. Physical gold demand from India and China -two of the largest gold consumer- are relatively decreased after February. Later in, investor interest in gold has begun to fade. Gold price movements are influenced by the strengthening of dollar and the stock market.

The price of gold is expected to get under pressure this week, as the prospect of global stock markets are depressed. Concerns over the condition of the European market and economic data the United States is below expectations, potentially dim out the gold.

Gold is still likely to move horizontally in a limited range (sideways) U.S. $ 1,600 per troy ounce, waiting for a more powerful sentiment.
Economic data now show the movement of gold tends to follow the direction of other assets. Gold prices this week are still able to survive at a low level of between U.S. $ 1,630-US $ 1,680 per troy ounce.

Continuation of U.S. monetary policy became the main determinant of the prospects of this precious metal prices. Well, at the current price range is relatively cheap, gold could potentially be hunted by investors. It could hoist the price but not big.

Given the weekly cycle, Thursday is the perfect time to buy gold. On that day, the most depressed gold to back up on Friday.

Friday, April 20, 2012

Euro Stronger, Gold Prise Rose

Spanish bond auction results received positively by the market player has improved a good sentiment and helped boost the performance of Gold prices back above $ 1642 per troy ounce, while the U.S. dollar still fell -0.06%.

Eurozone fiscal mess has overshadowed the investor within a few years, the impact on gold is quite volatile, as investors attempt to discount any situation that often changed in short term.

This makes the price of gold moves wildly in the range of $ 1615 and $ 1685 depending on the latest developments on the global growth or new concerns about the debt crisis problem.

The results of the Spanish bond auction succeeded in giving relief, where the demand for Spanish bonds worth 2.5 billion euros is quite solid, and the resulting yield on the 10-year tenure in the secondary market stays below 5.9%, as well as insurance against Spain bond defaults also has eased.

For the future, the focus will shift in macroeconomic factors, through reports U.S. weekly jobless benefit claims, existing home sales data and businesses survey on Philadelphia area. Monitored so far Gold traded higher. Gold futures posted gains. At 13:50 New York time, the price of gold contract for June delivery rose 0.1% to U.S. $ 1641.40 per troy ounce in Comex, New York.

Gold price increase coincided with the retention rate of the strengthening of U.S. dollar. One reason is the statement of the International Monetary Fund managing director Christine Lagarde who affirm that the IMF funding would be raised significantly in the middle of Europe's debt crisis. Conditions that boosted demand for gold as an alternative investment.

Euro rose today, this is good news for gold. This means that more money will flow in the financial markets and it's good for the movement of gold.

Wednesday, April 18, 2012

Nokia Gets Junk

Earlier this week Nokia has received bad news. Monday (16/4) world class rating agency, Moody's Investor Services to downgraded the Finnish company. Moody's decision exactly the same as Standard & Poor's who downgraded Nokia in March.

Nokia was forced to slam its investment rating to below the level of junk. Details in the trim from Baa2 to Baa3. A fairly sharp decline is the reason for Moody's gave this rating. Nokia's stock performance listed the worst in 15 years.

Nokia's efforts to make the transition with Microsoft Corp. failed to embrace the view of Moody's ward. Reasonable this is happening, given that last year the former king of the mobile phone also did not release many products. Last year Nokia introduced its new smart phone product named Lumia. Nokia is difficulty competing with the iPhone and Android.

Tuesday, April 17, 2012

Gold Price Prediction of the Week : Gold Price Dropped

Gold prices fell -0.32% overall on Monday, after a rebound from its lowest point in the range of $ 1642 per troy ounce after U.S. retail sales data are positive. However reinforcement is still limited due to the tension of Spanish outlook on Thursday ahead of bond auctions this week, prompting profit-taking gold to cover losses on other assets. Fear of inability to get its finances in Spain under control has boosted the cost of bond insurance - in the event of default to the Spanish - to the highest levels record.

Others negative catalysts of gold are the economic slowdown in China, as well as the strengthening dollar factor, plus the physical gold demand from India which has not recovered significantly. Gold trading volume was still below the level of trade last year, even in the month of April only reached 61 percent of trading volume during the month of March. This indicates Gold fever mainly from China appear to have subsided.

Investment managers, including hedge funds and other large speculators have cut exposure to buy gold as much as 8.674 to 109 511 contracts. Technically, the failure of gold to penetrate resistant key US$ 1686 some time ago has been to reduce expectations of a bullish technical signal to reach US$ 1700 in the short term.

Therefore Gold is still potentially weaken, at least while waiting for fresh news from Spain. During a positive impression of economic stability, financial managers will tend to stay away from gold and into bonds with high yield. Concerns about the European financial back on along with the level of bond yields with maturities of 10 years and China's economic growth rate which disappointing would be an issue affecting the gold price movements.

Thursday, April 12, 2012

Physical Demand for Gold is Expected to Rise

Physical gold demand is expected to come back with the end of the strike of India's gold trader as a protests to the increase of gold import tax of 2% to 4%. India, and China is one of the world's largest consumer of gold the end of strike of the gold merchant in India and by the gift-giving festival in India, namely Akshaya Tritiya on April 24th could be a possible future recovery in demand for physical gold momentum, especially if the price of gold remained at a fairly low level not far from the $ 1.620 per troy ounce.

Gold jewelry demand in China continues to show growth in 2011 with soaring up to 15% to new record highs, a trend that still seems to be repeated this year, according to precious metals consultants GFMS Ltd.. Wednesday.

Gold jewelery sector growth in China over the past year contrasted with jewelery demand in other regions, including India, mainly driven by rising inflation fears and the continuing growth in domestic fixed income, based on a survey of gold at 2012 conducted by GFMS, a unit of Thomson Reuters Corp.

China jewelery production grew 14.6% to print a new record high at 496 tonnes in 2011, after noted growth of nearly 20% in the previous year. On the other hand, the production of jewelery in India, it fell 3.1% to 701 tons although had scored a highest record 723 tons in 2010. Overall, the global jewelry production dropped by 2.2% in 2011 to 1973 tons.

According to GFMS, the expansion rate of gold demand in Asian giants are incredible, with an average annual growth reached 10% in the last decade. Sales during the post New Year China have shown significant numbers. The continued economic growth and increased interest to own gold as an alternative asset will tend to push Chinese production of jewelry toward a new record this year.

Investors Turn to Stocks, Gold Price Slid

Having previously traded up, now, recorded a decline in gold prices. Gold price eased in Asian markets because of the rebound that occurred in the U.S. stock market. Gains in the stock market has lessened the demand for gold as a safe haven.

Gold futures for June delivery on the Comex - Nymex move to the level of U.S. $ 1659.80 per troy ounce in trading at 8:17 Melbourne time. Meanwhile, gold for immediate delivery slid to U.S. $ 1659.53 per troy ounce.

Yesterday, the price of this precious metal fell for the first time in four days, with the end of the correction on Wall Street. Gold fell 40 cents to U.S. $ 1660.30 per troy ounce in New York at 1:40. Meanwhile, in the three previous days, the price of gold has increased by 2.9%.

As a note, U.S. stocks driving after Alcoa Inc.. opened the earnings season with encouraging results. Therefore, people leaning the stock market today. Investors are turning gold to the form of stock.

Investors may go back to collect the gold as a safe haven. However, until we get clarity on the situation in Europe, gold prices will move in the range of U.S. $ 1,550 to U.S. $ 1,700 per troy ounce.

Monday, April 9, 2012

Gold Price Predictions of This Week

Gold price predicted to rise again. However, gold prices fell 2.2% in last week. Things that may seem contradictory indeed. Gold support level is predicted to be in the range of U.S. $ 1,600 and will rebound this week.

Gold price may rise as costs spike in Spain. It triggers the anxiety that Europe is still working hard to deal with its debt crisis. The condition is that then increases the demand for gold as an alternative investment. With the condition of Spain that has not improved, the European debt remains a major concern of investors.

U.S. employment data released yesterday, would raise the price of gold in London. Precious metals continued its rally for a second day. Gold bullion for immediate delivery rose 0.3% to U.S. $ 1636.43 per ounce toy market in London, last weekend.

Investors back to collect the gold after the U.S. reported the addition of workers in March under the market prediction. Their industry just add some 120 000 workers throughout March. Release was missed than economists forecast that predicts the addition of 205 000 workers. The data then increased projections for the Federal Reserve to implement additional stimulus measures to spur economic growth in the country.

Previously, based on the results of the Fed's last meeting which was released April 3, indicated the central bank will delay additional monetary stimulus, except for the expansion of the economy falters.

As a note, the gold price has surged 86% since late 2008, when the Fed set interest rates at a low level, and disburse the stimulus in the form of asset purchases worth U.S. $ 2.3 trillion. Gold moves up in an anemic spot trading on Friday after a disappointing payrolls data from the U.S. to revive hopes of additional stimulus by the Federal Reserve.

Friday, April 6, 2012

Gold Charms Begin to Fade this Year

For the first time this year, gold traders feel pessimistic about the gold price movements. About 15 of the 29 analysts surveyed by Bloomberg predict, the price of gold will sag in the next week. While five others analyst chose a neutral.

There are several causes that underlie it. Among other things, the Federal Reserve gave no signal of monetary stimulus will be poured in the near future. The Fed is unlikely to do quantitative easing. If you see the U.S. economy is getting better, then it is negative for gold.

Another factor is the strike of the gold jewelers in India related to tax increases of gold imports. According to the Bombay Bullion Association on April 2nd, the level of India's gold imports fell by 81% in March. Even foreseen, in the second quarter, the import of gold will be dropped 40%.

Jewelery market in India has an important role in shaping the gold price. If the strike continues, then in the long time will give an enough worrying for the price of gold.

Gold futures fell to their lowest level in 12 weeks. Yesterday, the contract price of gold for June delivery fell 3.5% to U.S. $ 1614.10 per troy ounce on the Comex in New York. This is the biggest drop for the most actively traded contract since February 29th. In the previous transaction, the price of gold had touched a new U.S. $ 1,613 per troy ounce. This is the lowest level since January 10.

The decline in gold prices as a signal that the Federal Reserve will not be poured economic stimulus. Conditions that lead to the mighty dollar and diminish the charm of gold as an alternative investment.

Wednesday, April 4, 2012

Fluctuations in Gold Price

Spot gold price is still fluctuating. Although the price of gold moved up $ 1.00 in early Asian trading to $ 1,647.10 / oz, but precious metals apparently has not been able to fully restore the losses as much as $ 31.10 on Tuesday .

Market assess the Federal Reserve's last meeting indicated, there would be a further stimulus, unless the U.S. economic growth slowed. The Fed chairman said the U.S. economic growth moderate, and for now there is no urgency to do more monetary easing by the addition of stimulus.

This signal was then dampen the demand for gold as a safe alternative asset investment (safe haven). Correction in gold price occurred as waning expectations of further monetary stimulus. Gold price movements / fluctuations are affected by currency movements, particularly the U.S. dollar.

Gold futures for June delivery on the Comex in New York trimmed 1.4% to U.S. $ 1648.40 per troy ounce at 9:02 pm Melbourne time. Meanwhile, gold for immediate delivery to rolled thin to the position of U.S. $ 1647.38 per troy ounce

Tuesday, April 3, 2012

Gold Price Prediction

Gold prices are still fluctuating. After a climbed last week, gold had fallen again to around U.S. $ 1,654.9 per troy ounce (toz), Thursday (29/3). Gold prices rose 1.02% to U.S. $ 1,671.9 per toz, at the close of trading last week. However, opening in April, gold corrected back to the position of U.S. $ 1,667.3 per troy oz. Push of gold price has come true today despite still playing in the area of consolidation. The movement of United States dollars (U.S.) to be the main factor driving the price of gold.

Gold prices predicted to rise again. Why? Because improving global economic data caused the movement of U.S. dollar is weaker. That conditions then increase the demand for investment assets. The weakening of dollar boosted gold charm as an alternative investment.

If calculated, during the first three months of this yearthe gold price has climbed 6.7%. On the other hand, the position of the U.S. dollar defeated 1.5% against six major world currencies over the same period.

Dollar weakness against the euro was allegedly associated with the steps of the leadership of the European that strengthen defense wall of the crisis by adding a European rescue fund. Meanwhile, the Chinese economic data also showed a positive thing, in which the China Purchasing Manager's Index rose to its highest level in March in the position of 53.1.

Quoting a Bloomberg survey, 14 of 21 dealers of U.S. Treasuries, predicting the Fed will need quantitative easing to accelerate the recovery of the U.S. economy. If the Fed doing quantitative easing this year, plus a surge in fiscal deficits and declining U.S. dollar compared to other world currencies, then gold will be a principal investment.


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