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Money Metals Exchange: Bizarre Gold, Silver Movements Behind-the-Scenes

By Clint SiegnerMoney Metals Exchange….
 

A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty.

Endeavor Silver, one of the largest primary silver mining companies, announced last week that it expects to reduce production of the white metal by roughly 30%. The company’s El Cubo mine is not profitable despite efforts to reduce costs. Endeavor plans to halt development and exploration at the mine and process accessible ore only. By year end, the mine will be placed on “care and maintenance.”

Steve St. Angelo of SRS Rocco Report reviewed the company’s third quarter 2015 financial reports, which revealed the all-in sustaining costs at El Cubo at $18.48 per ounce. There will need to be a significant recovery in silver prices before the mine can operate profitably. Investors should expect other miners to announce similar plans to taper production in the coming months.

COMEX Gold Stockpiles Drop 73% in a Single Day

The drop in COMEX inventories of gold and silver may also contribute to supply problems in the bullion markets. Registered gold inventories had recovered very modestly from record low levels in December. However, last week stockpiles dropped an alarming 73% in a single day. 201,345 of the available 275,325 ounces of registered gold were reclassified from registered to eligible on Tuesday,

Article source: http://www.coinweek.com/bullion-report/money-metals-exchange-bizarre-gold-silver-movements-behind-the-scenes/

Gold price: stars align for rally ahead of jobs data

“Gold bugs are among the only smiling investors these days,” says CNNMoney, as turmoil continues on wider markets.

The spot gold price surged 1.2 per cent during the overnight Asian trading session, which Reuters notes is the biggest one-day rise since mid-January. It was at $1,146 an ounce in London this morning, well above recent resistance levels and the highest it’s been since late October, after an eight per cent rally since the turn of the year.

It is easy to see why gold is surging at a time when equity markets are volatile and in broad retreat: global economic data is fuelling fears of a hiccup in the post-crisis recovery and interest rates are rooted at record lows.

“Gold tends to shine brightest during times of stress. The precious metal is viewed as a reliable store of value for investors to turn to when they’re worried about economic doom,” notes CNN.

These trends have only gathered momentum this week and gained a new dynamic that is further propelling gold’s advance.

Data showing weakness in the dominant US services sector has emphasised the argument that economic growth is slowing. In this context, a second interest rate rise is seen as less likely in March – and some now say there should be at most one increase this year, if at all.  This has smashed the dollar, against which gold is a key hedge, and sent the precious metal to new three-month highs.

There is very little that appears to be standing in

Article source: http://www.theweek.co.uk/gold-price/61682/gold-price-hits-three-month-high-amid-market-volatility

Silver Prices On A Tear, Should Be Trading at $15.30

Silver Prices On A Tear, Should Be Trading at $15.30

Silver price are close to reaching our target of $14.90 as traders re-evaluate the prospect of more Fed rate hikes. I expect silver to reach $15.30 based on its correlation to gold and as long as gold prices trade at or above $1447.

From a technical and trading perspective I would expect to see a rise in the trend-defining level to the $14.14 low, and I imagine traders will use a pullback to the $14.50-30 range as an opportunity to add to their bullish exposure. On a break to the $14.14 level, the short-term trend will turn bearish and price may reach $14.

The Trigger

The latest trigger behind the rise in silver prices is the U.S. Non-Manufacturing index failing to meet expectations, printing 53.5 vs. the 55.1 expected. This may suggest that we are seeing a spillover of the soft manufacturing sector to the services sector, something which is spooking investors and causing them to not expect any further hikes in 2016. As of writing they only expect 14 bps of hikes in 2016, from 70 bps in December 2015 and I would expect this bearish sentiment to remain in place until traders receive stronger signs of the manufacturing sector stabilizing.

U.S. Jobless Claims are on tap today, and a Bloomberg news survey projects an outcome of 277K. Factory Orders are also

Article source: https://www.dailyfx.com/forex/technical/home/analysis/xag-usd/2016/02/04/Silver-Prices-On-A-Tear-Should-Be-Trading-at-15.30.html

Gold and Silver Market Morning: Feb-04-2016


– Posted Thursday, 4 February 2016 | | Disqus

Gold Today The New York gold price closed Wednesday at $1,142.10 up from $1,129.60 up $12.50. In Asia on Thursday, it held there ahead of Londons opening and then the LBMA set it at $1,146.25 up from $1,130.00 up $16.25 with the dollar index down at 96.66 down from 98.64 on Wednesday. The dollar was much weaker against the euro at $1.1180 up from $1.0919 against the euro. The gold price in the euro was set at 1,025.27 down from 1,034.89. Ahead of New Yorks opening, the gold price was trading at $1,146.5 and in the euro at 1,025.49. 

 

Silver Today The silver price in New York closed at $14.65 up 34 cents at Wednesdays close.  Ahead of New Yorks opening, the silver price stood at $14.76.

 

Gold (very short-term)

The gold price will consolidate with a much stronger bias, in New York today.    

 

Silver (very short-term)

The silver price will consolidate with a much stronger bias, in New York today.

 

Price Drivers

We have been talking about a restraint on the dollar for weeks now. The U.S. does not want a strong dollar is our theme. Having failed to break through the 100 level on the index, the advent of bad data from the ISM index falling to 53.5% from 55.8% in December and no doubt

Article source: http://news.goldseek.com/GoldForecaster/1454590769.php

Silver Prices: This Indicator Says Silver Prices Could Soar 572%

SilverAre Silver Prices About to Hit $100.00?

Since the beginning of the year, silver prices have been trending higher. In fact, the gray precious metal is one of only a few assets that are up in value. Be on the lookout, big gains could be ahead.

Before going into any details, please look at the chart below of the gold-to-silver ratio. At the core, this ratio tells us how many ounces of silver it takes to buy an ounce of gold. This ratio is usually used to value silver.

Gold-to-Silver Ratio Signaling Big Gains Ahead

If the gold-to-silver ratio is higher, it means silver prices are undervalued. If it’s lower, then the gray precious metal is overvalued.

Notice something interesting in the chart above? The ratio stands at a level that, over the past 20 years at least, has suggested silver prices are undervalued. Every time the ratio reaches 78–80, it starts to drop a few months later, then rests around 43.

Simple math question: what would the silver price be if the gold-to-silver ratio drops to 43? If we assume that gold prices remain the same, then silver prices would have to go to up to around $27.00 an ounce—an increase of more than 80% from where the precious metals prices currently sit.

Silver- Spot Price Chart

Chart courtesy of www.StockCharts.com

Mind you, that’s just over the last 20 years or so. If you look at the

Article source: http://www.profitconfidential.com/silver/silver-prices-this-indicator-says-silver-prices-could-soar-572-percent/

Silver Prices are Expected To Drift Higher

Silver prices did indeed bottom out as expected on Friday and yet these gains are not strong enough to warrant a rise in the trend-defining level.

Instead I stick to the January 22 low of $14 as the trend-defining level and see the trend as bullish above this mark. The next resistance level and target for bullish traders is the December 7 high of $14.58, a target silver should be able to reach so long as the correlation to the price of gold holds up.

According to gold prices, silver should be trading at $14.93 on gold remaining at or above $1123.

The bullish trend will most likely accelerate on a break to break today’s high of $14.34. The trend will turn bearish on a break to $14.00

Key Reports On Tap

A soft ISM reading may boost silver via a lower demand for the dollar (recession fears), while a stronger than expected PCE reading may soften silver as the demand for the Dollar increases (allows the Fed to proceed with its intended rate hikes).

While it is hard to know exactly how this will affect silver in the short-term, if the U.S. economy firms up and the Fed is allowed to hike rates in the months ahead, then I would expect silver to resume its long-term bearish trend. However, given the current price action

Article source: https://www.dailyfx.com/forex/technical/home/analysis/xag-usd/2016/02/01/Silver-Price-are-Expected-To-Drift-Higher-.html

Keeping An Eye On Gold & Silver Bullion Supply And Demand

Keeping An Eye On Gold Silver Bullion Supply And Demand by Clint Siegner, Money Metals Exchange

Gold  Silver Bullion Gold  Silver Bullion A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty.

Endeavor Silver, one of the largest primary silver mining companies, announced last week that it expects to reduce production of the white metal by roughly 30%. The company’s El Cubo mine is not profitable despite efforts to reduce costs. Endeavor plans to halt development and exploration at the mine and process accessible ore only. By year end, the mine will be placed on “care and maintenance.”

Steve St. Angelo of SRS Rocco Report reviewed the company’s third quarter 2015 financial reports, which revealed the all-in sustaining costs at El Cubo at $18.48 per ounce. There will need to be a significant recovery in silver prices before the mine can operate profitably. Investors should expect other miners to announce similar plans to taper production in the coming months.

COMEX Gold Stockpiles Drop 73% in a Single Day

Gold  Silver Bullion Gold  Silver<p>Article source: <a href=http://www.valuewalk.com/2016/02/keeping-an-eye-on-gold-silver-bullion-supply-and-demand/

Silver Prices Trade Higher On A Soft Dollar

Silver prices may have finally left the range of the last few days and appear to be heading for the December high of $14.58. This makes sense from a risk/reward ratio perspective and highlights mydaily outlook posts published over the last few days. I will remain bullish as long as the January 22 low of $14 holds as a support.

When and if silver prices breach the December high, I would expect a further bullish momentum, taking price to $14.90. This is being supported by the ever-increasing gold prices and my latest fair-value-estimate suggests that silver should be trading at $15.02 on gold prices trading at or above $1129.86.

Several key reports are also on tap today. First out is U.S. ADP, which is expected to print 193K, followed by the ISM Non-Manufacturing index which is expected to soften to 55.1 from 55.3. Strong reports may strengthen the Dollar and trigger lower silver prices, while softer readings may weaken gold and therefore boost silver. For a complete list of today’s economic events please see our calendar.

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Silver Prices | FXCM: XAG/USD

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Article source: https://www.dailyfx.com/forex/technical/home/analysis/xag-usd/2016/02/03/Silver-Prices-Trade-Higher-On-A-Soft-Dollar.html

Gold and Silver Market Morning: Feb-03-2016


– Posted Wednesday, 3 February 2016 | | Disqus

Gold Today The New York gold price closed Tuesday at $1,129.60 up from $1,129.20 up $0.60. In Asia on Wednesday, it slipped to $1,128.10 ahead of Londons opening and then the LBMA set it at $1,130.00 up from $1,123.60 up $6.40 with the dollar index down at 98.64 down from 98.91 on Tuesday. The euro was virtually unchanged at $1.0919 against the dollar. The gold price in the euro was set at 1,034.89 up from 1,029.13. Ahead of New Yorks opening, the gold price was trading at $1,128.05 and in the euro at 1,033.20. 

 

Silver Today The silver price in New York closed at $14.31 down 4 cents at Tuesdays close.  Ahead of New Yorks opening, the silver price stood at $14.40.

 

Gold (very short-term)

The gold price will consolidate with a stronger bias, in New York today.    

 

Silver (very short-term)

The silver price will consolidate with a stronger bias, in New York today.

 

Price Drivers

Tuesday saw another large purchase of 4.165 tonnes after Mondays huge 12.196 tonnes into the SPDR gold ETF and a 0.41 of a tonnes into the Gold Trust. The holdings of the SPDR gold ETF are now at 685.590 tonnes and at 166.86 tonnes in the Gold Trust. The large purchase was responsible for golds rise again yesterday and battled resistance

Article source: http://news.goldseek.com/GoldForecaster/1454504613.php

Gold price hits three-month high amid volatility

The gold price has been on the up of late and it took another lurch higher overnight to touch a three-month high of $1,130 an ounce.

This is the second post-November peak established this week and emphasises the positive trajectory for the precious metal, which jumped six per cent last month to record its biggest monthly advance in a year. The spot price remained high at $1,125 in London trading this morning, a level that some analysts have cited as a key market close ceiling that, if breached, could signal an even stronger rally.

Reasons for the rush back into gold are obvious enough, given the well-publicised headwinds for the global economy. It is benefitting from a rush to safe havens amid volatility on stock markets, itself triggered by a slowdown in China and a meltdown in wider commodities that could be indicative of slowing global demand.  

Helping matters yesterday was the latest evidence that interest rate projections in the US are likely to prove overly optimistic. Some reckon their fate is the key determinant for gold as increases have the duel effect of boosting rival income-generating assets and inflating the dollar, against which gold is a key hedge and negatively correlated.

The Federal Reserve issued a broadly dovish – albeit inconclusive – statement last week indicating that it would assess economic data before deciding whether to proceed with a planned second hike in March. A raft of figures yesterday showed only bad news, including a fourth month of decline for manufacturing

Article source: http://www.theweek.co.uk/gold-price/61682/gold-price-hits-three-month-high-amid-volatility