Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Trade Wars, Tariffs and The Peg
By: Craig Hemke

Trump’s Backdoor Power Play to Rein In the Fed
By: Stefan Gleason

Gold: A New Trade War Weapon?
By: Stewart Thomson

Lehman - Ten Years Later
By: Andy Sutton and Graham Mehl

There will be warnings!
By: Steven Saville

Is This Just the Calm Before the Storm?
By: Frank Holmes

Gold Bulls Have to Wait
By: Arkadiusz Sieron

Gold Resource Corporation’s Alta Gracia Project Returns 10.30 Meters Grading 1,052 g/t Silver
By: Gold Resource Corporation

Northern Vertex Declares Commercial Production at Moss Gold Mine
By: Northern Vertex Mining Corp.

Silver Is ‘Undervalued’ Relative to Stocks, Bonds, Gold
By: GoldCore

 
Search

GoldSeek Web

 
SWOT Analysis: Dovish Fed Sets Up Noticeable Opportunity for Buyers to Return to Gold Market


 -- Published: Monday, 23 March 2015 | Print  | Disqus 

By Frank Holmes

Strengths

  • Gold had a constructive rally in the back half of the week after the Federal Open Market Committee (FOMC) highlighted the weak inflationary pressures facing the economy and lowered its projections for interest-rate increases. Despite the Federal Reserve removing the “patient” language from its statement, investors feel we are further from a rate hike than previously anticipated.
  • Gold traders are the most bullish since the week ending January 2, according to a Bloomberg survey. This shift in sentiment is primarily the result of the dovish tone from the FOMC this week.
  • The U.S. dollar broke a four-week streak of positive gains this week. This pullback in the currency is a welcome sight for gold. However, the greenback remains considerably strong and is a headwind for gold.

Weaknesses

  • Despite ending the week with a positive gain, platinum remains the worst performing precious metal of the year. On Tuesday, platinum prices were at the lowest level since July 2009.
  • As of Monday, total holdings in gold-backed funds fell to 1,638.4 tonnes. Investors sold their holdings for each of the prior 14 days, making it the longest selling streak in over a year. Of course, as much of the selling was in anticipation of the Fed meeting, investors should feel more confident about returning to the market.
  • As negotiations near, the Association of Mineworkers and Construction Union stated it will have solidified its demands by the end of March. The union, which was behind South Africa’s longest mining strike last year, emphasized its pessimism regarding the upcoming negotiations.

Opportunities

  • Australia & New Zealand Banking Group Ltd. is predicting gold demand in Asia to double by 2030. The bank attributes the surge in demand to the increasing appetite of China and India for jewelry.
  • Since the fall in the net-long position is nearing recent bottoms over the past year, the Fed’s dovish read on the economy has set up a noticeable opportunity for buyers to return to the market, which should send gold higher.

  • China is set to allow more participants in the gold market to import the precious metal in an effort to expand the country’s gold trade. China has already taken crucial steps to liberalize its gold market as the country began offering foreigners access to RMB-denominated gold contracts in Shanghai’s free-trade zone last year.

Threats

  • The Reserve Bank of India is restricting banks from selling gold that is imported on a consignment basis to jewelers on an outright basis. The move is set to deter gold imports further.
  • The dollar remains elevated around its multi-year highs and further gains could depress gold and related-equity shares even further.
  • Geopolitical tensions, particularly in Eastern Europe, have calmed for the time being. Consequentially, the fear premium attached to gold prices stands to ease as tensions moderate.

http://www.usfunds.com/


| Digg This Article
 -- Published: Monday, 23 March 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.