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

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
SWOT Analysis: Upside Momentum for Gold Looks Strong in Second Half of the Year


 -- Published: Monday, 29 June 2015 | Print  | Disqus 

By Frank Holmes

Strengths

  • The Shanghai Gold Exchange is expected to receive approval from its central bank for a yuan-denominated gold fix soon, according to Reuters.  If the yuan fix takes off, China could draw buyers in the mainland and foreign suppliers to pay the local price, making the London fix less relevant in the world’s biggest bullion market. Additionally, the Shanghai Gold Exchange is in discussions with the CME Group about listing each other’s contracts on their respective exchanges, according to the exchange’s vice-president.
  • Trading volume on the Shanghai Gold Exchange for the benchmark contract soared this week to the highest on record, according to data on Bloomberg, going back to 2002.  The Shanghai Composite Index dropped more than 10 percent in the last two trading days of this week and is down nearly 20 percent from its highs.
  • United States Mint bullion sales have been further propelled higher this week. With several days more remaining in June, gold sales at 59,000 ounces are the highest since January and silver sales at 2.5 million ounces are the strongest since April.

Weaknesses

  • After gold rallied to above $1,200 last week on the softer Fed outlook on interest rates, gold prices fell for the first four trading sessions and only moved slightly higher on Friday.  
  • South Africa’s Chamber of Mines said it gave workers a 10 percent pay raise in 2013 when the actual increase only amounted to 8 percent, according to the National Union of Mineworkers General Secretary. The “mistake” has eroded trust in the South African wage negotiations.
  • Midway Gold filed for bankruptcy protection after suspending mining activities at Pan Gold Mine in Nevada. The company listed assets of $82.5 million and debt of $55.9 million as of June 21 in Chapter 11 documents. The company could owe creditors as much as $500 million.

Opportunities

  • Standard Chartered announced bullion could rise to $1,300 per ounce by year end as the market begins to contemplate the impact of a Fed rate cycle that’s likely to be far more gradual and peak far earlier than normal tightening cycles. Furthermore, Credit Suisse said gold demand in Asia is likely to be more robust in Q3 and Q4 due to increased physical gold demand from Asia, central bank purchases, and declining supply that should offset the stronger dollar. Lastly, Barclays sees Q3 as bullion’s weakest, given rate hike expectations and a weak price floor. They see a mild recovery thereafter.
  • Incrementum AG published their ninth rendition of “In Gold we Trust 2015” this past week. The publication provides an encompassing analysis of the global gold market and its relationship to governmental monetary and debt policies around the world.  While we believe gold has a long-term role in a portfolio for diversification, we are now approaching what could be one of the most opportune times of the year to add gold and/or silver to your asset mix as July is historically a low point in the calendar year, in terms of prices.


click to enlarge

  • Gold demand in China may get a significant boost if the country’s stock rally fades. The Shanghai Composite Index has plunged 20 percent over the last couple of weeks, the fastest pace among global equity gauges and the most since 2008, amid concern valuations were unsustainable.  About $1.3 trillion was wiped off mainland Chinese equities last week, more than the value of Australia’s entire stock market. Also, Fidelity’s Ian Spreadbury recommended owning gold, silver, and physical cash saying that there is no liquidity left and the idea of efficient markets facilitating reliable price discovery is an anachronism. He said this is the result of high frequency trading, an ineffective post-crisis regulatory regime, and central banks that have commandeered sovereign debt markets.

Threats

  • A study by GMP Securities suggests the cost cutting programs entered into by most major and mid-tier gold mining companies may have largely gone as far as they can go. If metal prices don’t recover it could prove to be difficult to attain further growth in profit margins for the miners.
  • Goldman Sachs and Societe General fear that contagion may be a bigger issue than people anticipate should Greece exit the eurozone. They highlight that the damage resulting from a breaking of the integrity of the euro would not be fixed by monetary policy alone. The failure to keep Greece in the euro would demonstrate the limitations of the growth and fiscal arrangements of the current euro area policy framework, offer a precedent to other governments and their oppositions, and crystallize the convertibility risk on all euro area securities.
  • Sibanye Gold spoke out that the anticipated electricity price hikes, as much as 25 percent, by Eskom in South Africa will hit the mining industry very hard.  Sibanye may be forced to close five of the company’s 18 shafts, effecting likely around 8,000 direct and indirect jobs.  Undoubtedly, if such a tariff rate is put in force, all the miners in South Africa would be forced to make some difficult decisions regarding the operation of their mines.

http://www.usfunds.com/


| Digg This Article
 -- Published: Monday, 29 June 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 - 2017



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.