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

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

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

Ira Epstein's Metals Video 11 21 2017
By: Ira Epstein

Bitcoin, Bail Ins And Bullion
By: Mike Maloney

Tactics For The Gold Bull Era
By: Stewart Thomson

Dow Peaking? The Quick Guide to Diversifying Your Stock Profits
By: Jeff Clark

What History Says for Gold Stocks in 2018-2019
By: Jordan Roy-Byrne CMT, MFTA

 
Search

GoldSeek Web

 
SWOT Analysis: Is Gold Production Peaking?


 -- Published: Monday, 31 August 2015 | Print  | Disqus 

By Frank Holmes

Strengths

  • Platinum prices were off 0.14 percent this week, holding in as the best performer of the precious metals group. Gold bullion, though down for the week also saw a pickup in the net long position by the non-commercial, according to data released by the Commodity Futures Trading Commission (CFTC). 
  • Funds backed by gold saw the biggest inflows of assets in seven months on speculation that the U.S. Federal Reserve may hold off on raising interest rates. New York Fed Governor William Dudley said on Wednesday that the case for raising rates in September is increasingly doubtful after recent turmoil in global stock markets, particularly stemming from fears about weakened Chinese growth. Separately, Minneapolis Fed President Narayana Kocherlakota said he sees ways to lower interest rates further, citing asset-purchase tools.
  • According to France’s Economy Minister, the country plans to open new mines, including gold mines.  Rarely does France make the news concerning gold mining; perhaps this is a sign of a greater interest in hard assets versus currency reserves.

Weaknesses

  • Silver did not fare as well as gold, finishing the week down 4.79 percent. The net long position in silver only ticked up modestly while total known holdings in silver ETFs actually fell 0.14 percent.  Palladium was much weaker than platinum, down 2.50 percent and the net long position actually contracted this past week.  Perhaps the markets have seen a near-term peak in car sales.
  • Gold had the biggest weekly drop in a month after data showed that the U.S. economy grew more than previous estimates in the second quarter. Subsequent to the GDP release, traders priced in a 30 percent chance that the Fed will raise rates next month, up from 24 percent a few days prior.
  • De Beers is set to cut diamond prices by as much as 9 percent after production cuts failed to support demand for precious stones. DeBeers, along with other diamond producers, are under pressure to cut supply and lower prices as traders, cutters and polishers struggle to turn a profit amid a squeeze on credit and languishing jewelry sales.


Opportunities

  • According to Metals Focus, gold output will start declining as soon as next year and production will plunge 18 percent by the end of the decade. Global mine output surged 24 percent in a decade to a record 3,114 metric tons in 2014, as companies dug more to exploit a 12-year bull market in prices.


  • Expect more news next week that could impact gold as the annual retreat at Jackson Hole gets into full swing.  News stories going into the meeting have had a more accommodative slant to them with the recent enhanced market volatility that investors have had to contend with.
  • In a recent letter to clients, Ray Dalio, the head of Bridgewater, the world’s largest hedge fund, said that the likely path for the Federal Reserve is to embark on another round of quantitative easing instead of the expected interest rate hikes.

Threats

  • Mohamed El-Erian has come out with a defense as to why QE4 is not in the cards. First, he said the Fed is now set to normalize monetary policy, not venture deeper into unchartered territory. Second, unconventional policies haven’t proved as effective as expected in stimulating high and sustainable growth. Third, the origin of the financial market dislocation is outside the U.S. this time. Last, having exited the third round of easing in a relatively orderly fashion in October, the Fed would be hesitant to place itself in the same position again, not only for economic reasons but also because of the political risks involved.
  • RBC cut its gold forecast for the second half of 2015 to $1,125 per ounce from $1,288 per ounce, citing weakness from the expected Fed rate hike and the Chinese yuan. 
  • Macquarie says the gains in gold are unlikely to be sustained and investors should remain cautious until the Fed acts. The company cut its 2016 gold forecast to $1,163 per ounce from $1,363 per ounce.

| Digg This Article
 -- Published: Monday, 31 August 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.