In the same category

Gold Prices Rise After GLD Shrinks Fastest Since 2013 Crash, Comex Specs Back to March

IMG Auteur
 
Published : October 24th, 2016
521 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire
GOLD PRICES rose above $1270 per ounce Monday lunchtime in London, extending last week's first gain in four as the Dollar retreated from a fresh 8-month high on the FX market, write Steffen Grosshauser and Adrian Ash at BullionVault.
This week brings key third quarter US GDP data, seen by many analysts as crucial to a Federal Reserve rate hike in December following next month's presidential election. 
World stock markets ticked higher, as did major government bond prices, while crude oil fell back towards $50 per barrel.
Silver bullion outpaced the 0.4% rise in gold prices to touch near 2-week highs at $17.80 per ounce.
Friday saw bullion holdings at the world's largest gold-backed exchange-traded fund vehicle – the SPDR Gold Trust (NYSEArca:GLD) – shrink 1.7% to 953.56 tonnes as shareholders liquidated stock.
Only the second daily outflow from the GLD so far this month, that 16.6 tonne redemption was the heaviest drop in that ETF since gold's worst price crash in three decades of April 2013.
Speculative traders in Comex gold futures and options meantime cut their bullish bets, net of bearish bets as a group, to the lowest size since March last week according to data released by regulator the CFTC late Friday.
24hGold - Gold Prices Rise Aft...
The 'Managed Money' category cut its net bullish position for the third time running in the week-ending last Tuesday, reducing it to the equivalent of 426 tonnes.
'Managed Money' accounts ended 2015 with net bearish bets overall, equivalent to 75 tonnes' worth of derivatives contracts, as prices hit new 6-year lows at $1045 per ounce.
Their 'net spec long' position then hit a record high at 892 tonnes in July, just as gold prices peaked at $1375 per ounce following the UK's Brexit referendum shock.
Comex silver speculators meantime cut their betting to April levels, but the giant iShares Silver ETF (NYSEArca:SLV) needed near-record quantities of bullion backing, totalling some 11,395 tonnes.
"People are watching the US elections and [economic] data is on the positive side, favourable for a rate hike," reckons Hareesh V, research head at India brokerage Geofin Comtrade Ltd.
"As long as prices stay below the $1300 mark, the downward trend might continue. Prices need to break convincingly above the $1300 level for a strong upside movement."
This week brings third-quarter GDP growth figures from the United States, Eurozone and UK.
Today sees four US Fed policymakers gives speeches.
Non-voting member John Williams, president of the San Francisco Fed, said Friday that " this year would be good" for a rate rise to follow the December 2015 move after 7 years at zero, with further "gradual" increases in 2017.
"The Fed is going to increase the rates by a little bit but not excessively," counters hedge fund legend Mark Mobius of the Templeton Emerging Markets Fund, "and there is no guarantee that a rise in interest rates will put people off.
"A lot will depend on the real rates," says Mobius, forecasting a 15% rise in gold prices before the end of next year.
You can receive your first gram of Gold free by opening an account with Bullion Vault : Click here.
Data and Statistics for these countries : Georgia | India | All
Gold and Silver Prices for these countries : Georgia | India | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
The London Gold Market Report is the daily market review from BullionVault, the world's largest physical gold and silver market for private investors. A full member of professional trade body the London Bullion Market Association, BullionVault publishes the LGMR every day that the market is open, bringing you insider comment and analysis from the very center of the world's $240 billion-a-day physical gold trade, and putting the latest gold price action into its wider financial and economic context. Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.