Tag: gold futures

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report July 29th through August 2nd

Fasten your seat belts traders, for this upcoming week is about as full as can be with data in the US and across the pond. We begin the week with Pending Home Sales in the US and tonight Japan will report Industrial Production figures. Tuesday provides German CPI and Consumer Confidence number in the US. Traders will have to be up early to see what will likely be more disappointing unemployment figures in Europe, followed by the ADP Employment Report and the US GDP before the opening bell. A few hours after stocks open, we should breeze through the Chicago PMI report in anticipation of this month’s FOMC announcement and Interest Rate Decision where the FED is not expected to make any policy changes. Early on Thursday morning, we hear from the BOE and the ECB regarding their Interest Rates, followed by Weekly Jobless Claims in America, and finally ISM figures after the open. To close out the week, we will see Non Farm Payrolls followed by a speech from a FED Member. And try not to forget that we are still reporting earnings in the United States! Continue reading "Gold Chart of The Week" →

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (July 22nd through July 31st)

Ben Bernanke remained in the spotlight last week when his testimony reminded global markets that FED tapering would not begin until unemployment is below 6.5% and inflation is moving above 2%. That was the third or fourth reminder of the outcome of the FOMC meeting that took place a few weeks ago. So just in case anyone forgot the message the first two times, he was sure to get the news to them from another platform.

The reminder kept most commodities nicely underpinned and  provided decent intraday volatility to trade throughout the week. Continue reading "Gold Chart of The Week" →

Physical Gold vs. Paper Gold: The Ultimate Disconnect

Posted on by The INO.com Team

By Bud Conrad, Chief Economist

How can we explain gold dropping into the $1,300 level in less than a week?

Here are some of the factors:

  • George Soros cut his fund holdings in the biggest gold ETF by 55% in the fourth quarter of 2012.
  • He was not alone: the gold holdings of GLD have contracted all year, down about 12.2% at present.
  • On April 9, the FOMC minutes were leaked a day early and revealed that some members were discussing slowing the Fed $85 billion per month buying of Treasuries and MBS. If the money stimulus might not last as long as thought before, the "printing" may not cause as much dollar debasement.
  • On April 10, Goldman Sachs warned that gold could go lower and lowered its target price. It even recommended getting out of gold.
  • COT Reports showed a decrease in the bullishness of large speculators this year (much more on this technical point below).
  • The lackluster price movement since September 2011 fatigued some speculators and trend followers.
  • Cyprus was rumored to need to sell some 400 million euros' worth of its gold to cover its bank bailouts. While small at only about 350,000 ounces, there was a fear that other weak European countries with too much debt and sizable gold holdings could be forced into the same action. Cyprus officials have denied the sale, so the question is still in debate, even though the market has already moved. Doug Casey believes that if weak European countries were forced to sell, the gold would mostly be absorbed by China and other sovereign Asian buyers, rather than flood the physical markets.

My opinion, looking at the list of items above, is that they are not big enough by themselves to have created such a large disruption in the gold market. Continue reading "Physical Gold vs. Paper Gold: The Ultimate Disconnect" →

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (April 22nd through April 26th)

Without any big news to play off of, most markets begin the week a bit flat. Traders this morning are trying to decide whether the only standout rally in the Gold is here to stay, or if it is an early stop hunt to begin the week. We won’t soon forget the Sunday overnight in the Metals last week when Gold continued a drop that we have not seen in over thirty years. So who can blame anyone for being once bitten, twice shy?

A scan across the board does not reveal much except for a majority of the market sectors making an effort to retrace the price action we experienced a week ago. Korea has been rather silent, the tragedy in Boston is seemingly on the mend, and the parade of FED Member interviews is slowly coming to a close. In the absence of these headlines, we will likely go back to trading the actual reports that are scheduled this week. Continue reading "Gold Chart of The Week" →

Friday Poll: Has Gold lost its luster?

Posted on by The INO.com Team

gold barsGold futures fell to a six-month low after Federal Reserve Chairman Bernanke says the U.S. economy is recovering, easing pressure for more stimulus measures by the U.S. Government.

Another blow to Gold was the announcement that Billionaire investors George Soros and Louis Moore Bacon cut their stakes in exchange-traded products backed by gold last quarter as futures dropped the most in more than eight years.

With these big investors bailing out on Gold we wanted to know.....

What will you do with your Gold positions today?

View Results

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Please take a moment to vote on the poll and leave a comment with thoughts on Gold.

Every Success,
Jeremy